CRIMINAL CRYPTO CAPITALI$M

A fugitive Chinese billionaire claims this cryptocurrency will overthrow Beijing. Experts say it has the 'hallmarks of a scam'

"I think Guo and Bannon are just using 'take down the CCP' as an excuse to make money" 

IF BANNON'S INVOLVED YOU KNOW IT'S A SCAM

ABC Investigations /
Exclusive by Echo Hui and Ariel Bogle
Posted 8 hours ago

Guo Wengui told his followers a revolutionary cryptocurrency called HCoin would help take down the Chinese Communist Party.

(ABC News: Jack Fisher)

Almost $20,000 of Lisa Chen's savings were sent to overseas bank accounts before she saw red flags about her investment into a scheme that promised to reshape the global financial order.

In April last year, Ms Chen — a Chinese immigrant to Australia — began investing in a new cryptocurrency called Himalaya Coin, or HCoin.

The digital token was being promoted by a global anti-Chinese government movement founded by fugitive Chinese businessman Guo Wengui and former Trump adviser Steve Bannon.

Mr Guo claimed the token would one day replace the Chinese renminbi.

A member of Mr Guo's movement since early 2020, Ms Chen said she tried to warn fellow followers about her discoveries but was branded a traitor by other members of the movement.

"I invested and asked all my relatives to invest in HCoin as well," Ms Chen said.

"I thought I did the right thing. I thought I was fighting for justice."

She's seen first-hand how members of the organisation have harassed and attacked their critics and detractors, but is now speaking out against them.

Lisa Chen has chosen to not disclose her identity out of fear of retaliation from Mr Guo's followers.

(ABC News: Jack Fisher)

Other investment schemes Mr Guo's movement had promoted were the subject of a United States Securities and Exchange Commission review that resulted in a settlement worth more than $539 million in 2021.

Mr Guo also filed for bankruptcy in Connecticut in February and claimed he had less than US$100,000 in assets.

Meanwhile, proponents of the new cryptocurrency have boasted HCoin's market value has reached more than US$43 billion.

An ABC investigation, through analysing financial documents, private chat rooms and blockchain wallets, has unravelled a sophisticated cryptocurrency operation endorsed by Mr Guo and Mr Bannon's political movement.

The scheme has raised alarm bells for financial crime and cryptocurrency experts, who said it had the hallmarks of a scam.

Despite international authorities putting the platform where HCoin is traded, Himalaya Exchange, on investment caution lists, it is still being promoted by Mr Guo and his loyal followers who believe it will herald a new political age.

A spokesperson for Himalaya Exchange, said it had "no connection, whether shareholding or financial, to Wengui Guo".

A new world order and a coin to overthrow Beijing

An online search for the coin leads to a bombastic music video posted in November on YouTube called "Hcoin to the moon".

The title is a play on a phrase popularised by cryptocurrency investors celebrating an enormous spike in a digital token's valuation.

In the video, Mr Guo is seen taking lengthy drags from a cigar, while a ship soars past a golden moon.

The exiled billionaire then waxes lyrical about the coin's "advanced encryption technology" between rapid inserts of fireworks and a woman dancing in an astronaut suit.

Guo Wengui released this flashy and highly-produced rap video called "Hcoin to the Moon" to promote the digital token.

(YouTube: MilesGuoVEVO)

For Mr Guo's followers, HCoin isn't just about financial security, it is part of an all-encompassing way of life out from under the shadow of the Chinese Communist Party (CCP).

Mr Guo reportedly fled mainland China in 2014 in anticipation of corruption charges that took down his business partner and afterwards, his political patron. He arrived in the United States in 2015, later boasting he would reveal all about top officials in China.

Qiu Yueshou, a Chinese scholar who fled the country after the Tiananmen Square Massacre in 1989, said it was Mr Guo's promise to provide compromising information about key CCP figures that caught his attention.

He said he was among a core group of Australian followers in a chat group with Mr Guo, where they received his direct orders.

"He said he had a Pandora's box," the 67-year-old said.

"When the box open, CCP finished."

Qiu Yueshou said he was drawn to Mr Guo's determination to undermine the CCP.

(ABC News: Jack Fisher)

Mr Qiu and Ms Chen are former members of The Whistleblower Movement, which was led by Mr Guo and Mr Bannon.

It's been linked to disinformation campaigns about COVID-19 and about US President Joe Biden.

To take the political movement to another level, Mr Guo and Mr Bannon founded the New Federal State of China (NFSC) on June 4, 2020, and referred to it as "a government in exile".

They said the NFSC movement would one day replace the CCP.

Mr Guo reiterated in February, HCoin would be instrumental to their revolution and would replace the Chinese currency.

