Europol busts criminal group distributing AI-generated child abuse content

Europol announced on Friday that two dozen people have been arrested for their involvement in a criminal network distributing AI-generated images of child sexual abuse. This operation marks one of the first of its kind, highlighting concerns over the use of AI in creating illegal content. Europol noted that there is currently a lack of national legislation addressing AI-generated child abuse material.

The primary suspect, a Danish national, operated an online platform where he distributed the AI-generated content he created. Users from around the world paid a ‘symbolic online payment’ to access the material. The platform has raised significant concerns about the potential misuse of AI tools for such criminal purposes.

The ongoing operation, which involves authorities from 19 countries, resulted in 25 arrests, with most occurring simultaneously on Wednesday under the leadership of Danish authorities. Europol indicated that more arrests are expected in the coming weeks as the investigation continues.

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Data centers launch into space on SpaceX rocket

Lonestar and Phison have successfully launched the first-ever lunar data centre infrastructure aboard a SpaceX Falcon 9 rocket. The mission, set to land on the moon on March 4, is a joint venture to send Phison’s Pascari solid-state drives (SSDs), packed with data from various clients, to the lunar surface. The companies plan to expand this infrastructure, with ambitions to scale up to a petabyte of storage in the coming years.

The idea of building a data centre on the moon originated in 2018, driven by the need for secure, off-Earth storage to safeguard against climate disasters and cyber-attacks. Lonestar’s CEO, Chris Stott, noted that data has become as valuable as oil, if not more precious. The SSDs were rigorously tested for space readiness, ensuring their durability for long-term use without the possibility of on-site repairs.

This mission is just the beginning, as Lonestar and Phison aim to revolutionise data storage with nearly limitless capacity and energy efficiency in space. As AI-driven demand for data storage continues to rise, this lunar project could set the stage for future space-based infrastructure, promising a new era in data management.

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Taiwan sets rules for TSMC’s overseas ventures

Taiwan’s Economy Minister Kuo Jyh-huei announced on Thursday that Taiwan Semiconductor Manufacturing Co. (TSMC) would require government approval for any overseas joint ventures, although there are no restrictions on manufacturing advanced chips abroad, except for China. This comes amid reports that TSMC is in talks to acquire a stake in Intel, a move that could stir tensions with the US, where former President Trump has expressed concerns about Taiwan taking away American semiconductor business.

Kuo reassured reporters in Taipei that Taiwan’s semiconductor industry, particularly TSMC, remains vital to the nation’s economy, describing it as the ‘sacred mountain protecting the country.’ He also clarified that while the Taiwanese government would not interfere with TSMC’s business decisions, any large overseas investments or joint ventures must be approved by Taiwan’s economy ministry, with no changes to the rules surrounding advanced chip production outside of China.

TSMC is already investing $65 billion in new factories in Arizona, where it plans to manufacture the most advanced 2-nanometre chips, though this will not occur for a few years. The government is also preparing to engage in discussions with the Trump administration over potential tariffs on Taiwanese imports, aiming to secure the best conditions for local companies in light of the ongoing trade tensions.

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Alexa revamped by Amazon with advanced conversational AI

Amazon has unveiled Alexa+, a major upgrade to its voice assistant, integrating advanced AI to enhance interactions.

The new version can process multiple prompts in sequence, store user preferences, and manage tasks such as making reservations and sending reminders. AI-powered improvements aim to make Alexa more conversational and responsive.

The company has invested heavily in the technology, incorporating AI models through its Bedrock platform. Startup Anthropic contributed to development, with its Claude AI underpinning Alexa+.

The service will be free for Amazon Prime members, while non-Prime users will pay $19.99 per month. A phased rollout begins in March.

Alexa+ will integrate seamlessly with Amazon devices, including Ring doorbells, allowing users to access video recordings and control smart home features. It can also analyse documents, helping users understand contracts and regulations.

Industry competition remains strong, with Apple and Google also enhancing their voice assistants through AI.

Amazon hopes the overhaul will boost engagement, as Alexa usage had declined due to limited advancements. The company’s stock rose 1.7% following the announcement, reflecting investor confidence in the AI-driven update.

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FBI says North Korea behind $1.5bn crypto heist

North Korean hackers have recorded the largest cryptocurrency theft, stealing approximately $1.5bn from the Dubai-based exchange ByBit. According to the FBI, the stolen funds have already been converted into Bitcoin and spread across thousands of blockchain addresses. The attack highlights North Korea’s growing expertise in cybercrime, with proceeds believed to be funding its nuclear weapons programme.

