Swedish tech firm Truecaller saw its shares fall by 11% on Thursday after Indian tax authorities conducted a surprise raid on its local offices. The company, which specialises in caller identification software, confirmed the raid in a statement and emphasised its commitment to cooperating fully with authorities. Truecaller noted that it had no prior notice of the action and had not faced any tax investigations in India beyond regular audits.
Following the news, Truecaller’s stock dropped significantly on the Stockholm exchange, down 9.3% by midday. This sudden raid adds a layer of uncertainty for the company in one of its key markets, as Truecaller has a substantial user base in India, where it recently appointed Rishit Jhunjhunwala as its new CEO. Truecaller reassured investors that such tax probes are common and that it remains committed to transparent business practices. However, the news has unsettled shareholders, highlighting the potential regulatory challenges foreign tech firms face in India’s growing but complex market.
The US Securities and Exchange Commission (SEC) has requested a federal court to dismiss three key defences presented by cryptocurrency exchange Kraken in a lawsuit accusing the platform of securities violations. The SEC’s motion, filed on 5 November, seeks to invalidate Kraken’s argument that it lacks clear legal guidance on which digital assets qualify as securities. The SEC contends that existing securities laws are clear enough and that Kraken was fully aware of potential breaches.
Kraken’s defences include invoking the “major questions doctrine,” which argues the SEC needs explicit Parliamentary approval to regulate digital assets as securities. Kraken also claims that it did not receive adequate notice of which aspects of its operations may violate securities laws. The SEC rejected these claims, labelling the defences as attempts to delay proceedings by complicating the evidence process.
According to the SEC, dismissing Kraken’s defences would simplify the case, reducing unnecessary document requests and preventing delays in reaching a verdict. Kraken initially attempted to dismiss the case in August, but the court ruled in the SEC’s favour, allowing the lawsuit to proceed. The outcome could have significant implications for the SEC’s regulatory authority over digital assets in the cryptocurrency industry.
The UK’s Financial Conduct Authority (FCA) has successfully prosecuted two men, Raymondip Bedi and Patrick Mavanga, for running a £1.5 million cryptocurrency investment fraud that misled 65 investors. Between 2017 and 2019, Bedi and Mavanga lured investors through cold calls and fraudulent, professional-looking websites, offering high returns on fake crypto platforms. The tactic resulted in substantial losses for their victims, totalling over £1.5 million.
The FCA charged both men with conspiracy to defraud, operating without FCA authorisation, and money laundering. Mavanga also faced additional charges for perverting the course of justice by deleting phone records linked to the scheme. The prosecution underscores the FCA’s mandate to uphold financial service standards and highlights the importance of being wary of unsolicited calls and online investment offers.
Two other suspects were involved: Rowena Bedi was acquitted, while a third defendant awaits a retrial in 2025. Another individual, Minas Filippidis, remains at large. The FCA advises consumers to stay vigilant against scams and only trust financial services authorised by the agency.
The Canadian government has ordered TikTok’s Canadian business to shut down, citing national security concerns over the app’s Chinese ownership. The decision, announced Wednesday, affects the operations of TikTok’s parent company, ByteDance, but does not block Canadians from accessing the app or creating content on it. According to Canadian Innovation Minister Francois-Philippe Champagne, the shutdown aims to address specific security risks posed by ByteDance’s activities in Canada.
This action comes after Canada’s year-long review of TikTok’s investment plans in the country. Canadian law allows the government to scrutinise foreign investments for potential risks, though details of these assessments are confidential. In response, TikTok has announced plans to contest the order in court, citing concerns about job losses for local employees impacted by the decision.
While Canada has already banned TikTok on government-issued devices, the shutdown of ByteDance’s Canadian operations reflects mounting pressure on TikTok in North America. The United States has set a January deadline for ByteDance to divest its US TikTok assets or face a ban. Both countries point to national security risks associated with TikTok’s ownership and data practices as key reasons for these measures
The US Supreme Court is currently deliberating whether to allow a securities fraud lawsuit against Facebook, now Meta, to proceed. Investors, led by Amalgamated Bank, allege that the company misled them by failing to disclose details about a 2015 data breach involving Cambridge Analytica, which ultimately affected millions of users. The case questions whether Facebook’s public risk disclosures should have included specific details about this incident rather than presenting it as a potential future risk.
During the hearing, justices debated whether Facebook’s statements to investors were misleading by suggesting the risk was hypothetical. Conservative Chief Justice John Roberts noted that risk disclosures might imply past occurrences, while Justice Clarence Thomas highlighted how a lack of explicit detail might lead investors to believe the incident had never happened. The case has significant implications for the interpretation of the Securities Exchange Act, which requires firms to report business risks transparently.
This lawsuit is one of two upcoming US Supreme Court cases examining corporate transparency in investor disclosures. A ruling in favor of the investors could heighten the standards companies must meet in alerting investors to both past and potential risks, with the decision expected by June.
