Malawi Controls Deadliest Cholera Outbreak in History

Malawi is emerging victorious in its battle against the deadliest cholera outbreak in the country’s history, which has killed nearly 2,000 people since its onset in March of last year. Health authorities say the country has seen a steady decline in the death rate, with no new cases or hospitalizations for the past two weeks.

A cholera report, which Malawi’s health ministry released Sunday, shows that the outbreak has been fully controlled in 21 districts. These include Chitipa, Dowa, Kasungu, Likoma, Mzimba South, Mzimba North, Mwanza, Nkhata Bay, Ntchisi, Phalombe and Lilongwe, which reported most of the cases.

Minister of Health Khumbize Kandodo Chiponda said in a statement that a few areas are still reporting cases. These areas include Balaka, Blantyre, Chikwawa, Machinga, Nsanje, Ntcheu, Salima and Zomba.

George Mbotwa, spokesperson of the health office in Nsanje district, said the district is recording an average of one or two cases per day, but that number is lower than the average of about 30 daily cases during the peak of the outbreak.

“We have continued to record cases because about 50 percent of Nsanje is bordered by Mozambique. And these cases are coming from across the borders,” he said. “We still have some local transmission but very minimal. And this is coming in because the adoption of hygiene behavior has been very slow.”

Mbotwa said the cross-border cases largely happen because most Mozambican nationals stay away from their country’s health facilities and seek medical assistance at Malawian hospitals.

He said, however, that efforts are being made to contain the cross-border cholera infections.

“We have done coordination meetings with Mozambican officials recently. … That’s the only activity that we have done but we find it very important because we are able to share prevention measures that we are implementing as countries,” Mbotwa said.

Malawi registered the first cholera case in March of last year.

Statistics from the Public Health Institute of Malawi show that the country has recorded 58,870 cumulative confirmed cases and 1,761 deaths.

Malawi, however, has now seen a steady decline in the death rate, with no new cases or hospitalizations in most districts for the past two weeks.

Health authorities attribute the success story to various anti-cholera interventions, including the nationwide vaccination campaign the government and World Health Organization rolled out in May of last year.

Also this past February, President Lazarus Chakwera launched a national campaign against cholera which saw authorities ban the sale of already cooked foods in open places.

Health experts, however, have warned Malawians against relaxing the prevention measures.

“We should remember that we have had cholera cases throughout dry season. Which should be a reason that we can have cholera cases any time not only during the rainy season. Therefore, we encourage Malawians to continue observing prevention measures,” said George Jobe, executive director for the Malawi Health Equity Network.

Cholera is an acute diarrheal infection caused by ingesting food or water contaminated with bacteria. The disease affects both children and adults and, if untreated, can kill within hours.

The health ministry has advised people with signs and symptoms of cholera to promptly go to the nearest treatment unit. 

Submarine Exploring Titanic Wreck Missing, Search Underway

A submarine on a tourism expedition to explore the wreckage of the Titanic has gone missing off the coast of southeastern Canada, according to the private company that operates the vessel.

OceanGate Expeditions said in a brief statement on Monday that it was “mobilizing all options” to rescue those on board the vessel. It was not immediately clear how many people were missing.

The U.S. Coast Guard did not immediately respond to requests for comment. Media reports said the Coast Guard has launched search-and-rescue operations.

“We are deeply thankful for the extensive assistance we have received from several government agencies and deep sea companies in our efforts to reestablish contact with the submersible,” OceanGate said in a statement.

The company is currently operating its fifth Titanic “mission” of 2023, according to its website, which was scheduled to start last week and finish on Thursday.

The expedition, which costs $250,000 per person, starts in St. John’s, Newfoundland, before heading out approximately 400 miles into the Atlantic to the wreckage site, according to OceanGate’s website.

In order to visit the wreck, passengers climb inside Titan, a five-person submersible, which takes about two hours to descend to the Titanic.

The British passenger ship famously sunk in 1912 on its maiden voyage after striking an iceberg, killing more than 1,500 people. The story has been immortalized in non-fiction and fiction books as well as the 1997 blockbuster movie “Titanic.”

 

Paris Air Show Back With Climate, Defense in Focus

Military and civilian aircraft streaked across the sky as the Paris Air Show returned Monday after a four-year COVID-induced hiatus, with a big crowd including Ukrainian military officials and the French president.

Organizers have billed the biennial event as the “recovery airshow” after the coronavirus ravaged the sector and the event was cancelled in 2021.

This year’s airshow has a new focus on defense following Russia’s invasion of Ukraine, along with the industry’s efforts to reduce its carbon footprint, with French President Emmanuel Macron arriving in a helicopter partly using sustainable aviation fuel (SAF).

Huge traffic jams around Le Bourget airport outside Paris were testament to the interest in this year’s show, as aircraft makers field hundreds of orders and airlines brace for a near-record number of passengers this year.

The Ukraine conflict has also prompted countries to step up military spending, which could benefit aerospace defense firms.

While Russia has been excluded from the event, Ukrainian military officials toured the huge exhibition space at Paris-Le Bourget airport, some taking photos of missiles on display.

Le Bourget offers a forum to announce deals with some 2,500 firms lining up to show off their latest planes, drones, helicopters and prototypes such as flying taxis.

Airbus chief executive Guillaume Faury, who heads France’s aerospace industry association GIFAS, called it “the return of the good old times of the excitement of the show.”

Macron was welcomed as he opened the event with an aerial display including Airbus’ latest A321 XLR airliner, civilian and military helicopters and a jet fighter.

Businesspeople and uniformed military visitors from around the world watched the action or headed into the guarded private spaces of the major firms’ stands.

With 125,000 square meters of exhibition space — the equivalent of nearly 18 soccer pitches — around 320,000 visitors are expected during the week-long event.

Big deals

Along with the Farnborough airshow in England, which takes place in even numbered years, Le Bourget is a key sales event for the civil and defense industries.

Airbus and rival Boeing compete fiercely in announcing orders for aircraft running into the billions of dollars.

Both industry heavyweights are also battling to solidify supply chains as they increase production to meet growing demand.

At least 158 planes, helicopters and drones are on display, from the latest long-haul commercial jets to the F-35, a U.S. stealth fighter.

The United States has a strong presence with 425 exhibitors, bolstered by renewed interest in military equipment in the aftermath of the Ukraine war.

Firms from 46 other nations are present.

China, which lifted COVID restrictions only at the beginning of this year, is also represented.

However, Beijing is not displaying its first homegrown medium-haul passenger jet, the C919, built to compete with the Airbus A320neo and Boeing 737 MAX.

Flying taxis

The airshow also hopes to open a window into the future as projects for flying taxis and other vertical takeoff aircraft abound.

