Polish billionaire Rafal Brzoska and his wife plan to take legal action against Meta, the parent company of Facebook and Instagram, due to fake advertisements circulating on these platforms. These ads falsely feature Brzoska’s image and spread misinformation about his wife. The couple has yet to decide where to file the lawsuit, which is part of a broader effort to hold Meta accountable for allowing such ads to persist even after being alerted to the issue.
Brzoska, known for founding the Polish parcel locker company InPost, stated that he first notified Meta about the problem in early July but has yet to see a resolution. He and his wife are considering various legal jurisdictions, including possibly filing a lawsuit in the United States if they don’t see action in Europe. They intend to demand that Meta cease profiting from misleading content that infringes on their rights and seek substantial compensation, which they plan to donate to charity.
The situation has prompted action from the President of the Personal Data Protection Office in Poland, who recently mandated that Meta Platforms Ireland Limited stop displaying false advertisements featuring the Brzoskas on Facebook and Instagram in Poland for three months.
A Meta spokesperson responded that the company removes false ads when discovered and collaborates with local authorities to combat scammers. They acknowledged the ongoing challenge of scammers who constantly adapt to evade detection, reaffirming their commitment to working with businesses, local governments, and law enforcement to address these issues.
Apart from the cryptocurrency-focused media, not many US news outlets have been providing this newsworthy coverage. The United States is home to more than 100 top cryptocurrency companies. In particular, the USA is home to the world’s second largest cryptocurrency exchange, Coinbase, which is a publicly traded company. Coinbase reported a USD 273 million profit in the fourth quarter of 2023. For the full year of 2023, it earned USD 95 million on USD 3.1 billion in revenue, while in 2022, it posted a loss of USD 2.6 billion. Apart from Coinbase, Marathon Mining, the largest US cryptocurrency mining operation, reported a staggering revenue increase of 229% to a record USD 387.5 million in 2023 from USD 117.8 million in 2022. Several policy proposals are before policymakers in the USA, trying to tackle issues related to the industry.
In late July 2024, Nashville, Tennessee (USA) was the stage of the largest annual bitcoin gathering. The Bitcoin Conference 2024 had one speaker that everyone awaited with anticipation. Republican Party candidate and the former US President Donald J Trump is the first high-end political figure in the USA who agreed to address the bitcoin crowd. Trump’s appearance was announced a couple of weeks before, and at that very moment the issue of cryptocurrency and the surrounding industry slipped into the main discussion among the candidates for the November US elections.
Back on the green
So, the industry is back on the green, regulation is discussed in the US Senate and Congress and the mining industry is growing. How come that industry is not discussed that much on the main political stage?
In Nashville, everything was ready for Trump’s appearance. The former president’s campaign trail advertised his appearance as one of the highlights of his July campaign. Anyhow, the crowd gathered at the Bitcoin Conference is not politically homogeneous. There are people on the complete opposite side of Trump’s proposed political spectrum. In the past, US cryptocurrency companies were one of the top contributors to the US Democratic Party (most prominently, Sam Bankman-Fried, now convicted, former CEO of the failed cryptocurrency exchange FTX).
Crypto vs bitcoin
Before I continue, let me give you a brief explanation. It is important, trust me.
