The UK Ministry of Justice has confirmed a serious cyber-attack on its Legal Aid Agency, first detected on 23 April and revealed to be more extensive on 16 May. Investigators found that a wide range of personal details belonging to applicants dating back to 2010 were accessed.
The breach has prompted urgent security reviews and cooperation with the National Cyber Security Centre. Stolen information may include names, addresses, dates of birth, national ID numbers, criminal histories, employment records and financial data such as debts and contributions.
While the total number of affected individuals remains unconfirmed, publicly available figures suggest hundreds of thousands of applications across the last year alone. Victims have been urged to monitor for suspicious communications and to change passwords promptly.
UK Legal aid services have been taken offline as contingency measures are put in place to maintain support for vulnerable users. Jane Harbottle, CEO of the Legal Aid Agency, expressed regret over the incident and reassured applicants that efforts are underway to restore secure access.
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Dubai’s crypto regulator has given virtual asset service providers (VASPs) until 19 June to comply with a new set of rules designed to improve transparency and oversight. VARA released Version 2.0 of its Rulebooks, adding stricter oversight and updated standards across key activities.
The changes include stricter requirements for margin trading, clearer definitions for terms such as ‘client assets’ and ‘qualified custodians,’ and consistent risk management obligations.
VARA aims to reduce regulatory uncertainty and make it easier for companies to meet cross-functional compliance.
The rules also introduce tougher conditions for token distribution and new restrictions on marketing, particularly for retail-facing offers. All licensed crypto firms must complete the transition within the 30-day window to avoid penalties.
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JPMorgan CEO Jamie Dimon announced plans to let the bank’s customers buy Bitcoin, though the firm will not hold the cryptocurrency on their behalf. Instead, Bitcoin purchases will be reflected in client statements, without JPMorgan providing custody services.
Dimon has long expressed scepticism about Bitcoin. He defended clients’ right to buy the asset despite concerns over its use in illegal activities like money laundering and trafficking.
Until now, JPMorgan’s crypto exposure was limited to futures products rather than direct digital asset ownership.
The move follows similar steps by Morgan Stanley, which recently offered spot Bitcoin ETFs to select clients. Spot Bitcoin ETFs have gained traction in the US, attracting nearly $42 billion in inflows since their January 2024 debut.
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Senators voted 66-32 to advance the GENIUS Act, a bill aimed at regulating stablecoins. Sixteen Democrats joined Republicans in backing the measure, reversing a previous block.
The legislation introduces the first formal rules for stablecoin issuers, a move seen as vital for consumer protection and financial clarity.
Bipartisan negotiations helped push the bill forward. A new amendment addresses key Democratic concerns, including tougher consumer safeguards and limits on stablecoin issuance by tech firms.
It also extends ethics rules to figures like Elon Musk and David Sacks, at least temporarily. Despite the uncertainty over whether the amendment will pass, Democrats agreed to support the bill either way.
The Senate had stalled the proposal two weeks earlier over demands for stronger national security provisions. While Republicans have yet to back the amendment, more Democrats are now expected to vote for the bill.
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Ethereum co-founder Vitalik Buterin has proposed a major update to make running a node more accessible to ordinary users. His idea aims to reduce the hardware and storage needed to run a full Ethereum node.
Instead of storing Ethereum’s full history—now over 1.3 terabytes—users would only keep data relevant to them and request older records when needed. The approach, similar to how library branches share books, would bring Ethereum nodes to standard devices, including smartphones.
Buterin says this shift reduces reliance on powerful cloud services and avoids centralised risks. The proposal arrives just ahead of Ethereum’s ambitious Pectra upgrade, which will lay the foundation for better scalability and decentralisation.
Meanwhile, other voices in the Ethereum space are pushing bold ideas. Researcher Dankrad Feist has proposed boosting the network’s gas limit by 100 times to handle up to 2,000 transactions per second.
Former developer Eric Connor believes Ethereum could help solve AI’s centralisation issues. But critics like Nic Carter warn that layer-2 networks and excessive token creation are diluting Ether’s value.
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Russia’s new Central Bank regulations could effectively ban the trading of Tether (USDT) within the country’s crypto sandbox, experts have said. The rules, effective 26 May, target coins linked to ‘hostile issuers’ or at risk of being blocked or frozen.
The crypto sandbox, supervised by the Central Bank, allows Russian firms to use digital assets in international trade. Plans to expand the sandbox will let qualified investors trade on approved platforms, but only coins meeting strict criteria will be permitted.
While USDT trading appears under threat, stablecoins may still be used for cross-border payments and settlements.
Experts note that the rules’ broad definitions mean popular USD-pegged stablecoins, including Tether, likely will not comply. Tether’s requirements for Know-Your-Customer (KYC) checks enable it to block or freeze tokens at its discretion.
Such controls have already been seen in actions against Russian exchanges, highlighting potential complications for Russian crypto users.
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Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.
Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.
Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.
Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.
So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.
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Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.
One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.
The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.
Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.
Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.
Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.
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Crypto firms operating in the United Kingdom will be required to report detailed customer transaction data from 1 January 2026. The move is part of the government’s wider plan to improve tax transparency in the crypto sector by aligning with international reporting standards.
Firms must collect and submit information on each transaction, including the user’s name, address, tax ID, the crypto used, and the amount transferred. Transactions involving companies, trusts, and charities must also be reported.
Penalties of up to £300 per user may apply for non-compliance or incorrect reporting.
The measures are part of the UK’s adoption of the OECD’s Cryptoasset Reporting Framework, aiming to support innovation while reducing fraud and abuse. Authorities have urged firms to begin gathering data now, although full guidance will be issued later.
While the UK’s approach focuses on integrating crypto into existing regulations, it differs from the EU’s MiCA rules. Unlike the EU, the UK will not require foreign stablecoin issuers to register or limit their transaction volumes.
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Bitcoin has emerged as Russia’s top-performing investment over the past year, beating out gold, stocks, and bonds, according to the Central Bank of Russia. The report shows that Bitcoin generated a 38% return over 12 months, placing it ahead of all other assets evaluated.
Despite a sharp dip of 18.6% between January and April 2025, Bitcoin recovered strongly in April with an 11.2% gain. It regained the top spot while traditional markets struggled.
Over the longer term, Bitcoin delivered a cumulative return of 121.3% since 2022—far outpacing other asset classes, including the S&P 500.
The bank’s findings reflect Bitcoin’s shift from a niche speculation to a serious contender in global finance. Bitcoin’s rise from under $20,000 to nearly $110,000 was driven by regulation, adoption, and political backing.
Donald Trump’s pro-crypto stance has helped drive this momentum, with several governments and firms now eyeing Bitcoin as a potential reserve asset or financial tool.
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