Bitcoin case deepens in Czech politics with arrest

Czech police have detained convicted drug trafficker Tomas Jirikovsky in connection with a $45 million Bitcoin donation that triggered a political crisis earlier this year. Assets linked to him were seized in raids by the National Centre for Combating Organised Crime.

Prosecutors confirmed the case is now focused on suspected money laundering and drug trafficking, separated from a more exhaustive investigation disclosed in May. Jirikovsky, identified as the donor of 468 Bitcoin to the Ministry of Justice, was taken into custody in Breclav.

Former Justice Minister Pavel Blazek accepted the donation without verifying its origins. He resigned in May after revelations that Jirikovsky was behind the transfer. An audit later concluded the ministry should never have accepted the funds.

The scandal has shaken Czech politics, prompting a failed no-confidence vote and renewed calls from the opposition for further ministerial departures. Current Justice Minister Eva Decroix has pledged to release a detailed case timeline as scrutiny mounts before the October elections.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

UK links Lazarus Group to Lykke cryptocurrency theft

The British Treasury has linked state-backed North Korean hackers to a significant theft of Bitcoin, Ethereum, and other cryptocurrencies from the Swiss platform Lykke. The hack forced Lykke to suspend trading and enter liquidation, leaving founder Richard Olsen bankrupt and under legal scrutiny.

The Lazarus Group, Pyongyang’s cyber unit, has reportedly carried out a series of global cryptocurrency heists to fund weapons programmes and bypass international sanctions. Although evidence remains inconclusive, Stolen Lykke funds may have been laundered through crypto firms.

Regulators had previously warned that Lykke was not authorised to offer financial services in the UK. Over 70 customers have filed claims totalling £5.7 million in UK courts, while Olsen’s Swiss parent company entered liquidation last year.

He was declared bankrupt in January and faces ongoing criminal investigations in Switzerland.

The Lazarus Group continues to be implicated in high-profile cryptocurrency attacks worldwide, highlighting vulnerabilities in digital asset exchanges and the challenges authorities face in recovering stolen funds.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Zoom patches critical Windows flaw with high risk of takeover

Zoom has patched a critical Windows vulnerability that could let attackers fully take control of devices without needing credentials. The flaw, CVE-2025-49457, stems from the app failing to use explicit paths when loading DLLs, allowing malicious files to be executed.

Attackers could exploit this to install malware or extract sensitive data such as recordings or user credentials, even pivoting deeper into networks. The issue affects several Zoom products, including Workplace, VDI, Rooms, and Meeting SDK, all before version 6.3.10.

Zoom urges users to update their app immediately, as the flaw requires no advanced skill and can be triggered with minimal access. However, this highlights the increasing cybersecurity concerns associated with the digital world.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

GenAI app usage up 50% as firms struggle with oversight

Enterprise employees are increasingly building their own AI tools, sparking a surge in shadow AI that raises security concerns.

Netskope reports a 50% rise in generative AI platform use, with over half of current adoption estimated to be unsanctioned by IT.

Platforms like Azure OpenAI, Amazon Bedrock, and Vertex AI lead this trend, allowing users to connect enterprise data to custom AI agents.

The growth of shadow AI has prompted calls for better oversight, real-time user training, and updated data loss prevention strategies.

On-premises deployment is also increasing, with 34% of firms using local LLM interfaces like Ollama and LM Studio. Security risks grow as AI agents retrieve data using API calls beyond browsers, particularly from OpenAI and Anthropic endpoints.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Top cybersecurity vendors double down on AI-powered platforms

The cybersecurity market is consolidating as AI reshapes defence strategies. Platform-based solutions replace point tools to cut complexity, counter AI threats, and ease skill shortages. IDC predicts that security spending will rise 12% in 2025 to $377 billion by 2028.

Vendors embed AI agents, automation, and analytics into unified platforms. Palo Alto Networks’ Cortex XSIAM reached $1 billion in bookings, and its $25 billion CyberArk acquisition expands into identity management. Microsoft blends Azure, OpenAI, and Security Copilot to safeguard workloads and data.

Cisco integrates AI across networking, security, and observability, bolstered by its acquisition of Splunk. CrowdStrike rebounds from its 2024 outage with Charlotte AI, while Cloudflare shifts its focus from delivery to AI-powered threat prediction and optimisation.

Fortinet’s platform spans networking and security, strengthened by Suridata’s SaaS posture tools. Zscaler boosts its Zero Trust Exchange with Red Canary’s MDR tech. Broadcom merges Symantec and Carbon Black, while Check Point pushes its AI-driven Infinity Platform.

Identity stays central, with Okta leading access management and teaming with Palo Alto on integrated defences. The companies aim to platformise, integrate AI, and automate their operations to dominate an increasingly complex cyberthreat landscape.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

North Korean hackers switch to ransomware in major cyber campaign

A North Korean hacking unit has launched a ransomware campaign targeting South Korea and other countries, marking a shift from pure espionage. Security firm S2W identified the subgroup, ‘ChinopuNK’, as part of the ScarCruft threat actor.

The operation began in July, utilising phishing emails and a malicious shortcut file within a RAR archive to deploy multiple malware types. These included a keylogger, stealer, ransomware, and a backdoor.