Several prototypes will be on display as part of a “Paris Air Mobility” exhibition to showcase the latest innovations that developers hope will change how people travel.

Engine maker Safran announced early Monday that it would open four production lines in France and Britain making electric motors for small planes.

For his part, Macron arrived aboard Airbus’ latest helicopter, the H160, in a flight fueled with 30% SAF before visiting the European group’s stand laying out its net-zero-by-2050 plan.

Macron had on Friday announced $2.2 billion to help develop technologies to reduce aircraft emissions.

Air travel accounts for nearly 3% percent of global CO2 emissions but serves only a small minority of the world population.

With the industry targeting net zero emissions by mid-century, firms are turbocharging efforts to achieve it.

The initial focus is on SAF, made from sources such as municipal waste, leftovers from the agricultural and forestry industry, crops and plants, and even hydrogen.

But companies are also working to develop battery- and hydrogen-powered aircraft.

Amazon, Marriott, Other Companies Vow to Hire Thousands of Refugees in Europe

Multinational companies — including Amazon, Marriott and Hilton — pledged Monday to hire more than 13,000 refugees, including Ukrainian women who have fled the war with Russia, over the next three years in Europe.

Just ahead of World Refugee Day on Tuesday, more than 40 corporations say they will hire, connect to work, or train 250,000 refugees, with 13,680 of them getting jobs directly in those companies.

“Every number is a story of an individual family who left everything, seeking safety, seeking protection and wanting to be able to rebuild as quickly as possible,” said Kelly Clements, United Nations deputy high commissioner for refugees. “So the commitments that businesses are going to make on Monday are absolutely essential.”

She said 110 million people have been displaced worldwide, with an estimated 12 million from Ukraine, nearly half of whom are living in Europe after the continent’s largest movement of refugees since World War II.

The hiring push in Europe was organized by the Tent Partnership for Refugees, a nonprofit founded by Chobani CEO Hamdi Ulukaya that connects businesses and refugees, and is being unveiled at a gathering in Paris. The group’s first summit in the U.S. last year led to commitments to hire 22,725 refugees.

In the new round, Amazon leads the pack, vowing to hire at least 5,000 refugees over the next three years in Europe, followed by Marriott and Hilton with 1,500 each, Starbucks and ISS with 1,000 each, and smaller commitments from brands such as Adidas, Starbucks, L’Oreal, PepsiCo and Hyatt.

“This is good for us as a company because the opportunity to add diversity to our workforce will continue to make us a stronger company,” said Ofori Agboka, Amazon vice president overseeing human resources. “With diversity brings innovation, creativity, different insights.”

He said the vast majority of jobs will be hourly roles at fulfillment and storage centers and in transport and delivery.

Amazon announced 27,000 job cuts earlier this year, part of a wave of layoffs after tech companies ramped up hiring during the COVID-19 pandemic. Those layoffs primarily affected salaried office jobs, Agboka said.

Daria Sedihi-Volchenko fled Kyiv last year and now works in Warsaw, Poland, as a senior program manager for an Amazon Web Services program providing free tech training for Ukrainians. She says about 40% of those in the program have no tech background.

“I went through the same way as many of our learners … are going through,” she said. “I had to learn, and I took a commitment on my interview. I said that ‘OK, if we can agree and I can start working for you, I promise to learn Polish and I promise to learn technical skills.'”

A year ago, Sedihi-Volchenko woke up to explosions from Russia’s invasion.

“I was terrified. I was so scared for Ukraine, for the nation, for the future, for my own life,” she said. “But also that was a shocking moment when I understood that everything in my life is changing.”

She began living in basements but left as Russian forces approached Kyiv. She drove 40 hours to reach Moldova, thankful that she “didn’t drive on a single land mine and nobody shot into my car.”

She went to Poland to find work, embarking on an IT path after working as a project manager for government ministries and as an economist in Ukraine.

Companies are hoping refugees can fill staffing needs after the economy bounced back from the pandemic. In Europe, unemployment is at its lowest since the euro currency was introduced in 1999.

“We’re seeing record levels of demand for our properties across many markets here in Europe,” Marriott International CEO Anthony Capuano said. “And so we are hiring aggressively to make sure we can accommodate our guests as demand ramps up.”

Marriott’s jobs will largely be hourly positions such as housekeepers, kitchen staff and front desk attendants.

European nations have welcomed Ukrainians, and while Clements applauded opening schools, workplaces and other opportunities to them, she said the same should be offered to others fleeing conflict and crises in places like Syria, Sudan and Afghanistan.

Sedihi-Volchenko knows the challenges ahead for refugees, even as some companies offer help with language skills, counseling and training. Job listings can be difficult to decipher, and like her, they may have difficulty securing a stable internet connection or work clothes.

“It’s important to give a refugee just time to learn the language, but the person can start working because if you bring experience with IT systems or finance or project management or any other area, naturally, you understand, it’s not so much about the language. You understand the flow of work,” she said.

She said 110 million people have been displaced worldwide, with an estimated 12 million from Ukraine, nearly half of whom are living in Europe after the continent’s largest movement of refugees since World War II.

A year ago, Sedihi-Volchenko woke up to explosions from Russia’s invasion.

Netherlands Soon to Announce Controls on IT Exports to China

The Dutch government is soon to join the United States and Japan in rolling out new semiconductor export control measures aimed at keeping sensitive technology away from China due to concern for potential misuse, the country’s economic affairs minister told reporters on a visit to Washington.

The measures are likely to further restrict sales to China by Netherlands-based ASML, maker of the world’s most advanced chip-printing machines, which last year disclosed the “unauthorized misappropriation of data” by a now former employee in China.

The United States in October 2022 announced its own export control measures affecting advanced computing integrated circuits and certain semiconductor manufacturing items.

The U.S. said the measures were aimed at items that “could provide direct contributions to advancing military decision making” such as “designing and testing weapons of mass destruction (WMD), producing semiconductors for use in advanced military systems, and developing advanced surveillance systems that can be used for military applications and human rights abuses.”

The U.S. subsequently asked allies including Japan and the Netherlands, which play key roles in the semiconductor supply chain, to introduce similar measures.

“The main concern is [the chip-making technology] will be used in military products,” Micky Adriaansens, Netherlands’ minister of economic affairs and climate, told a group of journalists on June 8 at the Dutch Embassy in Washington.

Adriaansens acknowledged that the negotiations with Washington have not been easy.

“To be honest, the conversation has been intense, and is still intense,” she said. “But we agreed already upon the main issues, with a good [mutual] understanding of what is the right thing to do.”

Adriaansens said those understandings still have to be translated into regulations but that her country understands the importance of the measures.

