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Telegram Founder Claims French Officials Sold Crypto Data, Linked To 41 Kidnaps

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France has emerged as a focal point in a growing wave of kidnappings that, increasingly, appear tied to crypto assets. According to authorities, there have been 41 cases this year alone, reflecting a sharp escalation of a wider international trend often referred to as “wrench attacks.” 

The link between the attacks and crypto exposure has also been raised publicly by Telegram founder Pavel Durov. Durov has pointed to what he says are alleged connections involving French tax officials selling crypto owners’ data to criminals, alongside claims of major tax database leaks. 

Durov Accuses France Of Increasing Crypto Kidnapping Risks

In his comments made Friday on social media site X (previously Twitter), he argued that expanding the flow of data inevitably creates more opportunities for theft and misuse. 

“More data means more leaks, more victims,” he said, criticizing French state efforts that would require identity information and access to private messages on social media platforms. 

Reports suggest that the kidnapping pattern in France did not appear all at once. Instead, the crypto-linked incidents began as scattered cases in late 2024. 

Throughout 2025, the scale remained limited compared with what followed, with around 30 reported nationwide. That changed in 2026, when the pace has accelerated noticeably. Authorities report that attacks are now happening every few days, signaling a shift from isolated incidents to a more systematic threat.

Interior Ministry data indicates that these crypto-related kidnappings now account for more than half of all organized kidnappings tracked by Sirasco, the country’s intelligence unit focused on organized crime. 

State Plans Wider Crackdown

In response, the government is moving toward a more aggressive approach. At Paris Blockchain Week, officials outlined plans for a broader crackdown and introduced a new prevention platform aimed at supporting the crypto community. 

The platform is intended to provide threat alerts and practical security guidance, while also offering direct communication pathways with law enforcement. Officials said additional measures are currently in development.

These steps include creating a dedicated police unit focused specifically on crypto-related crime, improving speed and coordination with international agencies, and expanding the use of blockchain analytics to trace ransom payments. 

Crypto
The daily chart shows the total crypto market cap at $2.57 trillion as of Friday. Source: TOTAL on TradingView.com

Featured image from OpenArt, chart from TradingView.com 

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U.S. CFTC adds New York to string of states its suing to stop prediction market pushback

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The U.S. Commodity Futures Trading Commission sued New York on Friday in its latest action to shield what the agency has argued is its unassailable nationwide regulatory authority over prediction market firms.

Earlier this week, New York sued Coinbase and Gemini, arguing that their prediction market contracts violated state gambling laws. And last year, the state had similarly targeted Kalshi, demanding it cease its sports wagering platform.

The CFTC, in its role as the federal derivatives regulator, has staked out a position that the states have no business interfering with those firms. The agency’s suit in the U.S. District Court for the Southern District of New York argues that federal law “designates the CFTC as the federal agency with ‘exclusive jurisdiction’ over the regulation of commodity futures, options, and swaps traded on federally regulated exchanges,” and that includes these CFTC-registered designated contract markets. State law is effectively preempted, according to the synchronized positions of the regulator and the growing industry it’s seeking to protect.

But also on Friday, 37 state attorneys general — including New York Attorney General Letitia James — signed onto a legal brief in one of the Kalshi legal fights in Massachusetts to argue that “Kalshi’s aggressive theory of preemption threatens the States’ longstanding ability to protect their citizens in this area.”

CFTC Chairman Mike Selig has made this one of his most prominent initiatives since taking over the agency four months ago, and his agency has similarly sued Arizona, Connecticut and Illinois, claiming event contracts are derivatives instruments within federal jurisdiction.

“CFTC-registered exchanges have faced an onslaught of state lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets,” he said in a statement.

