FBI says China’s Salt Typhoon breached millions of Americans’ data

China’s Salt Typhoon cyberspies have stolen data from millions of Americans through a years-long intrusion into telecommunications networks, according to senior FBI officials. The campaign represents one of the most significant espionage breaches uncovered in the United States.

The Beijing-backed operation began in 2019 and remained hidden until last year. Authorities say at least 80 countries were affected, far beyond the nine American telcos initially identified, with around 200 US organisations compromised.

Targets included Verizon, AT&T, and over 100 current and former administration officials. Officials say the intrusions enabled Chinese operatives to geolocate mobile users, monitor internet traffic, and sometimes record phone calls.

Three Chinese firms, Sichuan Juxinhe, Beijing Huanyu Tianqiong, and Sichuan Zhixin Ruijie, have been tied to Salt Typhoon. US officials say they support China’s security services and military.

The FBI warns that the scale of indiscriminate targeting falls outside traditional espionage norms. Officials stress the need for stronger cybersecurity measures as China, Russia, Iran, and North Korea continue to advance their cyber operations against critical infrastructure and private networks.

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Samsung and Chinese brands prepare Max rollout

Russia has been pushing for its state-backed messenger Max to be pre-installed on all smartphones sold in the country since September 2025. Chinese and South Korean manufacturers, including Samsung and Xiaomi, are reportedly preparing to comply, though official confirmation is still pending.

The Max platform, developed by VK (formerly Vkontakte), offers messaging, audio and video calls, file transfers, and payments. It is set to replace VK Messenger on the mandatory app list, signalling a shift away from foreign apps like Telegram and WhatsApp.

Integration may occur via software updates or prompts when inserting a Russian SIM card.

Concerns have arisen over potential surveillance, as Max collects sensitive personal data backed by the Russian government. Critics fear the platform may monitor users, reflecting Moscow’s push to control encrypted communications.

The rollout reflects Russia’s broader push for digital sovereignty. While companies navigate compliance, the move highlights the increasing tension between state-backed applications and widely used foreign messaging services in Russia.

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India’s leading gaming platform challenges new online gaming law

Head Digital Works, the parent company of the Indian online gaming platform A23, has filed a petition in the Karnataka High Court challenging India’s Promotion and Regulation of Online Gaming Law, 2025. That makes A23 the first real money gaming (RMG) operator in India to legally contest the new legislation.

The company argues the law criminalises legitimate skill-based games like rummy and poker, potentially forcing gaming businesses to close. Backed by investors such as Tiger Global and Peak XV Partners, India’s RMG industry was projected to reach $3.6 billion by 2029. The case could have nationwide implications for the sector.

Head Digital Works, owner of online gaming platform A23, described India’s Promotion and Regulation of Online Gaming Bill, 2025 as a ‘product of state paternalism’, in a court filing. They argue the law is unconstitutional when applied to skill-based games like rummy and poker.

Passed by Parliament on 21 August, the legislation has caused significant concern in India’s real-money gaming sector, threatening the future of many operators. The company urges the Karnataka High Court to overturn the law’s application to skill games, highlighting the potential negative impact on the industry’s growth and viability.

According to the Economic Times, the Indian gaming industry has experienced rapid growth, valued at USD 3.7 billion in 2024 and expected to reach USD 9.1 billion by 2029, according to the India Gaming Report 2025. With nearly USD 3 billion in foreign direct investment over five years and a user base representing 20% of the world’s gamers, India is now one of the largest gaming markets globally.

However, the new Promotion and Regulation of Online Gaming Law, 2025, has created uncertainty around this growth. Industry reactions are mixed, with some welcoming the ban while others express concern over its impact on the sector.

Countries join stablecoin race to counter US dollar power

The GENIUS Act in the United States has given stablecoin issuers a clear legal framework, boosting the role of dollar-pegged tokens in the global economy. Their widespread use has strengthened demand for US dollars and Treasury bills, solidifying American financial dominance.

Other nations are now working on stablecoin projects to protect local currencies. China is developing a yuan-pegged stablecoin aimed at international trade, following the recent adoption of Hong Kong’s Stablecoins Bill.

Japan is also preparing to launch a yen-pegged token backed by government bills later this year, with Monex Group leading the initiative.

The European Union has accelerated its plans for a digital € in response to the rise of USD-backed stablecoins. Reports suggest the project could be launched on Ethereum or Solana, a move that has sparked criticism from the crypto community over privacy and data control.

Despite several euro-pegged tokens already in circulation, their market share remains negligible compared to dollar-backed stablecoins.

Stablecoins are increasingly seen as tools for remittances and savings and for strategic influence in the global financial system. Other countries may struggle to rival USD-pegged coins, but the race to launch national stablecoins is underway.

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Trump threatens tariffs over EU digital taxes on US tech companies

President Donald Trump has threatened to impose retaliatory tariffs on countries implementing digital taxes or regulations affecting American technology companies. His comments, made in a post on Truth Social, were interpreted as a warning to the European Union.

The EU and several member states have introduced digital services taxes and regulations, including the Digital Services Act and the Digital Markets Act.

These measures aim to tackle illegal content, increase oversight of large online platforms, and ensure that major tech firms, such as Google, Amazon, Apple, and Meta, pay taxes in the countries where they generate revenue.

According to AP News, Trump’s administration previously argued that these taxes unfairly target US-based companies and considered tariffs on European goods in response.