“We realize that we, the U.S., the Netherlands, Japan and Korea, are very strong in the semicon[ductor] value chain, supply chain, and we have a responsibility there,” the minister said, echoing a statement made by Japan’s trade minister in March.

Japan also takes steps

Tokyo announced its own measures on March 31, saying that beginning in July, Japan will restrict 23 types of semiconductor manufacturing equipment from being exported to China. “We are fulfilling our responsibility as a technological nation to contribute to international peace and stability,” Minister of Economy, Trade and Industry Yasutoshi Nishimura told reporters.

At the center of the Netherlands’ semiconductor export control deliberations is ASML, a Dutch company with its headquarters in Veldhoven, about an hour and a half’s drive southeast of Amsterdam. The company was known as Advanced Semiconductor Materials Lithography in its early years but is now known as ASML.

Europe’s biggest high-tech firm by market capitalization, ASML is the world’s largest supplier of photolithography machines, which are used to produce computer chips.

Its flagship products are the EUV, or extreme ultraviolet, and DUV, or deep ultraviolet, lithography machines that use advanced light technology to shrink and then print tiny patterns down to the nanometer level on silicon wafers, a critical and essential component of the semiconductor manufacturing process.

Since 2019, ASML’s world-exclusive EUV machines have been on the Netherlands’ export control list, meaning they cannot be sold to China without government approval. In a statement issued in March, the company said it understood that the new export controls could be applied to its less-advanced DUV machines and other products as well.

While Taiwan is its top customer, ASML has more than 1,000 employees working in 12 office buildings in major Chinese cities including Beijing, Shanghai and Shenzhen. Last year, sales to China made up 14% of the company’s total net systems sales.

In its 2022 annual report, released on February 15 this year, the company disclosed that it had experienced “unauthorized misappropriation of data relating to proprietary technology by a (now) former employee in China.” The incident may have led to the violation of certain export control regulations, the report said.

The company said a comprehensive internal review has since been launched, but the nature and extent of the data that was misappropriated has not been publicly disclosed.

Report mentions possible leak

Another possible leak of the company’s proprietary information that happened in China was disclosed in the previous year’s annual report.

“Early in 2021, we became aware of reports that a company associated with XTAL, Inc., against which ASML had obtained a damage award for trade secret misappropriation in 2019 in the USA, was actively marketing products in China that could potentially infringe on ASML’s IP rights,” said the 2021 report.

The second company was identified as Beijing-based DongFang JingYuan Electron, which was established in 2014 at about the same time as XTAL and controlled by the same people.

ASML’s annual report said the company had shared its concerns with the Chinese authorities and was monitoring the situation closely.

In its case against XTAL, ASML told the court that a former Chinese employee working at an ASML subsidiary in the United States had stolen 2 million lines of source code for critical software. It said the theft was conducted on behalf of both XTAL and DongFang.

ASML’s representatives told the court that it took XTAL only two years to replicate a technology that ASML had spent $100 million and a decade developing, as first reported by Bloomberg. XTAL, which ASML’s attorneys described in court proceedings as essentially the same as DongFang JingYuan, then tried to sell the technology to South Korea-based Samsung, a longtime client of ASML.

In late March, ASML CEO Peter Wennink met with China’s newly installed minister of commerce in Beijing. China is “firmly committed to high-level openness, willing to create favorable conditions for multinationals such as ASML to do business in China,” Wang Wentao, the newly minted commerce minister, told the visiting CEO.

“We hope ASML will affirm and strengthen its confidence in trading and investing in China and make proactive contributions to Sino-Dutch collaboration in trade and economics,” Wang continued.

It isn’t clear whether the two sides discussed the intellectual property infringement issues described in ASML’s 2021 and 2022 annual reports or if they did, what remedies Beijing may have proposed.

‘Relentless pursuit’

Asked how the company plans to fend off future attempts to steal its trade secrets, a company spokesperson told VOA that ASML is committed to “relentless pursuit of individuals or entities that violate or threaten to violate our [intellectual property] in any way.”

While less well known for semiconductor manufacturing than Taiwan Semiconductor Manufacturing Corp. or U.S.-based Intel, ASML is often viewed as Europe’s most valuable high-tech company, likely key to the Netherlands’ winning the bid to be the seat of NATO’s newly established Innovation Fund.

Venezuelans Lack Access to HPV Vaccine

Getting vaccinated is an effective way to prevent infection from human papillomavirus, also known as HPV, a virus that can lead to cervical cancer in women and other cancers in men. But the vaccine is neither available nor affordable to many in Venezuela. For Adriana Nunez Rabascall in Caracas, Venezuela, Cristina Caicedo Smit narrates the story. Camera – Jackson Vodopija.

Consumption Soft Even Amid Deep Discounts During Major China Shopping Festival, Analysts Say

Chinese consumers snapped up billions of dollars’ worth of items in China’s first major online shopping festival after emerging from the pandemic as merchants slashed prices, but analysts say that consumer confidence still remains weak.

Chinese merchants offered customers steep discounts during the 618 shopping festival, which ran on China’s major shopping platforms from the end of May until June 18, in the hopes of shoring up sales amid a weaker-than-expected recovery in consumption.

Major shopping festivals, like e-commerce retailer JD.com’s 618 and Alibaba’s Singles’ Day, are typically barometers of consumption in China, and Chinese e-commerce platforms often participate by offering discounts and incentives to consumers.

Analysts say that consumption remains soft this year as China emerges from the pandemic, even as platforms including JD.com, Tmall, Taobao and Pinduoduo offered billions in subsidies.

“Chinese consumer confidence remains weak due to a mix of geopolitics, continued weakness from COVID-19 and domestic Chinese politics,” said Shaun Rein, founder and managing director of the China Market Research Group in Shanghai.

Rein said that consumers were less likely to spend more during 618 as merchants had already been discounting heavily for years because of the pandemic, and deals were not that much better compared to previous months.

In March, JD.com launched a “10-billion-yuan subsidies” program to compete with rival Pinduoduo, which is known for its low-priced goods. The CEO of Alibaba’s e-commerce business unit, Trudy Dai, also previously pledged to make “huge, historic” investments to attract users to its platforms.

“For months, Chinese consumers have been price-conscious, looking for deals and trading down across most product categories,” Rein said.

This year, for the first time, JD.com did not reveal its total sales numbers for the 618 event, despite saying in a blog post that the 2023 shopping extravaganza had “exceeded expectations, setting a new record.”

Last year, neither Alibaba nor JD.com unveiled final numbers for Singles’ Day in November, amid muted festivities during COVID-19 and an expected slowdown in growth.

JD.com said in a blog post that during the 618 shopping festival, consumers snapped up 10 times the number of products that were eligible under its “10-billion-yuan subsidies” program, compared to March.

