Encryption

Mayor Adams pushes for New York’s rise as a crypto hub

New York City Mayor Eric Adams has reaffirmed ambition to turn the city into the world’s leading crypto capital. At a press conference ahead of the 20 May NYC Crypto Summit, Adams highlighted New York’s growing blockchain sector and its role in boosting financial inclusion.

The mayor appeared alongside leading tech figures, including June Ou from Figure Firm and Richard Hecker from Traction and Scale. Adams pointed to his 2022 move to convert his first three payslips into Bitcoin and Ethereum as proof of his early support for crypto.

He also positioned New York as a serious competitor to Silicon Valley when it comes to innovation and startup growth in the crypto space.

Adams said the summit would foster public-private cooperation to shape digital assets through balanced rules, focusing on long-term blockchain use over short-lived trends like memecoins.

Without naming them directly, his remarks may also appeal to crypto super PACs, as he prepares for a possible independent re-election campaign following the dismissal of a federal investigation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Masked cybercrime groups rise as attacks escalate worldwide

Cybercrime is thriving like never before, with hackers launching attacks ranging from absurd ransomware demands of $1 trillion to large-scale theft of personal data. Despite efforts from Microsoft, Google and even the FBI, these threat actors continue to outpace defences.

A new report by Group-IB has analysed over 1,500 cybercrime investigations to uncover the most active and dangerous hacker groups operating today.

Rather than fading away after arrests or infighting, many cybercriminal gangs are re-emerging stronger than before.

Group-IB’s May 2025 report highlights a troubling increase in key attack types across 2024 — phishing rose by 22%, ransomware leak sites by 10%, and APT (advanced persistent threat) attacks by 58%. The United States was the most affected country by ransomware activity.

At the top of the cybercriminal hierarchy now sits RansomHub, a ransomware-as-a-service group that emerged from the collapsed ALPHV group and has already overtaken long-established players in attack numbers.

Behind it is GoldFactory, which developed the first iOS banking trojan and exploited facial recognition data. Lazarus, a well-known North Korean state-linked group, also remains highly active under multiple aliases.

Meanwhile, politically driven hacktivist group NoName057(16) has been targeting European institutions using denial-of-service attacks.

With jurisdictional gaps allowing cybercriminals to flourish, these masked hackers remain a growing concern for global cybersecurity, especially as new threat actors emerge from the shadows instead of disappearing for good.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

BlackRock raises concerns over quantum computing risks to Bitcoin ETFs

BlackRock has flagged quantum computing as a potential risk to its iShares Bitcoin ETF (IBIT) in a recent regulatory filing. BlackRock highlighted the threat from emerging technologies, specifically quantum computing, to the cryptographic security of Bitcoin and blockchain networks.

BlackRock warned that advances in quantum computing could undermine the cryptographic algorithms protecting digital assets like Bitcoin. It is the first time BlackRock has explicitly mentioned this risk in relation to the IBIT ETF, with $64 billion in net assets.

Despite the warnings, analysts suggest that such risk disclosures are standard practice for financial products. James Seyffart, an analyst at Bloomberg Intelligence, noted that firms are required to flag all possible risks, even those with a very low likelihood of occurring.

Meanwhile, Bitcoin ETFs have seen a surge in popularity, attracting over $41 billion in net inflows since their launch.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Australia appoints pro-crypto assistant minister for digital economy

Australia’s crypto sector has welcomed the appointment of Andrew Charlton as Assistant Minister for the Digital Economy. Charlton, a known supporter of blockchain, will also oversee AI and emerging technologies. He will work alongside Minister Tim Ayres.

Prime Minister Anthony Albanese confirmed the appointment during a press conference in Canberra on 12 May.

Charlton has previously called for balanced regulation that supports growth in the digital asset sector. Industry leaders believe his appointment marks a step towards long-awaited clarity.

Jason Titman, CEO of Swyftx, described the move as ‘unequivocally good news’. He said Charlton truly understands blockchain and believes in its potential to support Australia’s economy. Many now hope he will fast-track overdue legislation around digital assets.

Vakul Talwar, head of Crypto.com’s Australian division, said the appointment shows the growing importance of the digital economy. Since the 2022 election, the sector has grown significantly.

More than 6.2 million Australians now own or have owned crypto. Edward Carroll of MHC Digital Group said Charlton’s pro-digital stance could help the country keep pace with global regulation while supporting innovation.

The government’s decision to include ‘digital economy’ in Charlton’s title signals a strong focus on tech-led growth. The re-elected centre-left Labor Party has already proposed a regulatory framework for crypto exchanges.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Truth Social denies memecoin rumours

Truth Social, the social platform owned by Trump Media, has denied rumours that it plans to launch a memecoin. The speculation began after crypto influencer Ran Neuner tweeted that a token linked to the platform could be unveiled within 72 hours.

In a public post, Truth Social stated it had no involvement in any memecoin launch. Donald Trump Jr. echoed the denial, warning users not to be misled by circulating misinformation.

The original rumour suggested the project may involve individuals connected to the TRUMP token, but no evidence has surfaced.

Donald Trump is already linked to cryptocurrency through his own TRUMP token. The TRUMP token’s top holders have sparked concern among lawmakers, with many wallets potentially based outside the US.

Its value has dropped more than 80% from its peak but showed a small rebound recently.

