Ilya Lichtenstein, a New York tech entrepreneur, was sentenced to five years in prison for laundering stolen cryptocurrency from Bitfinex, one of the world’s largest exchanges. Lichtenstein admitted to hacking Bitfinex in 2016, stealing around 120,000 bitcoin using advanced tools. At the time of the theft, the bitcoin was valued at $71 million but had soared to $4.5 billion by his arrest in 2022.
Lichtenstein and his wife, Heather Morgan, were arrested in February 2022. Morgan, a self-styled rapper known as “Razzlekhan,” also pleaded guilty to conspiracy charges and is set to be sentenced on November 18. US authorities recovered $3.6 billion of the stolen funds in what Deputy Attorney General Lisa Monaco called the largest financial seizure in the Justice Department’s history.
Alongside his prison term, Lichtenstein will serve three years of supervised release, marking a significant milestone in the fight against cryptocurrency-related crimes.
Attorneys General from 18 US states have launched a joint lawsuit against the Securities and Exchange Commission (SEC), its Commissioners, and Chair Gary Gensler. The coalition, led by states such as Kentucky, Texas, Florida, and Nebraska, accuses the SEC of overstepping its constitutional authority with aggressive actions against the cryptocurrency industry. The lawsuit seeks court intervention to curb what they describe as “unconstitutional persecution” of the sector.
The complaint argues that states have successfully fostered innovation and safeguarded consumers through local regulatory frameworks, enabling blockchain experimentation and adaptation to regional needs. Examples include licensing requirements for digital asset platforms, taxation rules for digital currencies, and procedures for handling unclaimed digital property. The lawsuit claims the SEC has ignored these efforts, instead attempting to impose federal mandates without Parliamentary approval.
The Attorneys General allege that the SEC’s enforcement actions violate the separation of powers, undermining state authority over crypto regulation. With all 18 Attorneys General being Republicans, the lawsuit calls for judicial intervention to reaffirm states’ rights and halt the SEC’s centralised approach.
According to sources, the Federal Trade Commission is preparing to investigate Microsoft’s cloud computing business over allegations of anti-competitive practices. The probe will focus on claims that Microsoft uses restrictive licensing terms to deter customers from moving data from its Azure cloud service to competitors.
Reportedly, Microsoft has been accused of tactics such as raising subscription fees for departing customers, imposing steep exit charges, and making its Office 365 products incompatible with rival cloud platforms. These practices could potentially leverage the company’s market power in productivity software to stifle competition.
While the FTC declined to comment on the investigation, Microsoft has yet to respond to the allegations. The Financial Times was the first to report on the probe.
Meta, the parent company of Facebook, has been fined nearly €800M by the European Union for anti-competitive practices related to its Marketplace feature. The European Commission accused the tech giant of abusing its dominant position by tying Marketplace to Facebook’s social network, forcing exposure to the service and disadvantaging competitors.
This marks the first time the EU has penalised Meta for breaching competition laws, though the company has faced previous fines for privacy violations. The investigation found that Meta unfairly used data from competitors advertising on Facebook and Instagram to benefit its own Marketplace, giving it an edge that rivals couldn’t match.
Meta rejected the claims, arguing that the decision lacks evidence of harm to competition or consumers. While the company pledged to comply with the EU’s order to cease the conduct, it plans to appeal the ruling. The case highlights ongoing EU scrutiny of Big Tech, with Meta facing additional investigations on issues like privacy, child safety, and election integrity.
Jay Clayton, former Securities and Exchange Commission (SEC) chair, predicts that cryptocurrency legislation could be on the horizon during Donald Trump’s upcoming administration. Speaking in New York, Clayton, who is a candidate for attorney general in Trump’s second term, shared his expectations that a shift in regulatory priorities may favour the establishment of new crypto laws. He noted that under Trump’s leadership, crypto regulations could address long-standing issues that the Biden administration has not acted on directly.
During Biden’s presidency, regulators have intensified enforcement actions against cryptocurrency companies without adopting the rules the industry has been advocating. Clayton hinted that Trump’s approach could ease regulatory burdens, aiming to encourage companies to go public and create a more business-friendly environment. However, this marks a shift from Biden’s SEC, which implemented rules that many firms consider burdensome, especially around climate-related disclosures.
Clayton has criticised Biden-era SEC policies, arguing that recent regulations requiring disclosures of climate-related expenses could discourage companies from public listings. He called these policies ‘terrible,’ suggesting they deter firms from entering public markets due to the perceived regulatory complexities.