Despite overall soft consumption, categories like cosmetics and luxury goods saw a bigger uptick in sales compared to the previous quarter, according to Jacob Cooke, CEO of e-commerce consultancy WPIC.

For this year’s 618 event, more luxury brands took part as they sought to boost sales in China after the sector in 2022 declined for the first time in five years amid China’s strict “zero-COVID” policies and lockdowns that hammered retail spending.

Brands like Moncler and Lemaire took part in 618 on Tmall for the first time.

Many luxury brands also took the opportunity to launch new products online, with some offering rare discounts and other incentives such as interest-free payment in instalments over 12 months.

Brands like Burberry, Chloe and Miu Miu’s sales in the first 30 minutes of the 618 festival at the end of May had exceeded its total sales during the shopping festival a year ago, according to Tmall data.

“Luxury coming back online is a big trend, because that’s the category that’s been hit really hard over COVID-19,” said Cooke. “Some brands may see up to a 10-fold increase in sales over last year.”

Microsoft Says Early June Disruptions to Outlook, Cloud Platform, Were Cyberattacks 

In early June, sporadic but serious service disruptions plagued Microsoft’s flagship office suite — including the Outlook email and OneDrive file-sharing apps — and cloud computing platform. A shadowy hacktivist group claimed responsibility, saying it flooded the sites with junk traffic in distributed denial-of-service attacks.

Initially reticent to name the cause, Microsoft has now disclosed that DDoS attacks by the murky upstart were indeed to blame.

But the software giant has offered few details — and did not immediately comment on how many customers were affected and whether the impact was global. A spokeswoman confirmed that the group that calls itself Anonymous Sudan was behind the attacks. It claimed responsibility on its Telegram social media channel at the time. Some security researchers believe the group to be Russian.

Microsoft’s explanation in a blog post Friday evening followed a request by The Associated Press two days earlier. Slim on details, the post said the attacks “temporarily impacted availability” of some services. It said the attackers were focused on “disruption and publicity” and likely used rented cloud infrastructure and virtual private networks to bombard Microsoft servers from so-called botnets of zombie computers around the globe.

Microsoft said there was no evidence any customer data was accessed or compromised.

While DDoS attacks are mainly a nuisance — making websites unreachable without penetrating them — security experts say they can disrupt the work of millions if they successfully interrupt the services of a software service giant like Microsoft on which so much global commerce depends.

It’s not clear if that’s what happened here.

“We really have no way to measure the impact if Microsoft doesn’t provide that info,” said Jake Williams, a prominent cybersecurity researcher and a former National Security Agency offensive hacker. Williams said he was not aware of Outlook previously being attacked at this scale.

“We know some resources were inaccessible for some, but not others. This often happens with DDoS of globally distributed systems,” Williams added. He said Microsoft’s apparent unwillingness to provide an objective measure of customer impact “probably speaks to the magnitude.”

Microsoft dubbed the attackers Storm-1359, using a designator it assigns to groups whose affiliation it has not yet established. Cybersecurity sleuthing tends to take time — and even then can be a challenge if the adversary is skilled.

Pro-Russian hacking groups including Killnet — which the cybersecurity firm Mandiant says is Kremlin-affiliated — have been bombarding government and other websites of Ukraine’s allies with DDoS attacks. In October, some U.S. airport sites were hit. Analyst Alexander Leslie of the cybersecurity firm Recorded Future said it’s unlikely Anonymous Sudan is located as it claims in Sudan, an African country. The group works closely with Killnet and other pro-Kremlin groups to spread pro-Russian propaganda and disinformation, he said.

Edward Amoroso, NYU professor and CEO of TAG Cyber, said the Microsoft incident highlights how DDoS attacks remain “a significant risk that we all just agree to avoid talking about. It’s not controversial to call this an unsolved problem.”

He said Microsoft’s difficulties fending of this particular attack suggest “a single point of failure.” The best defense against these attacks is to distribute a service massively, on a content distribution network for example.

Indeed, the techniques the attackers used are not old, said U.K. security researcher Kevin Beaumont. “One dates back to 2009,” he said.

Serious impacts from the Microsoft 365 office suite interruptions were reported on Monday June 5, peaking at 18,000 outage and problem reports on the tracker Downdetector shortly after 11 a.m. Eastern time.

On Twitter that day, Microsoft said Outlook, Microsoft Teams, SharePoint Online and OneDrive for Business were affected.

Attacks continued through the week, with Microsoft confirming on June 9 that its Azure cloud computing platform had been affected.

On June 8, the computer security news site BleepingComputer.com reported that cloud-based OneDrive file-hosting was down globally for a time.

Microsoft said at the time that desktop OneDrive clients were not affected, BleepingComputer reported.

Secret Washington Garden Has Vital Government Mission

Nestled among the bustling city streets of Washington is a hidden oasis that many Americans don’t know exists. Congress established the U.S. National Arboretum in 1927. Vital scientific research is under way at the sprawling 183-hectare compound. VOA’s Dora Mekouar reports on the arboretum’s critical government mission. Camera: Adam Greenbaum

Binance, SEC Strike Deal to Keep US Customer Assets in Country

Binance, the world’s biggest cryptocurrency exchange, and Binance.US have entered into an agreement with the U.S. Securities and Exchange Commission to ensure that U.S. customer assets remain in the United States until a sweeping lawsuit filed this month by the regulatory agency is resolved.

The agreement, disclosed in court papers filed late Friday, still requires the approval of the federal judge overseeing the litigation. To make certain that U.S. customer assets do not go offshore, the agreement allows only Binance.US employees access to these assets.

The SEC on June 5 sued Binance, its CEO and founder Changpeng Zhao and Binance.US’s operator, alleging that Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls.

The suit and one filed by the SEC the following day against major U.S. exchange Coinbase represented a dramatic escalation of a crackdown on the industry by U.S. regulators.

Under the agreement, which does not resolve the SEC lawsuit, Binance.US will take steps to make sure that no Binance Holdings officials have access to private keys for its various wallets, hardware wallets or root access to Binance.US’s Amazon Web Services tools, the court filings showed.

The SEC said in a statement released on Saturday that the emergency relief order secured for Binance.US customers will protect their assets and ensure that they can continue to withdraw those assets.

“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please … these prohibitions are essential to protecting investor assets,” Gurbir Grewal, director of the SEC’s enforcement division, said in the statement.

A Binance spokesperson said in a statement on Saturday: “Although we maintain that the SEC’s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms. User funds have been and always will be safe and secure on all Binance-affiliated platforms.”

Under other provisions in the proposed agreement, Binance.US will create new crypto wallets to which the global exchange’s employees have no access, provide additional information to the SEC and agree to an expedited discovery schedule, the filings said.

