Telegram CEO Pavel Durov has alleged that France’s foreign intelligence agency attempted to pressure him. He claims they wanted him to ban Romanian conservative channels ahead of the 2025 presidential elections.
The meeting, framed as a counterterrorism effort, allegedly focused instead on geopolitical interests, including Romania, Moldova and Ukraine.
Durov claimed that French officials requested user IP logs and urged Telegram to block political voices under the pretext of tackling child exploitation content. He dismissed the request, stating that the agency’s actual goal was political interference rather than public safety.
France has firmly denied the allegations, insisting the talks focused solely on preventing online threats.
The dispute centres on concerns about election influence, particularly in Romania, where centrist Nicușor Dan recently defeated nationalist George Simion.
Durov, previously criticised over Telegram’s content, accused France of undermining democracy while claiming to protect it.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Argentina’s government has disbanded the task force investigating the controversial Libra memecoin scandal, just three months after its creation. The unit, created by President Milei, investigated the memecoin that soared to $4.5 billion before crashing to $14 million.
The decree stated the task force had ‘fulfilled its purpose.’
Local lawmakers sharply criticised the decision, accusing the government of shielding those involved. Opposition figures labelled the task force a ‘front’ and suggested the closure was a move to protect suspects.
Meanwhile, the scandal continues to shake Argentina’s crypto scene.
Judge María Servini ordered banks to release financial records from 2023 for key suspects, including President Milei and his sister Karina. The investigation centres on allegations of bribery and illicit profit, involving several individuals connected to the Libra project.
Milei denies any wrongdoing amid mounting scrutiny.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
India’s Supreme Court has urged the government to regulate cryptocurrencies, citing a gap between taxing digital assets and failing to govern them properly. The court raised concerns about the economic risks posed by unregulated crypto activity, particularly Bitcoin.
Justice Surya Kant called crypto a ‘parallel economy’ and questioned the 30% tax without proper regulation. The court made its remarks during a hearing concerning an ongoing investigation into a Bitcoin-related transaction.
A government legal representative responded by indicating that a regulatory review may be considered.
Cryptocurrency use is growing in India. However, the country has yet to introduce dedicated laws to regulate the sector. It has raised concerns among legal experts, regulators, and crypto participants.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Dubai’s crypto regulator has given virtual asset service providers (VASPs) until 19 June to comply with a new set of rules designed to improve transparency and oversight. VARA released Version 2.0 of its Rulebooks, adding stricter oversight and updated standards across key activities.
The changes include stricter requirements for margin trading, clearer definitions for terms such as ‘client assets’ and ‘qualified custodians,’ and consistent risk management obligations.
VARA aims to reduce regulatory uncertainty and make it easier for companies to meet cross-functional compliance.
The rules also introduce tougher conditions for token distribution and new restrictions on marketing, particularly for retail-facing offers. All licensed crypto firms must complete the transition within the 30-day window to avoid penalties.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
JPMorgan CEO Jamie Dimon announced plans to let the bank’s customers buy Bitcoin, though the firm will not hold the cryptocurrency on their behalf. Instead, Bitcoin purchases will be reflected in client statements, without JPMorgan providing custody services.
Dimon has long expressed scepticism about Bitcoin. He defended clients’ right to buy the asset despite concerns over its use in illegal activities like money laundering and trafficking.
Until now, JPMorgan’s crypto exposure was limited to futures products rather than direct digital asset ownership.
The move follows similar steps by Morgan Stanley, which recently offered spot Bitcoin ETFs to select clients. Spot Bitcoin ETFs have gained traction in the US, attracting nearly $42 billion in inflows since their January 2024 debut.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Senators voted 66-32 to advance the GENIUS Act, a bill aimed at regulating stablecoins. Sixteen Democrats joined Republicans in backing the measure, reversing a previous block.
The legislation introduces the first formal rules for stablecoin issuers, a move seen as vital for consumer protection and financial clarity.
Bipartisan negotiations helped push the bill forward. A new amendment addresses key Democratic concerns, including tougher consumer safeguards and limits on stablecoin issuance by tech firms.
It also extends ethics rules to figures like Elon Musk and David Sacks, at least temporarily. Despite the uncertainty over whether the amendment will pass, Democrats agreed to support the bill either way.
The Senate had stalled the proposal two weeks earlier over demands for stronger national security provisions. While Republicans have yet to back the amendment, more Democrats are now expected to vote for the bill.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Ethereum co-founder Vitalik Buterin has proposed a major update to make running a node more accessible to ordinary users. His idea aims to reduce the hardware and storage needed to run a full Ethereum node.
Instead of storing Ethereum’s full history—now over 1.3 terabytes—users would only keep data relevant to them and request older records when needed. The approach, similar to how library branches share books, would bring Ethereum nodes to standard devices, including smartphones.
Buterin says this shift reduces reliance on powerful cloud services and avoids centralised risks. The proposal arrives just ahead of Ethereum’s ambitious Pectra upgrade, which will lay the foundation for better scalability and decentralisation.
Meanwhile, other voices in the Ethereum space are pushing bold ideas. Researcher Dankrad Feist has proposed boosting the network’s gas limit by 100 times to handle up to 2,000 transactions per second.
Former developer Eric Connor believes Ethereum could help solve AI’s centralisation issues. But critics like Nic Carter warn that layer-2 networks and excessive token creation are diluting Ether’s value.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Russia’s new Central Bank regulations could effectively ban the trading of Tether (USDT) within the country’s crypto sandbox, experts have said. The rules, effective 26 May, target coins linked to ‘hostile issuers’ or at risk of being blocked or frozen.
The crypto sandbox, supervised by the Central Bank, allows Russian firms to use digital assets in international trade. Plans to expand the sandbox will let qualified investors trade on approved platforms, but only coins meeting strict criteria will be permitted.
While USDT trading appears under threat, stablecoins may still be used for cross-border payments and settlements.
Experts note that the rules’ broad definitions mean popular USD-pegged stablecoins, including Tether, likely will not comply. Tether’s requirements for Know-Your-Customer (KYC) checks enable it to block or freeze tokens at its discretion.
Such controls have already been seen in actions against Russian exchanges, highlighting potential complications for Russian crypto users.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.
Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.
Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.
Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.
So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.
One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.
The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.
Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.
Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.
Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
