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Cyber-crime group BlackSuit crippled by $1 million crypto seizure

Law enforcement agencies in the United States and abroad have coordinated a raid to dismantle the BlackSuit ransomware operation, seizing servers and domains and approximately $1 million in cryptocurrency linked to ransom demands.

The action, led by the Department of Justice, Homeland Security Investigations, the Secret Service, the IRS and the FBI, involved cooperation with agencies across the UK, Germany, France, Canada, Ukraine, Ireland and Lithuania.

BlackSuit, a rebranded successor to the Royal ransomware gang and connected to the notorious Conti group, has been active since 2022. It has targeted over 450 US organisations across healthcare, government, manufacturing and education sectors, demanding more than $370 million in ransoms.

The crypto seized was traced back to a 2023 ransom payment of around 49.3 Bitcoin, valued at approximately $1.4 million. Investigators worked with cryptocurrency exchanges to freeze and recover roughly $1 million of those funds in early 2024.

While this marks a significant blow to the gang’s operations, officials warn that without arrests, the threat may persist or re-emerge under new identities.

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China warns over biometric data risks linked to crypto schemes

China’s Ministry of State Security has warned of foreign attempts to collect sensitive biometric data via crypto schemes. The ministry warned that foreign agents are illegally harvesting iris scans and facial data, risking personal privacy and national security.

The advisory noted recent cases in which foreign intelligence services exploited biometric technologies to spy on individuals within China. Cryptocurrencies incentivised people worldwide to submit iris scans, which were sent overseas.

Although no specific companies were named, the description resembled the approach of the crypto firm World, formerly known as Worldcoin.

Biometric identification methods have proliferated across many sectors due to their accuracy and convenience. However, the ministry stressed the vulnerability of such systems to data breaches and misuse.

Iris patterns, unique and challenging to replicate, are prized by malicious actors.

Citizens are urged to remain cautious, carefully review privacy policies, and question how their biometric information is handled.

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XRP community eyes potential surge ahead

Armando Pantoja, from Benzinga’s Crypto Advisory Board, sparked excitement in the XRP community by hinting at a major upcoming move for the token. He suggested that investors holding 1,000 XRP or more are in a strong position to benefit from what lies ahead.

The announcement triggered renewed interest as XRP trades around $3.

Holding 1,000 XRP has become a significant benchmark in the community, with data showing that most wallets contain fewer tokens. With over 6.7 million XRP wallets worldwide, only around 15% hold more than 1,000 tokens.

Experts like Jake Claver of Digital Ascension Group highlight how different holdings can align with financial goals, ranging from modest sums to millions, depending on price movements.

Some community members recommend even larger holdings, reflecting confidence in XRP’s long-term potential. Despite the uncertainty, early accumulation, especially at or above 1,000 XRP, is widely seen as a potentially rewarding strategy should demand surge.

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Crypto market falls sharply amid institutional selling and Ethereum crisis

The cryptocurrency market faced a significant correction on Thursday. A broad selloff dragged Bitcoin down 2.3% to around $117,241.

Ethereum fell over 6% to test key support near $3,515, while XRP plunged 17%, breaking below the crucial $3.00 level. Dogecoin suffered the most significant loss among major altcoins, crashing 18.5% amid heavy institutional liquidation.

Analysts attribute the decline to coordinated selling by institutional investors, worsened by a surge in Ethereum validator exits and ongoing macroeconomic uncertainty.

Bitcoin showed relative strength compared to other tokens, demonstrating its role as a haven amid market stress. Despite the pullback, bitcoin’s dominance increased as investors rotated away from riskier altcoins.

Ethereum’s challenges are acute, with over $2.3 billion worth of ETH awaiting unstaking amid the longest validator exit queue in 18 months. While some validators are exiting, many are entering the staking system, suggesting complex market dynamics rather than outright abandonment.

The sharp declines reflect a mix of large-scale liquidations, institutional portfolio rebalancing, and geopolitical pressures driving risk-off sentiment. Speculative assets like Dogecoin were hit hardest, highlighting the vulnerability of meme coins during downturns.