The U.S. affiliate of Binance halted dollar deposits last week and gave customers a deadline of June 13 to withdraw their dollar funds, after the SEC asked a court to freeze its assets.

EU: Powerful Illegal Drugs Inundating Europe, Sending Corruption and Violence Soaring

New harmful illicit drugs are inundating a flourishing market for traffickers amid violence and corruption hurting local communities across Europe, the EU’s agency monitoring drugs and addiction said Friday.

The grim finding was part of the agency’s annual report. It also said that drug users in Europe are now exposed to a wider range of substances of high purity as drug trafficking and use across the region have quickly returned to pre-COVID 19 pandemic levels.

Cannabis remains the most-used illicit substance in Europe, the agency found, with some 22.6 million Europeans over the age of 15 having used it in the last year. Cocaine seizures are “historically high” and new synthetic drugs whose effects on health are not well documented are worrying officials.

In 2022, 41 new drugs were reported for the first time by the agency.

“I summarize this with the phrase: ‘everywhere, everything, everyone,'” said European Monitoring Centre for Drugs and Drug Addiction Director Alexis Goosdeel.

“Established illicit drugs are now widely accessible and potent new substances continue to emerge,” Goosdeel added. “Almost everything with psychoactive properties can appear on the drug market.”

Among the new popular substances, ketamine and nitrous oxide — so-called laughing gas — are raising concern over reported cases of bladder problems, nerve damage and lung injuries associated with users. Alongside the high availability of heroin on the continent, synthetic opioids are on the rise and have been linked to deaths by overdose in Baltic countries.

The report said the opioids situation in Europe is not comparable with the dramatic picture in North America, where overdoses caused by fentanyl and other opioids have fueled a drug crisis. But the agency warned that this group of drugs is a threat for the future, with a total of 74 new synthetic opioids identified on the market since 2009.

“We must make sure America’s present does not become Europe’s future,” said Ylva Johansson, the European Commissioner for Home Affairs.

New cannabis products such as the cannabinoid HHC produce strong psychoactive effects and pose another source of concern, especially since they can be found legally in several countries from the 27-nation bloc due to legislation loopholes. France, for instance, only added it to the list of prohibited substances earlier this week.

Meanwhile, record amounts of cocaine are being seized in Europe, with 303 tons stopped by EU member countries in 2021. According to the report, 75% of that quantity was seized in Belgium, the Netherlands and Spain, with the ports of Antwerp and Rotterdam now the main gateways for Latin American cocaine cartels into the continent.

The EMCDDA said the quantity of cocaine seized in Antwerp, Europe’s second largest seaport, rose to 110 tons from 91 in 2021, according to preliminary data.

In addition, EU countries reported the destruction of 34 cocaine labs as well as large seizures of a precursor necessary to produce cocaine, confirming that “large-scale cocaine production steps take place in the European Union.”

The expansion of the cocaine market has been accompanied by a rise in violence and corruption in the EU, with fierce competition between traffickers leading to a rise in homicides and intimidation.

In Belgium, federal authorities say drug trafficking is penetrating society at quick speed as foreign criminal organizations have built deep roots in the country, bringing along their violent and ruthless operations.

“Criminals use the profits from drug trafficking to buy people, buy police officers, and to buy murder,” Johansson said. “Violence is growing in scale and brutality. In the past, criminals shot people in the leg as a warning, now they shoot them in the head.”

In the Netherlands, killings hit ever more prominent people, while trafficking in Antwerp has led to a surge of violence in recent years, with gun battles and grenade attacks taking place regularly. In Brussels, the justice minister was put under strict protection last year following the arrest of four alleged drug criminals suspected of taking part in a plot to kidnap him.

“It’s time to realize organized crime is as big a threat towards our society as terrorism,” Johansson said.

Amid Cash Crunch, Pakistan Grappling With Options to Avert Default

Pakistan is in a debt crisis. It must pay billions in debt servicing, but the state’s coffers are almost empty. As hopes for reviving a bailout deal with the International Monetary Fund fade, experts say the country may escape default this month, but the situation will grow increasingly grave.

Hit by devastating floods, political instability and pandemic-related supply shocks, Pakistan’s import-dependent economy has been on the brink of default for months as the country’s external debt burden mounts against shrinking foreign exchange reserves.

Pakistan’s total external debt stood at upward of $126 billion at the end of 2022. Most of the country’s income goes to pay off the principal as well as interest on this debt.

In June, Pakistan is due to pay $3.6 billion to its lenders. According to the governor of the State Bank of Pakistan, the country’s central bank, $400 million has been paid, while $2.3 billion is expected to be rolled over. Still, the country must pay $900 million. The dollar reserves of the central bank are hovering at about $4 billion.

Need for IMF

Hopes of reviving a stalled 2019 International Monetary Fund, or IMF, bailout deal faded further this week after the lender objected to a few provisions in Pakistan’s proposed federal budget for the fiscal year starting July 2023.

In a statement to VOA, IMF resident representative for Pakistan, Esther Perez Ruiz, listed several measures that did not meet the lender’s expectations, including a new tax amnesty that she said was “against program’s conditionality and governance agenda.”

However, Perez Ruiz said, “the IMF team stands ready to work with the government in refining this budget ahead of its passage.”

Pakistan’s Minister for Finance Ishaq Dar rejected the objections.

“Pakistan is a sovereign country and cannot accept everything the IMF demands,” local media quoted Dar as saying in a briefing to the Pakistani Senate Standing Committee on Finance on Thursday.

The $6.5 billion 2019 deal regarded as a key to avoiding default would give Pakistan $1.1 billion. Not a huge amount by itself, yet it would unlock funds from other lenders, helping to ease the country’s debt crisis.

To revive the deal, Islamabad slashed subsidies, increased taxes and largely stopped controlling the value of the rupee, among other steps over past few months, to woo the IMF.

Experts say the actions were too little, too late.

Differences also persisted on how much funding Pakistan should gather from friends. Islamabad failed to reach the target as allies, slow to help, signaled frustration with the country’s lack of economic reform.

Default risk

The 2019 program ends June 30 with Pakistan’s current fiscal year. Dar maintains Pakistan will not default if talks with the Washington-based lender fail.

“We have sovereign commitments, which the past government made. They are not PTI’s [Pakistan Tehreek-e-Insaaf] or [former Prime Minister] Imran Khan’s, they are Pakistan’s commitments. I think even at the cost of paying a political price we must meet those obligations, and we have,” Dar said at a news briefing last week.

Pakistan’s major ally China, to whom it owes the largest chunk of its bilateral debt, came to its rescue yet, again. In a message to journalists late Friday night, the State Bank of Pakistan announced receiving a $1 billion loan from China. Beijing refinanced the loan which Islamabad had earlier repaid.

