Perspective - Coda Story

How governments enable kleptocrats by doing nothing

Teona Tsintsadze — Wed, 24 Jun 2026 11:09:15 +0000

I was listening to Ezra Klein interviewing a left-wing Democratic Party strategist the other day about what a post-Trump U.S. foreign policy might look like, and it was a pretty striking demonstration of Europe’s irrelevance right now that the only Western European country mentioned in the 90 minutes of the chat was the UK, and that was solely in the context of how it helps kleptocrats.

But aha, a notional Brit might have replied, at least we are about to convict Diezani Alison-Madueke, former head of OPEC, ex-Nigerian oil minister, for her alleged egregious corruption. That notional Brit would be feeling pretty foolish right now though, because this was yet another flop, with her being acquitted on all charges.

Britain has a dire record both when it comes to enabling corruption and when it comes to successfully investigating it, as the failure of yet another high-profile prosecution shows. This latest fiasco should be the impetus the country needs to at last provide the resources and officers that its law enforcement agencies require.

Alison-Madueke saw the hand of divine providence in her acquittal. “It has been a hard journey,” she said, “but I tell you this, God will always do as he will. God will be God and God is not a man that he should lie; when he promises you something, he will see it through” — and who am I to say that she’s wrong? However, there are other potential explanations for what has happened beyond the Almighty manifesting at Southwark Crown Court to give instructions to the jury, including the entrenched incompetence of British police agencies.

It’s hard not to see a parallel with the failed attempt six years ago to investigate Dariga Nazarbayeva, daughter of the former president of Kazakhstan and possessor of a reasonable-to-large London property portfolio, which saw the National Crime Agency (NCA) being comprehensively outwitted by defence lawyers, just as it has been again.

“Today’s verdict is a major blow for the NCA who have come away empty-handed in one of their highest-profile corruption cases, which took over a decade to progress to trial,” said Zainab Saleem, Legal Fellow at Spotlight on Corruption. "It is vital that the UK government properly resources law enforcement agencies tasked with investigating complex bribery and corruption cases and does not take this defeat as grounds for rowing back on anti-corruption enforcement.”

It will be interesting to see what, if anything, results from the suggestions that the new Supreme Leader of Iran has been moving his wealth merrily around with the help of various Western banks, all of it now being investigated by the U.S. Department of Justice. “Funds for the transactions have been routed through financial institutions in the UK, Switzerland, Liechtenstein and the UAE,” reports Bloomberg.

What is the answer? Whatever it is, it will be even more embarrassing for the UK if it doesn’t come up with something plausible by the time it convenes its Illicit Finance Summit in December. (Unless it ends up being rescheduled again, like one of those meetings that no one actually wants to attend but also no one wants to be responsible for cancelling.)

Still, credit where it’s due, at least efforts to improve Companies House — the UK’s formerly-disastrous corporate registry — appear to be finally bearing fruit. It has sent almost a million enforcement letters to people who haven’t verified their identity, which must have been — at the very least — a useful money-spinner for the post office.

The idea of increasing funding to law enforcement agencies is something that Americans would do well to consider too, particularly when it comes to the Internal Revenue Service. “In 2022, under President Joe Biden, Congress approved an $80 billion increase in IRS funding over a decade, with more than half of it slated to restore the agency’s ability to go after the super-rich. This victory was short-lived. By March 2025, Republicans had slashed that $45.6 billion enforcement budget to just under $4 billion — “a 91% decrease,” it notes in this fascinating book excerpt.

I have been interested for a while in the idea of government’s being engaged in “legalisation by under-enforcement,” which is something we see with tax evasion, pollution of waterways, and almost anything else when the rules not being enforced benefit the kind of people who donate money to political parties. But I need a better name for the phenomenon, so please help me out and send one in.