"Our NFSC's Himalaya Exchange and Himalaya Coin can attract all the money from the Chinese people," he said.

Ms Chen said the charismatic exiled billionaire's vision for HCoin and NFSC convinced many of his followers to back the digital token.

"He promised us it will be a good investment," she said.

Mr Bannon also voiced his support. In an interview posted on pro-Trump social media platform Gettr in November, he called the Himalaya Coin project "monumental". Himalaya Exchange denied any connection to the political operative.

Former Trump adviser Steve Bannon and Guo Wengui 

launch the New Federal State of China on a boat in New York in 2020.

(YouTube: Supplied)

For Ms Chen, investing in the coin wasn't straightforward and neither was where her money ended up.

While typical cryptocurrencies can be purchased directly from exchanges, Ms Chen said she was instructed by Himalaya Exchange to purchase HCoin tokens by making direct bank transfers to overseas bank accounts.

Ms Chen provided the ABC with bank records that showed her investment was sent to accounts in the Bahamas and the US — the latter under the beneficiary account name Himalaya International Clearing.

Australian investors, in some cases, were told to sign an agreement that prohibited them from taking any action that "could potentially hurt or damage the reputation of the Exchange".

The Himalaya Exchange spokesperson said it would not disclose or confirm any bank account details the ABC raised with the company.
Himalaya Exchange: A mysterious multinational platform

The ABC asked several cryptocurrency and financial crime experts to analyse the trading platform Himalaya Exchange and HCoin.

They concluded both raised red flags.

It's unclear who owns Himalaya Exchange and the website does not acknowledge any connection to Mr Guo. The platform is linked to a web of companies across Australia, the UK and the British Virgin Islands (BVI).

One Australian company linked to the exchange is Himalaya Currency Clearing (HCC), which has offices in Sydney and is registered with AUSTRAC as both a digital currency exchange and a remittance provider.

HCC's registration means the company is subjected to anti-money laundering laws but this does not guarantee investor protection, according to cryptocurrency crime expert George Andreopoulos.

Unlike BitCoin or other well-known cryptocurrencies, HCoin can only be traded on its own platform Himalaya Exchange, which means claims about its value cannot be independently verified.

A live ticker on the Himalaya Exchange website puts

 the value of HCoin at US$43 a token.

(ABC News: Jack Fisher)

Himalaya Exchange founder and Hong Kong businessman William Je was quoted in a recent Bloomberg opinion piece that claimed HCoin had reached a market value of US$43 billion.

In US court documents, Mr Guo described Mr Ye as "a long-time friend" and allegedly told a former staffer he is "the money man".

Lawyer and blockchain specialist Aaron Lane said there was "absolutely no chance" this eye-watering valuation was correct, adding it would put HCoin in the top 10 cryptocurrencies and above well-established tokens such as Ripple XRP.

"To be in excess of Ripple and not listed on any major list is completely unbelievable," Dr Lane said.

He warned the scheme had "the hallmarks of a cryptocurrency scam".

"If it's a genuine exchange, it's a centralised exchange, and there doesn't appear to be a good way of seeing what's behind that black box."

The ABC has been unable to substantiate many of the claims made about the coin, including basic information routinely found with many other tokens.

"You can't see who's behind the project, whether there's any companies backing it or funding it, what the distribution of the token is going to be," Mr Andreopoulos said after examining HCoin's white paper.

George Andreopoulos said there was little transparency

 about the people backing the HCoin project.

(ABC News: Jack Fisher)

The same document also claimed its contract was verified by blockchain security company Certik, which would be an indication the project had been checked by a third party.

In a statement to the ABC, the company said HCoin was not a Certik project.

The Himalaya Exchange spokesperson said its whitepaper had been "drafted and verified by numerous lawyers in different jurisdictions" and it had disclosed "all relevant information".

"Investors have a choice whether to invest or not," they said.

The company also rebuked suggestions it was not audited by Certik, adding it had "relevant documentation" but did not provide it to the ABC.

The exchange's website also does not provide any information about the blockchain contracts for HCoin.

Unlike Bitcoin, claims about HCoin's value cannot be independently verified.(Unsplash: Kanchanara)

Researchers with social media analysis group SMAT located two blockchain addresses — one for HCoin and an another associated with a stable-coin called Himalaya Dollar — but cryptocurrency experts could not identify any evidence of regular trading for either.

A Himalaya Exchange spokesperson did not respond to ABC questions about these addresses.

It said Himalaya Coin "was recently launched and is in discussion with other exchanges".

"[It] will be listed with other exchanges in due course," they said.

The exchange has also come under scrutiny from overseas regulators, including New Zealand's Financial Markets Authority (FMA), which said it is "not a registered financial service provider" in the country.

