The EU Council has extended its sanctions on cyberattacks until May 18, 2026, with the legal framework for enforcing these measures now lasting until 2028. The sanctions target individuals and institutions involved in cyberattacks that pose a significant threat to the EU and its members.
The extended measures will allow the EU to impose restrictions on those responsible for cyberattacks, including freezing assets and blocking access to financial resources.
These actions may also apply to attacks against third countries or international organisations, if necessary for EU foreign and security policy objectives.
At present, sanctions are in place against 17 individuals and four institutions. The EU’s decision highlights its ongoing commitment to safeguarding its digital infrastructure and maintaining its foreign policy goals through legal actions against cyber threats.
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A senior Russian finance official has called for domestic stablecoins after EU sanctions led to the freeze of over 2.5 billion roubles held by Garantex. It raised concerns about reliance on foreign-issued assets.
Osman Kabaloev suggested Russia explore creating its stablecoins, possibly pegged to local currencies, as an alternative to USDT. Stablecoins are widely used in the cryptocurrency space for their stability, particularly in regions facing financial sanctions or restrictions.
In Russia, USDT has been used by businesses for international transactions. The trend has grown as access to global payment systems has become more restricted due to Western sanctions.
While Russia has allowed limited experimental use of cryptocurrency for cross-border payments, domestic use of crypto remains restricted. The call for a homegrown stablecoin reflects Russia’s growing concerns over digital asset security and sovereignty.
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A Russian logistics firm, ETE Group, has requested that the Prime Minister establish a regulatory framework for using cryptocurrency in international trade. In a letter to the Prime Minister, the company called for changes to Russia’s Civil and Tax Codes to allow crypto transactions with foreign suppliers.
ETE Group, based in Moscow and Vladivostok, noted that the lack of regulation creates risks for businesses seeking to use cryptocurrency for payments. The firm has observed a significant rise in interest in crypto payments, with business sector interest increasing by 40% in 2024.
ETE Group believes that introducing regulations for crypto issuance, circulation, and accounting will help resolve ongoing issues with international payments. The firm particularly highlights delays caused by sanctions and the disconnection of Russian firms from the SWIFT network.
Russia’s sanctions, imposed after the war in Ukraine, have disrupted trade with countries like China and Kazakhstan, with payment delays often extending from weeks to months. ETE Group has stated that using crypto could offer a solution, bypassing traditional financial systems.
The company also highlighted that while Russian law currently prohibits crypto payments for goods, growing interest in the technology could prompt a policy change.
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According to Global Ledger, a Swiss blockchain analytics firm, Garantex shifted liquidity and customer balances to the new platform after its official shutdown. On-chain and off-chain evidence points to the two exchanges being closely linked despite Garantex’s closure.
Global Ledger’s report revealed that Garantex laundered over $60 million worth of ruble-backed stablecoins, using a process of burning and reminting to erase transaction histories.
The funds were then channelled to Grinex, which began processing large transaction volumes soon after Garantex went offline. Blockchain data showed systematic fund transfers through temporary wallets before reaching Grinex’s deposit addresses.
Further evidence linking the two platforms includes user reports of previously blocked funds from Garantex appearing in Grinex accounts.
A Grinex staff member also confirmed that users were visiting Garantex’s office to move funds between the two platforms. Additionally, Grinex’s website and promotional materials strongly resemble those of Garantex, and it is listed as being founded by the same team.
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The United States has indicted ten individuals, including employees of the Chinese tech company i-Soon, for their involvement in a years-long cyber espionage campaign that targeted various US government agencies and organisations worldwide.
The campaign allegedly stole sensitive data from entities such as the US Defense Intelligence Agency, the Department of Commerce, and foreign ministry of Taiwan. The hackers, associated with i-Soon, were reportedly hired by Chinese intelligence agencies to breach email systems for substantial payments.
Along with the indictments, the US Treasury Department has imposed sanctions on Shanghai-based Heiying Information Technology and its founder, Zhou Shuai, accusing them of selling stolen data and providing access to compromised networks.