Talking of phenomena that we need a new name for, Elon Musk’s wealth is doing weird things to the Forbes billionaires list. Whoever runs it appears to have decided to only display his net worth to two significant figures. That means that, while we can see an assessment of the wealth of relative paupers like Sergey Brin to the nearest $100 million ($277.6 billion, as I write), we only get a round $1.2 trillion for Musk. Or a round $1. 4 trillion, depending on what day it is, which means his wealth jumps up and down in a minimum increment that, on its own, would be sufficient to make its possessor the richest person in every country in the world except Spain, Canada, Mexico, the United States or France.

And talking of France, the G7 summit in Evian is over. It was of course at a previous French G7 summit when participants created what became the Financial Action Task Force. That was the 1980s and they were concerned about the spread of illegal drugs, the harm they were causing, and the fact that more countries were producing them, and wanted to stop drug dealers being able to keep their profits. Among other things they committed — in the words of the 1989 communiqué — “to prevent the utilization of the banking system and financial institutions,” which is part of the clause that gave birth to the entire global anti-money-laundering system. Well, 37 years have passed, so let’s check in on how that’s going.

This year the G7 communiqué expressed concern about the spread of illegal drugs, about the harm they’re causing, and about the fact that more countries are producing them. “We emphasize the continued need to strengthen the global anti-money laundering architecture to prevent financial crime and improve enforcement and asset recovery outcomes, in line with the Financial Action Task Force standards,” this year’s summit document states.

Plus ça change. Maybe in another 37 years, they’ll look up and wonder whether they should try something else, and indeed whether the FATF standards aren’t ripe for reconsideration.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Trillionaires are a national security risk

Teona Tsintsadze — Wed, 17 Jun 2026 13:00:00 +0000

I’ve been writing this newsletter since 2020, and in my first edition I marvelled at the concept of the centi-billionaire, and the fact there were at the time three people with 11 zeros in their net worth. What a six years it’s been. When I started writing this week’s edition, Elon Musk was a mere David Sun away from becoming the world’s first trillionaire, and now as I’m finishing it, Musk is worth the scarcely conceivable sum of $1.1 trillion. Nothing like this has ever happened before and there is no sign it is going to stop happening. There is no reason at all to suppose that in another half-decade I won’t be writing about how deci-trillionaires are the new thing.

This increasingly extreme inequality is a challenge for social cohesion, democracy and civilisation that we haven’t seen in modern times, second only to climate change as a threat to our future. Although in some ways, they’re the same challenge, considering the disproportionate share of emissions coming from rich people.

In some ways, if Musk’s wealth seemed to be making him happy it wouldn’t be so bad, but it appears only to make him angrier. I like to think that if I had a trillion dollars, I’d do something more constructive than stir up protests against ethnic minorities.

Reducing inequality is the right thing to do for every reason, not least because it would deprive very rich people of the ability to stoke pogroms anywhere they like. But how to do that? The only thing that has previously reduced inequality to any significant extent has been the 20th century’s series of global conflicts with massive destruction of life and property, and that’s the kind of thing it would be good to avoid.

I think there is a strong argument to be made, however, that the financial trickery abused by the very rich is also bad for national security, and it’s one nicely made here by Matthew McGlynn, who specialises in researching Russia. By degrading the ability of oligarchs to cheat their way to riches, we’d also limit the space of billionaires to dodge taxes and accountability.

It is notable that expert after expert speaking to the House of Representatives Committee on Financial Services about Chinese Money Laundering Networks pleaded for the Corporate Transparency Act to be properly implemented. “When a laundering network operates by scattering its footprint across hundreds of student accounts, dozens of shell companies, and multiple jurisdictions, traditional compliance frameworks may treat flags as isolated, minor incidents. The systemic risk is consistently underestimated, and responses remain heavily reactive,” noted Louis DeTitto.

If first we come for the money launderers, then the billionaires won’t speak out because they’re not money launderers. Also, it would mean we’d do a better job of tackling money laundering, which would be nice.

While on the subject of congressional hearings, there are interesting moves by Senator Richard Blumenthal to probe how Iranian and Russian sanction-dodgers are using cryptocurrencies. In April, he wrote to Binance requesting further information, and now he’s written to Tether asking for information about misuse of its USDT stablecoin.