In short, the cryptocurrency industry is divided into two strongly opinionated teams standing on opposite sides. Bitcoin adopters would almost never call themselves crypto enthusiasts. They consider other cryptocurrencies, cryptocurrency exchanges, and the entire idea of ‘blockchain technology changing the world’ to be false. For (true) bitcoiners, NFTs, meme coins, microtransactions, enormous overnight profits, and other ‘miraculous’ stories were considered nothing more than elaborate schemes for tricksters and scammers willing to sell innocent investors a story of the world-changing technology. And to be fair, that narrative kind of proved to be true. For years, US financial regulators have been waging war on cryptocurrencies and online cryptocurrency exchanges as ‘unregulated securities’ businesses. The US SEC has already won many cryptocurrency-related court cases for scam and fraud charges. On the other hand, the same regulatory agency has made a clear distinction between bitcoin and others. The SEC has officially stated that bitcoin cannot be considered a security but rather a commodity and that they will not pursue any bitcoin holders or bitcoin-only companies (in a court case back in 2019). This is thought to be due the decentralised nature of bitcoin. Unlike other cryptocurrencies, bitcoin does not have a CEO, headquarters, or hire anyone to work on its update. Bitcoin is simply an open-source protocol that handles digital value as unique information. Therefore, it cannot be defined as ‘a promise of profits’ to investors, which is the main argument of the famous Howey Test, a metric that has been used by the SEC to determine the scope of its work since the 1946 Supreme Court case.
This is the first point of difference recognised by regulators and one of the main arguments for Bitcoin as digital gold. Bitcoin can be used at a settlement level to create a future ‘digital gold standard’ mimicking the now abandoned ‘gold standard’ for the global economy. Bitcoiners argue that other cryptocurrencies and the industry as a whole have achieved a huge value transfer but fail to see any value creation (thus far). Court decisions worldwide have confirmed quite similar things.
Energy consumption in cryptocurrency
The second point of major disagreement between the two sides (crypto and bitcoin) is the way the industry is spending energy. Energy is the most frequently mentioned issue in the media coverage of cryptocurrency developments. You have heard and read numerous reports on the massive amount of energy used to mine (create) cryptocurrency and 99.5% of that energy is spent in bitcoin mining. The proof-of-work (PoW) algorithm, used in the bitcoin network for security reasons, requires miners to spend energy creating new bitcoins. Specialised mining equipment is often located near big power plants, and the pursuit of cheap electricity is the major driver of the industry. In contrast, the crypto industry, apart from bitcoin, has created a solution for such energy demand with the non-energy consuming Proof-of-Stake (PoS) algorithm for network security. Therefore, the crypto industry is now pointing to bitcoin as the sole reason why regulators are thinking about cryptocurrencies, as the green agenda worldwide becomes dominant. A couple of US legislators from the Democratic Party have filed several motions for a statewide ban on bitcoin mining as an energy demanding industry. As a counter-argument, bitcoiners say that the actual amount of energy spent for bitcoin creation gives it its power. In other words, energy spent in creation gives bitcoin an intrinsic value similar to physical gold.
It is important that these distinctions have been clarified in order to understand the scope of Trump’s address. With that, back to Nashville.
One of my friends who was in the audience told me that people who normally are not interested in politics were ecstatic and wanted to hear the first address of the US president to the bitcoin crowd. President Trump took the stage at the Bitcoin Conference 2024 and gave the crowd all they wanted to hear, and a bit more. He said that the AI and bitcoin industries are similar as they need the same thing: electricity. He made a promise to the United States to ramp up electricity production by a couple of folds, clearly setting his agenda on the opposite side of Democrat’s calls for mining bans. We want all bitcoins in the world to be created in the USA, he said. ‘We will be creating so much electricity that you’ll be saying: Please, please president, we don’t want any more electricity…’
He immediately followed with the promise to relieve Mr Gary Gensler, the current chairman of the US SEC. Actually, he would do it on his first day in the office. He promised that the bitcoin and crypto industry would stay in the USA. But one of the most dazzling promises for all bitcoiners attending was his announcement that the USA might start accumulating bitcoins as for future global trade. The crowd was overwhelmed, as he confirmed that the idea of bitcoin as digital gold had finally received approval from the top policymaker, let alone the former (and possibly future) president of the United States. Later during the conference, plans were elaborated on how such a thing can be done. If true, this could indeed play a significant role in the worldwide adoption of bitcoin as a global store of digital value. Having in mind that the future global economy will certainly be digital, such a thing is actually quite possible and logical. Ultimately, it is a matter of political will to create such a strong global independent currency not related to the reigning central banking system. ‘Bitcoin will probably overtake gold (market), there was never anything like it… it’s not only a marvel of technology but the miracle of (human) corporation.’ To back that up, Trump reiterated that he would halt the development of the US Central Bank Digital Currency (CBDC).
