Nobitex restores wallet access after major hack

Iran’s biggest crypto exchange, Nobitex, has begun restoring wallet access after a cyberattack that stole over $90 million this month. Wallet reactivation is being carried out in phases, starting with verified users and spot wallets, while other wallets will reopen once identity checks are completed.

Users were urged to update their details promptly, as deposits sent to old wallet addresses now risk permanent loss due to a complete system migration.

Nobitex warned that withdrawal, deposit, and trading services for verified users would resume as soon as security checks allow. Timelines may change depending on technical conditions.

Following the breach, Iran’s central bank mandated domestic exchanges to restrict operating hours from 10 am to 8 pm to improve security.

The pro-Israel hacking group Predatory Sparrow claimed responsibility, highlighting rising regional cyber tensions. Nobitex remains central to Iran’s growing crypto market, but the attack has shaken user trust and raised concerns over the country’s financial cybersecurity.

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

Youth unrest set to drive Bitcoin’s rise

Market analyst Jordi Visser predicts that rising dissatisfaction among young people aged 25 and under with the current financial system will drive Bitcoin adoption. He believes this trend will push its price higher over time.

On Anthony Pompliano’s podcast, Visser highlighted growing frustration due to economic uncertainty and AI-driven job losses. These factors are leading to calls for increased social spending and a move away from capitalism.

Visser said younger generations no longer believe the system will improve and expect governments to print more money amid social unrest. He argued that this trend will help Bitcoin steadily replace traditional fiat assets.

The analyst also warned that advanced AI and robotics could disrupt capitalism by concentrating wealth and reducing the need for human labour, forcing societal change. Emerging technologies like humanoid robots and self-driving cars, expected within five years, may speed up this transformation.

Visser noted that autonomous vehicles arriving in cities like Manhattan could face protests similar to those against ride-sharing, signalling broader technological disruption.

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

Kazakhstan to create crypto reserve backed by mining and seized funds

Kazakhstan will create a state crypto reserve funded by confiscated criminal assets and government-backed mining operations. National Bank Chairman Timur Suleimenov said the reserve will follow global sovereign fund standards, prioritising transparency and sustainability.

The country’s rise as a crypto mining hub began in 2021, but stricter regulations and power shortages reduced its global mining share to 4% by 2023.

Authorities now use the ’70/30 model’, where foreign investment modernises power plants, with 30% of energy output reserved for regulated mining to generate crypto for the reserve.

Legal crypto activity is limited to the Astana International Financial Centre, hosting major exchanges like Binance and Bybit. Non-compliant platforms remain blocked, while reforms aim to license unbacked crypto assets and define their legal status.

Kazakhstan is also pushing forward with broader crypto innovation, including a Solana-backed Web3 zone and the proposed CryptoCity. Despite enforcement progress, most crypto activity still occurs outside regulation. The digital tenge is expected to launch later this year.

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

Europol backs Spain in dismantling crypto crime ring

Spanish law enforcement, supported by Europol and agencies from Estonia, France, and the United States, arrested five individuals on 25 June 2025 linked to a global cryptocurrency investment scam. The operation uncovered a vast fraud network responsible for laundering around €460 million taken from over 5,000 victims worldwide.

The suspects were detained following coordinated raids in Madrid and the Canary Islands. Authorities conducted five property searches in total.

Europol has been assisting with the case since 2023, providing technical expertise, financial crime analysis, and on-site support during the final phase of the investigation.

The group allegedly operated through a vast web of international sales agents facilitating fund collection via cash, wire transfers, and cryptocurrencies.

The criminal operation reportedly maintained a corporate and banking structure based in Hong Kong, using shell companies and various digital accounts under false identities to move illicit funds.

Online fraud remains a critical threat to EU security, and Europol warns that it is rapidly growing in scale and complexity. According to Europol’s latest threat report, the rise of AI-powered deception tools is expected to fuel the spread of cyber-enabled fraud further.

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

South Korea pauses central bank digital currency project

South Korea’s central bank has paused its second testing phase for a central bank digital currency (CBDC), initially scheduled for the fourth quarter of 2025. Banks in the pilot were told of the temporary halt due to high costs and a lack of a clear commercial plan.

Attention is now shifting towards the regulation and promotion of won-backed stablecoins. The government is fast-tracking legislation under the Digital Asset Basic Act, which would establish licensing, reserve management, and user protection standards for stablecoin issuers.

President Lee Jae-Myung has prioritised developing these digital tokens, aiming to bolster South Korea’s monetary sovereignty.

Domestic lawmakers argue that Korean crypto markets are overly dependent on US dollar-pegged stablecoins such as USDT and USDC, which could undermine local financial policy.

Eight central Korean banks, including KB Kookmin, Shinhan, and Woori, have launched a joint effort to issue a won-pegged stablecoin, showing strong commercial interest.

Officials caution that South Korea risks falling behind global competitors in stablecoin innovation without swift regulatory action. The market’s potential is seen as vast, possibly surpassing important sectors like AI and semiconductors.

