Digital business models Archives | Page 347 of 569

Lawsuits pressure Strategy over Bitcoin losses

Michael Saylor’s Strategy, the largest corporate Bitcoin holder, is under pressure after reporting a $5.9 billion unrealised Q1 loss. The loss came after a new FASB rule requiring crypto assets to be valued at market price.

Investors allege the company failed to disclose the impact of the change, resulting in a sharp drop in share price.

The lawsuit, led by investor Abhey Parmar, claims executives breached fiduciary duties by downplaying Bitcoin volatility and misrepresenting the effects of the accounting shift.

CEO Phong Le and CFO Andrew Kang are accused of selling nearly $31.5 million in shares before the changes were made public. The move has raised concerns about insider trading and corporate governance.

A second class-action lawsuit has been filed, intensifying scrutiny of Strategy’s reporting practices. Despite the legal challenges, the company’s stock has gained around 28% year-to-date, reflecting persistent investor interest in its Bitcoin strategy.

Saylor’s cryptic social media activity has sparked speculation about more Bitcoin purchases. With over 592,000 BTC held—worth nearly $60 billion—Strategy’s continued accumulation signals a strong commitment to its crypto-first approach, even as legal risks grow.

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OpenAI and Microsoft’s collaboration is near breaking point

The once-celebrated partnership between OpenAI and Microsoft is now under severe strain as disputes over control and strategic direction threaten to dismantle their alliance.

OpenAI’s move toward a for-profit model has placed it at odds with Microsoft, which has invested billions and provided exclusive access to Azure infrastructure.

Microsoft’s financial backing and technical involvement have granted it a powerful voice in OpenAI’s operations. However, OpenAI now appears determined to gain independence, even if it risks severing ties with the tech giant.

Negotiations are ongoing, but the growing rift could reshape the trajectory of generative AI development if the collaboration collapses.

Amid tensions, Microsoft evaluates alternative options, including developing AI tools and working with rivals like Meta and xAI.

Such a pivot suggests Microsoft is preparing for a future beyond OpenAI, potentially ending its exclusive access to upcoming models and intellectual property.

A breakdown could have industry-wide repercussions. OpenAI may struggle to secure the estimated $40 billion in fresh funding it seeks, especially without Microsoft’s support.

At the same time, the rivalry could accelerate competition across the AI sector, prompting others to strengthen or redefine their positions in the race for dominance.

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Coinbase gains MiCA approval in EU

Coinbase has secured regulatory approval under the EU’s MiCA framework, allowing it to operate across all 27 member states. Luxembourg’s financial regulator, CSSF, licensed the exchange, making it the first US crypto firm fully recognised under MiCA.

After approval, Coinbase announced it would move its European headquarters from Ireland to Luxembourg. The country’s progressive stance on digital finance, including four blockchain laws in recent years, made it a strategic choice for the exchange.

MiCA aims to unify crypto regulations across the EU, offering clear rules and consumer protections while reducing regulatory fragmentation. Coinbase’s endorsement of the CSSF highlights the role Luxembourg is playing in shaping digital policy in Europe.

With this move, Coinbase joins a growing list of global exchanges — including Bybit, Crypto.com, and OKX — positioning themselves for broader European expansion under MiCA’s regulatory framework.

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Android users can identify songs with Gemini

Google has updated its Gemini AI app for Android with a voice-activated song search feature, bringing back a capability once available through Google Assistant. Users can now simply ask Gemini ‘What song is this?’ to trigger the music recognition tool.

Once activated, Gemini launches Google’s Song Search using a full-screen interface that listens to ambient audio and displays a pulsing animation. If a match is found, results are shown via Google Search with the track’s details.

The feature improves on Gemini’s earlier version, which only suggested using external apps for music ID. It offers a streamlined alternative to Shazam for Android users, though the interface resets after each use.

Currently, this feature is exclusive to Android devices and not yet available for iPhone users. By integrating this tool, Google continues to unify useful voice functions under its Gemini AI platform.

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Supply chain cyber attack hits UBS and Swiss banks

A sophisticated supply chain cyber attack on Swiss service provider Chain IQ has resulted in data leaks at several financial institutions, including UBS and Pictet. According to the banks, no client data was compromised.

UBS confirmed the breach on Wednesday, stating: ‘A cyber attack at an external supplier has led to information about UBS and several other companies being stolen. No client data has been affected.’ The bank said it had acted swiftly to protect operations.

Chain IQ revealed that it was one of 20 organisations targeted in what it described as ‘a cyber-attack that had never before been seen on a global scale.’

The attackers published stolen data on the dark web on 12 June 2025 at 17:15 CET. The firm said access was revoked and the incident contained within 8 hours and 45 minutes.

The stolen data included employee business contact details from certain clients, such as internal telephone numbers. The company stated that all systems were checked and secured, with law enforcement notified immediately.

Dr Ilia Kolochenko, CEO of ImmuniWeb and a Fellow at the British Computer Society, warned of the potential impact: ‘This breach may have a disastrous and long-lasting effect on the Swiss ba n king sector. An urgent investigation is essential to determine its scope.’

