Inside the scandal that rocked the crypto world

PLUS: Microsoft's ethical reckoning, the incels thriving in tech, and IBM's argumentative new AI. [View this email in your browser]( [logo]( [[WIRED Magazine]6.19.18]( At a lunch for anarcho-capitalists in 2010, Kathleen McCaffrey and Arthur Breitman met and fell in love. Kathleen was a sophomore at NYU and Arthur worked at Goldman Sachs. They’re autodidacts who spent their courtship doing things like trying to construct an ancient catapult. Soon their sights turned to Bitcoin. “It clearly offered a terrific way to hold value, and to move value from one place to another, without paying for the services of a trusted intermediary,” writes [Gideon Lewis-Kraus](. “But it was clunky and limited, and it eventually became apparent to Arthur and Kathleen ‘pedants by hobby,’ Kathleen likes to say—that Bitcoin’s underlying technology, the blockchain, was capable of doing a lot more.” In 2014, under a pseudonym, Arthur released a pair of white papers that predicted the rise of many, many sketchy new currencies as the technology evolved. He proposed a solution to the fragmentation: Tezos, a platform that would continuously assimilate all of crypto's best newfangled ideas. To gin up support and funds, the couple made an initial coin offering, essentially giving out tokens in exchange for cash (crypto or otherwise) that can later be used as a currency when the platform launches. To their surprise, Tezos was a hit—the largest ICO to date. “That surprise quickly turned to dismay, as the project descended into rancor, litigation, and even the odd rumor of an international assassination plot,” Lewis-Kraus writes. “What began in utopian ambition would blow up into one of the [crypto world’s biggest scandals]( Also: Microsoft's [ethical reckoning]( the incels [thriving in tech]( and IBM's [argumentative new AI](. Government Tech Microsoft's Ethical Reckoning Is Here By Nitasha Tiku Revelation of contract with US immigration agency sparks criticism amid family separations Ideas The Perverse Incentives That Help Incels Thrive in Tech By Ellen Pao Incels are well-represented at tech companies, raising challenging ethical issues for leaders who want to create a safe workspace. Face Off IBM’s Newest AI Can Probably Argue Better Than You By Tom Simonite IBM shows off an artificial intelligence program that can engage in a debate, possibly pointing the way to the future of talking machines. Cryptocurrency Inside the Crypto World's Biggest Scandal By Gideon Lewis-Kraus Arthur and Kathleen Breitman thought they held the secret to building a new decentralized utopia. On the way, they plunged into a new kind of hell. A crypto-tragedy in three acts. [WIRED Magazine Subscription] Get Wired Get unlimited access to an ad-free WIRED.com + a free YubiKey. Subscribe now. censorship The Unexpected Fallout of Iran's Telegram Ban By Lily Hay Newman In Iran, secure messaging app Telegram effectively is the internet. The government blocked it at the end of April. Climate Desk Analysis: Zillow Shows Rising Seas Threaten Over 300,000 Homes By Oliver Milman Climate change study predicts ‘staggering impact’ of swelling oceans on coastal communities within next 30 years. [University of Cambridge] Facebook The Man Who Saw the Dangers of Cambridge Analytica Years Ago By Issie Lapowsky Researchers at the Psychometrics Centre knew better than most how Facebook data can be manipulated, but investigations and suspensions have halted their work. Space Trump Hasn't Signed a Space Force Into Being—Yet By Megan Molteni A brand-new sixth military branch lacks political support. Deals Discounted Apple Gear, and 6 Other Tech Deals of the Week By Wired Staff Apple Watch, iPad Pro, Macs, Beats, and more are on sale this week! [WIRED Magazine]( [Facebook]( [Twitter]( [Pinterest]( [Youtube]( [Instagram]( This e-mail was sent to you by WIRED. To ensure delivery to your inbox (not bulk or junk folders), please add our e-mail address, [wired@newsletters.wired.com]( to your address book. View our [Privacy Policy]( [Unsubscribe]( Copyright © Condé Nast 2018. One World Trade Center, New York, NY 10007. All rights reserved.