ScarCruft, active since 2016, has targeted defectors, journalists, and government agencies. Researchers say the move to ransomware indicates either a new revenue stream or a more disruptive mission.

The campaign has expanded beyond South Korea to Japan, Vietnam, Russia, Nepal, and the Middle East. Analysts note the group’s technical sophistication has improved in recent years.

Security experts advise monitoring URLs, file hashes, behaviour-based indicators, and ongoing tracking of ScarCruft’s tools and infrastructure, to detect related campaigns from North Korea and other countries early.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Cohere secures $500m funding to expand secure enterprise AI

Cohere has secured $500 million in new funding, lifting its valuation to $6.8 billion and reinforcing its position as a secure, enterprise-grade AI specialist.

The Toronto-based firm, which develops large language models tailored for business use, attracted backing from AMD, Nvidia, Salesforce, and other investors.

Its flagship multilingual model, Aya 23, supports 23 languages and is designed to help companies adopt AI without the risks linked to open-source tools, reflecting growing demand for privacy-conscious, compliant solutions.

The round marks renewed support from chipmakers AMD and Nvidia, who had previously invested in the company.

Salesforce Ventures’ involvement hints at potential integration with enterprise software platforms, while other backers include Radical Ventures, Inovia Capital, PSP Investments, and the Healthcare of Ontario Pension Plan.

The company has also strengthened its leadership, appointing former Meta AI research head Joelle Pineau as Chief AI Scientist, Instagram co-founder Mike Krieger as Chief Product Officer, and ex-Uber executive Saroop Bharwani as Chief Technology Officer for Applied R&D.

Cohere intends to use the funding to advance agentic AI, systems capable of performing tasks autonomously, while focusing on security and ethical development.

With over $1.5 billion raised since its 2019 founding, the company targets adoption in regulated sectors such as healthcare and finance.

The investment comes amid a broader surge in AI spending, with industry leaders betting that secure, customisable AI will become essential for enterprise operations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

State-controlled messaging alters crypto usage in Russia

The Russian government limits secure calls on WhatsApp and Telegram, citing terrorism and fraud concerns. The measures aim to push users toward state-controlled platforms like MAX, raising privacy concerns.

With over 100 million users relying on encrypted messaging, these restrictions threaten the anonymity essential for cryptocurrency transactions. Government-monitored channels may let authorities track crypto transactions, deterring users and businesses from adopting digital currencies.

State-backed messaging platforms also open the door to regulatory oversight, complicating private crypto exchanges and noncustodial wallets.

In response, fintech startups and SMEs may turn to decentralised applications and privacy-focused tools, including zero-knowledge proofs, to maintain secure communication and financial operations.

The clampdown could boost crypto payroll adoption in Russia, reducing costs and shielding firms from economic instability. Using decentralised finance tools in alternative channels allows companies to protect privacy and support cross-border payments and remote work.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Employee data compromised in cyberattack on Canada’s parliament

Canada’s House of Commons is investigating a data breach after a cyberattack reportedly exploited a Microsoft vulnerability, granting unauthorised access to a database for managing parliamentary computers and mobile devices. Staff were notified of the breach this past Monday via internal communications.

The compromised information includes employees’ names, job titles, office locations, email addresses, and device-related details. Authorities have warned individuals to be alert for potential impersonation or phishing attempts using the stolen data.

Canada’s Communications Security Establishment (CSE) supports the investigation and confirms its involvement. No attribution has been made yet, as identifying specific threat actors remains challenging.

While the exact Microsoft vulnerability has not been publicly confirmed, cybersecurity experts point to a critical SharePoint zero-day (CVE-2025-53770), which has seen wide exploitation. The attack underscores the pressing need for robust cyber defence across government essential infrastructures.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Bluesky updates rules and invites user feedback ahead of October rollout

Two years after launch, Bluesky is revising its Community Guidelines and other policies, inviting users to comment on the proposed changes before they take effect on 15 October 2025.

The updates are designed to improve clarity, outline safety procedures in more detail, and meet the requirements of new global regulations such as the UK’s Online Safety Act, the EU’s Digital Services Act, and the US’s TAKE IT DOWN Act.

Some changes aim to shape the platform’s tone by encouraging respectful and authentic interactions, while allowing space for journalism, satire, and parody.

The revised guidelines are organised under four principles: Safety First, Respect Others, Be Authentic, and Follow the Rules. They prohibit promoting violence, illegal activity, self-harm, and sexualised depictions of minors, as well as harmful practices like doxxing and non-consensual data-sharing.

Bluesky says it will provide a more detailed appeals process, including an ‘informal dispute resolution’ step, and in some cases will allow court action instead of arbitration.

The platform has also addressed nuanced issues such as deepfakes, hate speech, and harassment, while acknowledging past challenges in moderation and community relations.

Alongside the guidelines, Bluesky has updated its Privacy Policy and Copyright Policy to comply with international laws on data rights, transfer, deletion, takedown procedures and transparency reporting.

These changes will take effect on 15 September 2025 without a public feedback period.

The company’s approach contrasts with larger social networks by introducing direct user communication for disputes, though it still faces the challenge of balancing open dialogue with consistent enforcement.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!