While Clayton did not confirm if he would accept a role in Trump’s administration, he indicated a willingness to serve if asked. His comments underscore a potential policy shift, particularly in financial and crypto regulations, as the industry anticipates possible changes under new leadership.
Which? is taking legal action against Apple, alleging the company breached competition law by pressuring customers to use its iCloud service. Which? argues that Apple encouraged users to store their data on iCloud, making it challenging to switch to other providers, and then charged users when they exceeded the free 5GB limit. This practice, they claim, led to overcharges, costing consumers up to £13.36 ($16.98) this year in subscription fees.
Apple denies any wrongdoing, stating customers are not required to use iCloud and often choose third-party alternatives. However, if Which? succeeds, around 40 million Apple customers in the UK who have used iCloud over the last nine years could be entitled to compensation.
Which? CEO Anabel Hoult emphasised that the action aims to secure refunds for consumers, prevent future anti-competitive behaviour, and promote a fairer market. The group plans to file the claim with the Competition Appeal Tribunal.
Swisscom has moved a step closer to finalising its €8 billion acquisition of Vodafone Italia after receiving approval from Italy’s communications regulator, AGCOM. The deal, announced in March, aims to merge Vodafone Italia with Swisscom’s Fastweb subsidiary, potentially granting Swisscom a 30% share of Italy’s fixed broadband market. However, the transaction still faces scrutiny from Italy‘s antitrust authority, AGCM, which is conducting a detailed review to assess its impact on competition.
AGCM has expressed concerns that the merger could reduce competition in Italy’s already concentrated broadband market, potentially disadvantaging residential customers. In response, Swisscom has proposed several concessions, including access to Fastweb’s fiber network for competitors and protections for existing wholesale contracts.
Competitors were invited to provide feedback on these concessions by early November, and the AGCM is expected to conclude its review by mid-December. If approved, Swisscom aims to complete the acquisition by early 2025.
South Korean authorities have arrested 215 individuals in connection with the country’s largest cryptocurrency investment scam, which reportedly defrauded investors of 320B won ($228.4M). Among those detained is the alleged leader of the operation, who is accused of selling 28 worthless virtual tokens to approximately 15,000 victims with promises of high returns.
According to police, the group issued six of the tokens on overseas crypto exchanges and manipulated their values through market-making teams. To attract investors, they established consulting companies, recruited sales teams, and targeted viewers of a YouTube channel. Officials revealed that many of the tokens were fraudulent and lacked real value.
This case highlights growing concerns over cryptocurrency-related scams in South Korea and globally, as unregulated digital assets continue to attract both investors and opportunistic criminals. The arrests mark a significant step in addressing financial crimes in the fast-evolving crypto landscape.
Visa has announced a partnership with fintech Affirm to introduce a new feature allowing United States customers to use a single card for both debit transactions and buy now, pay later (BNPL) purchases. The feature aims to meet growing consumer demand for payment flexibility. Visa will also launch the service in the United Arab Emirates in collaboration with Liv Bank and plans to expand to Europe in the coming months.
Mark Nelsen, Visa‘s global head of consumer products, highlighted that customers increasingly prioritise convenience in payments, especially as e-commerce continues to thrive. A Visa study revealed that 51% of card users desire access to multiple accounts and funding options through a single credential, streamlining their payment experiences. The ‘Flexible Credential’ feature is already available in markets such as Hong Kong, Japan, and Singapore, with further expansion planned over the next year.
Visa and Affirm’s collaboration signals a growing trend of traditional financial institutions working with fintech firms to drive innovation. While fintech companies have often been seen as challengers to established banks, such partnerships can benefit both sides by unlocking new revenue opportunities. Affirm CEO Max Levchin emphasised the company’s commitment to providing a seamless product that integrates debit and credit without hidden fees.
Meta Platforms announced it will soon give Instagram and Facebook users in Europe the option to receive less personalised ads. The decision comes in response to pressure from EU regulators and aims to address concerns about data privacy and targeted advertising. Instead of highly tailored ads, users will be shown adverts based on general factors like age, gender, and location, as well as the content they view in a given session.
The move aligns with the European Union‘s push to regulate major tech companies, supported by legislation like the Digital Markets Act (DMA), which was introduced earlier this year to promote fair competition and enhance user privacy. Additionally, Meta will offer a 40% price reduction on ad-free subscriptions for European customers.
The changes follow a recent ruling by Europe’s highest court, which supported privacy activist Max Schrems and ruled that Meta must limit the use of personal data from Facebook for advertising purposes. Meanwhile, the European Union is set to fine Apple under these new antitrust rules, marking a significant step in the enforcement of stricter regulations for Big Tech.