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

EU investors can now buy tokenised MSTR stock on Gemini

Crypto exchange Gemini has introduced a tokenised version of Michael Saylor’s Strategy (MSTR) stock for investors in the European Union. The launch allows EU users to invest in the Bitcoin-focused firm on-chain, bypassing many traditional market restrictions.

Gemini described tokenised stocks as a way to modernise financial rails and offer greater access with fewer limitations.

The platform partnered with US provider Dinari to offer tokenised stocks with greater liquidity, transparency, and full economic rights. Gemini offers only MSTR but announced plans to roll out additional tokenised stocks and exchange-traded funds (ETFs) shortly.

Unlike traditional markets, on-chain stock trading offers frictionless, 24/7 access without moving assets between platforms.

Interest in tokenised US equities is rising across Europe, with other crypto platforms such as Robinhood, Kraken, and Coinbase also aiming to enter this market. Industry experts suggest the tokenised equities market could become a significant trillion-dollar sector in the coming years.

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

Bitcoin takes centre stage as America’s new dream

Changpeng Zhao, former CEO of Binance, has declared that owning Bitcoin could soon replace home ownership as the American dream. Zhao praised the FHFA’s directive for Fannie Mae and Freddie Mac to consider cryptocurrencies in mortgage risk assessments.

The FHFA’s order asks these agencies first to explore using cryptocurrencies as mortgage reserve assets without converting them to US dollars. Prospective homeowners could use crypto holdings on regulated US exchanges as part of their mortgage applications if adopted.

FHFA Director Bill Pulte described the move as historic for cryptocurrency and mortgage industries. He credited President Donald Trump for helping position the US as a global crypto hub.

Meanwhile, during a recent White House press briefing, Trump praised Bitcoin, highlighting its benefits for the US dollar.

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

Crypto adoption grows among Koreans aged 20 to 50 with Bitcoin leading the way

Crypto ownership in South Korea is rising rapidly, with 27% of people aged 20 to 50 now holding digital assets, according to new research by the Hana Institute of Finance. Among investors, 70% plan to grow their crypto holdings, with Bitcoin remaining the top choice.

Many now view digital assets as a serious tool for building wealth and planning for retirement. The report revealed that investment behaviour is becoming more structured.

Regular purchases jumped from 10% to 34%, while mid-term trading saw a similar rise. In contrast, short-term trading declined slightly. More investors also turn to official exchanges and data platforms, moving away from informal advice and word-of-mouth.

Economic hardship is driving the trend, particularly among younger Koreans. Youth unemployment remains high, and traditional investment options offer limited returns. Crypto has emerged as a perceived lifeline, with many viewing it as their best chance to gain financial stability or afford property.

While optimism about crypto’s growth remains strong, concerns persist. Market volatility still worries 56% of investors, and many say they would feel more confident if traditional banks were more involved.

Restrictions on linking multiple bank accounts with exchanges are also viewed as a barrier to greater adoption.

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

Stablecoins surpass Visa and Mastercard in online transaction volume

According to Noam Hurwitz from Alchemy, stablecoins are now the leading medium for internet transactions, having overtaken Visa and Mastercard in on-chain volume. He described their adoption as ‘explosive’, highlighting their growing role as the ‘default settlement layer’ for digital payments.

Major fintech companies like PayPal, Stripe, and Robinhood are now integrating stablecoins to facilitate quicker, cheaper transactions using blockchain rails. Alchemy powers these operations, enabling stablecoin flows for prominent platforms.

Stablecoins are now widely used in global payments and decentralised prediction markets. They have also become significant holders of US Treasury debt, with Tether reportedly earning $13 billion in profits last year.

However, not everyone is convinced. The Bank for International Settlements has raised doubts about stablecoins serving as real money, arguing that they fail key economic tests and behave more like financial assets than currency.

Even so, the broader trend suggests stablecoins reshape how money moves online.

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

Hacktivist attacks surge in Iran–Israel tensions

The Iran–Israel conflict has now expanded into cyberspace, with rival hacker groups launching waves of politically driven attacks.

Following Israel’s military operation against Iran, pro-Israeli hackers known as ‘Predatory Sparrow‘ struck Iran’s Sepah Bank, deleting data and causing significant service disruption.

A day later, the same group targeted Nobitex, Iran’s largest crypto exchange, stealing and destroying over $90 million in assets.

Cyber attacks intensified in the days before and after Israeli strikes. According to NSFOCUS, cyberattacks on Iran peaked three days before the military operation, suggesting pre-attack reconnaissance.

In retaliation, pro-Iranian hackers escalated attacks on Israel on 16 June, focusing on government systems, aerospace, and education.

While attacks on Iran have been fewer, Israeli systems have faced over 1,300 attacks in 2025 alone, with 37% of all global hacktivist activity aimed at Israel since the conflict began.

However, analysts note these attacks have been high in volume but limited in impact. Their malware tactics involve evading antivirus software, deleting data, and turning off recovery systems.

NSFOCUS warns that geopolitical tensions are turning hacktivist groups into informal cyber proxies. Though not formally state-backed, these loosely organised actors align closely with national interests.

As traditional defences lag, cybersecurity experts argue that national infrastructure must adopt more strategic, coordinated defence measures instead of fragmented responses, especially during crises and conflicts.

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