Czech police have detained convicted drug trafficker Tomas Jirikovsky in connection with a $45 million Bitcoin donation that triggered a political crisis earlier this year. Assets linked to him were seized in raids by the National Centre for Combating Organised Crime.
Prosecutors confirmed the case is now focused on suspected money laundering and drug trafficking, separated from a more exhaustive investigation disclosed in May. Jirikovsky, identified as the donor of 468 Bitcoin to the Ministry of Justice, was taken into custody in Breclav.
Former Justice Minister Pavel Blazek accepted the donation without verifying its origins. He resigned in May after revelations that Jirikovsky was behind the transfer. An audit later concluded the ministry should never have accepted the funds.
The scandal has shaken Czech politics, prompting a failed no-confidence vote and renewed calls from the opposition for further ministerial departures. Current Justice Minister Eva Decroix has pledged to release a detailed case timeline as scrutiny mounts before the October elections.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Authorities in China’s Guizhou Province have begun using joint custody centres and cold wallets to manage cryptocurrencies seized from unlawful activities, particularly in Duyun City. The move represents a strategic adjustment amid the country’s ongoing ban on crypto trading.
Adopting cold storage and joint custody addresses practical challenges in preserving and disposing of seized assets. Experts warn that selling seized crypto could breach trading bans, cause risk compliance issues, and cause market disruption.
China’s approach may influence international handling and regulation of digital assets. Analysts suggest these protocols could integrate regulatory compliance with financial stability goals, shaping broader policies for Bitcoin and other cryptocurrencies worldwide.
Scholars describe the current measures as temporary solutions that do not fully align with the nation’s crypto prohibition.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The British Treasury has linked state-backed North Korean hackers to a significant theft of Bitcoin, Ethereum, and other cryptocurrencies from the Swiss platform Lykke. The hack forced Lykke to suspend trading and enter liquidation, leaving founder Richard Olsen bankrupt and under legal scrutiny.
The Lazarus Group, Pyongyang’s cyber unit, has reportedly carried out a series of global cryptocurrency heists to fund weapons programmes and bypass international sanctions. Although evidence remains inconclusive, Stolen Lykke funds may have been laundered through crypto firms.
Regulators had previously warned that Lykke was not authorised to offer financial services in the UK. Over 70 customers have filed claims totalling £5.7 million in UK courts, while Olsen’s Swiss parent company entered liquidation last year.
He was declared bankrupt in January and faces ongoing criminal investigations in Switzerland.
The Lazarus Group continues to be implicated in high-profile cryptocurrency attacks worldwide, highlighting vulnerabilities in digital asset exchanges and the challenges authorities face in recovering stolen funds.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The cryptocurrency sector has promoted tokenised stocks, allowing shares to be traded via blockchain. While fractional ownership and 24/7 trading are possible, most brokers already offer commission-free fractional shares, limiting the benefits for individual investors.
Tokenised stocks require a custodian to hold the underlying asset, a digital token representing the share, and smart contracts granting rights such as dividends and voting. Platforms like Kraken and Robinhood now offer tokenised trading, while asset managers like BlackRock explore tokenised funds.
Proponents cite transparency, security, and direct access to companies as advantages.
Risks remain significant. Transactions may be irrevocable, and uncertain legal protections, and smart contracts cannot cover all scenarios. Experts warn that tokenisation may bypass securities laws, risking market trust and investor protections.
Many analysts suggest the crypto industry’s push for tokenisation is driven more by a desire to integrate with traditional finance and attract institutional capital than by benefits to retail investors. Advantages are limited while risks, including regulatory uncertainty and potential fraud, are substantial.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The Russian government limits secure calls on WhatsApp and Telegram, citing terrorism and fraud concerns. The measures aim to push users toward state-controlled platforms like MAX, raising privacy concerns.
With over 100 million users relying on encrypted messaging, these restrictions threaten the anonymity essential for cryptocurrency transactions. Government-monitored channels may let authorities track crypto transactions, deterring users and businesses from adopting digital currencies.
State-backed messaging platforms also open the door to regulatory oversight, complicating private crypto exchanges and noncustodial wallets.
In response, fintech startups and SMEs may turn to decentralised applications and privacy-focused tools, including zero-knowledge proofs, to maintain secure communication and financial operations.