The Guardian reports that Trump’s latest threat adds pressure on the UK and the EU, which have recently signed trade agreements with the US.

While the EU continues to enforce strict digital regulations and taxes, the UK has maintained its digital services tax, introduced in 2020, despite earlier criticism from US officials and a trade deal reached with the Trump administration.

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Greece strengthens crypto rules to align with EU standards

Greek authorities are enforcing stricter regulations on the crypto sector to strengthen oversight and align with European standards. The move targets money laundering and tax evasion, reflecting Athens’ intent to bring order to the industry.

Digital asset exchanges and wallet providers will face a rigorous licensing process. Applicants must submit a complete business dossier, disclose management and shareholder details, and pass extensive checks before being allowed to operate.

Non-compliant platforms risk being barred from the market.

Financial regulators will monitor crypto transactions closely, with powers to freeze suspicious digital assets and trace funds. Authorities aim to prevent illegal capital flows while boosting investor confidence through enhanced transparency.

Taxation rules for crypto are expected this fall, with capital gains taxes set at 15% for private investors and potentially higher for companies. Some crypto services may also be subject to 24% VAT, with final rates announced in the coming months.

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Publishers set to earn from Comet Plus, Perplexity’s new initiative

Perplexity has announced Comet Plus, a new service that will pay premium publishers to provide high-quality news content as an alternative to clickbait. The company has not disclosed its roster of partners or payment structure, though reports suggest a pool of $42.5 million.

Publishers have long criticised AI services for exploiting their work without compensation. Perplexity, backed by Amazon’s Jeff Bezos, said Comet Plus will create a fairer system and reward journalists for producing trusted content in the era of AI.

The platform introduces a revenue model based on three streams: human visits, search citations, and agent actions. Perplexity argues this approach better reflects how people consume information today, whether by browsing manually, seeking AI-generated answers, or using AI agents.

The company stated that the initiative aims to rebuild trust between readers and publishers, while ensuring that journalism thrives in a changing digital economy. The initial group of publishing partners will be revealed later.

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Silicon Valley moves to influence AI policy

Silicon Valley insiders are preparing to pour over $100 million into next year’s US midterm elections to influence AI policy. The super-PAC Leading the Future, backed by Andreessen Horowitz and Greg Brockman, seeks to impact AI policy and limit strict regulation.

Leading the Future targets battleground states such as California, New York, Illinois, and Ohio. The PAC intends to fund campaigns, run extensive social media ads, and focus on politicians who support innovation-friendly ‘guardrails’ rather than heavy-handed regulation.

The initiative draws inspiration from the crypto industry’s political playbook, which successfully backed candidates aligned with its interests.

The group’s structure combines federal and state PACs with a 501(c)(4) organisation, offering flexibility and influence over both major parties. High-profile backers include Marc Andreessen, Greg Brockman, Joe Lonsdale, and Ron Conway.

Their collective goal is to ensure AI development continues without regulatory barriers that could slow American innovation and job creation.

Silicon Valley’s strategy highlights the increasing role of tech money in politics, reflecting a shift in donor priorities. The PAC’s influence may become a decisive factor in shaping AI legislation, with potential implications for the industry and broader US policy debates.

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YouTube under fire for AI video edits without creator consent

Anger grows as YouTube secretly alters some uploaded videos using machine learning. The company admitted that it had been experimenting with automated edits, which sharpen images, smooth skin, and enhance clarity, without notifying creators.

Although tools like ChatGPT or Gemini did not generate these changes, they still relied on AI.

The issue has sparked concern among creators, who argue that the lack of consent undermines trust.

YouTuber Rhett Shull publicly criticised the platform, prompting YouTube liaison Rene Ritchie to clarify that the edits were simply efforts to ‘unblur and denoise’ footage, similar to smartphone processing.

However, creators emphasise that the difference lies in transparency, since phone users know when enhancements are applied, whereas YouTube users were unaware.

Consent remains central to debates around AI adoption, especially as regulation lags and governments push companies to expand their use of the technology.

Critics warn that even minor, automatic edits can treat user videos as training material without permission, raising broader concerns about control and ownership on digital platforms.

YouTube has not confirmed whether the experiment will expand or when it might end.

For now, viewers noticing oddly upscaled Shorts may be seeing the outcome of these hidden edits, which have only fuelled anger about how AI is being introduced into creative spaces.

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xAI accuses Apple and OpenAI of blocking competition in AI

Elon Musk’s xAI has filed a lawsuit in Texas accusing Apple and OpenAI of colluding to stifle competition in the AI sector.

The case alleges that both companies locked up markets to maintain monopolies, making it harder for rivals like X and xAI to compete.

The dispute follows Apple’s 2024 deal with OpenAI to integrate ChatGPT into Siri and other apps on its devices. According to the lawsuit, Apple’s exclusive partnership with OpenAI has prevented fair treatment of Musk’s products within the App Store, including the X app and xAI’s Grok app.

Musk previously threatened legal action against Apple over antitrust concerns, citing the company’s alleged preference for ChatGPT.

Musk, who acquired his social media platform X in a $45 billion all-stock deal earlier in the year, is seeking billions of dollars in damages and a jury trial. The legal action highlights Musk’s ongoing feud with OpenAI’s CEO, Sam Altman.

Musk, a co-founder of OpenAI who left in 2018 after disagreements with Altman, has repeatedly criticised the company’s shift to a profit-driven model. He is also pursuing separate litigation against OpenAI and Altman over that transition in California.

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