However, the current government’s term in office ends mid-August, after which a caretaker setup will run the country until general elections.

Pakistan’s former finance minister, Hafeez Pasha, told VOA if the present government fails to unlock IMF funds, it may put Pakistan’s economy in peril in the new fiscal year.

“IMF will not talk to temporary governments. So, the earliest we can talk to the IMF is sometime after the elections, which could be October, November. This interim period is a period of great uncertainty. And this is what we are all very worried about,” Pasha said.

Plan B

It is unclear how the government plans to manage debt repayment without the IMF.

Dar told a post-budget news conference last week that the government would engage in debt restructuring with bilateral lenders or individual countries.

Days later, the central bank governor informed analysts in a briefing that he was unaware of any such plans.

Earlier, when asked if Pakistan had a Plan B, Dar’s response in a pre-budget news briefing had been an emphatic yes, but it was short on details.

He then signaled Pakistan could sell or lease assets to remain current on debt repayments.

“If you are pushed into a corner, what will you do? Lie down? Let there be a default? Pakistan is solvent. If Pakistan’s loans have soared from 70 billion to 100 billion in the last four years, Pakistan also has assets worth billions,” Dar told journalists.

Some experts say that in many ways, Pakistan already has defaulted, as companies face restrictions in sending dividends to shareholders overseas, airlines threaten to move out over nonpayment of dues, and parents struggle to find dollars for their children studying abroad.

Ali Khizar, research head at Business Recorder, a major Pakistani news outlet, points to the flight of human and financial capital from Pakistan as a sign.

“Pakistan may not have defaulted technically on its debt,” Khizar told VOA. But, he says, as people use informal means to send money outside, large businesses leave the country, and people migrate in record numbers to find work outside Pakistan, “we have defaulted on many grounds.”

Is Pakistan Days Away From Default?

Pakistan is facing a debt crisis. It must pay billions in debt servicing, but the state’s coffers are almost empty. At the same time, hopes of reviving a stalled 2019 International Monetary Fund bailout program are fading. Is Pakistan just days away from a default? VOA’s Pakistan bureau chief Sarah Zaman reports from Islamabad. Camera/Edit: Naveed Nasim, Wajid Asad, Malik Waqar Ahmed

Researchers Studying Cancer in Wildlife Grapple With Why Some Get the Disease While Others Don’t

Researchers have been exploring the presence of cancer in animals from elephants to mollusks to learn about cancer in wild animals. They also hope their research will help with human cancers.

“Studying wildlife cancer, and more generally the evolution of cancer across the tree of life, is extremely promising to develop innovative therapies to treat cancer in humans,” Mathieu Giraudeau, a researcher at France’s La Rochelle University who has been focusing on cancer in wild animals since 2018, told VOA.

“The idea behind this is that some species have evolved some mechanisms to limit cancer initiation and progression,” he said. “If we identify and understand these mechanisms, then the goal is to use them as a source of inspiration to develop new therapies.”

Cancer affects both humans and animals but its impact on wild animals has been difficult to uncover.

“There are no basic blood tests to detect cancer in the wild animals,” Giraudeau told VOA, “so most of the studies have to use necropsies [post-mortem examinations of animals] to detect cancer cases in wild animals. That’s why using zoo animals is a fantastic opportunity, since a necropsy is performed for most of the animals dying in zoos.”

Researchers say there are more questions than answers regarding cancer in wild animals, which are hard to study in their natural habitat because they move around and are therefore difficult to observe over time.

“We don’t really know much about the different kinds of animals species that get cancer or how much,” biologist Carlo Maley, director of the Arizona Cancer Evolution Center at Arizona State University, where he is studying cancer in wild animals, told VOA.

“We’ve been focusing on collecting data to find which species are super susceptible or super resistant to cancer,” he said, “and we’re looking at questions such as how has nature figured out how to prevent cancer and then, can we translate that to humans.

It seems large and long-lived species “have evolved some powerful mechanisms to fight against cancer, and we now need to understand these mechanisms,” Giraudeau said.

They include elephants and whales.

“Elephant cells are super sensitive to DNA damage, and even with just a little DNA damage, the cell will commit suicide and not risk getting mutations,” Maley said. “So it seems to be a strategy for avoiding cancer by killing off a potentially dangerous cell, rather than risk getting a mutation that could lead to cancer.”

In Australia, however, that has not been the case for a much smaller animal, the Tasmanian devil. The carnivorous marsupials have been nearly wiped out from cancerous tumors growing in and around their mouths.

“Devils bite each other, particularly around the face, as part of their normal behavior,” Cambridge University veterinary medicine professor Elizabeth Murchison told VOA.

Murchison, a researcher on the genetics and evolution of transmissible cancers, added, “Tasmanian Devils have a transmissible cancer that spreads between the animals by the transfer of living cancer cells. There are, in fact, two independent transmissible cancers in Tasmanian devils, which was a surprise, and both are spread during biting, and result in fatal facial tumors.”

Murchison, who grew up in Tasmania, “passionately” hopes the endangered species can be saved.

“There is currently no way to control the disease,” she said. “Research directed towards developing a vaccine is ongoing, but it will be a long road to developing an effective protective vaccine.”

Even much smaller creatures, like shellfish, are dying from cancer.

On Whidbey Island in Washington state, a massive die-off of cockles, a type of bivalve mollusk, were found on the beach. It turns out the cockles had a leukemia-like contagious cancer that affects the cells that live in their hemolymph, the equivalent of blood.

It is another transmissible cancer, found in many shellfish species worldwide, but first discovered in these cockles in 2018. The cancer cells in the sea can float to enter nearby cockles, spreading the disease.

“The whole cell of the cancer moves from one animal to the next,” unlike conventional human cancer that arises due to cell mutations that don’t move from one person to another, said Michael Metzger, assistant investigator at the Pacific Northwest Research Institute in Seattle, Washington.

Researchers are working to find the cause of the contagious cancer and using genetic analysis, to learn how the disease evolves.

It’s not clear how the cockles first got the disease.

It’s possible it could have been brought to the area by a boat carrying diseased shellfish, he said. He also said environmental stressors may have played a part, including global warming.

Scientists say there is a long way to go before cancer in wild animals is widely understood and how that may help battle human cancers in the future. Besides genetics, they are also looking at the effect of viruses, pesticides, habitat destruction and pollution.

Human cancers are short-lived, from an evolutionary perspective,” Murchison said. “Our work gives us insight into how cancers evolve over long time-periods.”

“I think the main benefit is going to be preventing cancer as opposed to curing it,” said Maley. But there’s some possibility that the mechanisms that prevent cancer could also be translated into potential therapies.”

