The founder of cryptocurrency firm MyTrade, Liu Zhou, pleaded guilty in Boston federal court on Wednesday to charges of market manipulation and wire fraud. Zhou, who described himself as the ‘mastermind’ behind the company, entered the plea just weeks after being indicted along with 14 others as part of a groundbreaking FBI investigation dubbed ‘Operation Token Mirrors.’ This operation was notable for involving the creation of a digital token by the FBI itself to uncover fraud in the crypto sector.
Prosecutors revealed that MyTrade was one of three market makers involved in providing illicit trading services to cryptocurrency firms. During the investigation, Zhou agreed to manipulate the market for a token backed by the FBI, known as NexFundAI, which operates on the Ethereum blockchain. As part of a plea agreement, Zhou faces a maximum prison sentence of 1.5 years and must refrain from appealing if sentenced within that timeframe. Additionally, MyTrade must stop facilitating fraudulent trades that had previously manipulated the trading volumes of about 60 cryptocurrencies.
Zhou founded MyTrade in 2021, a British Virgin Islands-registered company that offered services like ‘volume support,’ where automated bots were used to inflate trading volumes. Prosecutors characterised this practice as ‘wash trading,’ which artificially boosts an asset’s trading activity. Zhou’s discussions with NexFundAI promoters included plans for market manipulation and ‘pump and dump’ schemes. Following a meeting on 23 September, Zhou quickly agreed to plead guilty after the FBI approached him. Four others involved in the investigation have also pleaded guilty.
Microsoft took the unusual step of publicly accusing Google of conducting ‘shadow campaigns’ in Europe to undermine Microsoft’s reputation with regulators. According to a blog post by Microsoft lawyer Rima Alaily, Google allegedly hired the advisory firm DGA Group to organise the Open Cloud Coalition, enlisting European cloud companies to act as a front while Google finances and directs its operations. The coalition, recently launched, purports to advocate for a ‘fair, competitive, and open cloud industry’ across Europe.
Alaily claims this is part of Google’s pattern of targeting Microsoft, citing Google’s involvement in the Coalition for Fair Software Licensing and a separate effort to sway Cloud Infrastructure Services Providers in Europe with significant financial offers to oppose Microsoft’s proposed antitrust settlement. The conflict adds fuel to the rivalry between the two tech giants, who already compete intensely across cloud infrastructure, online advertising, AI, and productivity software.
In response, a Google spokesperson noted that Microsoft’s cloud licensing practices create vendor lock-in, potentially stifling competition, cybersecurity, and innovation. Hours after Microsoft published accusations, the Open Cloud Coalition formally announced its formation, listing Google as a member and calling on European authorities to intensify scrutiny on cloud competition issues. In September, Google said it was filing a complaint against Microsoft with the European Commission over what Google considers unfair practices for licensing the Windows Server operating system.
Meta is working on a new AI search engine to lessen its reliance on Google and Microsoft’s Bing. The move places Meta among other tech giants, such as OpenAI, Google, and Microsoft, in the race to dominate the evolving AI-powered search landscape.
The new search tool aims to enhance Meta’s chatbot on WhatsApp, Instagram, and Facebook by offering conversational responses to real-time queries about news and events. Meta currently depends on Google and Bing to provide users with information on topics like news, stock markets, and sports.
As competition intensifies, Google is pushing its Gemini AI model into core services, including Search, to offer more interactive and intuitive experiences. OpenAI, meanwhile, continues to use Bing, leveraging its close partnership with Microsoft for topical queries.
The use of web data to train AI systems and build search engines has sparked debates about copyright and fair compensation. Meta recently announced that its chatbot would incorporate Reuters content to provide up-to-date answers to questions related to news and current events.
The Open Source Initiative (OSI) has introduced version 1.0 of its Open Source AI Definition (OSAID), setting new standards for AI transparency and accessibility. Developed over the years in collaboration with academia and industry, the OSAID aims to establish clear criteria for what qualifies as open-source AI. The OSI says the definition will help align policymakers, developers, and industry leaders on a common understanding of ‘open source’ in the rapidly evolving field of AI.
According to OSI Executive Vice President Stefano Maffulli, the goal is to make sure AI models labelled as open source provide enough detail for others to recreate them and disclose essential information about training data, such as its origin and processing methods. The OSAID also emphasises that open source AI should grant users freedom to modify and build upon the models, without restrictive permissions. While OSI lacks enforcement power, it plans to advocate for its definition as the AI community’s reference point, aiming to combat “open source” claims that don’t meet OSAID standards.
The new definition comes as some companies, including Meta and Stability AI, use the open-source label without fully meeting transparency requirements. Meta, a financial supporter of the OSI, has voiced reservations about the OSAID, citing the need for protective restrictions around its Llama models. In contrast, OSI contends that AI models should be openly accessible to allow for a truly open-source AI ecosystem, rather than restricted by proprietary data and usage limitations.
Maffulli acknowledges the OSAID may need frequent updates as technology and regulations evolve. OSI has created a committee to monitor its application and adjust as necessary, with an eye on refining the open-source definition to address emerging issues like copyright and proprietary data.
A new app called Loops is aiming to be the TikTok of the fediverse, an open-source social network ecosystem. Loops, which just opened for signups, will feature short, looping videos similar to TikTok’s format. Although still in development, the platform plans to be open-source and integrate with ActivityPub, the protocol that powers other federated apps like Mastodon and Pixelfed.
Loops is the latest project from Daniel Supernault, creator of Pixelfed, and will operate under the Pixelfed umbrella. Unlike mainstream social media, Loops promises not to sell user data to advertisers, nor will it use content to train AI models. Users will retain full ownership of their videos, granting Loops only limited permissions for use.