Despite short-term volatility, major financial firms remain bullish on Bitcoin, Ethereum, and XRP, citing technological adoption and regulatory progress as drivers for 2025 growth.

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Elon Musk’s firm consolidates $153 million in BTC

SpaceX has moved $153 million worth of Bitcoin for the first time since 2022, consolidating 1,308 BTC from 16 addresses into a single SegWit wallet, on-chain data reveals. The reason behind the move remains undisclosed.

The company, founded by Elon Musk, currently holds 8,285 BTC—worth nearly $989 million—according to bitcointreasuries.net. Its last Bitcoin transfer involved over 3,500 tokens sent to Coinbase. A SpaceX spokesperson declined to comment on the latest activity.

The transfer coincides with increased scrutiny of the firm’s government contracts, following a clash between Musk and Donald Trump. Despite speculation, SpaceX may not be selling its Bitcoin, as it is reportedly preparing a $1 billion share sale that could value the company at $400 billion.

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Latin America leads growth in crypto remittances this year

Cryptocurrency remittances in Latin America have surged by over 40% in 2024, reflecting a rapid shift towards digital currencies in cross-border money transfers. Rising stablecoin use, a trusted dollar proxy, drives growth amid economic challenges and currency controls in the region.

Crypto ATMs, which eliminate intermediaries and provide physical points of access, have bolstered adoption. Countries such as Mexico, Puerto Rico, Panama, Colombia, and Argentina are leading this growth, supported by thousands of crypto ATM locations.

However, El Salvador has seen a drop in remittance volumes, partly due to the winding down of the government-backed Chivo Wallet and changes in the public sector’s bitcoin operations.

Despite regulatory resistance in some areas, including Brazil’s debate over stablecoin withdrawal restrictions, crypto remittances are expected to keep rising.

The convenience and cost advantages of cryptocurrency over traditional methods continue to attract users, pointing to further expansion in the coming years.

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Germany sees spike in suspicious crypto activity

Germany’s Financial Intelligence Unit (FIU) has recorded a record number of cryptocurrency-related suspicious activity reports (SARs) in 2024 despite an overall decline in total filings. The FIU reported 8,711 crypto-linked SARs, an 8.2% rise from the previous year.

Most flagged transactions involved Bitcoin, followed by Ethereum, Tether, and Litecoin. These were often tied to trading platforms, mixing services, or online gambling—tools frequently used to hide the origin of illicit funds. The agency said digital assets continue to play a growing role in money laundering operations.

Germany’s trend reflects broader international concerns. In the UK, the National Crime Agency said cryptocurrency exchanges were linked to 6.6% of all SARs during the 2023–24 period, as overall filings rose to around 872,000.

Authorities also observed a rise in counter-terrorism financing reports and account freezes. In the US, FinCEN received over 8,600 crypto-related SARs in fiscal year 2023.

Meanwhile, blockchain analytics firm Chainalysis reported laundered crypto volumes dropped from $31.5 billion in 2022 to $22.2 billion in 2023, though total criminal crypto usage remained stable at about $50 billion annually.

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DW Weekly #215 – Japan is boosting its cyberdefence, NATO shifts digital priorities, EU’s International Digital Strategy

30 May – 6 June 2025

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Dear readers,

Amid heightened cybersecurity tensions in East Asia, exemplified by China’s recent accusations against Taiwan for alleged cyberattacks and bounty offers targeting Taiwanese hackers, Japan is taking proactive steps to strengthen its cyberdefence capabilities. In May, the Japanese parliament approved a cyberdefence law, empowering authorities to monitor international communications through domestic infrastructure and neutralise overseas servers preemptively if they’re suspected of initiating cyberattacks. To complement these legislative measures, Japan is also formulating a comprehensive new cybersecurity strategy by the end of 2025, which will prioritise advanced encryption, proactive threat detection, and enhanced resilience of critical national infrastructure.

Cybersecurity policy strengthening is frequent these days, not only in Asia but also across the EU, as the UK and NATO bring important shifts in their cyberdefence strategies. The UK Ministry of Defence recently announced the establishment of a new Cyber and Electromagnetic Command aimed at integrating defensive cyber operations with offensive cyber and electronic warfare capabilities. Concurrently, NATO is considering formally incorporating cybersecurity into its defence spending guidelines, potentially including cyber capabilities within the alliance’s new 5% GDP target for defence expenditures.