Australia Activates First Renewable Power Station on Decommissioned Coal Plant Site

The first large-scale battery to be built at an Australian coal site has been switched on in Victoria’s Latrobe Valley, east of Melbourne.

The 150-megawatt battery is at the site of the former Hazelwood power station in the southern Australian state of Victoria. The station was built in the 1960s and closed in 2017.

The new battery was officially opened Wednesday and has the ability to power about 75,000 homes for an hour during the evening peak. The decommissioned coal plant produced 10 times more electricity, but the battery’s operators aim to increase its generating capacity over time.

The Latrobe Valley has been the center of Victoria’s coal-fired power industry for decades, but the region is changing.

The new battery will store power generated by offshore wind farms and is run by the French energy giant Engie, and its partners Eku Energy and Fluence.

Engie chief executive Rik De Buyserie told reporters it is an important part of Australia’s green energy future.

“The commissioning of this battery represents a key milestone in this journey and marks an important step in the transition of the La Trobe Valley from a thermal energy power to a clean energy power provider,” he said.

The state of Victoria aims to have at least 2.6 gigawatts of battery storage connected to the electricity grid by 2030 and 6.3 gigawatts by 2035.

Lily D’Ambrosio, Victoria’s minister for climate action, energy and resources, told reporters that the state government is committed to boosting its renewable energy sector.

“It is important that we just do not sit around waiting for old technology to disappear, close down, but we actually get in front of it and make sure that we have more than sufficient supply to meet our needs,” she said. “That is what keeps downward pressure on prices.”

Australia has legislated a target to cut carbon emissions by 43% from 2005 levels by 2030 and to achieve net zero emissions by 2050.

Electricity generation in Australia is still dominated by coal and gas but there is a distinct shift to renewable sources of power.

In April the Clean Energy Council, an industry association, said that clean energy accounted for 35.9% of Australia’s total electricity generation in 2022, up from 32.5% in 2021.

US Energy Dept., Other Agencies Hacked

U.S. security officials say the U.S. Energy Department and several other federal agencies have been hacked by a Russian cyber-extortion gang.

Homeland Security officials said Thursday the agencies were caught up in the hacking of MOVEit  Transfer, a file-transfer program that is popular with governments and corporations.

The Energy Department said two of its entities were “compromised” in the hack.

The Russia-linked extortion group CI0p, which claimed responsibility for the hacking, said last week on the dark web site that its victims had until Wednesday to negotiate a ransom or risk having sensitive information dumped online.  It added that it would delete any data stolen from governments, cities and police departments.

Jen Easterly, director of the Cybersecurity and Infrastructure Security Agency, said while the intrusion was “largely an opportunistic one” that was superficial and caught quickly, her agency was “very concerned about this campaign and working on it with urgency.”

Reuters reports that the Britain’s Shell Oil Company, the University of Georgia, Johns Hopkins University and the Johns Hopkins Health System were also among those targeted in the hacking campaign. The Associated Press quoted a senior CISA official as saying U.S. military and intelligence agencies were not affected.

MOVEit said it is working with the federal agencies and its other customers to help fix their systems.

Information for this report was provided by The Associated Press and Reuters.  

Beyoncé Likely a Factor in Sweden’s Unexpectedly High Inflation

Can you pay my bills?

That seems to be what Sweden is asking Beyoncé after the star came to town.

When the singer launched her global tour last month in Stockholm, tens of thousands of fans from around the world swarmed the Swedish capital. But it’s not all fun and games for the host of the kickoff of Beyoncé’s first solo tour in seven years.

A senior economist at a top Scandinavian bank says Beyoncé had something to do with Sweden’s higher-than-expected inflation rate last month.

Consumer prices rose 9.7% last month in Sweden compared with a year earlier, the country’s statistics agency, Statistics Sweden, said Wednesday. Costs for certain goods and services, including hotels, rose.

That was a drop from 10.5% in April — the first time that inflation in Sweden has fallen below 10% in more than six months — but it was still slightly higher than economists had predicted.

Michael Grahn, chief economist for Sweden at Danske Bank, thinks Beyoncé’s concert may help explain why.

“Beyonce’s start of her world tour in Sweden seems to have coloured May inflation,” he said on Twitter on Wednesday.

“How much is uncertain,” he added, but the concert “probably” contributed to 0.2 of the 0.3 percentage points that restaurant and hotel prices added to the monthly increase in inflation.

An estimated 46,000 people attended each of Beyoncé’s two Stockholm concerts. Fans from around the world took advantage of Sweden’s relatively weaker currency to buy tickets that were cheaper than in other countries, such as the United States.

“The main impact on inflation, however, came from the fact that all fans needed somewhere to stay,” Grahn told The New York Times. The popularity of the concerts meant some fans had to venture up to 40 miles [64 kilometers] away to find a room, he said.

Grahn told the Financial Times that the phenomenon was “quite astonishing.”

But he added on Twitter that he predicts the situation will return to normal in June.

“We expect this upside surprise to be reversed in June as prices on hotels and tickets reverse back to normal,” he said.

Economic Fallout of Sudan Conflict Hits Neighbors

The international credit rating agency Moody’s and the International Monetary Fund say the Sudan conflict will harm its neighbors’ economies if it continues. In the markets of N’djamena, Chad’s capital, traders and customers alike have already been feeling the pinch from high inflation as the economic fallout of the war threatens their love of hot, sweet, tea. Henry Wilkins reports. (Camera and Produced by: Henry Wilkins)

Experts Divided as YouTube Reverses Policy on Election Misinformation

An announcement by YouTube that it will no longer remove content containing misinformation on the U.S. 2020 presidential election has some experts divided.

In a June blog post, YouTube said it was ending its policy — enforced since December 2020 — that removed tens of thousands of videos that falsely claimed the 2020 election was impaired by “widespread fraud, errors or glitches.”

“We find that while removing this content does curb some misinformation, it could also have the unintended effect of curtailing political speech without meaningfully reducing the risk of violence or other real-world harm,” the post said.

The Google-owned platform says the move is to support free speech, but some experts in tech and disinformation say it could allow harmful content to again be easily shared.

“The message that YouTube is sending is that the election denial crowd is now welcome again on YouTube and can resume its campaign of undermining trust in American elections and democratic institutions,” said Paul Barrett, deputy director at New York University’s Stern Center for Business and Human Rights.

But others say the policy caused “legitimate” content to be removed and that the core issue is a wider societal problem, not something confined to YouTube.

YouTube’s other election misinformation policies remain unchanged, the platform said.

These include prohibiting content aimed at misleading people about the time and place for voting and claims that could significantly discourage voting.

Google spokesperson Ivy Choi told VOA in an email that the company has “nothing to add beyond what we shared in our blog post.”