Warm Weather Sparks Surge in UK Clothing, Garden and Travel Spend

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WHY THIS MATTERS: This data is a powerful reminder that stability in digital commerce is an illusion, driven by highly unpredictable external factors like climate. The payments infrastructure conversation must move beyond simple cost optimization toward stress testing for extreme volatility. When UK consumers collectively decide to refresh their wardrobes and gardens following a single warm day, it creates the equivalent of an instantaneous, unscheduled flash sale. For merchants processing millions of pounds in sudden volume, system failures and dropped transactions at the checkout layer can translate directly into lost revenue. This highlights why adaptive technology—specifically, modern payment orchestration platforms—is no longer a niche tool but a core requirement for operational resilience. Platforms must be able to instantly reroute surging payment flows to maintain high acceptance rates, ensuring the digital economy can keep pace with consumer whims.

According to Checkout.com’s digital spending data, temperatures exceeding 20°C in early April, specifically on 7-8 April, marked a clear turning point in UK consumer spending. This spike in temperature triggered a wave of seasonal optimism, as consumers rushed to prepare for the sunnier months ahead.

Online clothing spend increased by 12% in April compared to March, as the first sustained rise in temperatures signalled the start of seasonal wardrobe refreshes. On the weekends that followed (12 April and 19 April), clothing spend saw a noticeable uplift, rising by an average of 16% compared to the April daily average.

This shift was even more immediate in outdoor categories. Spend on garden furniture and gardening supplies rose by 19% in April compared to March. Following the warm spell, spend remained elevated, with peaks occurring on the hottest day of the year so far, 8 April, and again over the weekend of 11-12 April, reaching 17% above the April daily average.

The rise in temperatures appears to have acted as a catalyst for travel spend, which climbed 19% above the April daily average during the weekends of 12 and 19 April. This trend likely reflects a combination of immediate “sun-seeking” behavior, such as last-minute short break bookings, alongside a broader seasonal shift as consumers began finalizing future holiday plans following the Easter break.

Rory O’Neill, CMO at Checkout.com, said “This data highlights the incredible agility of the UK’s digital economy and the profound impact of seasonal optimism. The moment the thermometer hit 20°C, we saw an almost instantaneous shift in consumer intent. It wasn’t just a one-off spike; the momentum carried through the following weekends, showing that the first taste of summer unlocks a surge in consumer intent and optimism.

“For retailers, this underscores the importance of having a high-performance payments infrastructure that can handle these sudden, weather-driven surges. Whether it’s a last-minute hotel booking or a new garden set, UK consumers expect their digital experience to be as responsive as the weather is unpredictable.”

FF NEWS TAKE: This market insight elevates consumer spending behavior to an infrastructure problem. The news absolutely moves the needle by providing clear commercial evidence for retailers to invest in more robust, flexible payment systems. We expect to see platforms that specialize in managing volatility and high-volume bursts, such as those leveraging payment orchestration, gain significant traction over legacy providers. The next move for the industry will be the launch of new, volume-specific Service Level Agreements that guarantee uptime during these sharp, weather-driven transaction spikes.

 

IFGS 2026 Proves the UK is Still the Beating Heart of Global Fintech

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By Matthew Burls

There is a unique energy that fills the historic Guildhall when the global fintech community descends upon the City of London. This year, that energy was supercharged as the Innovate Finance Global Summit (IFGS) 2026  cementing its status as the crown jewel of UK FinTech Week. More than just a conference, IFGS has become a reunion for the pioneers, regulators, and disruptors who have turned the UK into the world’s preeminent financial services hub.

While the morning sessions buzzed with talk of AI-driven business models and the next generation of unicorns, the social heart of the event, often found in the vibrant networking drinks and the “Tech Tunnel” reminded everyone why London remains the ultimate destination for fintech. The atmosphere was one of defiant optimism; despite global shifts, the consensus in the Guildhall was clear: the UK’s ecosystem, supported by worldclass regulators like the FCA, remains the gold standard for innovation.