The FMA has issued a warning about the exchange, along with regulators in the Bahamas and in the Canadian province of British Columbia.

The Securities Commission of the Bahamas (SCB) said in a January 25 notice that it was investigating complaints that Himalaya Exchange "may be conducting activities" that were "either registrable/licensable or illegal" in its jurisdiction.

It said the company was cooperating with its investigation.

Himalaya Exchange positions itself as a platform for human rights and democracy.(YouTube: Himalaya Exchange)

A Himalaya Exchange spokesperson said those warnings were based on "malicious, false complaints and all notices have been contested and are defended".

The exchange said authorities had "concluded that there was no wrongdoing" on their part.

However, notices remain on all three regulator websites, with the FMA stating it "recommend[s] exercising caution when dealing with this entity".

British Columbia authorities gave similar warnings and added the platform was not "registered or recognised" in its jurisdiction.
Detractors fear speaking out

When Ms Chen grew suspicious of HCoin in August last year she contacted Australian regulators and her bank, National Australia Bank (NAB), with little success to reclaim her $20,000 investment.

NAB referred her case to its digital fraud and scams team.

A review concluded "the money transfers as a result from the scam could not be reversed because the recipient organisations will not return your money".

Ms Chen said she fared better with the offshore banks where her money was sent. After reaching out to them she was refunded most of her investment.

Lisa Chen was unsuccessful in reclaiming her investment through NAB

.(ABC News: Jack Fisher)

But when she raised her concerns to Himalaya Exchange and other Australian NFSC followers in a covert chatroom on voice messaging service, Discord, she said she was labelled a "CCP agent" and lost access to Himalaya Exchange.

"Some people lost more money than me," Ms Chen said.

"Why they didn't speak out? Because they are afraid."

A Himalaya spokesperson said it was confident it had not fallen foul of any refund policies.

"The Exchange has never retained anyone's funds and all return of funds have been honoured," they said.

Ms Chen is still urging Australian authorities and banks to investigate the scheme and protect Australian investors.

"I want them to stop other investors from sending money over and protect them from being scammed," she said.

Neither Mr Guo, Mr Bannon or Himalaya Exchange founder William Je responded to ABC interview requests or answered detailed questions about HCoin.

However, Mr Guo continues to sing the praises of HCoin and Himalaya Exchange.

On March 30, during the invasion of Ukraine, he claimed on social media that a "world-renowned individual" had asked him for one million HCoins.

The wild world of Guo and Bannon's media machine

Two men who worked in a propaganda machine led by Steve Bannon and billionaire Guo Wengui are speaking out about the tactics and motives behind the secretive conspiracy group.

Read more

Both Mr Qiu and Ms Chen hope other followers will become disillusioned by the movement.

"I think Guo and Bannon are just using 'take down the CCP' as an excuse to make money," Mr Qiu said.

"Himalaya Exchange's vision is to give financial freedom to everyone in the world and supports freedom, human rights, and democracy," Himalaya Exchange's spokesperson said.

It said some of its supporters share its vision and promote the exchange on their own social media, but "these organisations and persons have no financial or any other relationship" with the company.

"Himalaya Exchange is aware that it is constantly being maliciously attacked by CCP and organisations/bad actors sponsored by them, including some customers who made complaints without any grounds," it said.

Meanwhile, an apparent live ticker on the Himalaya Exchange website showed HCoin was currently valued at around US$43, up from US$0.10 when it was launched in November.

ANALYSIS
This 1939 newspaper shows Australia's politicians have behaved the same way for 80 years

By business reporter Gareth Hutchens
Sat 16 Apr 2022

ABC News

Smith's Weekly, in January 1939, reported on the scandal of the "organised starvation of the poor"

 by Australian governments.

I found an old Australian newspaper the other day, from 1939.

You should see the stories inside.

They touch on so many issues that concern us today that it makes you wonder: Have we been complaining and talking about the same things (and families) for more than 80 years?

If you'd like a break from coverage of the federal election, have a look at this.
Smith's Weekly, founded by Joynton Smith

The newspaper is Smith's Weekly, a popular weekly paper published from 1919 to 1950.

Its hometown was Sydney but it was read around the country.

One of its founders was the journalist Robert Clyde Packer, the father of Sir Frank Packer, father of media baron Kerry Packer, and grandfather of James Packer.

Some famous people worked for it through the years.

Kenneth Slessor (the poet) edited it for a while. Henry Lawson, Dorothy Drain and Lennie Lower all wrote for it.

The edition I stumbled across is from January 14, 1939.

So, it comes from a time just before World War II officially began.

Have a go at its front page story.

"Organised starvation of the poor by Australian governments promises to leave on the political records of this generation the darkest stain in the Commonwealth's history," the story begins.

