Economic

Samsung profits slump as US chip ban hits AI exports

Samsung Electronics expects its second-quarter operating profits to exceed half, citing Washington’s export controls on advanced AI chips to China.

The company announced a projected 56% year-on-year drop in operating profit, falling to 4.6 trillion won ($3.3 billion), with revenue down 6.5% from the previous quarter.

The semiconductor division, a core part of Samsung’s business, suffered due to reduced utilisation and inventory value adjustments.

US restrictions have made it difficult for South Korea’s largest conglomerate to ship high-end chips to China, forcing some of its production lines to run below capacity.

Despite weak performance in the foundry sector, the memory business remained relatively stable. Analysts pointed to weaker-than-expected sales of HBM chips used for AI and a drop in NAND storage prices, while a declining won-dollar exchange rate further pressured earnings.

Looking ahead, Samsung expects a modest recovery as demand for memory chips, mainly from AI-driven data centres, improves in the year’s second half.

The company is also facing political pressure from Washington, with threats of new tariffs prompting talks between Seoul and the US administration.

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SatanLock ends operation amid ransomware ecosystem turmoil

SatanLock, a ransomware group active since April 2025, has announced it is shutting down. The group quickly gained notoriety, claiming 67 victims on its now-defunct dark web leak site.

Cybersecurity firm Check Point says more than 65% of these victims had already appeared on other ransomware leak pages. However, this suggests the group may have used shared infrastructure or tried to hijack previously compromised networks.

Such tactics reflect growing disorder within the ransomware ecosystem, where victim double-posting is rising. SatanLock may have been part of a broader criminal network, as it shares ties to families like Babuk-Bjorka and GD Lockersec.

A shutdown message was posted on the gang’s Telegram channel and leak page, announcing plans to leak all stolen data. The reason for the sudden closure has not been disclosed.

Another group, Hunters International, announced its disbandment just days earlier.

Unlike SatanLock, Hunters offered free decryption keys to its victims in a parting gesture.

These back-to-back exits signal possible pressure from law enforcement, rivals, or internal collapse in the ransomware world. Analysts are watching closely to see whether this trend continues.

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Meta hires Apple’s top AI executive amid tech talent war

Apple has lost a key AI executive to Meta, dealing a fresh blow to the tech giant’s internal AI ambitions.

Ruoming Pang, who led Apple’s foundation models team, is joining Meta’s newly formed superintelligence group, according to people familiar with the matter.

Meta reportedly offered Pang a lucrative package worth tens of millions annually, continuing its aggressive hiring streak.

The company, led by Mark Zuckerberg, has already brought in several high-profile AI experts from Scale AI, OpenAI, Anthropic and elsewhere, with Zuckerberg personally involved in recruitment efforts.

Pang’s team at Apple had been responsible for the core language models behind Apple Intelligence and Siri.

However, internal dissatisfaction has been mounting as the company considered shifting to third-party models, including from OpenAI and Anthropic.

That shift, combined with recent leadership changes and reduced responsibilities for Apple’s AI chief John Giannandrea, has weakened morale across the team.

Following Pang’s exit, the team will now be managed by Zhifeng Chen under a new multi-tier structure.

Several engineers are also reportedly planning to leave, raising concerns about Apple’s ability to retain AI talent as Meta increases its investment and influence in the race for advanced AI development.

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Tether and Binance left out of EU crypto approval list

More than 50 crypto firms are now fully licensed under the European Union’s MiCA framework, six months after it came into effect. The list names 14 stablecoin issuers and 39 service providers, all approved to operate across the EU’s 30 member states.

Leading platforms such as Coinbase, Kraken, Bitstamp, and N26 can now ‘passport’ their services across the bloc without seeking separate national approvals.

Tether and Binance remain absent from the approved list. Tether’s lack of a MiCA licence has already triggered delistings on major platforms, while Binance continues to face regulatory scrutiny in multiple jurisdictions.