Demystifying the “Four Cs”: A Lesson in Resilience

Amidst the grand setting, one of the most practical sessions of the day addressed a hidden friction point in global finance: the $15 billion in reclaimable cross-border withholding tax left unclaimed in 2025. Using the journey of Sprintax as a centrepiece, the session explored how digital-first solutions are finally tackling a process that has long been described as the “Four Cs”: Clunky, Complex, Confusing, and Costly.

Ryan Ludden, VP of Sales at Sprintax, detailed how the industry is moving away from fragmented, paper-based legacies toward an “API-driven” future.

“We recognised an opportunity to support international students and workers to file their taxes as a non-resident when they went to the US,” Ludden explained, tracing the company’s evolution from a manual service to a digital powerhouse that now files over 400,000 returns annually.

The session highlighted that while tax authorities aren’t withholding funds maliciously, the sheer administrative burden—often involving manual tax treaty eligibility and physical signatures—has forced many investors to simply “cut their losses.”

From Switzerland to the World: Digital Recovery in Action

The room leaned in as the discussion turned to real-world applications, specifically a case study involving a Swiss multinational. In Switzerland, non-residents face an automatic 35% withholding tax on dividends, a significant “eat away” at investnment value that many employee shareholders don’t even realize is happening.

By implementing an automated workflow, Sprintax demonstrated how technology can:

  • Automate calculations of tax treaty eligibility in real-time.
  • Read supporting documents via AI and OCR technology.
  • Eliminate cross-border banking fees through digital payment providers.

For the multinational involved, this wasn’t just about compliance; it was about “unlocking an enormous amount of value” for their global workforce, moving the needle on employee satisfaction and financial wellness—key themes of this year’s summit.

The Next Chapter: A Patriotic Vision for FinTech

As IFGS 2026 looks toward the future, the mission is no longer just about recovery, but about “taxing at the correct rate upfront.” Ludden’s vision to make reclaiming the exception rather than the rule—mirrors the broader UK fintech ambition: to create a financial system that is invisible, seamless, and inherently fair.

The day concluded not in a boardroom, but in the historic halls of the Guildhall over drinks, where founders who have weathered a decade of market shifts shared insights that no white paper could capture.

The UK continues to ride a “digital transformation wave,” and as this 12th summit proved, whether it’s navigating the stormy waters of global tax law or pioneering AI-first banking, there is no better place to steer the ship than from the heart of London.

ECB Digital Euro Standards Deals Target Integration Costs

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The European Central Bank (ECB) said Friday it has signed agreements with three European standards bodies to reuse existing open payment standards for digital euro transactions, as it seeks to reduce integration costs for banks, merchants and payment service providers. 

According to the ECB, the agreements with the European Card Payment Cooperation, Nexo standards and the Berlin Group will allow the ECB to use standards covering contactless tap-to-pay payments, merchant-to-payment-provider connections and alias-based payments, such as transactions using a mobile phone number.

The ECB said using existing open standards would minimize adoption costs for the market and help create a uniform digital euro user experience across the euro area. However, the standards agreements remain a cost-mitigation step, not confirmation that the digital euro will be cheap to implement.

An earlier ECB analysis reported by Reuters estimated that the digital euro could cost European Union banks between 4 billion euros and 6 billion euros over four years.

The agreements show that the ECB is trying to reduce one technical barrier to digital euro adoption. However, the move does not directly resolve the broader cost question facing banks that may still need to spend billions of euros preparing systems, staff and compliance processes for a possible launch.

The standards to be included. Source: ECB

ECB prepares technical layer ahead of pilot

The ECB said the agreements are intended to encourage early coordination among payment service providers, standardization bodies and other market participants before a possible digital euro launch.

The central bank said Europe currently lacks a universally available open standard supported across payment terminals and remains heavily dependent on proprietary standards owned by international card schemes and global digital wallets.