The paper condemned Australia's governments for keeping 200,000 people in severe poverty.(ABC News: Gareth Hutchens)

"Denied the right of employment, 200,000 Australians, including adults and children, are being doled out food rations, which, even the BMA admits, are insufficient for the maintenance of healthy life."

The story was written the same way as a modern news story.

The paper's journalists gathered statistics on the food allowances paid in different states, for different household types.

Unemployment is falling quickly, but many people are still locked out of the labour market.

Read more

Then they went to shops in three different suburbs (which they believed were representative of poorer suburbs in Australia's capital cities) to see what food prices were like.

They wanted to see what groceries could be purchased with the food allowance.

They found the dole was set at "starvation rates".

"With the single exception of Tasmania, every State in the Commonwealth has sentenced its unfortunate unemployed and many of its 'fortunate' employed to an apparent eternity of malnutrition," the paper concluded.

As an aside, have a look at the graph below.

It shows how far the modern unemployment payment has been allowed to fall below the poverty line, in recent decades, by Liberal and Labor governments.

See the red line?

The unemployment benefit has barely increased in decades, and it's well below the poverty line(Source: Grattan Institute, Orange Book 2022, page 35.)

It shows how hundreds of thousands of Australians were lifted out of poverty very briefly during the pandemic, when unemployment payments were increased temporarily, and how the federal government quickly pushed them back into poverty by taking those payments away again.

Australia, currently, has the second-worst rate of unemployment benefit in the OECD.

But let's get back to the Smith's Weekly story from 1939.

The paper's journalists went door-knocking in Glebe and Woolloomooloo, two of Sydney's poorest suburbs at the time, to ask people for their opinion of the food allowance.

In one house, in Norton Street, Glebe, a woman answered the door.

"Billy Hughes is always hammering away at more population, but he doesn't tell us what to do when we do have children," she said.

"I know they should have more milk, and this better balanced diet business, but keeping them from real hunger is an outsize job on its own."

Another woman, in Woolloomooloo, scoffed at the idea that politicians would know how to survive on the dole.

"I'll challenge anybody to provide 21 meals a week at less than 9d a meal which is 15/9," she said.

"That's about what some of these politicians and diet experts spend on one meal for themselves."

The paper wrapped its story up with a message.

It said politicians seemed to have forgotten their responsibilities.

It said some were too busy pursuing ideological causes, such as trying "to impress Fascist methods on this Australian democracy", or trying to conscript "the youth of the Commonwealth".

It said politicians everywhere "must be forced to remember that the first responsibility of any government is to ensure that the people are properly fed".

"Australia is a land of abundant food, but the fact, today, is that there are starved and semi-starved Australians," it said.

"Politicians and military brasshats are shrieking from the house-tops for adequate defence.

"There is nothing better in the first place than filling the stomachs of the potential army."
Jobs for the boys

There's another familiar story on page 3.

It's about Joseph Lyons, the conservative prime minister, handing a very well-paid job to a former colleague, and waiting until parliament was in recess before doing so.

Sir George Pearce, who'd been a cabinet minister in Lyons' United Australia Party government, had been kicked out by voters at the 1937 election.

He'd served as a senator for 37 years and 3 months, which is the Australian record.

His term officially ended in 1938, after which Lyons gave him a three-year tenure with the Commonwealth Grants Commission, which paid handsomely.

In Australia, the revolving door of politics has been turning for decades.

(ABC News: Gareth Hutchens)

The Commission was created in 1933, by Lyons, to provide impartial advice on the distribution of federal assistance to the states. Today, it's the body responsible for carving up the GST.

"Mr Lyons has just given, on behalf of Australian taxpayers, a needless Christmas present to the man who has pulled more plums out of the pie of Federal politics than any other Australian in Commonwealth history — ex-Senator Sir George Pearce," the paper said.

"Salary of Sir George will be 200 [pounds] a year.

"Sir George was once a carpenter at Cottesloe, WA, was a Senator from 1901 until the last election, and a minister for 25 years.

"He now owns two stations.

"In Parliamentary pay, excluding travel expenses, he has drawn approximately 50,000 [pounds].

"It can be said that no man in Commonwealth history has taken more money out of Parliament."

The paper criticised Lyons for giving his former colleague another job.

"That Mr Lyons waited until Parliament was in recess to make the appointment is a tribute to his cunning, rather than his political sagacity," it said.

"To put the matter tersely, it is the second attempt to find a job for Pearce, irrespective of the necessity or his capacity."

The federal seat of Pearce in Western Australia is named after the ex-senator (it is currently held by former attorney-general Christian Porter, who is retiring at the May election).