Related to state security, another notable military development from the past week is the announcement that Chinese scientists have created the world’s first AI-based system capable of distinguishing real nuclear warheads from decoys, marking a significant breakthrough in arms control verification.

Cryptocurrencies continue to reshape Europe’s financial landscape, prompting varying responses from institutions across the continent. While the EU is actively advancing its ambitions for a digital euro, viewing it as a strategic tool to enhance the eurozone’s global currency influence and financial sovereignty, the Bank of Italy has expressed scepticism about current regulatory efforts. Specifically, Italy’s central bank criticised the Markets in Crypto-Assets (MiCA) regulation, pointing out its limited impact on boosting crypto adoption or effectively addressing consumer protection and market stability concerns.

The EU continues its legal battle with tech companies that do not comply with its digital market policies. Namely, the European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as ‘a cartel’ in the online food delivery market.

A content policy correction initiative from France: TikTok has globally banned the hashtag ‘SkinnyTok’ after pressure from the French government, which accused the platform of promoting harmful eating habits among young users.

EU’s International Digital Strategy

On 5 June 2025, the European Commission and the High Representative unveiled a new International Digital Strategy for the EU, aiming to enhance the EU’s global tech competitiveness and security amid a rapidly evolving digital landscape. The strategy emphasises deepening existing Digital Partnerships and Dialogues, establishing new ones, and creating a Digital Partnership Network to foster collaboration on emerging technologies like AI, 5G/6G, semiconductors, and quantum computing, while promoting secure connectivity through initiatives like the Global Gateway. It also introduces an EU Tech Business Offer, a modular approach to combine technology solutions with capacity-building, supporting trusted partners in building secure digital infrastructure, such as submarine cables and AI Factories.

Prioritising cybersecurity, the EU plans to strengthen defences against cyber threats and Foreign Information Manipulation (FIMI) by enhancing resilience and promoting algorithmic transparency on online platforms. The strategy reaffirms the EU’s commitment to shaping global digital governance by advocating for human-centric standards in forums like the UN and G7, ensuring the digital transformation aligns with democratic values and fundamental rights.

Last week in Geneva

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In Geneva, the 113th Session of the International Labour Conference (ILC), convened by the International Labour Organisation (ILO), is currently taking place from 2 to 13 June 2025 at the Palais des Nations and ILO headquarters, where delegates are deliberating on pressing global labour issues.

On 5 June, the Giga Research Lab, in collaboration with Giga and the Geneva Innovation Movement, hosted a high-level event titled Bridging the Digital Divide: Cross-Sector Insights for Scaling School Connectivity. Held on Giga premises, the event welcomed invited guests for an exchange of ideas on expanding digital access in education.

On the same day, the International Telecommunications Union (ITU) held a webinar to launch the fourth edition of the landmark report, Greening Digital Companies: Monitoring Emissions and Climate Commitments 2025.

For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.

DW Team

RADAR

Highlights from the week of 30 May – 6 June 2025

EU launches global digital strategy

As the global race for digital dominance accelerates, the European Union is stepping forward with a bold strategy that blends technological ambition with a commitment to democratic values and international…

AI copyright clash stalls UK data bill

Peers warn the UK’s creative sector could suffer if AI firms are allowed to use copyrighted content without consent or fair compensation.

Colt, Honeywell and Nokia to trial quantum cryptography in space

Space-based cryptography aims to secure sensitive data from quantum threats.

NVIDIA unveils world’s largest quantum research supercomputer

New centre aims to accelerate real-world use of quantum computing.

enter new era computing with large quantum computer generative ai

Netherlands unveils open-architecture quantum computer

The open-architecture Tuna-5 showcases how academic labs and startups can build a functional quantum machine with interoperable components from the local supply chain.

Czech justice minister quits over bitcoin scandal

Opposition seeks answers in emergency parliament session on 5 June.

Vodafone fined €45 million in Germany over data privacy violations

Vodafone is facing one of the largest privacy-related fines in Germany’s telecom sector, revealing deep concerns over how personal data is handled behind the scenes.

