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We construct a finitely presented, infinite, simple group that acts by homeomorphisms on the circle, but does not admit a non-trivial action by -diffeomorphisms on the circle. The group emerges as a group of piecewise projective homeomorphisms of . However, we show that it does not admit a non-trivial action by piecewise linear homeomorphisms of the circle. Another interesting and new feature of this example is that it produces a non amenable orbit equivalence relation with respect to the Lebesgue measure.

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