Trump finished with the best wishes for all: ‘We will make America and bitcoin bigger, better, stronger, richer, freer, and greater than ever before… Have a good time with your bitcoin and your crypto and everything else you’re playing with.’
The moment he said it, the crowd suddenly became colder. They realised that he was not aware of the distinction between bitcoin and crypto. Actually, he might just populistically say what crowds want to hear, and the moment the script was taken off the teleprompter, he could not tell the difference between the two.
This was for sure the event that launched issues surrounding bitcoin and cryptocurrency in the US elections race, as more and more young voters are getting to the polling stations and the idea of the independent global currency becomes not so utopian and high-end tech issue. In any case, we will have to wait and see which of those promises are actual future policies and which part plays the role of enchanting the masses. Open-source software, energy consumption, and consumer protection will be discussed in detail in the future.
A US court has ordered the bankrupt cryptocurrency exchange FTX to pay $12.7 billion in relief to its customers. The Commodity Futures Trading Commission (CFTC) announced that the order resolves a settlement between the CFTC and FTX, which collapsed in late 2022 after misappropriating customer deposits for risky investments. FTX has committed to a bankruptcy liquidation plan, promising 100% recovery for its customers based on the value of their accounts at the time of the bankruptcy filing.
The CFTC settlement ensures that the government’s lawsuit against FTX will not reduce the funds available to customers, as the CFTC has agreed to wait until all customers are repaid with interest before collecting any payment. FTX is required to pay $8.7 billion in restitution and $4 billion in disgorgement to further compensate victims for their losses. Despite the settlement, some victims of the crypto theft remain dissatisfied, arguing that they are being short-changed by the decision to repay them based on lower cryptocurrency prices from November 2022.
FTX is currently soliciting votes on its bankruptcy proposal, with final approval expected on 7 October. The exchange has been selling assets purchased with misappropriated customer funds to satisfy its obligations. Meanwhile, FTX founder Sam Bankman-Fried, sentenced to 25 years in prison for stealing $8 billion from customers, has appealed his conviction.
Around seven years ago, Intel had the opportunity to invest in OpenAI, a nascent research organisation focused on generative artificial intelligence. Discussions between Intel and OpenAI spanned several months in 2017 and 2018, considering options like Intel acquiring a 15% stake for $1 billion. However, Intel decided against the deal, partly due to then-CEO Bob Swan’s scepticism about the commercial viability of generative AI models.
OpenAI, seeking to reduce its reliance on Nvidia’s chips, saw value in an investment from Intel. Yet, the deal fell through due to Intel’s reluctance to produce hardware at cost for the startup. The missed opportunity remained undisclosed until now, with OpenAI later becoming a major player in AI, launching the groundbreaking ChatGPT in 2022 and achieving a reported valuation of $80 billion.
Intel’s decision not to invest is part of a broader struggle to maintain relevance in the AI age. Once a leader in computer chips, Intel has been outpaced by competitors like Nvidia and AMD. Nvidia’s shift from gaming to AI chips has left Intel struggling to produce a competitive AI product, contributing to a sharp decline in its market value.
Despite its challenges, Intel continues to push forward with new AI chip developments, including the upcoming third-generation Gaudi AI chip and the next-generation Falcon Shores chip. CEO Pat Gelsinger remains optimistic about capturing a greater share of the AI market, but Intel’s journey serves as a cautionary tale of missed opportunities in a rapidly evolving industry.
The Bangko Sentral ng Pilipinas (BSP) has announced that it will lift the moratorium on new digital banking licenses starting January 1, 2025, allowing four more digital banks to operate in the country. The move comes as the BSP seeks to tap the potential of digital banks to enhance the Philippine financial system while ensuring that risks are effectively managed. Since the introduction of the Digital Banking Framework in December 2020, six digital banks have already begun operations in the Philippines, and the upcoming licenses will accommodate both new banks and conversions.
