Geopolitics

ARABICA - A Daily Shot Of What the Arab World is Saying/Hearing/Sharing

ARABICA - A Daily Shot Of What the Arab World is Saying/Hearing/Sharing

A R A B I C A ارابيكا

By Kristen Gillespie


SYRIAN DIPLOMACY
Syria is expected to respond to an Arab League proposal to end the country's crisis, Al Jazeera reported. The Syrian opposition maintains that the regime is stalling for time and has no intention of reforming -- and called on the Arab League to suspend Syria's membership in the League. The Syrian National Council said in a statement that the government has responded to Arab League efforts to mediate by "stepping up the repression." The opposition also called on the League to recognize the National Assembly as the legitimate representative of the Syrian people.

SYRIAN MEDIA
News website Elaph.com looks at the Syrian official media and concludes that it "lacks professionalism," but remains a vital weapon in the propaganda war. Syrian intelligence agencies run the official media, says Syrian journliast Iyad Shabarjee, using "the lowest standards of professionalism."

EGYPTIAN ENCOUNTER
The chief of staff of Egypt's armed forces met with Coptic Christian clergymen to emphasize the goal of civilian democracy without distinction between Muslims and Christians. Bishop Marcus Shubra al-Khaimeh said after the meeting that they discussed recent sectarian riots and lifting laws that ban Christians from building and repairing churches as well as a law to prevent discrimination against Christians, key demands by Coptic leaders.

YEMENI PROTESTS
Protests have been ongoing in the south Yemeni city of Aden since February to demand the resignation of President Ali Abdullah Saleh. Activists are mobilizing young revolutionaries to clean the streets, which are piled with dust, rocks, garbage and even pieces of the sidewalks. Street cleaners have not cleaned the protest areas, with residents blaming the government for imposing collective punishment.

LIBYAN PROTESTS
Fighters representing Libya's National Transitional Council clashed for three hours near a hospital in Tripoli "in what is believed to be the largest confrontations between the rebels since the war broke out," CNN Arabic reported. Machine guns and anti-aircraft guns were used, with casualties not yet reported. Medical sources from the hospital said some of the fighters appear to be drunk. The battalion is responsible for securing the area around the hospital. "We are working to reorganize the army – when we have a great and powerful army, we will be secure," said Colonel Ahmed Bani.

November 3, 2011

photo credit: illustir

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Economy

Air Next: How A Crypto Scam Collapsed On A Single Spelling Mistake

It is today a proven fraud, nailed by the French stock market watchdog: Air Next resorted to a full range of dubious practices to raise money for a blockchain-powered e-commerce app. But the simplest of errors exposed the scam and limited the damage to investors. A cautionary tale for the crypto economy.

Sky is the crypto limit

Laurence Boisseau

PARIS — Air Next promised to use blockchain technology to revolutionize passenger transport. Should we have read something into its name? In fact, the company was talking a lot of hot air from the start. Air Next turned out to be a scam, with a fake website, false identities, fake criminal records, counterfeited bank certificates, aggressive marketing … real crooks. Thirty-five employees recruited over the summer ranked among its victims, not to mention the few investors who put money in the business.

Maud (not her real name) had always dreamed of working in a start-up. In July, she spotted an ad on Linkedin and was interviewed by videoconference — hardly unusual in the era of COVID and teleworking. She was hired very quickly and signed a permanent work contract. She resigned from her old job, happy to get started on a new adventure.


Others like Maud fell for the bait. At least ten senior managers, coming from major airlines, airports, large French and American corporations, a former police officer … all firmly believed in this project. Some quit their jobs to join; some French expats even made their way back to France.

Share capital of one billion 

The story began last February, when Air Next registered with the Paris Commercial Court. The new company stated it was developing an application that would allow the purchase of airline tickets by using cryptocurrency, at unbeatable prices and with an automatic guarantee in case of cancellation or delay, via a "smart contract" system (a computer protocol that facilitates, verifies and oversees the handling of a contract).

The firm declared a share capital of one billion euros, with offices under construction at 50, Avenue des Champs Elysées, and a president, Philippe Vincent ... which was probably a usurped identity.

Last summer, Air Next started recruiting. The company also wanted to raise money to have the assets on hand to allow passenger compensation. It organized a fundraiser using an ICO, or "Initial Coin Offering", via the issuance of digital tokens, transacted in cryptocurrencies through the blockchain.

While nothing obliged him to do so, the company owner went as far as setting up a file with the AMF, France's stock market regulator which oversees this type of transaction. Seeking the market regulator stamp is optional, but when issued, it gives guarantees to those buying tokens.

screenshot of the typo that revealed the Air Next scam

The infamous typo that brought the Air Next scam down

compta online

Raising Initial Coin Offering 

Then, on Sept. 30, the AMF issued an alert, by way of a press release, on the risks of fraud associated with the ICO, as it suspected some documents to be forgeries. A few hours before that, Air Next had just brought forward by several days the date of its tokens pre-sale.

For employees of the new company, it was a brutal wake-up call. They quickly understood that they had been duped, that they'd bet on the proverbial house of cards. On the investor side, the CEO didn't get beyond an initial fundraising of 150,000 euros. He was hoping to raise millions, but despite his failure, he didn't lose confidence. Challenged by one of his employees on Telegram, he admitted that "many documents provided were false", that "an error cost the life of this project."

What was the "error" he was referring to? A typo in the name of the would-be bank backing the startup. A very small one, at the bottom of the page of the false bank certificate, where the name "Edmond de Rothschild" is misspelled "Edemond".

Finding culprits 

Before the AMF's public alert, websites specializing in crypto-assets had already noted certain inconsistencies. The company had declared a share capital of 1 billion euros, which is an enormous amount. Air Next's CEO also boasted about having discovered bitcoin at a time when only a few geeks knew about cryptocurrency.

Employees and investors filed a complaint. Failing to find the general manager, Julien Leclerc — which might also be a fake name — they started looking for other culprits. They believe that if the Paris Commercial Court hadn't registered the company, no one would have been defrauded.

Beyond the handful of victims, this case is a plea for the implementation of more secure procedures, in an increasingly digital world, particularly following the pandemic. The much touted ICO market is itself a victim, and may find it hard to recover.

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