Digital business models

Mayor Adams pushes for New York’s rise as a crypto hub

New York City Mayor Eric Adams has reaffirmed ambition to turn the city into the world’s leading crypto capital. At a press conference ahead of the 20 May NYC Crypto Summit, Adams highlighted New York’s growing blockchain sector and its role in boosting financial inclusion.

The mayor appeared alongside leading tech figures, including June Ou from Figure Firm and Richard Hecker from Traction and Scale. Adams pointed to his 2022 move to convert his first three payslips into Bitcoin and Ethereum as proof of his early support for crypto.

He also positioned New York as a serious competitor to Silicon Valley when it comes to innovation and startup growth in the crypto space.

Adams said the summit would foster public-private cooperation to shape digital assets through balanced rules, focusing on long-term blockchain use over short-lived trends like memecoins.

Without naming them directly, his remarks may also appeal to crypto super PACs, as he prepares for a possible independent re-election campaign following the dismissal of a federal investigation.

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Masked cybercrime groups rise as attacks escalate worldwide

Cybercrime is thriving like never before, with hackers launching attacks ranging from absurd ransomware demands of $1 trillion to large-scale theft of personal data. Despite efforts from Microsoft, Google and even the FBI, these threat actors continue to outpace defences.

A new report by Group-IB has analysed over 1,500 cybercrime investigations to uncover the most active and dangerous hacker groups operating today.

Rather than fading away after arrests or infighting, many cybercriminal gangs are re-emerging stronger than before.

Group-IB’s May 2025 report highlights a troubling increase in key attack types across 2024 — phishing rose by 22%, ransomware leak sites by 10%, and APT (advanced persistent threat) attacks by 58%. The United States was the most affected country by ransomware activity.

At the top of the cybercriminal hierarchy now sits RansomHub, a ransomware-as-a-service group that emerged from the collapsed ALPHV group and has already overtaken long-established players in attack numbers.

Behind it is GoldFactory, which developed the first iOS banking trojan and exploited facial recognition data. Lazarus, a well-known North Korean state-linked group, also remains highly active under multiple aliases.

Meanwhile, politically driven hacktivist group NoName057(16) has been targeting European institutions using denial-of-service attacks.

With jurisdictional gaps allowing cybercriminals to flourish, these masked hackers remain a growing concern for global cybersecurity, especially as new threat actors emerge from the shadows instead of disappearing for good.

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US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

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US Copyright Office avoids clear decision on AI and fair use

The US Copyright Office has stopped short of deciding whether AI companies can legally use copyrighted material to train their systems under fair use.

Its newly released report acknowledges that some uses—such as non-commercial research—may qualify, while others, like replicating expressive works from pirated content to produce market-ready AI output, likely won’t.

Rather than offering a definitive answer, the Office said such cases must be assessed by the courts, not through a universal standard.

The latest report is the third in a series aimed at guiding how copyright law applies to AI-generated content. It reiterates that works entirely created by AI cannot be copyrighted, but human-edited outputs might still qualify.

The 108-page document focuses heavily on whether AI training methods transform content enough to justify legal protection, and whether they harm creators’ livelihoods through lost sales or diluted markets.

Instead of setting new policy, the Office highlights existing legal principles, especially the four factors of fair use: the purpose, the nature of the work, the amount used, and the impact on the original market.

It notes that AI-generated content can sometimes alter original works meaningfully, but when styles or outputs closely resemble protected material, legal risks remain. Tools like content filters are seen as helpful in preventing infringement, even though they’re not always reliable.

The timing of the report has been overshadowed by political turmoil. President Donald Trump reportedly dismissed both the Librarian of Congress and the head of the Copyright Office days before the report’s release.

Meanwhile, creators continue urging the government not to permit fair use in AI training, arguing it threatens the value of original work. The debate is now expected to unfold further in courtrooms instead of regulatory offices.

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BlackRock raises concerns over quantum computing risks to Bitcoin ETFs

BlackRock has flagged quantum computing as a potential risk to its iShares Bitcoin ETF (IBIT) in a recent regulatory filing. BlackRock highlighted the threat from emerging technologies, specifically quantum computing, to the cryptographic security of Bitcoin and blockchain networks.

BlackRock warned that advances in quantum computing could undermine the cryptographic algorithms protecting digital assets like Bitcoin. It is the first time BlackRock has explicitly mentioned this risk in relation to the IBIT ETF, with $64 billion in net assets.

Despite the warnings, analysts suggest that such risk disclosures are standard practice for financial products. James Seyffart, an analyst at Bloomberg Intelligence, noted that firms are required to flag all possible risks, even those with a very low likelihood of occurring.

Meanwhile, Bitcoin ETFs have seen a surge in popularity, attracting over $41 billion in net inflows since their launch.