BSP Governor Eli Remolona Jr. emphasised that the central bank will closely monitor the digital banking sector as it evolves, particularly assessing the impact of new players on the banking system. The application process for these new licenses will be stringent, focusing on applicants’ value propositions, business models, and resource capabilities. Applicants must meet standard licensing criteria, including transparency of ownership, suitable shareholder composition, and strong governance and risk management frameworks.
The BSP is particularly interested in applicants who can bring innovative products and services that differentiate them from existing market players. The central bank expects these new digital banks to reach broader clientele, especially those in untapped or underserved market segments. The decision to allow more digital banks aligns with the BSP’s goals of promoting financial system stability, advancing financial inclusion, and driving digital transformation.
This development follows the BSP’s previous decision to cap digital bank licenses at six and temporarily close the application window in August 2021. The central bank has also been involved in approving a stablecoin pilot programme as part of its broader efforts to enhance the digital landscape within a regulated framework.
The UK’s Competition and Markets Authority (CMA) has launched a formal antitrust investigation nto Amazon’s $4 billion investment in AI startup Anthropic. This follows recent scrutiny of Google’s ties with the same company, as concerns grow over Big Tech’s strategic investments in AI firms. The CMA’s investigation will determine whether Amazon’s stake in Anthropic could harm competition within the United Kingdom, despite the e-commerce giant not holding a majority stake or board seat in the startup.
Anthropic, established in 2021 and known for developing large language models like its chatbot Claude, has raised $10 billion so far. Its public benefit corporation status is intended to distinguish it from rivals in the AI space. Despite Amazon’s significant investment, Anthropic maintains that its strategic partnerships do not compromise its independence or ability to collaborate with other companies. The CMA has 40 working days to decide whether to advance the investigation to a more in-depth phase.
The CMA’s move comes amid increasing concerns about Big Tech companies adopting a ‘quasi-merger’ approach to avoid full acquisitions, which would likely face greater regulatory scrutiny. The regulator has also been examining similar deals, including Microsoft’s investments in AI startups like OpenAI and Mistral AI. The outcome of the CMA’s probe into Amazon’s investment in Anthropic could have broader implications for how tech giants are regulated in their acquisition strategies.
Amazon’s investment is part of a wider trend in which leading tech companies are securing stakes in promising AI startups to ensure they stay ahead in the rapidly evolving AI sector. With the CMA’s investigation underway, the regulatory landscape for these types of deals is expected to become more stringent, potentially reshaping future investment strategies in the AI industry.
The DPC is seeking a court order to stop or limit the processing of user data by X for training its AI systems, expressing concerns that this could violate the European Union’s General Data Protection Regulation (GDPR). The case may be referred to the European Data Protection Board for further review.
The legal dispute is part of a broader conflict between Big Tech companies and regulators over using personal data to develop AI technologies. Consumer organisations have accused X of breaching GDPR, a claim the company has vehemently denied, calling the DPC’s actions unwarranted and overly broad.
The Irish DPC has an important role in overseeing X’s compliance with the EU data protection laws since the platform’s operations in the EU are managed from Dublin. The current legal proceedings could significantly shift how Ireland enforces GDPR against large tech firms.
The DPC is also concerned about X’s plans to launch a new version of Grok, which is reportedly being trained using data from the EU and European Economic Area users. The privacy watchdog argues that this could worsen existing issues with data processing.
Despite X implementing some mitigation measures, such as offering users an opt-out option, these steps were not in place when the data processing began, leading to further scrutiny from the DPC. X has resisted the DPC’s requests to halt data processing or delay the release of the new Grok version, leading to an ongoing court battle.
The outcome of this case could set a precedent for how AI and data protection issues are handled across Europe.