The notorious Lazarus Group, linked to the regime, has been responsible for several high-profile hacks, including the theft of over $1.3bn in cryptocurrency last year. Experts say the group employs advanced malware and social engineering tactics to breach exchanges and launder stolen assets into fiat currency. These funds are critical for bypassing international sanctions and financing North Korea’s military ambitions.

Beyond cybercrime, Pyongyang has deepened its ties with Russia, allegedly supplying troops and weapons in exchange for financial backing and technological expertise. Meanwhile, the regime has recently reopened its borders to a limited number of international tourists, aiming to generate much-needed foreign income. As global scrutiny intensifies, concerns are growing over North Korea’s increasing reliance on illicit activities to prop up its economy and expand its military power.

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China expands DeepSeek AI to household gadgets

China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.

DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.

The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.

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UK unveils crime bill to tackle crypto-related crime

The UK government has introduced the Crime and Policing Bill, aiming to enhance its ability to recover proceeds from cryptocurrency-related crime. The bill sets out provisions for valuing cryptocurrency, establishes procedures for courts to recover illicit funds, and expands powers for the Crown Court to issue seizure orders. It addresses various criminal issues, including anti-social behaviour, sexual offences, and terrorism, with a specific focus on confiscating criminal assets tied to cryptocurrencies.

The legislation will grant the Crown Court additional authority to manage and confiscate money, cryptocurrency, and personal property in criminal cases. Provisions within the bill also introduce measures for the destruction of seized cryptocurrency, ensuring that the market value at the time of destruction is taken into account, with adjustments made for any changes in value.

The bill further amends existing laws, replacing magistrates’ courts with the Crown Court in handling cryptocurrency assets. These updates aim to streamline the management of confiscation orders, ensuring that cryptocurrencies can be more effectively seized, valued, and recovered in cases involving criminal activity.

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Scam mobile app BOM steals $1.8 million in crypto from victims

Blockchain security experts have uncovered a fake mobile app that stole over $1.8 million in cryptocurrency. The app, called BOM, targeted users by gaining access to their private wallet data, including mnemonic phrases and private keys. Once installed, BOM deceptively requested unnecessary permissions, such as access to photos and media, which raised suspicion among security experts. When granted, the app scanned the device’s storage, stole wallet data, and sent it to a remote server.

The first signs of unauthorised transactions were detected on 14 February, with further investigation revealing the scale of the theft. Over 13,000 victims had their funds stolen, with the hacker address traced across several blockchains, including Ethereum, BNB Chain, and Polygon. The stolen assets included Tether, Ethereum, Wrapped Bitcoin, and Dogecoin.

Though the identity of the attackers remains unclear, analysts from SlowMist noted that the app’s backend services had gone offline, indicating the perpetrators may already be attempting to cover their tracks. Some of the stolen funds were exchanged through decentralised platforms like PancakeSwap and OKX-DEX, making it harder to trace the movement of the assets.

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China accuses Taiwan of selling semiconductor industry to the US

China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island’s government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan’s government says it has not received such investment proposals from TSMC.

China’s Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan’s ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of ‘selling out’ its companies to the US. Taiwan, however, rejected these claims, with Taiwan’s Mainland Affairs Council affirming the importance of TSMC to the island’s economy and stressing its commitment to maintaining a leading role in semiconductor technology.

The US has been critical of Taiwan’s semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China’s claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan’s government.

TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan’s government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.

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Quantum machines secures $170 million for growth

Quantum Machines (QM), a leader in quantum computing technology, has raised $170 million in a mid-stage funding round, bringing its total funding to $280 million. The investment is seen as a significant step in accelerating QM’s role in the rapidly evolving quantum computing industry. With quantum technology on the verge of becoming a major disruptive force, this funding will help QM expand its hardware and software offerings to meet the demands of quantum system developers globally.

Quantum computing holds enormous promise for breakthroughs in fields such as medicine and chemistry, offering the ability to solve problems far beyond the capabilities of classical computers. While the technology is still developing, key milestones are being reached, including IBM and Google’s advancements in achieving over 1,000 qubits. These developments signal that practical quantum computers could soon become a reality.

QM’s growth is supported by strong backing from major investors, including PSG Equity and Intel Capital, reflecting the increasing confidence in the potential of quantum computing. As the technology matures, companies like Microsoft and Nvidia are also contributing to the ecosystem, highlighting that the quantum race is heating up. Despite regional challenges, Israeli tech startups, including QM, are continuing to attract investment, contributing to the country’s growing tech sector.

With this new funding, QM is well-positioned to drive forward its mission to innovate and lead in the quantum computing space, which many consider one of the most important technological developments of the current generation.

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