Bitcoin Core (BTC) development company Blockstream board member Reid Hoffman apologized recently for funding a Russian false flag bot campaign during a tight 2017 United States Senate special election in Alabama. Social media sites were used to help influence the outcome in favor of Democrat Doug Jones, using a technique known as a false flag operation, insisting opponent Republican Roy Moore was supported by Russians.

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Blockstream Board Member Reid Hoffman Apologizes for Russian Bot False Flag Campaign

“I am embarrassed by my failure to track AET — the organization I did support — more diligently as it made its own decisions to perhaps fund projects that I would reject,” Hoffman insisted after a New York Times investigation publicized his alleged funding involvement.

Many in the cryptocurrency ecosystem, who have been warning of Blockstream’s alleged use of social media manipulation tactics, are now pointing to circumstantial evidence showing high profile people associated with Blockstream unequivocally guilty of funding bot operations against perceived enemies.

The organization, American Engagement Technologies (AET), in turn funded New Knowledge, described as a “a small cyber security firm.” It created thousands of Russian-looking fake accounts which began following Republican senate candidate Moore. In US electoral politics, establishment politicos and partisans were still smarting from the 2016 presidential victory of Donald Trump, claiming the Russian government famously colluded to influence votes away from rival Hillary Clinton. To then saddle Moore, who Trump endorsed, with similar suspicions could shift the race’s outcome. And it might very well have.

The US Senate is a deliberative federal lawmaking body relatively unique among world governments. Part of a bicameral legislature, with the House of Representatives chosen by districts within a given state, the Senate is a state-wide federal seat. The difference is critical for American politics, as House seats are plentiful by comparison, 435 members to the Senate’s 100 (two from every state). House members serve two-year terms, Senators six year terms. The Senate is also the advise and consent chamber, confirming essential Executive cabinet appointees and Supreme Court justices. One senator can have enormous impact.

An Elaborate False Flag Operation

As the New York Times revealed among AET’s leaked internal reports, the company essentially told on itself. “We orchestrated an elaborate ‘false flag,’ operation,” AET explained, “that planted the idea that the Moore campaign was amplified on social media by a Russian botnet.”

Hoffman was reportedly by far one of AET’s largest backers, contributing many hundreds of thousands of dollars to their efforts. The Times characterizes his participation as part of cabal bent upon aggressive campaign tactics, something Hoffman also acknowledges in his published apology.



Sandwiched deep inside Hoffman’s categorical denials of any overt involvement, he admitted, “I proudly support aggressive campaigning — both on the ground and digitally — and that is why we’ve funded organizations that help expand civic engagement.”

Rare Look Inside Social Media Manipulation

The time honored tradition of interested public personalities participating in elaborate plausible deniability false flags, and assorted skulduggery, is rarely cleanly exposed. The ideological donor shovels bundles of cash to an umbrella organization seemingly on the up-and-up, which in turn spreads out rewards to much smaller groups who provide a fat cushion between their use of otherwise questionable tactics and their filthy lucre’s origin.

Such groups can act with impunity, secure in their streams of financial support, and the wealthy personality or mainstream organization is effectively insulated from blame. If ties are eventually discovered by enterprising foes or investigations, the donor and large organization are then able to claim unfortunate and incidental involvement, sure to do better next time.

Reid Hoffman is best known as the founder of LinkedIn, and as of publication remains on the board of Blockstream, a Bitcoin Core (BTC) development business. Blockstream employees are among the most active social media users, defending controversial BTC road maps and angrily shouting down dissenters. Hoffman’s investment in Blockstream began in 2014, and he appears to have played a pivotal role in Blockstream’s direction ever since.

Dismissed as Circumstantial, Fanciful Conspiracies

And from the beginning of his tenure, Blockstream has been accused of eerily similar tactics as those of the Alabama affair, dividing a once very united Bitcoin community. Many observers also believe the ecosystem has never recovered. Censorship, sock puppet accounts, strange affiliations brought to light, alleging Blockstream involvement, were often dismissed as fanciful conspiracy theories, mere fractions of unconnected evidence.

Back in November of last year, in fact, CoinSpice.io was alerted to evidence a “Blockstream employee Allen Piscitello, known as AlpacaSW, revealed himself as a leader of the supposed grassroots movement, user activated soft fork (UASF). UASF was a very active in the contentious year of 2017 when the Bitcoin Core (BTC) community was splitting. Piscitello is an employee of BTC dedicated company, Blockstream, a fact unknown until just recently.”

Piscitello employed schemes reminiscent of those outlined above in the New York Times investigation regarding Russian bots. A grassroots movement arose from nowhere to defend against an unpopular cause, and proceeded to manipulate and push public opinion in a Blockstream-desired direction. About a year ago, a Reddit post also surfaced, detailing what appears to be a familiar sounding false flag campaign against Bitcoin Cash (BCH).

BCH is a current top-five crypto created summer of 2017 after a contentious hard fork over what became known as the scaling debate. Its proponents were targeted, according to the post. “The bots seemed to be pushing people to buy Bitcoin Cash in such a blatant way that it even left a bad taste in the mouths of Bitcoin Cash supporters,” the post insisted. The Redditor’s research concluded very possible links to Blockstream and BTC supporters hoping to catch the attention of Reddit company administrators by violating its policies, in an effort to censor a popular subreddit where BCH enthusiasts gathered.

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