Digital identities

OCC approval moves Crypto.com closer to US trust bank

Crypto.com has secured conditional approval from the Office of the Comptroller of the Currency to move ahead with plans to launch a federally regulated national trust bank in the United States.

Approval marks a notable step in the firm’s regulatory roadmap. It also signals continued alignment with US supervisory expectations as the digital asset sector seeks deeper integration with traditional financial infrastructure.

Plans focus on establishing Foris Dax National Trust Bank. The entity is designed to provide a consolidated suite of services, including digital asset custody, staking across multiple blockchain ecosystems such as Cronos, and trade settlement.

Full approval would place the entity under direct federal oversight, positioning it to serve institutional clients that require qualified custodians operating within a clear regulatory perimeter.

Leadership described the decision as recognition of its compliance and risk management framework. Executives said the structure would offer institutions a single regulated gateway to digital asset infrastructure and strengthen market confidence.

Existing operations at Crypto.com Custody Trust Company in New Hampshire will continue without interruption. Final authorisation will determine the timeline for launching the national trust bank and expanding federally supervised US services.

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Anthropic uncovers large-scale AI model theft operations

Three AI laboratories have been found conducting large-scale illicit campaigns to extract capabilities from Anthropic’s Claude AI, the company revealed.

DeepSeek, Moonshot, and MiniMax used around 24,000 fraudulent accounts to generate more than 16 million interactions, violating terms of service and regional access restrictions. The technique, called distillation, trains a weaker model on outputs from a stronger one, speeding AI development.

Distilled models obtained in this manner often lack critical safeguards, creating serious national security concerns. Without protections, these capabilities could be integrated into military, intelligence, surveillance, or cyber operations, potentially by authoritarian governments.

The attacks also undermine export controls designed to preserve the competitive edge of US AI technology and could give a misleading impression of foreign labs’ independent AI progress.

Each lab followed coordinated playbooks using proxy networks and large-scale automated prompts to target specific capabilities such as agentic reasoning, coding, and tool use.

Anthropic attributed the campaigns using request metadata, infrastructure indicators, and corroborating observations from industry partners. The investigation detailed how distillation attacks operate from data generation to model launch.

In response, Anthropic has strengthened detection systems, implemented stricter access controls, shared intelligence with other labs and authorities, and introduced countermeasures to reduce the effectiveness of illicit distillation.

The company emphasises that addressing these attacks will require coordinated action across the AI industry, cloud providers, and policymakers to protect frontier AI capabilities.

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Medical AI risks in Turkey highlight data bias and privacy challenges

Ankara is seeing growing debate over the risks and benefits of medical AI as experts warn that poorly governed systems could threaten patient safety.

Associate professor Agah Tugrul Korucu said AI offers meaningful potential for healthcare only when supported by rigorous ethical rules and strong oversight instead of rapid deployment without proper safeguards.

Korucu explained that data bias remains one of the most significant dangers because AI models learn directly from the information they receive. Underrepresented age groups, regions or social classes can distort outcomes and create systematic errors.

Turkey’s national health database e-Nabiz provides a strategic advantage, yet raw information cannot generate value unless it is processed correctly and supported by clear standards, quality controls and reliable terminology.

He added that inconsistent hospital records, labelling errors and privacy vulnerabilities can mislead AI systems and pose legal challenges. Strict anonymisation and secure analysis environments are needed to prevent harmful breaches.

Medical AI works best as a second eye in fields such as radiology and pathology, where systems can reduce workloads by flagging suspicious areas instead of leaving clinicians to assess every scan alone.

Korucu said physicians must remain final decision makers because automation bias could push patients towards unnecessary risks.

He expects genomic data combined with AI to transform personalised medicine over the coming decade, allowing faster diagnoses and accurate medication choices for rare conditions.

Priority development areas for Turkey include triage tools, intensive care early warning systems and chronic disease management. He noted that the long-term model will be the AI-assisted physician rather than a fully automated clinician.

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AWS warns of AI powered cybercrime

Amazon Web Services has revealed that a Russian-speaking threat actor used commercial AI tools to compromise more than 600 FortiGate firewalls across 55 countries. AWS described the campaign as an AI-powered assembly line for cybercrime.

According to AWS, the attacker relied on exposed management ports and weak single-factor credentials rather than exploiting software vulnerabilities. The campaign targeted FortiGate devices globally and focused on harvesting credentials and configuration data.

AWS said the potentially Russian group appeared unsophisticated but achieved scale through AI-assisted mass scanning and automation. When encountering stronger defences, the attackers reportedly shifted to easier targets rather than persist.

The company advised organisations using FortiGate appliances to secure management interfaces, change default credentials and enforce complex passwords. Amazon said it was not compromised during the campaign.

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Wikipedia removes Archive.today links

Wikipedia editors have voted to remove all links to Archive.today, citing allegations that the web archive was involved in a distributed denial of service attack.

Editors said Archive.today, which also operates under domains such as archive.is and archive.ph, should not be linked because it allegedly used visitors’ browsers to target blogger Jani Patokallio. The site has also been accused of altering archived pages, raising concerns about reliability.

Archive.today had previously been blacklisted in 2013 before being reinstated in 2016. Wikipedia’s latest guidance calls for replacing Archive.today links with original sources or alternative archives such as the Wayback Machine.

The apparent owner of Archive.today denied wrongdoing in posts linked from the site and suggested the controversy had been exaggerated. Wikipedia editors nevertheless concluded that readers should not be directed to a service facing such allegations.