The details he’s requesting are far-reaching and potentially highly consequential, since they relate to connections with Iran and Russia, including A7, issuer of the leading ruble-denominated cryptocurrency. Perhaps most important, however, is his first question: “What legal jurisdictions does Tether believe it is subject to for USDT, in particular for anti-money laundering rules, reporting obligations, asset seizures, and sanctions compliance? Does Tether believe it is legally required to comply with Department of Treasury sanctions for USDT and issue suspicious activity reports (SARs) to the U.S. government?”

If the U.S. asserts regulatory authority over dollar-denominated cryptocurrencies as it has over all transactions in dollars then that would significantly undermine their attractiveness to illicit actors, and also do a lot to reassure people like me. Tether, meanwhile, has been bigging up its cooperation with law enforcement agencies, and says it’s frozen $450 million globally.

“For the past few years, stablecoins have come to dominate the landscape of illicit transactions, and now account for 84 percent of all illicit transaction volume,” concluded Chainalysis in 2026’s crypto crime report. It estimated total illicit transactions at $154 billion last year, so the stablecoin share of that was almost $130 billion. That is a fraction of the amount of money laundering estimated to move through either the trade system or indeed the formal financial network, but still a lot of money. It’s interesting to see, however, how Chainalysis still holds out hope for well-regulated cryptocurrencies helping to solve problems caused by standard finance.

“Stablecoins and on-chain settlement mechanisms in particular offer low-cost, borderless avenues for remittances, payments, and savings,” Chainalysis said. “If coupled with sound regulation and inclusive policy frameworks, these tools could help governments leverage crypto not just for resilience, but also for broader financial inclusion as part of economic recovery.”

Seeing will be believing.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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AI is not the answer to AI-enabled fraud

Teona Tsintsadze — Wed, 27 May 2026 11:55:00 +0000

A top banker has got in trouble by referring to employees whose jobs will be replaced by AI as “lower-value human capital.” But he’s just saying the quiet part out loud: compliance officers have been expected to work like inefficient computers for years already anyway. Standard Chartered CEO Bill Withers used the unfortunate phrase when describing how the bank plans to keep hitting its profitability targets by cutting 15% of back office staff, and has tried to backtrack a little after a predictable storm of criticism, including from the former president of Singapore.

It would be nice to think of bank employees deployed to fight financial crime as super-effective old-school gumshoes, with a bottle of bourbon in the bottom drawer and an inexhaustible stock of one-liners, but in reality their jobs are more like something from ‘The Office’ than ‘The Big Sleep’.

Thousands of people sit in cubicles in Warsaw or Bengaluru, checking through transactions flagged as possibly abnormal by banks’ automated systems, and confirming that 99% of them are, in fact, normal. Anything that might conceivably be abnormal gets sent up the chain, where someone more senior will almost certainly decide it wasn’t.

It is a ruinously expensive process and, as far as we can tell, completely ineffective. The best estimates we have for the size of the criminal economy suggest it has grown, untroubled, along with everything else for decades despite all the laws, fines, and prosecutions that we’ve thrown at the problem.

But banks’ financial crime compliance isn’t about stopping financial crime at all: it’s about stopping banks from being fined, as Standard Chartered has previously been, enormous sums in both the U.S. and the UK. As long as banks can be sure that AI checks boxes in ways that satisfy regulators, then they’ll be happy.

This is a little bit worrying because AI is already getting very good at fraud. I am very alert to attempts to trick me but was sufficiently fooled by an AI email yesterday to forward it on to someone. Fortunately, a very similar one arrived (purportedly from someone else) a few minutes later, alerting me to my mistake. Money laundering is a laborious activity and criminal gangs will be as keen as banks to cut their back office expenditure, and AI could help automate the processing of the many small transactions that add up to a large amount of money. Phishing and smurfing are just a couple of its use cases, however.