The clampdown could boost crypto payroll adoption in Russia, reducing costs and shielding firms from economic instability. Using decentralised finance tools in alternative channels allows companies to protect privacy and support cross-border payments and remote work.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Africa is preparing a new regulatory framework for cross-border cryptocurrency transactions, according to Finance Minister Enoch Godongwana. The South African Reserve Bank will release the framework this year, focusing on cross-border crypto asset transfers.
The move comes after a High Court ruling left cryptocurrencies exempt from exchange control regulations. Instead of a broad exemption framework for exchanges, authorities aim to regulate the activities of crypto asset service providers involved in moving value across borders.
The framework will set conditions, administrative duties, and reporting requirements to curb illicit flows and prevent regulatory loopholes.
SARB works closely with the National Treasury, the Financial Sector Conduct Authority, and other financial bodies to finalise the rules.
Officials say the goal is to align South Africa’s exchange control laws with the realities of the digital asset market while addressing the risks identified by the Intergovernmental Fintech Working Group.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
A new fraud tactic is emerging, with con artists posing as lawyers to target cryptocurrency scam victims. They exploit desperation by promising to recover lost funds, using elaborate ruses like fabricated government partnerships and forged documents.
Sophisticated tactics, including fake websites and staged WhatsApp chats, pressure people into paying additional fees.
The US Federal Bureau of Investigation has issued a warning about the scam. Fake law firms use detailed knowledge of a victim’s prior losses to appear credible, knowing the exact amounts and dates of fraudulent transactions.
The scheme often escalates when victims are directed to deposit money into what appear to be foreign bank accounts, which are sophisticated facades designed to steal more funds.
The FBI recommends a ‘Zero Trust’ approach to combat fraud. Any unsolicited recovery offer should be met with immediate scepticism. A major red flag is if a representative refuses to appear on camera or provide their licensing details.
The bureau also advises keeping detailed records of all interactions, like emails and video calls, as documentation could prove invaluable for investigators.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Norway’s sovereign wealth fund has significantly increased its indirect Bitcoin exposure. The world’s largest fund’s holdings in Bitcoin proxies have surged by 192% over the past year.
Unable to hold cryptocurrencies directly due to investment restrictions, the fund gains exposure through shares in companies like Coinbase and Strategy.
A broader trend is emerging among sovereign and state wealth funds. Due to legal mandates, managers are often limited to specific asset classes.
To invest in cryptocurrency, funds are turning to alternative routes like exchange-traded funds and companies that hold Bitcoin. The ‘side door’ approach allows them to participate in the crypto market while following regulations.
Kazakhstan’s sovereign wealth fund also announced plans to convert some of its assets to crypto, showing a growing global trend towards integrating the asset into traditional financial portfolios.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Google Play is introducing new policies for cryptocurrency wallet applications. The new rules will require them to be licensed in more than fifteen countries, including the United States and the European Union.
The changes, which come into effect on 29 October, will require providers in the US to register as a money services business or money transmitter. Those in the EU, meanwhile, must register as a crypto-asset service provider.
The updated rules, which aim to ensure compliance with industry standards, will not apply to non-custodial wallets. Following initial concerns from the crypto community, Google clarified the policy on X, stating that non-custodial apps are not in scope.
The new regulations could lead to a broader adoption of Know Your Customer checks and other anti-money laundering measures for the affected apps.
Google Play has a mixed history with cryptocurrency, having previously banned crypto mining apps in 2018 and removed several crypto news and video games. In 2021, the company removed several deceptive apps for allegedly tricking users into paying for an illegitimate cloud service.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bitcoin has secured a new all-time high, with its price momentarily climbing above USD 124,000 and capturing headlines again. The milestone has solidified its upward trajectory, even with modest daily gains.
At the same time, Ethereum has also experienced a stellar month. It is now positioned less than two percent away from breaking its previous all-time high for the first time in nearly four years.
The broader cryptocurrency market is thriving alongside these two giants. Many of the top 100 digital assets are basking in double-digit weekly gains, with Solana up by 23 percent and Ethereum’s rise of 30 percent particularly noteworthy.
A combination of positive regulatory shifts and economic optimism in the United States drives the robust market momentum.
A return to high-growth investments is the primary theme, with institutional investors increasingly flocking to Ethereum as a treasury asset.
Following favourable inflation data, the shift is fuelled by expectations of a September interest rate cut in the US. The anticipated monetary easing has encouraged a move toward ‘risk-on’ assets within the cryptocurrency sector.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