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Jamie Lee Curtis calls out Zuckerberg over AI scam using her likeness

Jamie Lee Curtis has directly appealed to Mark Zuckerberg after discovering her likeness had been used without consent in an AI-generated advert.

Posting on Facebook, Curtis expressed her frustration with Meta’s lack of proper channels to report such abuse, stating she had exhausted all official avenues before resorting to a public plea.

The fake video reportedly manipulated footage from an emotional interview following the January wildfires in Los Angeles, inserting false statements under the guise of a product endorsement.

Instead of remaining silent, Curtis urged Zuckerberg to take action, saying the unauthorised content damaged her integrity and voice. Within hours of her public callout, Meta confirmed the video had been removed for breaching its policies, a rare example of a swift response.

‘It worked! Yay Internet! Shame has its value!’ she wrote in a follow-up, though she also highlighted the broader risks posed by deepfakes.

The actress joins a growing list of celebrities, including Taylor Swift and Scarlett Johansson, who’ve been targeted by AI misuse.

Swift was forced to publicly clarify her political stance after an AI video falsely endorsed Donald Trump, while Johansson criticised OpenAI for allegedly using a voice nearly identical to hers despite her refusal to participate in a project.

The issue has reignited concerns around consent, misinformation and the exploitation of public figures.

Instead of waiting for further harm, lawmakers in California have already begun pushing back. New legislation signed by Governor Gavin Newsom aims to protect performers from unauthorised digital replicas and deepfakes.

Meanwhile, in Washington, proposals like the No Fakes Act seek to hold tech platforms accountable, possibly fining them thousands per violation. As Curtis and others warn, without stronger protections, the misuse of AI could spiral further, threatening not just celebrities but the public as a whole.

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Australia appoints pro-crypto assistant minister for digital economy

Australia’s crypto sector has welcomed the appointment of Andrew Charlton as Assistant Minister for the Digital Economy. Charlton, a known supporter of blockchain, will also oversee AI and emerging technologies. He will work alongside Minister Tim Ayres.

Prime Minister Anthony Albanese confirmed the appointment during a press conference in Canberra on 12 May.

Charlton has previously called for balanced regulation that supports growth in the digital asset sector. Industry leaders believe his appointment marks a step towards long-awaited clarity.

Jason Titman, CEO of Swyftx, described the move as ‘unequivocally good news’. He said Charlton truly understands blockchain and believes in its potential to support Australia’s economy. Many now hope he will fast-track overdue legislation around digital assets.

Vakul Talwar, head of Crypto.com’s Australian division, said the appointment shows the growing importance of the digital economy. Since the 2022 election, the sector has grown significantly.

More than 6.2 million Australians now own or have owned crypto. Edward Carroll of MHC Digital Group said Charlton’s pro-digital stance could help the country keep pace with global regulation while supporting innovation.

The government’s decision to include ‘digital economy’ in Charlton’s title signals a strong focus on tech-led growth. The re-elected centre-left Labor Party has already proposed a regulatory framework for crypto exchanges.

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Truth Social denies memecoin rumours

Truth Social, the social platform owned by Trump Media, has denied rumours that it plans to launch a memecoin. The speculation began after crypto influencer Ran Neuner tweeted that a token linked to the platform could be unveiled within 72 hours.

In a public post, Truth Social stated it had no involvement in any memecoin launch. Donald Trump Jr. echoed the denial, warning users not to be misled by circulating misinformation.

The original rumour suggested the project may involve individuals connected to the TRUMP token, but no evidence has surfaced.

Donald Trump is already linked to cryptocurrency through his own TRUMP token. The TRUMP token’s top holders have sparked concern among lawmakers, with many wallets potentially based outside the US.

Its value has dropped more than 80% from its peak but showed a small rebound recently.

The controversy intensified after Trump announced a gala dinner for major TRUMP token holders, attracting backlash from some US senators. Critics argue that foreign involvement and political fundraising through crypto could raise serious legal and ethical questions.

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SEC plans fresh rules for crypto securities

The US Securities and Exchange Commission (SEC) is preparing new rules for crypto assets that qualify as securities. At a roundtable on 12 May, SEC Chair Paul Atkins said current laws are outdated and don’t fit the fast-growing digital asset sector.

So far, only four crypto issuers have registered successfully — something Atkins called a failure of regulation, not of the industry.

Atkins said one of his top priorities is to build a clear and fair rulebook for crypto. The goal is to guide the issuance, custody and trading of these assets, while protecting consumers at the same time.

His approach marks a sharp break from former Chair Gary Gensler, who claimed that existing securities laws were enough. That view drew strong criticism from the crypto industry.

Atkins also praised the potential of tokenised securities. He compared their impact to how the music industry was transformed by digital technology. These assets could automate dividends, unlock liquidity and create new types of markets.

A new Crypto Task Force, led by pro-crypto Commissioner Hester Peirce, will lead the work on shaping the rules.

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