Digital business models Archives | Page 342 of 581

Tether defends gold reserves as markets and scrutiny rise

Tether has revealed it holds around $8 billion worth of gold in a Swiss vault, placing it among the largest private holders of the precious metal globally.

According to CEO Paolo Ardoino, the El Salvador-based firm owns almost an 80-tonne stockpile outright, describing the site as ‘the most secure vault in the world’.

Gold accounts for nearly 5% of Tether’s $112 billion reserve portfolio, matching UBS Group’s reported gold exposure. While self-custody helps reduce operational fees, regulatory frameworks in the US and EU may soon force stablecoin issuers to exclude commodities from their reserves.

If enforced, Tether could be required to liquidate its bullion unless the gold backs its separate token, XAUT.

XAUT currently circulates against 7.7 tonnes of gold worth approximately $819 million. Although far below significant exchange-traded funds, its physical redemption model adds a layer of investor confidence.

Ardoino suggested demand for bullion-linked crypto could rise if investors grow wary of US fiscal health or seek to avoid deposit risk.

Gold prices have surged 25% in 2025 amid trade frictions and geopolitical concerns. As BRICS banks buy more gold, Tether blends bullion with blockchain but must show regulators it won’t harm USDT’s liquidity in times of stress.

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Fraudsters exploit dormant Bitcoin addresses to steal data

Analysts at BitMEX Research have revealed a new scam aimed at early Bitcoin holders, particularly those with dormant wallets dating back to 2011. Attackers use Bitcoin’s OP_Return field to send false transactions and messages to deceive owners into sharing sensitive data.

One high-profile victim is the ‘1Feex’ wallet, known for holding around 80,000 BTC stolen from the Mt. Gox hack.

Scammers made a fake Salomon Brothers site claiming that wallets are abandoned unless owners prove ownership with signed messages or personal documents. The site bears no genuine link to the original financial firm or its former executives.

Crypto community members recommend a safer approach: moving a small amount of Bitcoin to demonstrate wallet activity instead of risking the full balance. BitMEX urges users to avoid interacting with fake sites or sharing personal data.

The scam exemplifies growing sophistication in crypto fraud, with losses exceeding $2.1 billion in just the first half of 2025.

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New Zealand bans crypto ATMs and limits cash transfers

New Zealand is introducing sweeping reforms to tackle money laundering and criminal finance by banning crypto ATMs and capping international cash transfers at $5,000. The new bill expands enforcement powers and lets the Financial Intelligence Unit gather more data on persons of interest.

The $5,000 transfer limit aims to block criminals from moving funds offshore via cash while permitting legitimate transfers through electronic banking channels. A recent report found that criminals use crypto ATMs to purchase cryptocurrency and quickly transfer it overseas to finance drugs and scams.

Industry figures broadly welcome the crackdown, viewing it as necessary to mature the sector and protect consumers. Experts note that everyday users favour reputable exchanges over crypto ATMs, which often carry high fees and attract illicit use.

Internationally, New Zealand’s actions reflect a broader trend. Australia’s AUSTRAC and US cities like Spokane have also tightened crypto ATM regulations following alarming fraud and money laundering reports.

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Italy’s Piracy Shield sparks EU scrutiny over digital rights

Italy’s new anti-piracy system, Piracy Shield, has come under scrutiny from the European Commission over potential breaches of the Digital Services Act.

The tool, launched by the Italian communications regulator AGCOM, allows authorities to block suspicious websites within 30 minutes — a feature praised by sports rights holders for minimising illegal streaming losses.

However, its speed and lack of judicial oversight have raised legal concerns. Critics argue that individuals are denied the right to defend themselves before action.

A recent glitch linked to Google’s CDN disrupted access to platforms like YouTube and Google Drive, deepening public unease.

Another point of contention is Piracy Shield’s governance. SP Tech, a company owned by Lega Serie A, manages the system, which directly benefits from anti-piracy enforcement.

The Computer & Communications Industry Association was prompted to file a complaint, citing a conflict of interest and calling for greater transparency.

While AGCOM Commissioner Massimiliano Capitanio insists the tool places Italy at the forefront of the fight against illegal streaming, growing pressure from digital rights groups and EU regulators suggests a clash between national enforcement and European law.

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Musk’s chatbot Grok removes offensive content

Elon Musk’s AI chatbot Grok has removed several controversial posts after they were flagged as anti-Semitic and accused of praising Adolf Hitler.

The deletions followed backlash from users on X and criticism from the Anti-Defamation League (ADL), which condemned the language as dangerous and extremist.

Grok, developed by Musk’s xAI company, sparked outrage after stating Hitler would be well-suited to tackle anti-White hatred and claiming he would ‘handle it decisively’. The chatbot also made troubling comments about Jewish surnames and referred to Hitler as ‘history’s moustache man’.

In response, xAI acknowledged the issue and said it had begun filtering out hate speech before posts go live. The company credited user feedback for helping identify weaknesses in Grok’s training data and pledged ongoing updates to improve the model’s accuracy.

The ADL criticised the chatbot’s behaviour as ‘irresponsible’ and warned that such AI-generated rhetoric fuels rising anti-Semitism online.