The paper reminded its readers of Pearce's record in parliament (with a very negative spin).

"In 1917, while he was Minister for Defence, it was found that 60,000 [pounds] had actually been passed for payment to a corps long previously demobilised, and certain officers were imprisoned," the paper reads.

"Judge Scholes, in giving judgement, said that the evidence showed 'gross mismanagement and chaos'.

"Further revelations, and an insistent public outcry, resulted in the appointment of a Royal Commission which recommended a Board of Business Administration in the Defence Department, which was duly appointed.

"Any other Minister would have resigned. It was not, however, until some time later that Mr Hughes — ever loyal to old colleagues — transferred his old friend to the Home Affairs Department, and stifled public protest."
Raging feminists?

Let's skip to page 11.

Smith's Weekly was a fun read, mixing strong opinions with some sensationalist stories and satirical pieces.

It was mostly pitched to a male audience, returned servicemen, so I can't tell if this story is serious or satirical.

I'm assuming it's satirical. It must be.

But whatever the real opinions of the writer, Helen Seager, this article delivers an archetype of "crumb maiden" logic.

How so?

A few crumbs here and there.(ABC News: Gareth Hutchens)

Well, Ms Seager tells the paper's readers that the social order is fine the way it is, and she doesn't want to rock the boat.

However, it would be lovely if men could grant women a few small "privileges", she says.

A few crumbs.

"I am willing to bow the knee to Man superior. Never could I be a feminist," Seager wrote.

"I'd rather be just an ordinary housewife, with a husband to lean on.

"But I do yearn to be permitted certain privileges that for some curious atavistic reason the male of the species regards as his prerogative."

What were the small privileges she'd like?

She'd really like to be allowed to carve the meat at dinner time.

She'd like to be allowed to light and poke the fire, to read the newspaper before her husband sometimes, to draw the cork from a bottle of wine occasionally, and to "twiddle the radio knobs".

"Skip it, feminists, this is not for you," she says.

"This is for the average woman of the world, who, I'm sure, feels as I do."

With some imagination, can crumbs feel like croutons?
Wherever he goes there are whispers

I could go on.

There are so many familiar stories in this single edition of the paper.

One story talks about the huge untapped potential of trade with India and countries in South-East Asia, if only the Australian government could get its act together.

Another talks about the rapacious landlords in Sydney that always increase the rent for small business owners whenever those businesses enjoy a slight increase in profits.

But let's wrap it up with this one.

This story is about Sir Keith Murdoch, the father of media baron Rupert Murdoch.

The paper wrote about Sir Keith Murdoch going from city to city, building his media empire.(ABC News: Gareth Hutchens)

It talks about him like he's a mythical figure.

It says whenever he's spotted in public, in a different capital city each time, there always seems to be news, a little later, that he's just bought a big newspaper in that town.

"A few months ago the gossip grapevine in the Federal Capital flashed the news: 'K.M. is at the Hotel Canberra. Wearing riding boots'," the story says.

"This time rumour was right. K.M. was on a lobbying expedition to ease through Parliament a bill protecting an Australian newsprint industry, which was to be run by K.M. and his friends.

"But the bill was turned down. For once K.M. failed."

A lesson from the 1970s?

When Australia's economy was struggling in the 1970s, the media behaved irresponsibly, writes Gareth Hutchens.

Read more

The story notes the role Keith played, as a journalist, in exposing how incompetently the Gallipoli campaign was being run, and how official military censorship was hiding the dire truth.

It also talks about the power he accrued as a media baron when he returned to Australia.

"It was a Murdoch campaign that ran Mr. Lyons into the Prime Ministership. A Melbourne wag at the time described the United Australia Party coat-of-arms as 'Herald with Lyons rampant'," the story says.

"Two years later Murdoch was knighted.

"Since then his power has grown. His chain of papers now dominates every mainland capital except Sydney. A long string of radio stations is also under his control.

"He is master of a tremendous propaganda machine in the Federal sphere."

And the piece ends by noting the business interests backing Sir Keith.

"At the head of the financial group behind him is the Baillieu family, of Collins House, Melbourne," the story says.

"Among the group's vast business connections the most important is Broken Hill Proprietary Limited [that is, the miner BHP].

"Labor men and democrats of all shades regard the propagandist strength of the Murdoch-Baillieu group as an ugly and dangerous factor in Australian politics.

"Most journalists are of this opinion, though most of them think also that there is no better proprietor to work for than Murdoch.

"An ex-reporter himself, he gives his staff good premises, hands out bonuses, [and] lends young men money to go abroad."

All those stories in a single edition of an Australian newspaper from 83 years ago.