Related: ECB backs tokenized EU capital markets with strict guardrails

The standards push follows earlier signals that the ECB wants the digital euro’s technical framework clarified so banks and merchants can begin preparing their systems. On March 25, ECB Executive Board member Piero Cipollone said the central bank expected to announce key technical standards by the summer.

The ECB is also separately recruiting payment service providers for a 12-month digital euro pilot expected to start in the second half of 2027. On Feb. 18, the ECB said the pilot will involve a limited number of payment service providers, merchants and Eurosystem staff, with PSPs playing a central role in digital euro distribution.

Magazine: Ripple joins Singapore sandbox, Bhutan’s big Bitcoin selloff: Asia Express

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Aave DAO Asked to Commit 25,000 ETH to Industry-Wide rsETH Recovery Fund

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The Aave DAO is voting on a proposal to provide funding to restore Kelp DAO’s rsETH product backing after an April 18 bridge incident, as part of a broader DeFi United ecosystem recovery effort.

Aave’s decentralized governance body is being asked to contribute 25,000 ETH from its treasury to a coordinated recovery effort following the April 18 exploit of Kelp DAO’s rsETH bridge, according to a proposal published Thursday by Aave service provider TokenLogic.

The contribution would make Aave the largest single donor to a coalition called “DeFi United,” which also includes EtherFi, Lido, Ethena, Mantle, Ink Foundation, BGD Labs, and several individual contributors. Together, the group is working to restore the full backing of rsETH and protect users across affected Aave V3 markets.

The April 18 attack drained 152,577 rsETH from Kelp’s LayerZero bridge adapter, creating an original shortfall of approximately 163,183 ETH. Subsequent recoveries have reduced that figure: Kelp froze tokens worth roughly 43,168 ETH, the Arbitrum Security Council froze 30,766 ETH held by the attacker, and liquidations of the hacker’s positions on Aave and Compound are expected to recover an additional 14,168 ETH. The residual funding gap currently stands at approximately 75,081 ETH.

To close that gap, the proposal outlines a funding stack combining public donations totaling 14,570 ETH, a 30,000 ETH credit facility from Mantle, and the requested 25,000 ETH from the Aave DAO treasury.

Executing the recovery requires placing the full 120,015 ETH into the LayerZero lockbox upfront. Because several recovery streams are not yet liquid, short-term bridge loans are being arranged separately to cover the timing gap.

The proposal also authorizes Aave Labs to pledge DAO assets and future protocol revenue as collateral to secure funding arrangements. The proposal notes the plan depends on external actions including Kelp reopening withdrawals, LayerZero reopening its bridge, and the Arbitrum Security Council releasing frozen funds.

The proposal is currently in the community feedback stage before proceeding to a Snapshot vote.

Sources: Aave Governance | Aave Twitter | DeFi United

This article was generated automatically by The Defiant’s AI news system from publicly available sources.

Finastra Talks Operational Efficiency and Achieving Seamless Connectivity

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At TSAM London, Laura Bedborough from Finastra discussed the enduring challenge of operational efficiency for financial institutions. Banks and fintechs are constantly looking for ways to streamline their current operations, specifically focusing on eliminating manual processing and improving overall connectivity; a key focus for these firms is payment connectivity.

Bedborough explained that many are looking to enhance their SWIFT connectivity or outsource it entirely and by outsourcing this part of their business, operations can transform, allowing them to shift the burden of running these complex systems.

Looking ahead 12 months, Finastra highlighted the tangible benefits of this approach as clients will see a reduction in manual interactions, leading to seamless connectivity. Furthermore, organisations gain a centralized view of their messaging and by outsourcing connectivity and all necessary regulatory updates to Finastra, firms can remove the constant “headache” of keeping up with compliance. 

Bitcoin and Risk Assets Halt Their Surge With BTC Support at Risk

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Bitcoin (BTC) stayed glued to $78,000 on Friday with markets “awaiting clarity” from the US-Iran war.