“Scammers can leverage AI to scrape data from social media and dating platforms to identify vulnerable targets (e.g. lonely individuals, recent retirees, or people interested in finance) for pig butchering scams,” notes TRM Labs. “Bots can sustain long-term, emotionally persuasive conversations without tiring or making mistakes, making the scam more scalable.”

And that’s before you get onto AI’s ability to exploit cryptocurrencies and smart contracts to really start rampaging through the crypto world. “TRM observed a roughly 500% increase in AI-enabled scam activity over the past year. The convergence of generative AI, programmable financial infrastructure, and global crypto liquidity has altered the economics, velocity, and scalability of fraud,” the blockchain analytics firm said in a follow-up report. This is very bad indeed.

So, although I can see why people are annoyed that Withers referred to his bank’s employees in such a disparaging way, I am more troubled that he’s planning to replace them with AI, rather than to retain them and train them in how to counter it.

It was remarkable, however, to see Warren Davidson, chair of the illicit finance subcommittee at the House of Representatives Financial Services Committee, draw precisely the wrong conclusion from all this. Although he was correct in condemning the defensive nature of compliance, and its focus on generating paperwork over results, he then got lost in praising the White House’s decisions to attack corporate transparency legislation.

"As we focus on risk, we must also ensure that tools like artificial intelligence are fully deployed to counter the AI-enabled crimes of today,” he said, without realising that, without reliable information to train the AI models on, this is as useless an approach as the one he says has failed. If you don’t know who owns what, neither will a computer, no matter how cleverly it can pretend to be human.

I sincerely hope he listened to the testimony of Carole House of the Atlantic Council who forcefully pointed out the harm to national security and to ordinary Americans caused by the United States’ failure to create even an approximation of a decent corporate registry, as well as the historic idiocy of its current crypto policy. “Without a secure identity foundation, AI agents will simply scale up fraud at a speed and volume that human investigators can't possibly track, destroying trust in the whole system,” she said in testimony that I highly recommend you take a look at.

I very much doubt Davidson was listening, however, because that is not the direction the Republican Party is going in right now. I would write more about that, but frankly it’s all too depressing, and I’d rather move on.

So let me point you towards this excellent paper on how online scam marketplaces work, with criminals using the messaging app Telegram and the stablecoin Tether to launder hundreds of billions of dollars. It argues that our current approach of sanctioning exchanges is futile since their owners just shut them down and switch to a new platform that works in the same way but hasn’t yet been sanctioned.

“As long as the underlying digital infrastructure remains permissive, criminal syndicates will simply migrate to new channels. To move from reactive disruption to systemic prevention, the international community must shift its focus toward the structural enablers of these marketplaces,” Elliptic’s Tom Robinson argues. Elliptic is unusual among blockchain analytics companies in being willing to name Tether as a major vector for money launderers. Its rivals tend to just say “stablecoins,” I have no idea why.

Meanwhile, there is something grimly depressing about the fact that — against the backdrop of, well, everything — the UK has postponed June’s illicit finance summit due to “scheduling issues in the international calendar.” Everyone is so busy dealing with the consequences of illicit finance, that no one has time to talk about illicit finance.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Crypto’s corrupt American dream

Teona Tsintsadze — Wed, 20 May 2026 11:50:00 +0000

The United States is inching closer to passing a gigantic piece of legislation to put cryptocurrencies on a secure footing, with the bill emerging unscathed from the Senate’s banking committee. Opinions differ as to what this means: crypto people are thrilled, while anyone who knows about money laundering is terrified. Passage of the so-called CLARITY bill has been a key goal of crypto enthusiasts since Donald Trump came to power, since it would give them the legal certainty to engage in “financial innovation” without worrying about a return to the Biden-era policy of trying to regulate them as if they were normal people.

Committee chairman Tim Scott is delighted: “For me, this is personal. My mother raised my brother and me with faith, grit, and determination, and she taught me that the American Dream should be within reach for every family, including single mothers working hard to build a better life for their children.”