Russian warship: Moskva crew 'shown for first time since sinking'

Watch: Russia releases video they say shows surviving crew of the sunken ship Moskva

The Russian defence ministry has published images showing what it says is the crew of the warship Moskva - the first time any sailors from the ship have been seen since its sinking.

A large group of sailors is seen on parade in the Crimean port city of Sevastopol, met by Navy Commander-in-Chief Adm Nikolay Yevmenov.

The Moskva was the flagship of the Black Sea Fleet.

The ship's demise has been described as a huge blow to Russian morale.

The ministry announced late on Thursday that the Moskva had sunk on stormy seas after a fire caused by exploding ammunition. Ukraine said it had sunk the ship with two Neptune missiles.

Russia said at the time that the crew had been taken to Sevastopol, a major port Crimea, which Russia annexed from Ukraine in 2014. This, however, is the first time any evidence has been offered of the survival of any sailors.

The video shows Adm Yevmenov and two other officers standing on a parade ground in front of about 100 sailors.

It is not clear when the meeting took place.

IMAGE SOURCE,MAX DELANY/AFP

Image caption,

The Moskva patrolling the Mediterranean Sea off the coast of Syria

In an interview shown at the end of the video, Adm Yevmenov says that the officers and crew are currently residing at their base in Sevastopol and will continue their service in the navy.

Russia has not reported any casualties from the fire or the sinking.

However, an unnamed US official quoted by Reuters said Washington believed there were casualties.

Ukraine says the ship's captain, Anton Kuprin, was killed on board, but the BBC has been unable to verify the claim.

The 12,490-tonne cruiser is the biggest Russian warship to be sunk in action since World War Two.

On the first day of Russia's invasion of Ukraine on 24 February, the Moskva gained notoriety after calling on a small garrison of Ukrainian border troops defending Snake Island in the Black Sea to surrender - to which they memorably radioed an expletive-laden message of refusal.

Originally built in the Soviet era, the Moskva entered service in the early 1980s. The vessel was actually built in Ukraine's southern city of Mykolaiv, which has been heavily bombed by Russia in recent days.

The guided missile cruiser was previously deployed by Moscow in the Syria conflict where it supplied Russian forces in the country with naval protection from the Mediterranean.

It is the second major vessel Russia has lost since the start of its invasion of Ukraine.

BBC

Russia-Ukraine war: First pictures of Russia's doomed Moskva warship

news.com.au

By Jamie Seidel

17 Apr, 2022

The first pictures of Russia's wrecked guided-missile cruiser Moskva reportedly reveal a ship unready for action and doomed by raging internal fires.

The fate of President Vladimir Putin's Black Sea Fleet flagship has been confirmed with verified pictures showing the burning hulk abandoned in calm waters shortly before it sank.

The stricken warship is seen listing (leaning) to port (left). Smoke is pouring out of the forward superstructure (command tower). And soot along the length of the ship indicates extensive internal damage.

No crew are visible.

Russian missile cruiser Moskva is on patrol in the Mediterranean Sea near the Syrian coast on December 17, 2015. Photo / AP

Ukraine claimed it struck the Moskva with two cruise missiles early Thursday morning Australian time.

Several hours later, Russian state-controlled media confirmed an "ammunition explosion" aboard the warship and stated investigations were underway as to the cause. Later, it was announced the ship had foundered "in a storm".

The pictures are believed to have been taken by a crew member of a rescue ship, most likely the rescue tug SB742 – part of the Black Sea's rescue ship squadron.

They show a warship largely abandoned to its fate.

Almost all visible life raft stations are empty, and the large boat crane is extended. This indicates the crew has evacuated the ship.

Warship designers and naval analysts say the images of the burning hulk hint at the true story of how the high-profile command ship was lost.

It's a story of deception, poor preparedness – and a ship that never should have been asked to do what it was doing.

Sleight-of-hand trick

Dr Pawling also points to Moskva's radar equipment as an indication of how Ukraine's two Neptune missiles may have hit the ship.

Recently, Ukrainian forces claimed they "tricked" the Moskva's crew by sending a large surveillance drone into its vicinity.

The story goes that the cruiser's primary radar – which only has a 180-degree field of vision – then allegedly followed the drone as it moved away from land. This could have allowed the Ukrainian missiles to remain largely unnoticed as they dove toward the warship.

British naval architect Dr Rachel Pawling says clues in the Moskva photos indicate this story may be partly correct.

"The engagement radars for SA-N-4 and SA-N-6 both appear to be stowed," Dr Pawling notes.

"I think it unlikely the radar were carefully stowed after the hit: This would lend credence to the story the crew were distracted by a UAV (uncrewed aerial vehicle)."

Essentially, the radars needed to get a highly accurate picture of the approaching missiles were not active. Instead, they were in their "sleep" mode.