Crypto-friendly legislation advances in California

The lawmakers have approved a bill allowing crypto payments for state services under a pilot programme.

Meta Clinton Clean Energy Center Illinois Constellation nuclear energy AI

Meta inks 20-year nuclear deal to power AI expansion

Meta’s AI infrastructure plans include $65 billion in spending for 2025.

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Amazon invests $10 billion in AI data centres

However, an expert warned that Amazon’s investment shows how costly AI infrastructure has become, pushing out smaller developers.

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Nord Quantique says fewer qubits needed for fault tolerance

Quantum computers may need fewer qubits, thanks to new photon-based encoding.

View all updates

READING CORNER

Cognitive offloading and the future of the mind in the AI age

The rise of AI is transforming work and education, but raises questions about its impact on critical thinking and cognitive independence.

UPCOMING EVENTS

9 Jun 2025 – 10 Jun 2025

Informal interactive WSIS stakeholder consultation on the review of implementation of the outcomes of the WSIS+20

The consultation, organised by the the President of the General Assembly, aims to gather input from all relevant WSIS stakeholders on the preparatory process for the review of the implementation…

9 Jun 2025 – 12 Jun 2025

ICANN 83

The event will focus on ongoing policy development, community outreach, and collaboration among global stakeholders.

10 Jun 2025, 14:00h – 15:00h

Final Brief on the WSIS+20 High-Level Event 2025

The session aims to foster open dialogue, encourage active stakeholder engagement, and support continued progress toward the WSIS+20 High-Level Event 2025

12 June 2025 – 13 June 2025

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia – Diplo Event

Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia The Digital Democracy for All (DD4ALL) project is a collaborative initiative

23 Jun 2025 – 27 Jun 2025

Internet Governance Forum 2025

The Government of Norway will host the 20th annual Internet Governance Forum (IGF) in Lillestrøm from 23 to 27 June 2025.

23 June 2025 – 27 June 2025

Diplo/GIP at IGF 2025 – Diplo Event

Diplo/GIP at IGF 2025 The 20th annual meeting of the Internet Governance Forum (IGF) will be hosted by the Government of Norway, in Lillestrøm, from 23 to 27 June.

24 Jun 2025 – 27 Jun 2025

Global Forum on the Ethics of AI 2025

Thailand will host the 3rd UNESCO Global Forum on the Ethics of Artificial Intelligence from 24 to 27 June 2025.

South Korea’s crypto industry set to benefit regardless of election

South Korea’s cryptocurrency sector is poised to grow no matter the outcome of the upcoming snap presidential election on 3 June. Both candidates have pledged to ease regulations, legalise spot crypto ETFs, and launch a won-backed stablecoin to modernise finance.

Lee Jae-myung of the Democratic Party and Kim Moon-soo from the conservative People Power Party share strong pro-crypto stances.

Lee proposes allowing the national pension fund to invest in crypto and loosening strict banking rules requiring exchanges to work with licensed banks. Both candidates also support legalising spot crypto ETFs, reflecting rare bipartisan agreement.

The push for clearer regulations is urgent, given South Korea’s highly active retail crypto market. Recent government measures impose tough rules on exchanges, including strict listing standards and potential life sentences for violations.

With more than 16 million users and trading volumes rivaling major stock indexes, South Korea’s crypto industry stands to benefit significantly from the election promises.

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Pakistan appoints crypto advisor amid push for Bitcoin mining

Pakistan has named Bilal Bin Saqib special assistant to the prime minister on blockchain and cryptocurrency. He is also chief advisor to the finance minister and CEO of the Pakistan Crypto Council.

Bin Saqib studied at the London School of Economics and was honoured with an MBE.

The government plans to use 2,000 megawatts of surplus electricity for Bitcoin mining. The move aims to generate revenue, create tech jobs, and attract foreign investment.

Former Binance CEO Changpeng Zhao joined the crypto council as an advisor in April.

Despite the push, concerns remain. Foreign direct investment dropped sharply last year. Pakistan has hired a US lobbyist and engaged with World Liberty Financial, a crypto project linked to Donald Trump.

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