The data reportedly included information from US critical infrastructure networks. Some of this stolen data was later acquired by a previously sanctioned Chinese hacker, Yin Kecheng.
The Chinese embassy in Washington responded by condemning the sanctions and stating that it would take necessary actions to protect Chinese companies and citizens.
The US government’s aggressive stance is part of an ongoing effort to curb Chinese cyber espionage activities and defend its digital infrastructure.
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North Korean hackers have recorded the largest cryptocurrency theft, stealing approximately $1.5bn from the Dubai-based exchange ByBit. According to the FBI, the stolen funds have already been converted into Bitcoin and spread across thousands of blockchain addresses. The attack highlights North Korea’s growing expertise in cybercrime, with proceeds believed to be funding its nuclear weapons programme.
The notorious Lazarus Group, linked to the regime, has been responsible for several high-profile hacks, including the theft of over $1.3bn in cryptocurrency last year. Experts say the group employs advanced malware and social engineering tactics to breach exchanges and launder stolen assets into fiat currency. These funds are critical for bypassing international sanctions and financing North Korea’s military ambitions.
Beyond cybercrime, Pyongyang has deepened its ties with Russia, allegedly supplying troops and weapons in exchange for financial backing and technological expertise. Meanwhile, the regime has recently reopened its borders to a limited number of international tourists, aiming to generate much-needed foreign income. As global scrutiny intensifies, concerns are growing over North Korea’s increasing reliance on illicit activities to prop up its economy and expand its military power.
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Australia has imposed sanctions on the extremist online network ‘Terrorgram’ in an effort to combat rising antisemitism and online radicalisation. Foreign Minister Penny Wong stated that engaging with the group would now be a criminal offence, helping to prevent young people from being drawn into far-right extremism. The move follows similar actions by Britain and the US.
Wong described ‘Terrorgram’ as a network that promotes white supremacy and racially motivated violence, making it the first entirely online entity to face Australian counterterrorism financing sanctions. Offenders could face up to 10 years in prison and substantial fines. Sanctions were also renewed against four other right-wing groups, including the Russian Imperial Movement and The Base.
The network primarily operates on the Telegram platform, which stated that it has long banned such content and removed related channels. The US designated ‘Terrorgram’ as a violent extremist group in January, while Britain criminalised affiliation with it in April.
Australia has seen a rise in antisemitic incidents, including attacks on synagogues and vehicles since the Israel-Gaza conflict began in October 2023. Police recently arrested neo-Nazi group members in Adelaide and charged a man for displaying a Nazi symbol on National Day.
Sanctions have been imposed by the US on organisations in Iran and Russia accused of attempting to influence the 2024 presidential election. The Treasury Department stated these entities, linked to Iran’s Revolutionary Guard Corps (IRGC) and Russia’s military intelligence agency (GRU), aimed to exploit socio-political tensions among voters.
Russia’s accused group utilised AI tools to create disinformation, including manipulated videos targeting a vice-presidential candidate. A network of over 100 websites mimicking credible news outlets was reportedly used to disseminate false narratives. The GRU is alleged to have funded and supported these operations.
Iran’s affiliated entity allegedly planned influence campaigns since 2023, focused on inciting divisions within the US electorate. While Russia’s embassy denied interference claims as unfounded, Iran’s representatives did not respond to requests for comment.
A recent US threat assessment has underscored growing concerns about foreign attempts to disrupt American democracy, with AI emerging as a critical tool for misinformation. Officials reaffirmed their commitment to safeguarding the electoral process.
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and a company based in the United Arab Emirates (UAE) for allegedly aiding North Korea’s use of digital assets in illegal activities.
The sanctions target Lu Huaying and Zhang Jian, along with Green Alpine Trading, LLC, a front company linked to a broader scheme of money laundering. These actions aim to disrupt a network that, according to US authorities, funnels millions of dollars to North Korea’s nuclear weapons and missile programs.