Key points:

  • Bitcoin stalls in its bid to recapture $80,000, as US stocks tread water.
  • Strong earnings are needed to sustain the equities push, says analysis.
  • BTC price support is at risk of giving way next.

Bitcoin joins risk assets “chopping sideways”

Data from TradingView tracked flat BTC price action into the week’s last Wall Street trading session. 

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Amid a lack of fresh geopolitical cues, risk-asset catalysts presented a mixed picture, leading to sideways movements for US stocks. WTI crude oil, after nearing a rematch with the $100 mark, cooled to $95.

CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView

“$BTC & Stocks started the week off strong as metals have sold off. But as $OIL has been starting to move again the past few days, risk assets have stalled and are now chopping sideways,” trader Daan Crypto Trades responded in a post on X. 

“Market is eagerly awaiting clarity from the conflict in the middle east. The longer it drags on and oil keeps moving higher, the more pressure will be put on these.”

Macro asset price comparison. Source: Daan Crypto Trades/X

The day prior, trading resource Mosaic Asset Company said that positive earnings figures would be essential to sustain continued upside for stocks, with the S&P 500 already hitting new record highs.

“With the first quarter reporting season about to pick up, it will be crucial to monitor forward earnings estimates for any changes in trend since the start of the year,” it wrote in its latest analysis.

S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Analyst “surprised” that BTC price support holding

Focusing on BTC/USD, trading resource Material Indicators hinted at early signs of a deeper retracement next.

Related: Bitcoin price set for best gains since Q4 2024 with $77.5K monthly close

“Bid liquidity at $76.5k already rugged, as predicted yesterday, and LTF order flow is trending down,” it wrote on X, referring to data from one of its proprietary trading tools.

Material Indicators added that it was “surprised” that bid liquidity below spot price had not been pulled.

BTC/USDT order-book liquidity data with whale orders. Source: Material Indicators/X

Trading account JDK Analysis referenced a “news-driven pump” as further evidence that the low-time frame rally was overextended.

“The profile shows $BTC at the upper value extreme of the past two days,” an X thread read, analyzing exchange order-book data.

BTC/USDT order-book data (Bybit). Source: JDK Analysis/X

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.

Crypto PAC Fellowship Halts Support of Texas AG for Senate: Report

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The Fellowship political action committee (PAC), which launched claiming to have more than $100 million from crypto-aligned backers, has reportedly backed out of an advertising deal to support Texas Attorney General Ken Paxton in a crucial US Senate race.

According to a Thursday report from Axios, Republican leaders contacted US Commerce Secretary Howard Lutnick on his connections to Fellowship, which has been partially funded by Cantor Fitzgerald.

Lutnick, as the former president and CEO and whose sons are now in charge of the financial services company, reportedly faced questioning from Republicans about Fellowship’s support of Paxton, whom on Tuesday the PAC reported spending $1.75 million in supportive advertising.

Fellowship PAC expenditure report on Ken Paxton. Source: FEC

The advertising expenditure, which Fellowship disclosed to the Federal Election Commission (FEC) through the marketing company Nxum Group, was reportedly never placed. As of Friday, the FEC filing showing the $1.75 million expenditure was still public. Cointelegraph reached out to Fellowship for comment but did not receive an immediate response.

A crypto-backed PAC like Fellowship backing out of support for a candidate in a US Senate race, possibly in response to pressure from Republican leaders, is somewhat unusual. Political action committees tied to digital assets support candidates on both sides of the aisle who they consider pro-crypto.

Along with Fellowship, PACs like Fairshake and others are expected to spend a combined hundreds of millions of dollars in the US midterm elections after pouring money into ads for 2024 candidates to influence voters. 

Related: White House confirms Trump to address memecoin gala on Saturday

Paxton, who failed to win outright in a March primary against Senator John Cornyn, will face the Republican incumbent in a May 26 runoff before the November general election. Whichever Republican wins a majority of the vote will likely face off against Democrat James Talarico in a race for one of Texas’ US Senate seats.

