Crypto.com gains EU approval for crypto derivatives

Crypto.com has secured a MiFID licence, allowing it to offer regulated crypto derivatives across the European Economic Area. The licence expands the platform’s presence following earlier approval under the EU’s Markets in Crypto-Assets (MiCA) regulation.

It was obtained through the acquisition of Cyprus-based A.N. Allnew Investments, a move similar to strategies used by other major platforms such as Kraken. The announcement follows Crypto.com’s broader efforts to offer more regulated services to European users and grow its product portfolio.

Other crypto firms are also eyeing Europe’s growing derivatives market. Kraken, Coinbase, Gemini and Synthetix have all expanded their derivatives offerings through acquisitions and regulatory approvals, signalling a competitive push in the region.

Crypto.com’s previous acquisitions include Fintek Securities, Watchdog Capital and others, further strengthening its regulatory positioning.

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Hong Kong approves stablecoin licensing law

Hong Kong’s legislature has approved a bill introducing a licensing framework for fiat-referenced stablecoin issuers. The move provides legal clarity and aims to enhance the city’s position as a global digital asset hub.

Any issuer of stablecoins in Hong Kong or of HKD-backed stablecoins abroad must obtain a licence from the Hong Kong Monetary Authority. The law outlines standards for reserve asset management, redemption, and risk controls to protect investors and the wider public.

Officials say the legislation follows the principle of ‘same activity, same risks, same regulation’ and adopts a risk-based approach. Financial Secretary Christopher Hui stated that the measure sets a solid foundation for Hong Kong’s growing virtual asset market.

The HKMA’s sandbox programme for stablecoin issuers has already attracted three participants. The new ordinance is expected to take effect later this year.

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Crypto assets to be treated as property in Russia

Russia’s Ministry of Justice is working on legislation that would classify crypto assets as property, enabling their confiscation during criminal investigations. The draft bill aims to tighten control over digital currencies increasingly used for illegal activities.

Deputy Justice Minister Vadim Fedorov stated that the new law would allow authorities to seize not only physical wallets but also credentials like seed phrases. Experts will assist in managing the secure handling of digital assets.

Courts may also be given the power to block transactions linked to certain wallets.

The move comes in response to a rise in crypto-related crime, particularly through darknet markets. One such platform, Kraken, has recorded a 68% surge in crypto transactions since the shutdown of Hydra in 2022.

Fedorov highlighted the challenges posed by digital currencies, citing their anonymity and lack of central control as major attractions for criminals.

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West Lothian schools hit by ransomware attack

West Lothian Council has confirmed that personal and sensitive information was stolen following a ransomware cyberattack which struck the region’s education system on Tuesday, 6 May. Police Scotland has launched an investigation, and the matter remains an active criminal case.

Only a small fraction of the data held on the education network was accessed by the attackers. However, some of it included sensitive personal information. Parents and carers across West Lothian’s schools have been notified, and staff have also been advised to take extra precautions.

The cyberattack disrupted IT systems serving 13 secondary schools, 69 primary schools and 61 nurseries. Although the education network remains isolated from the rest of the council’s systems, contingency plans have been effective in minimising disruption, including during the ongoing SQA exams.

West Lothian Council has apologised to anyone potentially affected. It is continuing to work closely with Police Scotland and the Scottish Government. Officials have promised further updates as more information becomes available.

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Ransomware threat evolves with deceptive PDFs

Ransomware attacks fell by 31% in April 2025 compared to the previous month. Despite the overall decline, the retail sector remained a top target, with incidents at Marks & Spencer, Co-op, Harrods and Peter Green Chilled drawing national attention.

Retail remains vulnerable due to its public profile and potential for large-scale disruption. Experts warn the drop in figures does not reflect a weaker threat, as many attacks go unreported or are deliberately concealed.

Tactics are shifting, with some groups, like Babuk 2.0, faking claims to gain notoriety or extort victims. A rising threat in the ransomware landscape is the use of malicious PDF files, which now make up over a fifth of email-based malware.

These files, increasingly crafted using generative AI, are trusted more by users and harder to detect. Cybersecurity experts are urging firms to update defences and strengthen organisational security cultures to remain resilient.

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Experts urge stronger safeguards as jailbroken chatbots leak illegal data

Hacked AI-powered chatbots pose serious security risks by revealing illicit knowledge the models absorbed during training, according to researchers at Ben Gurion University.

Their study highlights how ‘jailbroken’ large language models (LLMs) can be manipulated to produce dangerous instructions, such as how to hack networks, manufacture drugs, or carry out other illegal activities.

The chatbots, including those powered by models from companies like OpenAI, Google, and Anthropic, are trained on vast internet data sets. While attempts are made to exclude harmful material, AI systems may still internalize sensitive information.

Safety controls are meant to block the release of this knowledge, but researchers demonstrated how it could be bypassed using specially crafted prompts.