North Korea has a history of using digital assets and cybercrimes to fund its military efforts, employing IT workers and hackers to generate funds that are often obscured through complex laundering operations. The sanctions focus on Sim Hyon Sop, a representative of North Korea’s state-run Korea Kwangson Banking Corporation, who has been previously sanctioned. Sim is accused of using a mix of cryptocurrency cash-outs and money mules to move funds back to the regime for its military projects.
Under the new sanctions, any property owned by the designated individuals or entities in the US is blocked, and US citizens and companies are prohibited from engaging in transactions with them. Non-compliance could lead to further enforcement actions, even against those outside the US. The move reflects a coordinated effort with the UAE to combat North Korea’s destabilizing activities. It highlights the importance of international cooperation in tackling illicit financial networks that exploit new technologies, including cryptocurrencies.
The US-China tech export war is intensifying as both nations continue pushing their antagonistic agendas to curb the other’s technological advancements. As expected, trade tensions between the USA and China are escalating again in the semiconductor sector as four top Chinese industry associations have recently warned against purchasing US chips, claiming they are ‘no longer safe’ and threaten national security principles. The Chinese associations, representing major industries from telecommunications to the digital economy, have opted for a considerable change in the mindset of Chinese businesses. They are now advised to consider non-US suppliers to safeguard their operations and reduce reliance on US technology.
The industry associations’ response follows the latest US crackdown, targeting China’s semiconductor industry. The new restrictions, introduced by the US Department of Commerce, extend to 140 Chinese companies and cover a broad range of products, including critical semiconductor equipment and high-bandwidth memory used in AI chip development. These measures aim to limit China’s access to advanced technologies essential for its military modernisation and AI capabilities, with the Biden administration labelling the restrictions necessary for US national security.
However, Beijing is far from passive in this ‘tech conflict’. Chinese authorities have been ramping up retaliatory measures in response to the curbs. One of the most notable moves came last year when China blocked US chipmaker Micron from some government purchases following a failed security review. Similar scrutiny has been directed at other US tech giants like Intel, with significant revenue from China. Furthermore, China has increasingly turned to its ‘unreliable entity list’ to target US firms, such as PVH Corp, probed for complying with US sanctions on Xinjiang cotton, showing China’s determination to impose economic and market barriers on American companies.
China has also used its control over rare earth materials as leverage, imposing export restrictions on critical elements like gallium, germanium, and antimony. These materials are vital for semiconductor manufacturing and military applications, and their abundance means China’s strategic advantage in global supply chains. In addition to the listed, the recent imposition of new export controls on dual-use technologies to US military users or for military purposes further underscores China’s strategy to regulate products that have both civilian and military applications. The change in course aims to secure China’s rise and dominance in these sectors and limit US access to critical technologies needed for advanced military and AI applications.
Amid these tensions, the semiconductor sector has become a focal point of a global power struggle. The USA has restricted the sale of advanced chipmaking equipment to China, focusing mainly on equipment from US-based companies such as Lam Research and Applied Materials and European suppliers like ASML. While China has made strides toward becoming more self-sufficient in semiconductor manufacturing, the US curbs continue to impact China’s access to cutting-edge equipment and expertise essential for advancing its chip technology. Despite the setbacks, Chinese companies, such as Empyrean and Nata Opto-Electronic, have been building equipment stockpiles and pushing for greater localisation to mitigate the effects of the sanctions.
The expanding reach of US export controls also affects global partners, including Japan and the Netherlands, which supply critical chipmaking equipment to China. While Japan and the Netherlands have been exempt from some of the curbs, their involvement in the US rules still limits the scope of their exports to China. However, the USA seems quick to monitor and enforce these regulations, further entangling allies in the conflict.
The conclusion is that the escalating tech conflict between the USA and China provokes deepening concerns in the two governments about data security, military supremacy, and leadership in critical areas like AI and semiconductors. With both countries fiercely safeguarding their strategic priorities, this tech rivalry is poised to reshape global supply chains, innovation landscapes, and the overall power dynamics in the tech sector, undoubtedly influencing the world economy for years to come.
New export restrictions will ignite global trade tensions.
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