Crypto entities calling for action on market structure bill in Senate

Republicans have held a slim majority in the US Senate since January 2025, leading to the passage of the stablecoin bill, the GENIUS Act, and the consideration of other pieces of crypto legislation. However, if Democrats gain majority control of the chamber in the 2026 midterm elections, it could change how the Senate approaches crypto laws.

Since July 2025, the Senate has been considering a bill on crypto market structure, expected to be one of the most comprehensive pieces of legislation affecting the industry. Delays, in part due to government shutdowns, ethics concerns and questions about stablecoin yield, have persisted for months, with no vote on the bill scheduled in the full chamber.

On Thursday, more than 120 entities affiliated with the cryptocurrency and blockchain industry urged Senate Banking Committee leaders to stop stalling on advancing the market structure bill, the CLARITY Act. The committee will need to hold a markup on the bill before the Senate can potentially schedule a vote.

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

DeFi United Fundraising Chips Away at Kelp Exploit Shortfall

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Bybit CEO Ben Zhou pledged his support for Mantle’s 30,000 ETH loan proposal.

The “DeFi United” industry recovery effort spearheaded by Kelp and Aave Labs has filled 73,700 ETH of the 163,200 ETH hole from the April 18 exploit, and confirmed public commitments from ecosystem partners now total 43,500 ETH.

That leaves a remaining shortfall of approximately 89,500 ETH. Of the amount already recovered, 40,300 rsETH (roughly 43,000 ETH) was clawed back directly by Kelp after it paused its bridge contracts 46 minutes into the attack, with an additional 30,700 ETH frozen by the Arbitrum Security Council on April 21.

The initiative has since expanded its roster of participants to include EtherFi, Ethena, Lido, Golem, Ink Foundation, Tydro, Mantle, Frax Finance and LayerZero.

Confirmed public pledges of 43,500 ETH come from Mantle, Aave founder Stani Kulechov, EtherFi, Lido and Golem. Kulechov has personally committed 5,000 ETH, EtherFi has proposed a 5,000 ETH relief contribution, Golem Foundation and Golem Factory have pledged a combined 1,000 ETH, and Lido Labs Foundation has earmarked up to 2,500 stETH via a governance proposal.

The Mantle pledge anchors the latest wave of support. In its MIP-34 proposal published Thursday, Mantle’s Core Contributor Team proposed a loan of up to 30,000 ETH from the Mantle Treasury to Aave DAO, structured with a Lido staking APR plus 1% premium interest rate, a maturity of up to 36 months, and collateral including 5% of Aave revenue and at least $11 million in AAVE tokens held in a Mantle-controlled multisig. The loan is earmarked solely for resolving rsETH bad debt on Aave V3.

Crypto exchange Bybit, a core Mantle backer since the network’s launch, publicly endorsed the proposal on Thursday. “Bybit, as the biggest holder and supporter of Mantle, will vote YES for this proposal,” Bybit co-founder and CEO Ben Zhou wrote on X. “When we got hacked the industry got together and helped us. It is the only right thing that we do the same to unit[e] together and walk out from difficult times.”

Smaller contributions have also come in from Aave’s current and former contributor community. Aave builder Emilio Frangella committed 500 ETH, BGD Labs pledged 250 ETH, and BGD Labs co-founder Ernesto Boado personally donated 100 ETH.

Aave’s own April 20 incident report modeled between $123.7 million and $230.1 million in potential bad debt depending on how Kelp allocates losses across rsETH holders. Aave’s risk team paused rsETH reserves across Ethereum Core, Arbitrum, Base, Mantle and Linea earlier this week, and partially unfroze WETH supply on Ethereum Core V3 after a joint-protocol escape hatch was built within 24 hours of the exploit.

“rsETH holders come first, and that’s been our priority since day 1,” Kelp said in its update. “We will continue sharing updates as further commitments are confirmed.”

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.