The researchers developed a ‘universal jailbreak’ capable of compromising multiple leading LLMs. Once bypassed, the chatbots consistently responded to queries that should have triggered safeguards.

They found some AI models openly advertised online as ‘dark LLMs,’ designed without ethical constraints and willing to generate responses that support fraud or cybercrime.

Professor Lior Rokach and Dr Michael Fire, who led the research, said the growing accessibility of this technology lowers the barrier for malicious use. They warned that dangerous knowledge could soon be accessed by anyone with a laptop or phone.

Despite notifying AI providers about the jailbreak method, the researchers say the response was underwhelming. Some companies dismissed the concerns as outside the scope of bug bounty programs, while others did not respond.

The report calls on tech companies to improve their models’ security by screening training data, using advanced firewalls, and developing methods for machine ‘unlearning’ to help remove illicit content. Experts also called for clearer safety standards and independent oversight.

OpenAI said its latest models have improved resilience to jailbreaks, and Microsoft linked to its recent safety initiatives. Other companies have not yet commented.

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Microsoft adds quantum-resistant encryption to Windows 11

Microsoft is rolling out quantum-resistant encryption algorithms in Windows 11 as part of its effort to prepare for the eventual arrival of quantum computers. The new cryptographic tools were announced at the BUILD 2025 conference and are now available in Insider Preview Build 27852 and higher.

These updates introduce post-quantum algorithms—ML-KEM and ML-DSA—into SymCrypt, Windows’ core cryptographic library.

The algorithms, formerly known as CRYSTALS-Kyber and CRYSTALS-Dilithium, were selected by the US National Institute of Standards and Technology (NIST) and are part of the agency’s recommended post-quantum cryptography (PQC) standards.

The algorithms have also been added to SymCrypt-OpenSSL, Microsoft’s open-source extension for integrating SymCrypt with OpenSSL. Developers can now access the algorithms via Microsoft’s Cryptography API: Next Generation (CNG), enabling early testing and migration.

Quantum computers, which are still in experimental stages, promise to outperform classical systems in solving problems like factoring large numbers—a cornerstone of traditional encryption methods like RSA and elliptic curve cryptography.

Experts warn that these legacy systems could be broken in the coming decades, potentially compromising the security of global communications, financial systems, and data infrastructure.

The new PQC algorithms are designed to resist quantum attacks, but they bring additional complexity. Their encryption keys are significantly larger than those used in current standards.

For now, NIST recommends using them alongside RSA or elliptic curve keys in hybrid configurations, to mitigate risks from undiscovered vulnerabilities.

The transition to quantum-safe encryption is expected to be one of the most complex in cybersecurity history. Developers will need to address compatibility issues, including ensuring software can handle longer key lengths without introducing system-breaking errors.

Microsoft’s early adoption is a step toward broader post-quantum readiness. Experts emphasize the importance of rigorous testing now, as the timeline for quantum threats remains uncertain.

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Coinbase hit by cyber-attack with up to $400m losses

The largest cryptocurrency exchange in the US, Coinbase, revealed that a recent cyber-attack could cost between $180 million and $400 million. The attack compromised data from a small group of customers, including names, addresses, and emails, but login credentials and passwords remained secure.

Coinbase has promised to reimburse customers who were tricked into sending funds to the hackers.

Hackers bribed overseas contractors and employees in support roles to access internal systems. Coinbase immediately terminated those involved and refused to pay the $20 million ransom demand.

Instead, the company has offered a $20 million reward for information leading to the attackers’ capture and is cooperating with law enforcement agencies.

The breach was disclosed just before Coinbase’s planned entry into the S&P 500 index, marking a significant milestone for the crypto sector. Security remains a critical concern in the industry.

Earlier in 2025, the Bybit exchange suffered a $1.5 billion hack, adding to over $2.2 billion lost to crypto platform breaches this year alone.

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SEC sues Unicoin over alleged $100 million fraud

The US SEC has charged Unicoin and three executives for allegedly raising over $100 million through misleading investor claims. The SEC claims Unicoin falsely promised investors its crypto assets were backed by a multibillion-dollar global property portfolio.

Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment head Alex Dominguez are accused of exaggerating the company’s sales and falsely stating its tokens and certificates were SEC-registered.

The SEC said the real estate backing was worth far less than claimed and that most of the company’s sales were ‘illusory.’

The SEC said Unicoin falsely claimed decades of reserves while operating with less than a year of funding. Unicoin allegedly reported over $3 billion in certificate sales, though only $110 million was raised.

General counsel Richard Devlin was also charged but settled for a $37,500 penalty without admitting guilt. Unicoin and the named executives have yet to issue public statements, though Konanykhin previously said the company would fight the case in court.

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Pavel Durov rejects French request to block political channels

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.

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