In contrast, stablecoins issued by Circle, Société Générale-Forge, and Membrane Finance have gained approval, most of which are euro-denominated.

No company has yet registered to issue asset-referenced tokens (ARTs), reflecting low market demand under current compliance costs. Meanwhile, over 35 firms have been marked non-compliant, with Italy’s CONSOB actively pursuing enforcement.

As firms race to meet rising regulatory standards, a fresh update on MiCA licensing is due in September.

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BTC and ETH hold key levels as traders eye next breakout

Bitcoin is holding firm above $108,000, trading at $108,387 as of 8 July. Despite a slight daily dip, longer-term indicators support a bullish trend.

The Relative Strength Index remains neutral at 58.7, while the Stochastic RSI indicates short-term overbought conditions, hinting at a potential pause in momentum.

Shorter timeframes reveal signs of indecision. On the hourly chart, over half of key moving averages lean bearish, and the 4-hour chart shows converging exponential moving averages and tightening Bollinger Bands.

Such patterns often suggest an incoming burst of volatility. Bitcoin faces immediate resistance at $109,700 and $110,000, with a breakout possibly clearing the path to $112,000 or even $137,000. On the downside, traders closely watch support at $107,000 and $105,400, with further risk below $102,000.

Ethereum remains steady at nearly $2,555, trading within a narrow range of $2,500 to $2,600. All major moving averages signal a continued bullish bias, although oscillators such as the RSI (54) and Stochastic RSI (near 85) show signs of exhaustion.

Resistance levels lie between $2,600 and $2,620, with a more decisive breakout potentially driving ETH toward $3,000 or even $4,100. Key support zones are found at $2,500 and $2,440. While short-term caution is warranted, overall, the structure remains optimistic as institutional support strengthens ETH’s position.

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Survey reveals sharp rise in cyberattacks on Japan’s small businesses

A May 2025 survey by Teikoku Databank reveals that nearly one in three Japanese companies have experienced a cyberattack. The survey targeted over 26,000 businesses and received 10,645 valid responses.

Among respondents, 32% reported having been targeted by cyberattacks. Large firms in Japan were more likely to be affected at 41.9%, compared to 30.3% for small and medium-sized businesses and just 28.1% for small firms.

Interestingly, while larger firms showed a higher lifetime rate, cyber incidents over the past month were more common among smaller enterprises. Around 6.9% of SMEs and 7.9% of small firms were affected, compared to the overall rate of 6.7%.

Teikoku Databank warned of a sharp increase in risk for small businesses, which often lack the robust cybersecurity infrastructure of larger corporations.

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Inside Visa’s war room: How AI battles $15 trillion in threats

In Virginia’s Data Centre Alley, Visa operates a high-security fraud command centre to protect $15 trillion in annual transactions — nearly 15% of the global economy. With cybercrime growing more sophisticated, the company has spent $12 billion in five years to bolster its AI-powered defences.

‘From lone hackers to criminal syndicates generating hundreds of millions, fraud today is highly structured,’ said Michael Jabbara, Visa’s global head of fraud solutions. Some groups now operate like corporations, with risk managers and customer support.

Much of today’s fraud preys on emotions. Scammers trick people into making payments by posing as romantic interests or sellers. Victims are often lured into schemes run by trafficked workers in scam centres in Myanmar.

Once card details are stolen, criminals test them across websites using recurring micro-charges. These fly under the radar for months, draining money slowly but steadily. Some operations mimic tech firms, offering fraud-as-a-service tools on the dark web.

‘You can buy a full toolkit — the software, instructions, bot access and even a mule network,’ Jabbara said. Brute-force payment attacks are now industrial in scale, enabled by the same cloud infrastructure that powers startups.

Visa’s defence includes round-the-clock global monitoring centres in Virginia, London and Singapore. Inside its Cyber Fusion Centre, teams handle millions of threats daily, mostly stopped automatically. But it’s an arms race — one that never sleeps.