He added that the incident highlights third-party vulnerabilities: ‘Even major institutions are at risk from supply chain weaknesses. Legal liability could extend to the banks themselves if damage to individuals occurs.’

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TCS clears its name in M&S data breach

Tata Consultancy Services (TCS) has publicly denied any involvement in the cyberattack that disrupted Marks & Spencer earlier this year. The attack, described as highly sophisticated, led to significant data theft and weeks-long disruption of online operations.

During the company’s annual shareholder meeting, TCS independent director Keki Mistry confirmed that none of the company’s systems or users were compromised. He said TCS is not under investigation by M&S and assured shareholders no other clients were affected.

TCS has worked with M&S for more than a decade and was awarded a $1bn contract in 2023 to overhaul the retailer’s supply chain systems. Although TCS reviewed its systems, Mistry’s comments suggest the breach did not stem from its infrastructure.

The retailer has not responded to TCS’s latest remarks but earlier stated it hopes to fully restore its online services by July.

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Amazon CEO warns staff to embrace AI or face job losses

Amazon CEO Andy Jassy has warned staff that they must embrace AI or risk losing their jobs.

In a memo shared publicly, Jassy said generative AI and intelligent agents are already transforming workflows at Amazon, and this shift will inevitably reduce the number of corporate roles in the coming years.

According to Jassy, AI will allow Amazon to operate more efficiently by automating specific roles and reallocating talent to new areas. He acknowledged that it’s difficult to predict the exact outcome but clarified that the corporate workforce will shrink as AI adoption expands across the company.

Those hoping to remain at Amazon will need to upskill quickly. Jassy stressed the need for employees to stay curious and proficient with AI tools to boost their productivity and remain valuable in an increasingly automated environment.

Amazon is not alone in the trend.

BT Group is restructuring to eliminate tens of thousands of roles. At the same time, other corporate leaders, including those at LVMH and ManPower, have echoed concerns that AI’s most significant disruption may be within human resources.

Executives now see AI as a tech shift and a workforce transformation demanding retraining and redefinition of roles.

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India’s Gen Z founders go viral with AI and robotics ‘Hacker House’ in Bengaluru

A viral video has captured the imagination of tech enthusiasts by offering a rare look inside a ‘Hacker House’ in Bengaluru’s HSR Layout, where a group of Gen Z Indian founders are quietly shaping the future of AI and robotics.

Spearheaded by Localhost, the initiative provides young developers aged 16 to 22 with funding, workspace, and a collaborative environment to rapidly build real-world tech products — no media hype, just raw innovation.

The video, shared by Canadian entrepreneur Caleb Friesen, shows teenage coders intensely focused on their projects. From AI-powered noise-cancelling systems and assistive robots to innovative real estate and podcasting tools, each room in the shared house hums with creativity.

The youngest, 16-year-old Harish, stands out for his deep focus, while Suhas Sumukh, who leads the Bengaluru chapter, acts as both a guide and mentor.

Rather than pitch decks and polished PR, what resonated online was the authenticity and dedication. Caleb’s walk-through showed residents too engrossed in their work to acknowledge his arrival.

Viewers responded with admiration, calling it a rare glimpse into ‘the real future of Indian tech’. The video has since crossed 1.4 million views, sparking global curiosity.

At the heart of the movement is Localhost, founded by Kei Hayashi, which helps young developers build fast and learn faster.

As demand grows for similar hacker houses in Mumbai, Delhi, and Hyderabad, the initiative may start a new chapter for India’s startup ecosystem — fuelled by focus, snacks, and a poster of Steve Jobs.

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Visa and Yellow Card launch new digital dollar system

Visa is stepping up efforts to improve cross-border payments in Africa by partnering with Yellow Card Financial to roll out stablecoin settlements across 20 markets. The pilot will start later this year in an undisclosed country, offering faster and cheaper transactions.

The collaboration promises near-instant, low-cost stablecoin transfers by combining Visa Direct’s payment network with Yellow Card’s licences in Africa and the broader CEMEA region.

These services come at a critical time, as local currency volatility and shortages of US dollars have hampered trade and remittances across the continent.

Visa’s stablecoin infrastructure has already processed over $225 million in USDC settlements since 2023. Yellow Card, which has handled over $6 billion in crypto transactions, offers Visa immediate access to a mature crypto corridor.

The partnership seeks to modernise traditional payment rails by reducing fees, improving liquidity management, and boosting resilience.

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South Korea to investigate crypto exchange fees

South Korea’s Financial Services Commission (FSC) has announced an investigation into the transaction fees charged by domestic cryptocurrency exchanges. The regulator will assess if fees are too high and consider ways to reduce trading costs.

The inquiry aligns with President Lee Jae-myung’s pro-crypto agenda. Lee promised during his campaign to reduce trading fees, notably to support younger investors.

The FSC intends to survey local exchanges about their current fee systems and compare them with overseas platforms to set future policy standards.

Earlier this year, South Korea’s regulator introduced a 0.6% supervision fee on exchanges’ operating revenues.

The fees collected from major exchanges like Upbit and smaller players such as Bithumb and Coinone contribute significantly to the overall industry revenue. The FSC has yet to comment on the investigation’s next steps.

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