Therefore the antimissile gun systems and short-range missiles would not have had the targeting information they needed to defend the ship successfully.

This satellite image provided by Maxar Technologies shows cruiser Moskva in port Sevastopol in Crimea on April 7, 2022. Photo / AP

"The distraction here is conceptual," says Dr Pawling. "It's not that they are looking the wrong way; it's that they are focused on the wrong *type* of threat. This has happened to others before."

Blow or blunder

The burning hulk is pictured in calm water. This does not match Russia's official story that the ship sank in a storm after an accident.

In the image, a fire continues to burn in the vessel's heart. But any blaze at the aft (rear) of the ship appears extinguished.

"However it is clear smoke has spread throughout the after half of the ship. And that stuff is nasty," says Dr Pawling.

The soot and scorch marks these fires have left behind are important clues.

Possible puncture marks can be seen on the hull's waterline, directly below the seat of the remaining smoke. It cannot yet be confirmed these are the entry points of the Ukrainian cruise missiles. But they do lend some credence to their claim.

The missiles are programmed to strike ships at this vulnerable point – close to the command structure and deep among its enormous engine rooms.

Dr Pawling notes the cause of much speculation in recent days – the Moskva's huge SS-N-12 aircraft carrier killer missiles – appear intact. A detonation of the four enormous tubes that contain the port (left) side missiles could have explained the ship's catastrophic loss.

Instead, the seat of the fire appears to be among the cruiser's closely packed support weaponry.

Fire and fury

Unlike HMS Sheffield, a British guided-missile destroyer that burnt out and sank during the 1982 Falklands Islands War, the fire aboard Moskva does not appear to have been intense.

"The presence of paint over most of the hull (on the side we can see, anyway) makes a widespread high-temperature fire unlikely," Dr Pawling notes.

But soot is seen at numerous points along the hull.

"This implies a rapid spread of smoke from fires subsequently extinguished," she adds. "This raises questions about what damage control state the ship was in. I suspect low."

Warships are built with fire-resistant bulkheads and blast doors to prevent fire – and just as importantly thick smoke – from spreading.

The blast doors may have been open to ease crew movement.

Smoke could have spread uncontrolled from compartment to compartment, forcing the crew to retreat. Behind it, a low-intensity fire could have followed.

"I would be *very* surprised if internal furnishings met modern fire resistance standards," Dr Pawling concludes.

Vulnerable by design

Russian warships like Moskva look impressive. They are crowded with weaponry, giving them a fearsome reputation.

But it's also a weakness.

Any hit on the ship is likely to strike something serious.

"Major damage seems to be in way of the midships (central) deckhouse with AK-630 CIWS (close-in antimissile weapon system). That's a fair amount of cookoff if the ammo catches," Dr Pawling tweeted.

Another naval analyst pointed out that there was another weapons system in the vicinity of the main blaze.

"Apparently, the missile strike hit the base of the ship's bow superstructure," one naval analyst noted. "The explosion of the warheads and the burning of the remnants of missile fuel to the detonation of the anti-submarine ammunition (RBU-6000) cellars, which were located below the waterline."

A Flourish data visualization

And Moscow's ability to fight the subsequent fires may have been crippled from the start.

Based on public versions of the warship's plans, that's also in the vicinity of one of the ship's damage control centres; "So co-ordinating the "internal battle" would have been very difficult," Dr Pawling adds.

The fate of the Moskva cannot be fully assessed from just these two photos. But what they reveal indicates a ship suffering fire, flooding and widespread smoke circulation within the hull before it went down.

Freshwater turtles of south-east Australia have hatched. Do you know your broad-shells from your long-necks?

ABC Ballarat / By Gavin McGrath
Posted Fri 15 Apr 2022

A journey has just begun.

It's a dangerous journey, with the threat of exotic predators, and perilous crossings. If the journey is successful it may take 70 years.

So begins the life of an Australian freshwater turtle.

Eastern long-necked turtles have just hatched along waterways in south-east Australia and you may spot them on the move.

They are one of three freshwater turtle species that can be found in Victoria, New South Wales and South Australia.

All three have feet, but they are all semi-aquatic as well.

Ecologist Donald McKnight up close and personal with a broad-shelled turtle.

(Supplied: Angela Simms)

Turtles or tortoises?

James Van Dyke, senior lecturer in biomedical sciences at La Trobe University, studies the conservation and ecology of turtles.

He says the three species commonly found in south-eastern Australia are technically turtles even if many Australians call them tortoises.

"A lot of the freshwater turtles we have in Australia have feet, but they are webbed feet. They need that to be able to swim through the water," Dr Van Dyke said.

"They got the name 'tortoise' because a lot of them do walk on land on occasion, especially the long-necked turtles you see going overland sometimes.