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TON falls as UAE shuts down visa rumour

TON coin dropped 6% after the United Arab Emirates dismissed claims about a new visa scheme. The authorities denied that staking $100,000 worth of TON for three years could qualify applicants for a 10-year golden visa.

The cryptocurrency briefly surged 10% after The Open Network announced the visa pathway, only to retreat following regulatory clarification.

Several UAE authorities jointly denied that golden visas are granted based on digital asset holdings. They emphasised that investments in cryptocurrencies fall under specific regulations and do not influence visa eligibility.

Investors were urged to rely on official sources to avoid misinformation.

Introduced in 2019, the UAE’s golden visa offers long-term residency to skilled professionals, investors with public investments exceeding 2 million dirhams ($544,000), and recognised tech entrepreneurs.

The programme enables foreign nationals to live, work, and study in the UAE without a national sponsor.

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Court ruling raises alarm over saved ChatGPT chats

A US federal court has ordered OpenAI to preserve nearly all user chats with ChatGPT, including those that users had deleted. The decision comes as part of The New York Times’s ongoing copyright lawsuit, triggering widespread privacy concerns.

The ruling means that millions of personal conversations, previously thought erased, will remain accessible during litigation. These exchanges may include medical queries, relationship issues, and other private matters shared in confidence.

Privacy advocates argue that users were not notified or allowed to object. Critics warn the US ruling sets a dangerous precedent, enabling mass data preservation in lawsuits unrelated to most users.

The Times claims users may have deleted chats to hide copyright infringement. Lawyers and privacy experts counter that people delete chats for legitimate, non-infringing reasons and should retain control over their data.

Legal experts call the preservation order excessive, noting it undermines trust in AI tools and could lead to a chilling effect on their use. The decision could reshape how user privacy is treated in tech litigation for years.

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East Meets West: Reimagining education in the age of AI

At the WSIS+20 High-Level Event in Geneva, the session ‘AI (and) education: Convergences between Chinese and European pedagogical practices’ brought together educators, students, and industry experts to examine how AI reshapes global education.

Led by Jovan Kurbalija of Diplo and Professor Hao Liu of Beijing Institute of Technology (BIT), with industry insights from Deloitte’s Norman Sze, the discussion focused on the future of universities and the evolving role of professors amid rapid AI developments.

Drawing on philosophical traditions from Confucius to Plato, the session emphasised the need for a hybrid approach that preserves the human essence of learning while embracing technological transformation.

Professor Liu showcased BIT’s ‘intelligent education’ model, a human-centred system integrating time, space, knowledge, teachers, and students. Moving beyond rigid, exam-focused instruction, BIT promotes creativity and interdisciplinary learning, empowering students with flexible academic paths and digital tools.

Jovan Kurbalija at WSIS+20 High-Level Event 2025
Jovan Kurbalija, Executive Director of Diplo

Meanwhile, Norman Sze highlighted how AI has accelerated industry workflows and called for educational alignment with real-world demands. He argued for reorienting learning around critical thinking, ethical literacy, and collaboration—skills that AI cannot replicate and remain central to personal and professional growth.

A key theme was whether teachers and universities remain relevant in an AI-driven future. Students from around the world contributed compelling reflections: AI may offer efficiency, but it cannot replace the emotional intelligence, mentorship, and meaning-making that only human educators provide.

As one student said, ‘I don’t care about ChatGPT—it’s not human.’ The group reached a consensus: professors must shift from ‘sages on the stage’ to ‘guides on the side,’ coaching students through complexity rather than merely transmitting knowledge.

The session closed on an optimistic note, asserting that while AI is a powerful catalyst for change, the heart of education lies in human connection, dialogue, and the ability to ask the right questions. Participants agreed that a truly forward-looking educational model will emerge not from choosing between East and West or human and machine, but from integrating the best of all to build a more inclusive and insightful future of learning.

Track all key events from the WSIS+20 High-Level Event 2025 on our dedicated page.