Still, some U.S. lawmakers and experts are concerned about how harmful content circulates on YouTube.

Representative Zoe Lofgren, who sat on the House January 6 committee, said the idea that election denial disinformation is “no longer harmful — including that they do not increase the risk of violence — is simply wrong.”

“The lies continue to have a dramatic impact on our democracy and on the drastic increase in threats faced by elected officials at all levels of government,” Lofgren told VOA in an emailed statement.

Lofgren, a Democrat from California, added that YouTube’s parent company Alphabet should reconsider its decision.

Justin Hendrix, founder and editor of the nonprofit website Tech Policy Press, questioned whether YouTube’s policy had even been successful.

“There is, to me, a bigger question about whether YouTube was ever really effectively removing information that promoted false claims about the 2020 election,” Hendrix told VOA. “I wonder whether this is a capitulation to the reality that the company was never able to effectively take action against false claims in the 2020 election.”

YouTube is one of the most popular social media platforms in the United States, and it has over 2 billion users around the world.

But despite the platform’s popularity, it has escaped the level of scrutiny given to Twitter and Facebook, according to Barrett. The main reason: the difficulty in analyzing videos in bulk.

YouTube is the main place people go for videos on innocuous things like how to fix your car or do your makeup, said Barrett. “But it’s also the go-to place for video for people with extreme political ideas,” he added.

Videos on YouTube amplified the false narratives that the 2020 election was rigged and that the entire American election system is corrupt, according to a 2022 report Barrett and Hendrix co-authored, A Platform ‘Weaponized’: How YouTube Spreads Harmful Content – And What Can Be Done About It.

Election misinformation was also cited by the January 6 committee as it investigated the circumstances that resulted in a mob of former President Donald Trump’s supporters storming the U.S. Capitol on the day the election results were due to be certified.

In a report on the insurrection, the committee said the platform “included efforts to boost authoritative content” and that it “labeled election fraud claims — but did so anemically.”

Some free-speech experts like Jennifer Stisa Granick, the surveillance and cybersecurity counsel at the American Civil Liberties Union, believe the policy change is good.

“There have been some legitimate discussions about voting and the legitimacy of the election that have been adversely impacted” under the former policy, Granick said.

“Election disinformation was not spread by YouTube or other online platforms, but by [Trump] himself. And the misinformation that circulates online is a drop in the bucket compared to what the [former] president of the United States says,” Granick said.

The bigger problem, she said, is that for some political candidates, “election denial is a fundamental part of their campaigns.”

People who complain that YouTube is evading its responsibility are “looking to the platform to solve a social and political problem that the United States has,” Granick said.

Roy Gutterman, director of the Tully Center for Free Speech at Syracuse University, believes any policy that openly fosters free speech is worthwhile.

“But calls to violence, which may accompany some of this discourse, would still not be protected,” Gutterman told VOA.

Barrett, however, is concerned that the reversal creates the potential for YouTube to be exploited.

The broader effect, Barrett said, “is the erosion of trust more generally” — not just in American elections.

Studies have shown that exposure to misinformation and disinformation is tied to lower trust in the media.

The YouTube policy change is hardly the main cause of that process, Barrett said, but it’s a contributing factor.

The policy change comes as several major social media companies face criticism for failing to quell election misinformation and disinformation on their platforms. The recent development with YouTube is part of a broader trend in the tech industry, according to Hendrix.

“I’m concerned that we’re seeing across the board almost a kind of throwing up the hands around some of these issues,” he said, pointing to staff layoffs, including those in trust and safety departments.

All of these factors contribute to “an erosion of even more than democracy,” Barrett said. “That’s an erosion of the social connections that hold society together.”

Security Firm: Suspected Chinese Hackers Breached Hundreds of Networks Globally

Suspected state-backed Chinese hackers used a security hole in a popular email security appliance to break into the networks of hundreds of public and private sector organizations globally, nearly a third of them government agencies including foreign ministries, the U.S. cybersecurity firm Mandiant said Thursday.

“This is the broadest cyber espionage campaign known to be conducted by a China-nexus threat actor since the mass exploitation of Microsoft Exchange in early 2021,” Charles Carmakal, Mandiant’s chief technical officer, said in an emailed statement. That hack compromised tens of thousands of computers globally.

In a blog post Thursday, Google-owned Mandiant expressed “high confidence” that the group exploiting a software vulnerability in Barracuda Networks’ Email Security Gateway was engaged in “espionage activity in support of the People’s Republic of China.” It said the activity began as early as October.

The hackers sent emails containing malicious file attachments to gain access to targeted organizations’ devices and data, Mandiant said. Of those organizations, 55% were from the Americas, 22% from the Asia Pacific region and 24% from Europe, the Middle East and Africa, and they included foreign ministries in Southeast Asia and foreign trade offices and academic organizations in Taiwan and Hong Kong. the company said.

Mandiant said the majority impact in the Americas may partially reflect the geography of Barracuda’s customer base.

Barracuda announced on June 6 that some of its email security appliances had been hacked as early as October, giving the intruders a back door into compromised networks. The hack was so severe that the California company recommended fully replacing the appliances.

After discovering it in mid-May, Barracuda released containment and remediation patches, but the hacking group, which Mandiant identifies as UNC4841, altered its malware to try to maintain access, Mandiant said. The group then “countered with high-frequency operations targeting a number of victims located in at least 16 different countries.”

Blinken trip

Word of the breach comes as U.S. Secretary of State Antony Blinken departs for China this weekend as part of the Biden administration’s push to repair deteriorating ties between Washington and Beijing.

His visit had initially been planned for early this year but was postponed indefinitely after the discovery and shootdown of what the U.S. said was a Chinese spy balloon over the United States.

Mandiant said the targeting at both the organizational and individual account levels focused on issues that are high policy priorities for China, particularly in the Asia Pacific region. It said the hackers searched for email accounts of people working for governments of political or strategic interest to China at the time they were participating in diplomatic meetings with other countries.

In an emailed statement Thursday, Barracuda said about 5% of its active Email Security Gateway appliances worldwide showed evidence of potential compromise. It said it was providing replacement appliances to affected customers at no cost.

The U.S. government has accused Beijing of being its principal cyber espionage threat, with state-backed Chinese hackers stealing data from both the private and public sector.

In terms of raw intelligence affecting the U.S., China’s largest electronic infiltrations have targeted OPM, Anthem, Equifax and Marriott.

Earlier this year, Microsoft said state-backed Chinese hackers have been targeting U.S. critical infrastructure and could be laying the technical groundwork for the potential disruption of critical communications between the U.S. and Asia during future crises.

China says the U.S. also engages in cyber espionage against it, hacking into computers of its universities and companies.