The controversy intensified after Trump announced a gala dinner for major TRUMP token holders, attracting backlash from some US senators. Critics argue that foreign involvement and political fundraising through crypto could raise serious legal and ethical questions.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

SEC plans fresh rules for crypto securities

The US Securities and Exchange Commission (SEC) is preparing new rules for crypto assets that qualify as securities. At a roundtable on 12 May, SEC Chair Paul Atkins said current laws are outdated and don’t fit the fast-growing digital asset sector.

So far, only four crypto issuers have registered successfully — something Atkins called a failure of regulation, not of the industry.

Atkins said one of his top priorities is to build a clear and fair rulebook for crypto. The goal is to guide the issuance, custody and trading of these assets, while protecting consumers at the same time.

His approach marks a sharp break from former Chair Gary Gensler, who claimed that existing securities laws were enough. That view drew strong criticism from the crypto industry.

Atkins also praised the potential of tokenised securities. He compared their impact to how the music industry was transformed by digital technology. These assets could automate dividends, unlock liquidity and create new types of markets.

A new Crypto Task Force, led by pro-crypto Commissioner Hester Peirce, will lead the work on shaping the rules.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Cyber attack disrupts Edinburgh school networks

Thousands of Edinburgh pupils were forced to attend school on Saturday after a phishing attack disrupted access to vital online learning resources.

The cyber incident, discovered on Friday, prompted officials to lock users out of the system as a precaution, just days before exams.

Approximately 2,500 students visited secondary schools to reset passwords and restore their access. Although the revision period was interrupted, the council confirmed that no personal data had been compromised.

Scottish Council staff acted swiftly to contain the threat, supported by national cyber security teams. Ongoing monitoring is in place, with authorities confident that exam schedules will continue unaffected.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Gemini wins EU approval for crypto derivatives

Gemini has received a MiFID II licence from the Malta Financial Services Authority, allowing it to offer regulated crypto derivatives across the EU and EEA.

The exchange, founded by Cameron and Tyler Winklevoss, plans to offer products like perpetual futures to advanced traders. According to Gemini’s European head Mark Jennings, the licence is a major step in expanding services to retail and institutional clients.

Gemini will now work to meet final conditions before launching derivatives products. Its Maltese entity, Gemini Intergalactic EU Artemis, was granted the licence on 8 May.

The company had already chosen Malta as its base for compliance with Europe’s upcoming MiCA regulations. While it holds six VASP registrations in Europe, Gemini is still awaiting full MiCA approval.

Crypto derivatives are growing fast. Coinbase recently announced a $2.9 billion deal to buy Deribit, while Kraken plans to acquire NinjaTrader for $1.5 billion. Gemini’s move marks its entry into this competitive space.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Punycode scams steal crypto through lookalike URLs

Crypto holders are facing a growing threat from a sophisticated form of phishing that swaps letters in website addresses for nearly identical lookalikes, tricking users into handing over their digital assets.

Known as Punycode phishing, the tactic has led to significant losses—even for vigilant users—by mimicking legitimate cryptocurrency exchange sites with deceptive domain names.

Cybercriminals exploit the similarity between characters from different alphabets, such as replacing Latin letters with visually identical Cyrillic ones.

These fake websites are almost indistinguishable from real ones, making it extremely difficult to spot the fraud. Recent reports reveal that even browser recommendation systems, such as Google Chrome’s, have directed users to these deceptive domains.

In one widely cited case, a user was guided to a fraudulent site impersonating the crypto exchange ChangeNOW and subsequently lost over $20,000. The incident has raised questions about browser accountability and the urgency of protective measures against increasingly advanced phishing strategies.

US regulators, including the Federal Trade Commission (FTC), the North American Securities Administrators Association (NASAA), and California’s Department of Financial Protection and Innovation (DFPI), have issued ongoing warnings about crypto scams.

While none have specifically addressed Punycode-based attacks, their advice—careful URL scrutiny, skepticism of unsolicited links, and immediate fraud reporting—remains critical.

As phishing methods evolve, users are urged to double-check domain names, avoid clicking unverified links, and consult tools like the DFPI Crypto Scam Tracker. Until browsers and platforms address the threat directly, user awareness remains the most effective defence.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Trump’s crypto ventures delay stablecoin and crypto policy progress

Discussions about the conflict of interest surrounding US President Donald Trump’s crypto ventures are delaying crypto legislation. Democrats are blocking the stablecoin bill, the GENIUS Act, to prevent Trump from profiting off crypto.

Ryan Gilbert, founder of Launchpad Capital, said, ‘It’s unfortunate that personal business is getting in the way of good policy.’

The GENIUS Act, which aims to regulate US payment stablecoins, was expected to pass easily. However, it failed in the Senate on 6 May, with a 48-49 vote. Trump’s crypto activities have stalled discussions on the broader market structure bill.

The issue began when Trump launched the $TRUMP memecoin before his inauguration. The coin’s price surged, benefiting Trump-linked companies, but later collapsed, leaving small investors with significant losses.

In March, Trump’s family reportedly discussed buying a stake in the US arm of Binance, which faced anti-money laundering legal issues.

Further concerns arose when Trump-linked World Liberty Financial (WLF) planned to launch the USD1 stablecoin, backed by investment giant MGX. The move has sparked debates about Trump’s use of crypto ventures to enrich himself.

Some Democratic Senators have introduced the End Crypto Corruption Act. It would stop Congress members and their families from endorsing crypto. Despite the concerns, negotiations around the GENIUS Act continue, but its timeline remains uncertain.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!