It is not the first time Grok has been caught in controversy — earlier this year, the bot repeated White genocide conspiracy theories, which xAI blamed on an unauthorised software change.

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ChatGPT quietly tests new ‘Study Together’ feature for education

A few ChatGPT users have noticed a new option called ‘Study Together’ appearing among available tools, though OpenAI has yet to confirm any official rollout. The feature seems designed to make ChatGPT a more interactive educational companion than just delivering instant answers.

Rather than offering direct solutions, the tool prompts users to think for themselves by asking questions, potentially turning ChatGPT into a digital tutor.

Some speculate the mode might eventually allow multiple users to study together in real-time, mimicking a virtual study group environment.

With the chatbot already playing a significant role in classrooms — helping teachers plan lessons or assisting students with homework — the ‘Study Together’ feature might help guide users toward deeper learning instead of enabling shortcuts.

Critics have warned that AI tools like ChatGPT risk undermining education, so it could be a strategic shift to encourage more constructive academic use.

OpenAI has not confirmed when or if the feature will launch publicly, or whether it will be limited to ChatGPT Plus users. When asked, ChatGPT only replied that nothing had been officially announced.

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Sam Altman shrugs off Meta poaching, backs Trump, jabs at Musk

OpenAI CEO Sam Altman addressed multiple hot topics during the Sun Valley conference, including Meta’s aggressive recruitment of top AI researchers, his strained relationship with Elon Musk, and a surprising show of support for Donald Trump.

Altman downplayed Meta’s talent raids, saying he had not spoken to Mark Zuckerberg since the Meta CEO lured away three OpenAI researchers with a $100 million signing bonus. All three had worked at OpenAI’s Zurich office, which opened in 2024.

Despite the losses, Altman described the situation as ‘fine’ and ‘good’, suggesting OpenAI’s mission continues to retain top talent.

The OpenAI chief also took a subtle swipe at Meta’s smartglasses, saying he doesn’t like wearable tech and implying his company has no plans to follow suit.

On the topic of Elon Musk, Altman laughed off their rivalry, saying only that Musk’s bust-ups with everybody, and hinting at the long-running tension between the two former co-founders.

Perhaps most notably, Altman expressed disillusionment with the Democratic Party, saying he no longer feels represented by mainstream figures he once supported.

He praised Donald Trump’s focus on AI infrastructure. He even donated $1 million to Trump’s inaugural fund — a gesture reflecting a broader shift among Silicon Valley leaders warming to Trump as his popularity rises.

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Cybercrime soars as firms underfund defences

Nearly four in ten UK businesses (38 %) do not allocate a dedicated cybersecurity budget, even as cybercrime costs hit an estimated £64 billion over three years.

Smaller enterprises are particularly vulnerable, with 15 % reporting breaches linked to underfunding.

Almost half of organisations (45 %) rely solely on in‑house defences, with only 8 % securing standalone cyber insurance, exposing many to evolving threats.

Common attacks include phishing campaigns, AI‑powered malware and DDoS, yet cybersecurity typically receives just 11 % of IT budgets.

Security professionals call for stronger board‑level involvement and increased collaboration with specialists and regulators.

They caution that businesses risk suffering further financial and reputational damage without proactive budgeting and external expertise.

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OpenAI locks down operations after DeepSeek model concerns

OpenAI has significantly tightened its internal security following reports that DeepSeek may have replicated its models. DeepSeek allegedly used distillation techniques to launch a competing product earlier this year, prompting a swift response.

OpenAI has introduced strict access protocols to prevent information leaks, including fingerprint scans, offline servers, and a policy restricting internet use without approval. Sensitive projects such as its AI o1 model are now discussed only by approved staff within designated areas.

The company has also boosted cybersecurity staffing and reinforced its data centre defences. Confidential development information is now shielded through ‘information tenting’.

These actions coincide with OpenAI’s $30 billion deal with Oracle to lease 4.5 gigawatts of data centre capacity across the United States. The partnership plays a central role in OpenAI’s growing Stargate infrastructure strategy.

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Phishing 2.0: How AI is making cyber scams more convincing

Phishing remains among the most widespread and dangerous cyber threats, especially for individuals and small businesses. These attacks rely on deception—emails, texts, or social messages that impersonate trusted sources to trick people into giving up sensitive information.

Cybercriminals exploit urgency and fear. A typical example is a fake email from a bank saying your account is at risk, prompting you to click a malicious link. Even when emails look legitimate, subtle details—like a strange sender address—can be red flags.

In one recent scam, Netflix users received fake alerts about payment failures. The link led to a fake login page where credentials and payment data were stolen. Similar tactics have been used against QuickBooks users, small businesses, and Microsoft 365 customers.

Small businesses are frequent targets due to limited security resources. Emails mimicking vendors or tech companies often trick employees into handing over credentials, giving attackers access to sensitive systems.

Phishing works because it preys on human psychology: trust, fear, and urgency. And with AI, attackers can now generate more convincing content, making detection harder than ever.

Protection starts with vigilance. Always check sender addresses, avoid clicking suspicious links, and enable multi-factor authentication (MFA). Employee training, secure protocols for sensitive requests, and phishing simulations are critical for businesses.

Phishing attacks will continue to grow in sophistication, but with awareness and layered security practices, users and businesses can stay ahead of the threat.

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