Economic Archives | Page 387 of 708 | Digital Watch Observatory

G7 to address North Korea’s role in major crypto hacks

Leaders of the Group of Seven (G7) nations are set to tackle North Korea’s ongoing cyber threats, particularly its involvement in large-scale cryptocurrency hacks.

The agenda will reportedly focus on the regime’s use of stolen crypto funds to finance weapons programmes. The issue has raised international concern over global security risks.

The summit, hosted by Canadian Prime Minister Mark Carney from 15 to 17 June in Alberta, is expected to address geopolitical challenges, including North Korea’s tightening alliance with Russia. Such ties have further complicated attribution of attacks and enforcement of sanctions, experts warn.

Investigations have linked North Korean hackers, notably the Lazarus Group, to major crypto heists. These include the $622 million Axie Infinity breach and February’s $1.4 billion Bybit attack. Analysts believe other cyber units are also active, making digital asset protection a growing priority.

The G7, comprising France, Germany, Italy, Japan, the UK, the US and Canada, aims to strengthen coordination against cybercrime. It also seeks to limit the regime’s ability to exploit the crypto ecosystem for hostile purposes.

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Irish startup launches first silicon quantum computer

An Irish startup, Equal1, has unveiled the world’s first silicon-based quantum computer designed to integrate smoothly into existing data centres instead of requiring entirely new infrastructure.

Named Bell-1, the compact six-qubit device is built to slot directly into standard server racks, weighing just over 200 kilograms and roughly matching the size of a conventional GPU server.

Its standout feature is a self-contained cooling unit that maintains a temperature of 0.3 kelvin without external cryogenics, making it far more practical to deploy than traditional quantum machines.

Bell-1 relies on silicon-based spin qubits instead of more common trapped-ion or superconducting qubits, allowing it to take advantage of existing semiconductor fabrication methods. This choice results in smaller, more scalable components and paves the way for greater qubit density.

The UnityQ chip at the system’s core combines quantum processor units (QPUs), Arm CPUs, and neural processing units (NPUs), eliminating the need for complex coordination between classical and quantum systems — it can be plugged into a power outlet and used like conventional hardware.

The platform includes built-in error correction and AI-powered controls developed in partnership with Arm, helping reduce errors and increase operational speed. Even though this first-generation chip supports just six qubits, Equal1 plans to scale up future versions.

Instead of replacing the entire system, early adopters will be able to upgrade existing installations, ensuring long-term relevance and smoother adoption of more advanced models.

Equal1’s breakthrough builds upon performance records it set in late 2024, where its silicon qubit arrays demonstrated the highest gate fidelity and speed ever recorded.

Bell-1 marks a significant leap forward by offering quantum capabilities without the barriers typically associated with quantum hardware, bringing the technology closer to practical use in traditional computing environments.

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Bitcoin advisor to Trump launches new investment company

David Bailey, the CEO of BTC Inc. and a senior crypto adviser to Donald Trump, has raised $300 million to launch a publicly traded Bitcoin investment firm.

The venture, called Nakamoto, is named after Bitcoin’s mysterious creator and will focus on acquiring and holding the cryptocurrency.

The funding includes $200 million in equity and $100 million in convertible debt. Plans for a merger with an already-listed Nasdaq firm are in place.

An official announcement is expected next week, and the public listing is likely to follow this summer. Nakamoto also plans to use Bitcoin as capital to invest in businesses worldwide, including Brazil, Thailand, and South Africa.

The approach mirrors moves by other crypto investment giants such as Michael Saylor’s Strategy and Jack Mallers’ Twenty One. The firm positions itself as offering institutional credibility with the potential for strong growth, appealing to investors seeking direct exposure to Bitcoin through the stock market.

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UK police struggle to contain online misinformation

Sir Andy Cooke has urged that Ofcom be granted stronger powers to swiftly remove harmful online posts, particularly misinformation linked to public unrest. He criticised delays in tackling false content during the 2024 riots, which allowed damaging narratives to spread unchecked.

The UK Online Safety Act, though recently passed, does not permit Ofcom to delete individual posts. Ofcom acknowledged the connection between online posts and the disorder but stated it is responsible for overseeing platforms’ safety systems, not moderating content directly.

Critics argue this leaves a gap in quickly stopping harmful material from spreading. The regulator has faced scrutiny for its perceived lack of action during last summer’s violence. Over 30 people have already been arrested for riot-related posts, with some receiving prison sentences.

Police forces were found to have limited capability to counter online misinformation, according to a new report. Sir Andy stressed the need for improved policing strategies and called for legal changes to deter inflammatory online behaviour.

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WhatsApp scam sees fraudsters impersonate loved ones

Parents and friends are being targeted by fraudsters using WhatsApp and text messages to impersonate loved ones in urgent need. Criminals often claim the sender has lost their phone and cannot access their bank account, pressing recipients to transfer money swiftly.