Intel is making a bold move into the AI-powered automotive industry with the launch of its first discrete GPU designed for autonomous and intelligent cars. The Intel Arc Graphics for Automotive dGPU was unveiled at an event in Shenzhen, China, and is set to be commercially deployed in early 2025. The new technology promises to revolutionise in-car AI experiences, providing drivers and manufacturers with enhanced personalisation and functionality.
The automotive market presents a new opportunity for Intel, which has struggled to keep pace with competitors like Nvidia in the AI sector. Nvidia dominates the market with its GPUs powering the majority of AI workloads, leaving Intel in need of a breakthrough. The new dGPU could be that opportunity, allowing Intel to establish a foothold in a growing industry keen on integrating AI capabilities.
Intel’s new dGPU is an open, scalable platform that builds on its existing SDV System-on-Chip. The platform supports premium AI features such as in-car assistants for navigation and entertainment. Demonstrations at the event showcased its ability to power multiple high-definition displays, voice and gesture recognition, and advanced infotainment systems. Intel’s partners, including Thunder Software Technology and Zhiphu Technologies, highlighted the potential for immersive mobile hubs and AI assistants.
The move into the automotive sector is a strategic one for Intel as it seeks to leverage the rapid technological adoption in China. The company aims to tap into an ecosystem of over 100 software companies to provide a wide range of AI-powered in-car experiences. Intel’s Vice President and General Manager of Automotive, Jack Weast, emphasised the potential of this market, citing China’s advanced development cycles and technological adoption as key factors.
A Manhattan court has ordered Ripple Labs to pay approximately $125 million in penalties to the US Securities and Exchange Commission (SEC) over the improper sale of the cryptocurrency XRP. The ruling comes as part of a broader legal battle that began in 2020 when the SEC accused Ripple and its CEO Brad Garlinghouse and co-founder Chris Larsen of illegally raising over $1.3 billion through an unregistered securities offering by selling XRP.
Initially, the SEC sought $2 billion in fines and penalties from Ripple. However, the court’s decision to impose a $125 million penalty represents only a tiny fraction of that amount. The SEC dropped its remaining claims against Garlinghouse and Larsen in October, making this case one of the most important legal challenges the cryptocurrency industry has faced.
In response to the ruling, Ripple CEO Brad Garlinghouse expressed respect for the court’s decision and noted that it provides the company with the clarity needed to continue its growth. The SEC, meanwhile, reiterated its stance that securities laws apply to firms offering and selling investment contracts, regardless of the technology or labels involved.
Belgium’s imec, a leading semiconductor R&D firm, announced significant breakthroughs in chip-making technology at its joint laboratory with ASML. The advancements were made using ASML’s latest 350 million euro ($382 million) chip printing machine. Imec successfully printed circuitry as small or smaller than the best currently in commercial production, in a single pass under ASML’s new “High NA” tool, suggesting that leading chipmakers can use this tool to create smaller, faster chips in the coming years.
The High NA tool’s ability to print smaller features in fewer steps is expected to save chipmakers money and justify its high price tag. ASML is the largest supplier of lithography systems, crucial for creating chip circuitry. The development indicates that the necessary chemicals and tools for the rest of the chipmaking process are also falling into place for commercial manufacturing. Imec CEO Luc Van den Hove stated that High NA will be instrumental in continuing the scaling of logic and memory technologies.
Intel has purchased the first two High NA tools, with a third expected to go to TSMC later this year. Intel’s director of lithography, Mark Philips, mentioned that a second tool is required for the volume of wafers and experiments needed to support a development line. Other chipmakers, including Samsung Electronics, SK Hynix, and Micron, have also ordered the High NA tool, highlighting its importance in the industry.
These developments come as Micron surpasses revenue expectations in Q3 despite a mixed outlook for Q4, and the US Commerce Department backs SK Hynix with $450 million for an AI plant. These advancements and investments underline the ongoing innovations and growth in the semiconductor sector.