Like other fediverse platforms, Loops will rely on user donations for funding rather than investor support, with plans to accept contributions through Patreon and similar platforms. The app will also allow users on other federated networks, like Mastodon, to interact with Loops content seamlessly. Loops is currently seeking community input on its policies and looking for moderators to guide the platform’s early stages.
Apple’s iPhone 16 will not be available for sale in Indonesia after the tech company failed to meet the country’s local content requirements. According to the Indonesian industry ministry, smartphones sold domestically must contain at least 40% locally made components, a threshold the iPhone 16 did not meet. Ministry spokesperson Febri Hendri Antoni Arief confirmed that while imports of the device for personal use are permitted if proper taxes are paid, Apple has not secured the necessary local content certification to market the phone widely in Indonesia.
Apple’s absence from the market could give a further edge to leading competitors OPPO and Samsung, who hold the top two positions in Indonesia’s smartphone market. The country’s large, tech-savvy population makes it a critical market for tech investment, and Indonesian officials have encouraged Apple to partner with domestic firms to meet local content requirements.
While Apple has no manufacturing plants in Indonesia, it has invested in app developer academies since 2018, amounting to around $101.8 million to support local talent and development.
Chinese e-commerce giant Alibaba has agreed to a $433.5 M settlement to resolve a US class-action lawsuit accusing the company of monopolistic practices. The lawsuit, filed in 2020, claimed that Alibaba misled investors by denying any anti-monopoly or unfair competition violations while allegedly pressuring merchants to stick to a single platform.
Although Alibaba denies any wrongdoing, the company opted for the settlement to avoid the costs and potential disruptions associated with prolonged legal battles. The settlement, which covers investors in Alibaba’s American depositary shares between 13 November 2019, and 23 December 2020, is pending approval from US District Judge George Daniels in Manhattan.
Lawyers for the plaintiffs have praised the deal, describing it as “an exceptional result” considering the potential damages in the case. Had the investors continued litigating, they could have sought up to $11.63 B in damages, far beyond the settlement amount. Approval of the settlement would mark the end of a major legal challenge for Alibaba, as it seeks to move forward from a period of regulatory scrutiny.
South Korea has unveiled plans to regulate cross-border cryptocurrency transactions, set to take effect in the latter half of 2025. The forthcoming regulations will mandate that businesses engaged in virtual asset trading across international borders register with relevant authorities and provide monthly transaction reports to the Bank of Korea. This initiative aims to enhance transparency and oversight in a rapidly evolving market that has seen explosive growth in recent years.
The move comes in response to alarming statistics from the customs agency, which revealed that since 2020, foreign exchange-related crimes have amounted to 11 trillion won (approximately $7.97 billion). Notably, over 80% of these crimes have involved virtual assets, highlighting the need for stricter controls. The South Korean government is prioritising legislative measures to ensure the successful implementation of these regulations within the next 18 months, reflecting its commitment to combating financial crime and protecting investors.
By introducing these regulations, South Korea aims to create a safer environment for cryptocurrency transactions, aligning with global efforts to establish clearer frameworks for digital asset trading. As countries worldwide grapple with the implications of cryptocurrency, South Korea’s proactive stance may serve as a model for other nations looking to regulate the digital asset space effectively.
A radio station in Krakow, Poland, has ignited controversy by replacing its human journalists with AI-generated presenters, marking what it claims to be ‘the first experiment in Poland.’ OFF Radio Krakow relaunched this week after laying off its staff, introducing virtual avatars aimed at engaging younger audiences on cultural, social, and LGBTQ+ topics.
The move has faced significant backlash, particularly from former journalist Mateusz Demski, who penned an open letter warning that this shift could set a dangerous precedent for job losses in the media and creative sectors. His petition against the change quickly gathered over 15,000 signatures, highlighting widespread public concern about the implications of using AI in broadcasting.
Station head Marcin Pulit defended the layoffs, stating that they were due to the station’s low listenership rather than the introduction of AI. However, Deputy Prime Minister Krzysztof Gawkowski called for regulations on AI usage, emphasising the need to establish boundaries for its application in media.
On its first day back on air, the station featured an AI-generated interview with the late Polish poet Wisława Szymborska. Michał Rusinek, president of the Wisława Szymborska Foundation, expressed support for the project, suggesting that the poet would have found the use of her name in this context humorous. As OFF Radio Krakow ventures into this new territory, discussions around the role of AI in journalism and its effects on employment are intensifying.
The outcome of the US presidential election will not change the course of the tech conflict with China. Both Republican Donald Trump and Vice President Kamala Harris are expected to intensify measures aimed at limiting China’s access to American technology and resources, although their strategies will differ.
Harris is likely to adopt a focused, multilateral approach, building on Biden’s tactics by working with allies to curb the flow of advanced technology to China. In contrast, Trump’s strategy could include sweeping measures, such as expanding tariffs and aggressively enforcing export controls, possibly escalating tensions with allies who resist the US lead.
Both candidates aim to curb China’s technological advancement and its military capabilities. Harris has pledged to ensure the US remains at the forefront of the global technology race, while Trump continues to advocate for higher tariffs and tough restrictions, including denying China access to essential components like AI chips.
China has already responded to recent US actions by imposing restrictions on exports of critical materials, such as graphite and rare earths. Experts warn that the US should exercise caution, as some industries remain reliant on Chinese resources. The tech war will likely see new fronts, including connected devices, as the conflict deepens under the next administration.