The scams are growing more convincing, with AI voice impersonation now used to create fake voice notes. Scammers may pose as children, friends, or even parents, and typically request payments to unfamiliar accounts.

They discourage verification and apply pressure, asking for help with rent, phone replacements, or emergency bills. Santander reports that fraudsters impersonating sons are the most successful, followed by daughters and mothers.

Experts advise contacting the supposed sender directly and establishing a family password to confirm identities in future. Victims who transfer money should alert their bank immediately, report the scam through messaging apps or to Action Fraud.

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Long-dormant Bitcoin wallets awaken, moving $322M in BTC

Two long-inactive Bitcoin wallets, originally linked to the infamous Silk Road marketplace, have come back to life after nearly 11 years of silence. On 5 May 2025, blockchain monitoring platforms flagged two large transactions totalling 3,421 BTC, worth more than $322 million at the time of transfer.

The first wallet moved 2,343 BTC at block height 895,421. These funds were split into 31 outputs, with most redirected to a new Pay-to-Witness-Public-Key-Hash (P2WPKH) address. The second wallet, also created in July 2013, transferred 1,078 BTC at block height 895,433.

The transaction followed a similar pattern, moving funds to an unfamiliar destination address. Sani, the creator of timechainindex.com, confirmed that the Bitcoins originated from Silk Road activity, having been withdrawn in 2012.

The nature of the transfers was large and silent. The funds were redirected to fresh wallets, prompting speculation about the intent behind the moves. It is particularly intriguing due to its historic origins and potential regulatory implications.

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Bhutan launches first national crypto tourism payment system

Bhutan has launched the world’s first national-level crypto tourism payment system, in partnership with Binance Pay and DK Bank. Tourists can now pay for nearly everything, from flights to food, using over 100 cryptocurrencies like BTC, BNB, and USDC.

Payments are made via QR codes through the Binance app, with DK Bank converting crypto into Bhutan’s local currency instantly.

The new system offers benefits beyond convenience. Small businesses, especially in remote areas, can now accept crypto payments with just a smartphone. Local vendors, who previously lacked card payment infrastructure, now have new opportunities thanks to the system.

By eliminating cross-border payment issues, zero gas fees, and not relying on international card networks, the system makes transactions seamless. It sets a global precedent, potentially encouraging other countries to adopt similar models for tourism.

The Binance Pay Bhutan partnership is already making waves in the tourism sector, showing how crypto can connect cultures and improve travel experiences. Binance’s growing use case in tourism continues to build confidence in its token.

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OpenAI reduces Microsoft share in future revenues

OpenAI plans to reduce the share of revenue it gives Microsoft as part of its long-term partnership, according to a report by The Information.

The AI firm has told investors it expects to share just 10 per cent of its revenue with Microsoft and other commercial partners by 2030, instead of the 20 per cent originally agreed under its current deal.

The change comes as OpenAI scales back a broader restructuring effort. The company’s nonprofit parent will now retain control, a move likely to limit CEO Sam Altman’s influence. Despite ongoing collaboration, this shift signals a recalibration of financial and governance dynamics between the two companies.

Microsoft, which recently altered parts of its agreement with OpenAI while pursuing major AI data centre projects, has not commented on the latest report. OpenAI, meanwhile, said it remains committed to working closely with Microsoft and expects to finalise the details of its recapitalisation soon.

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New Hampshire allows public fund allocation to Bitcoin

New Hampshire has become the first US state to allow public funds to be invested in Bitcoin and other digital assets. Governor Kelly Ayotte signed House Bill 302 into law. The legislation enables the state treasury to allocate up to 10% of the general fund and other approved pools into eligible digital and precious metal assets.

To qualify for investment, digital assets must hold a market capitalisation above $500 billion — a threshold currently met only by Bitcoin. The law includes strict guidelines for asset custody, requiring state oversight or the use of regulated custodians and exchange-traded products.

The bill passed with divided opinion. Supporters highlighted the potential for higher returns, while critics raised concerns over financial stability. With this move, New Hampshire sets a precedent as other states, including Texas and Arizona, consider similar legislation.

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Microsoft adds AI assistant to Windows 11 settings

Microsoft is bringing more AI to Windows 11 with a new AI assistant built into the Settings app. This smart agent can adjust system settings like mouse precision, help users navigate the interface, and even troubleshoot problems—all by request.

With the user’s permission, it can also make changes automatically instead of relying on manual adjustments.

The AI assistant will first roll out to testers in the Windows Insider programme on Snapdragon-powered Copilot+ PCs, followed by support for x86-based systems.

Although Microsoft has not confirmed a release date for the general public, this feature marks a major step in making Windows settings more intuitive and responsive.

Several other AI-powered updates are on the way, including smarter tools in File Explorer and the Snipping Tool, plus dynamic lighting in the Photos app.

Copilot will also gain a new ‘Vision’ feature, letting it see shared windows for better in-app assistance instead of being limited to text prompts alone.

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