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Stanford speech warns of AI tsunami

Senator Bernie Sanders has warned at Stanford University in California that the US is unprepared for the speed and scale of the AI revolution. Speaking in California alongside Congressman Ro Khanna, he called the moment one of the most dangerous in modern US history.

At Stanford University, Sanders urged a moratorium on the expansion of AI data centres to slow development while lawmakers catch up. He argued that the American public lacks a clear understanding of the economic and social impact ahead and that New York is already considering a pause.

Khanna, who represents Silicon Valley in California, rejected a complete moratorium but called for steering AI growth through renewable energy and water efficiency standards. He outlined principles to prevent wealth from being concentrated among a small group of tech billionaires.

Sanders also raised concerns in California about job losses and emotional reliance on AI, citing projections of widespread automation. He called for a national debate in the US over whether AI will benefit the public or deepen inequality.

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OpenClaw exploits spark a major security alert

A wave of coordinated attacks has targeted OpenClaw, the autonomous AI framework that gained rapid popularity after its release in January.

Multiple hacking groups have taken advantage of severe vulnerabilities to steal API keys, extract persistent memory data, and push information-stealing malware instead of leaving the platform’s expanding user base unharmed.

Security analysts have linked more than 30,000 compromised instances to campaigns that intercept messages and deploy malicious payloads through channels such as Telegram.

Much of the damage stems from flaws such as the Remote Code Execution vulnerability CVE-2026-25253, supply chain poisoning, and exposed administrative interfaces. Early attacks centred on the ‘ClawHavoc’ campaign, which disguised malware as legitimate installation tools.

Users who downloaded these scripts inadvertently installed stealers capable of full compromise, enabling attackers to move laterally across enterprise systems instead of being confined to a single device.

Further incidents emerged on the OpenClaw marketplace, where backdoored ‘skills’ were published from accounts that appeared reliable. These updates executed remote commands that allowed attackers to siphon OAuth tokens, passwords, and API keys in real time.

A Shodan scan later identified more than 312,000 OpenClaw instances running on a default port with little or no protection, while honeypots recorded hostile activity within minutes of appearing online.

Security researchers argue that the surge in attacks marks a decisive moment for autonomous AI frameworks. As organisations experiment with agents capable of independent decision-making, the absence of security-by-design safeguards is creating opportunities for organised threat groups.

Flare’s advisory urges companies to secure credentials and isolate AI workloads instead of relying on default configurations that expose high-privilege systems to the internet.

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EU DSA fine against X heads to court in key test case

X Corp., owned by Elon Musk, has filed an appeal with the General Court of the European Union against a €120 million fine imposed by the European Commission for breaching the Digital Services Act. The penalty, issued in December, marks the first enforcement action under the 2022 law.

The Commission concluded that X violated transparency obligations and misled users through its verification design, arguing that paid blue checkmarks made it harder to assess account authenticity. Officials also cited concerns about advertising transparency and researchers’ access to platform data.

Henna Virkkunen, the EU’s executive vice-president for tech sovereignty, security, and democracy, said deceptive verification and opaque advertising had no place online. The Commission opened its probe in December 2023, examining risk management, moderation practices, and alleged dark patterns.

X Corp. argued that the decision followed an incomplete investigation and a flawed reading of the DSA, citing procedural errors and due-process concerns. It said the appeal could shape future enforcement standards and penalty calculations under the regulation.

The EU is also assessing whether X mitigated systemic risks, including deepfaked content and child sexual abuse material linked to its Grok chatbot. US critics describe DSA enforcement as a threat to free speech, while EU officials say it strengthens accountability across the digital single market.

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EU–US draft data pact allows automated decisions on travellers

A draft data-sharing agreement between the EU and the US Department of Homeland Security would allow automated decisions about European travellers to continue under certain conditions, despite attempts to tighten protections.

The text permits such decisions when authorised under domestic law and relies on safeguards that let individuals request human intervention instead of leaving outcomes entirely to algorithms.

A deal designed to preserve visa-free travel would require national authorities to grant access to biometric databases containing fingerprints and facial scans.

Negotiators are attempting to reconcile the framework with the General Data Protection Regulation, even though the draft states that the new rules would supplement and supersede earlier bilateral arrangements.

Sensitive information, including political views, trade union membership and biometric identifiers, could be transferred as long as protective conditions are applied.

EU countries face a deadline at the end of 2026 to conclude individual agreements, and failure to do so could result in suspension from the US Visa Waiver Program.

A separate clause keeps disputes firmly outside judicial scrutiny by requiring disagreements to be resolved through a Joint Committee instead of national or international courts.

The draft also restricts onward sharing, obliging US authorities to seek explicit consent before passing European-supplied data to third parties.

Further negotiations are expected, with the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs preparing to hold a closed-door review of the talks.

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EU drops revised GDPR personal data definition amid regulatory pressure

Governments across the EU have withdrawn the revised definition of personal data from the GDPR omnibus package, softening earlier proposals that had prompted strong resistance from regulators and civil society.

A decision that signals a preference for maintaining the original scope of the General Data Protection Regulation instead of reopening sensitive debates that risked weakening long-standing protections.

Greater attention is now placed on the forthcoming pseudonymisation guidelines prepared by the European Data Protection Board. These guidelines are expected to shape how organisations interpret key safeguards, offering practical direction instead of altering the legal definition of personal data.

The updated prominence given to the guidance reflects a broader trend within the Council towards regulatory clarity rather than legislative redesign.

The compromise text also maintains links with the wider review of the ePrivacy Directive, keeping future updates aligned with existing digital-rights rules.

Member states appear increasingly cautious about reopening foundational privacy concepts, opting to strengthen enforcement through guidance and implementation rather than altering core definitions in law.

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