A South Korean detective has helped bring down a Bitcoin mining scam operation after accidentally becoming one of its targets. The scammers, who operated an illegal call centre, contacted the detective in April, unaware of his position. Realising it was a scam, the detective pretended to fall for the “high-yield” Bitcoin investment scheme, providing his details as if he was interested in investing. This move allowed police to trace the call and investigate further.
Following the detective’s lead, officers were able to track down the scam’s headquarters in Incheon, arresting 81 individuals involved. Among them were those suspected of buying leaked personal data and using fake SIM cards to contact potential victims. Nine key members, including the suspected ringleader, have been detained, while others face charges related to economic crimes and data privacy violations.
Police revealed the group had been running the scheme since October last year, defrauding at least 50 victims. They allegedly lured investors by offering small “dividends” during a free trial period, then asking for larger sums. Altogether, the group is thought to have raised over $1.6 million, promising easy profits through Bitcoin mining. Authorities have urged the public to be cautious of schemes that promise high returns with minimal effort, warning these are often fraudulent.
The Australian government has announced plans to introduce a ban on social media access for children under 16, with legislation expected to pass by late next year. Prime Minister Anthony Albanese described the move as part of a world-leading initiative to combat the harms social media inflicts on children, particularly the negative impact on their mental and physical health. He highlighted concerns over the influence of harmful body image content for girls and misogynistic material directed at boys.
Australia is also testing age-verification systems, such as biometrics and government ID, to ensure that children cannot access social media platforms. The new legislation will not allow exemptions, including for children with parental consent or those with pre-existing accounts. Social media platforms will be held responsible for preventing access to minors, rather than placing the burden on parents or children.
The proposed ban includes major platforms such as Meta’s Instagram and Facebook, TikTok, YouTube, and X (formerly Twitter). While some digital industry representatives, like the Digital Industry Group, have criticised the plan, arguing it could push young people toward unregulated parts of the internet, Australian officials stand by the measure, emphasising the need for strong protections against online harm.
This move positions Australia as a leader in regulating children’s access to social media, with no other country implementing such stringent age-verification methods. The new rules will be introduced into parliament this year and are set to take effect 12 months after ratification.
Cyprus’ financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has extended the suspension of FTX’s European branch by another six months, lasting until 30 May 2025. The continued suspension means that FTX EU remains barred from accepting new clients, providing services, or advertising, though it can still process transactions to return funds to existing clients.
The extension comes as the second anniversary of FTX’s bankruptcy filing approaches. After FTX declared Chapter 11 bankruptcy in the US in November 2022, CySEC halted FTX Europe’s license, questioning the firm’s management suitability and ensuring the protection of client assets. FTX Europe, initially acquired by FTX in 2021 for $323 million, has since been resold to its original owners for $32.7 million following legal disputes over the acquisition price.
FTX Europe’s website currently only supports balance viewing and withdrawal requests. Clients who do not withdraw funds will have their balances moved to a client-segregated account, which will be held for up to six years.
The UK government has ordered China-registered Future Technology Devices International Holding Ltd to sell the majority stake—80.2%—in Scottish chipmaker FTDI, citing national security concerns. The government voiced concerns that UK-developed semiconductor technology and intellectual property could be misused if controlled by foreign interests that have been considered potentially harmful.
This directive requires FTDI’s Chinese parent company to follow a set procedure and timeline to complete the sale. The move highlights the UK’s efforts to protect sensitive technology sectors and its vigilance over foreign investments that may impact national security.
Increasingly, governments worldwide are scrutinising tech-related investments, especially in semiconductor industries, due to the strategic importance of chip technologies in national defence, infrastructure, and critical sectors.
A Moscow court has fined Apple 3.6 million roubles ($36,889) for refusing to remove two podcasts that were reportedly aimed at destabilising Russia’s political landscape, according to the RIA news agency. The court’s decision is part of a larger pattern of the Russian government targeting foreign technology companies for not complying with content removal requests. This action is seen as part of the Kremlin’s broader strategy to exert control over the digital space and reduce the influence of Western tech giants.
Since Russia’s invasion of Ukraine in 2022, the government has intensified its crackdown on foreign tech companies, accusing them of spreading content that undermines Russian authority and sovereignty. The Kremlin has already imposed similar fines on companies like Google and Meta, demanding the removal of content deemed harmful to national security or political stability. Critics argue that these moves are part of an orchestrated effort to suppress dissenting voices and maintain control over information, particularly in the face of growing international scrutiny.
Apple, like other Western companies, has faced mounting pressure to comply with Russia’s increasingly stringent regulations. While the company has largely resisted political content restrictions in other regions, the fine highlights the challenges it faces in operating within Russia’s tightly controlled media environment. Apple has not yet publicly commented on the ruling, but the decision reflects the growing risks for tech firms doing business in Russia as the country tightens its grip on digital platforms.