"Either name is fine. We call them tortoises or turtles here in Australia."

A Murray short-necked turtle (Emydura macquarii).

(Supplied: Angela Simms)

Foxes and other hazards

Cats and foxes are killing more than 2.6 billion mammals, reptiles and birds every year in Australia, experts say.

The eastern long-necked turtle (Chelodina longicollis) breeds from November to January and hatches about three months later.

Murray short-necked turtles (Emydura macquarii) nest about the same time but tend to hatch a little earlier, while the broad-shelled turtles (Chelodina expansa) nest in autumn and most often hatch in spring or summer.

Throughout their incubation, there is the threat of foxes. And that's just the beginning of the hazards they face over a life that can — with more than a little luck — span more than five decades.

"Foxes eat the eggs and nests. In some nesting areas you will just see a whole bunch of holes with shattered eggshells all over the place," Dr Van Dyke said.

"The other thing is adults get hit and killed on roads sometimes. They can live a long time so if you get just one killed when it's hit by a car that's a very important animal gone.

An eastern long-necked turtle (Chelodina longicollis)

.(Supplied: Donald McKnight)

"Finally, there is the changes in the river flows, which can impact populations as well.

"They're not doing too well. Around the world they are among the most endangered groups of animals.

"Here in Australia they are in decline. Most of them aren't in terrible shape yet but they are definitely becoming rarer."

Carrion-eaters

Turtles play an important role in keeping waterways clean, eating carrion such as dead fish and animals.

They are able to survive well in poor-quality water so a waterway that should have turtles but doesn't is a sign things have gone seriously wrong.

A broad-shelled turtle (Chelodina expansa)

(Supplied: Donald McKnight)

The wetter-than-average weather in south-eastern Australia over the past couple of years has given researchers some cause for optimism.

That has been borne out in population surveys by volunteers.

"We almost never catch juvenile or hatchling turtles when we do our population surveys," Dr Van Dyke said.


"This year we've actually got some. We've got four or five. It doesn't sound like much but it's a lot more than we usually see."
Turtle-spotting

There is a citizen-science project underway called One Million Turtles. Researchers are encouraging anyone with an interest in conservation to help count turtles using the TurtleSAT mobile phone app.


"Across all of Australia there are maybe 10-15 people working on turtles professionally, so we need all the help we can get," Dr Van Dyke said.

"Everyone out there spotting turtles can help tell us learn where they are common, and where they are not so common.

James Van Dyke says people who spot turtles can help experts.

(Supplied: James Van Dyke)

"If they tell us they can't find turtles where they should be, that also helps us.

"We're also about to start a project on the website trying to find the impact of foxes.

"People can participate in a nest predation experience. We will be providing instruction and training on protecting nests and helping turtles cross roads safely."
Good memory not always a good thing

Fake turtle nests

Citizen scientists will soon begin work to outsmart local foxes and fool them with fake turtle nests to protect hatchlings.

Read more

As for rescuing turtles which appear to be heading away from the safety of a waterway, it can be frustrating, especially if they are on their way to an industrial or building site that may have once been close to a waterway.

"It's tricky, especially with eastern long-necks," Dr Van Dyke said.

"Those turtles can be pretty old, especially the big ones which can be 50 years old.

"It may remember there was a wetland where that industrial park is now.

"They wander over land long distances, up to 15 kilometres sometimes. If you try to move them in a different direction, they are stubborn animals. They'll keep wanting to go where they want to go.

"Sometimes you just have to let them do that. If you see them crossing the road, it's best to point them in the direction they were headed and move them to the other side."
Turtle-spotter's guide

Eastern long-necked turtle (Chelodina longicollis)

This is the one you will most likely see crossing roads. They are carnivorous and will take any prey smaller than themselves. Adults weigh about 1 kilogram, with a shell length of about 200-250mm. Females tend to be bigger but the sexes are hard to tell apart. They have a black and tan belly and they also stink a little. Baby eastern long-necked turtles have bright orange markings on their underside.

Murray short-necked turtle (Emydura macquarii)

You may see them basking on a sunny day. They weigh 2-3kg with a shell length of up to 300mm. Short-necked turtles tend to eat a lot of green algae but will also eat anything dead. They are greenish in colour with lighter markings on their head and neck, and have a short neck and chunky head compared with others.

Broad-shelled turtle (Chelodina expansa)

The largest freshwater turtle in Australia. Can weigh up to 6 or 7kg, with a shell length about 450mm. Their necks can be up to a metre long when stretched out. Another carnivorous turtle, they will eat anything they can catch, including fish and yabbies. Broadshell turtles have distinctly flat heads.

Source: 1millionturtles.com