I quote Scott partly because it’s such a weird justification for passing crypto regulation (or perhaps he just says that sort of thing about literally everything he ever does?), but mainly because it’s pretty clear that the bill as it stands will be a disaster for the kind of vulnerable people he claims to be fighting for.

In a sign of experts’ concerns, Transparency International’s U.S. office put out a statement quoting nearly all the most respected voices on money laundering in America arguing that the bill needs better safeguards against dirty money. “At a time when we know that hostile actors like (Iran’s Revolutionary Guards) are looking to circumvent U.S. sanctions to rearm and threaten Americans and U.S. interests around the world, it is inconceivable to me that we would open new, effective channels for sanctions evasion,” said Richard Nephew, former U.S. Coordinator on Global Anti-Corruption and Deputy Special Envoy for Iran.

“Terrorists, violent drug traffickers, and organized criminals who prey upon the elderly and unlearned in increasingly sophisticated financial and AI generated schemes are, quite literally, getting away with murder, funded by untraceable cryptocurrency transactions hidden behind an anonymous block chain,” said former FBI agent Karen Greenaway.

There is an awful lot of money in crypto, and Tether alone now has three people among the richest 100 in the world. Tether’s largest single shareholder Giancarlo Devasini’s wealth has grown from $9.2 billion in 2024 to $89.3 billion now, while chief executive Paolo Ardoino and former CEO Jean-Louis van der Velde have done pretty well too. Though none of them have done quite as well as Changpeng “Binance” Zhao, crypto’s only centibillionaire (so far).

In the UK, there’s a lot of concern about the millions of pounds going from crypto investors to Reform’s Nigel Farage, who has become a crypto champion, no doubt coincidentally. But, wow, look at what’s happening in Alabama for a sign of what the future looks like if crypto people really get their hands on the purse strings and try to buy their way into the Senate.

That much money doesn’t just help supporters win, it also terrifies opponents: standing up to the crypto lobby guarantees you’ll be swamped in hostile advertising. How do you want to be paid, as Pablo Escobar used to say, in silver or lead?

But why should the rest of the world care that this is happening? I’m sure I’m not the only foreigner who’s been staring in bewilderment at the growth of U.S. prediction markets, and how efficiently they allow insiders to monetise their privileged access to inside information. A lot of those markets are barred in other countries, but the U.S. soldier who was arrested for betting on the Maduro capture was trading on polymarket, a crypto-denominated market which is blocked in the United States too, despite Donald Trump Jr. being an investor.

Such restrictions can be easily bypassed by using a Virtual Private Network, so U.S. regulators are using artificial intelligence to track down insider trading on polymarket. After that soldier’s arrest, I suspect Americans will be much more careful about what they do.

Prediction markets claim they don’t want insiders trading on privileged information. But if the markets are to function in a way that supports their founders’ justification for them, as a price signal for future events, they rely on people with knowledge to be using them to make bets and thus to move prices in a useful direction. So clearly the temptation will always be there for anyone with inside information to use it to make some easy money.

And does anyone think U.S. regulators will care about Indians, Brits, South Africans Ukrainians, or other foreigners using crypto to trade on information from their own countries? They after all have a track record of treating foreigners and U.S. citizens differently. That’s why it was Francesca Albanese, with her American husband and daughter, who managed to have sanctions cancelled for daring to investigate Israel’s behaviour in Gaza, whereas non-U.S. connected people have failed to do so.

The new U.S. crypto bill coupled with U.S.-based crypto-denominated prediction markets points towards the United States becoming a gigantic offshore enabler of corruption for the rest of the world; a digital version of what Switzerland was in the analogue years, with everyone else reduced to begging its regulators for assistance.

“Crypto prediction markets are accessible to anyone with an internet connection and a wallet, pooling liquidity from a global user base rather than a regional one,” says Chainalysis. I think they mean that to be a good thing, because the blockchain is transparent and malefactors can be spotted easily yada yada, but it sounds beyond dystopian to me. I’m genuinely a bit terrified of what this will mean for corruption in the next few years, and I haven’t heard of any politicians who are alert to it yet.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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The new samizdat

Irina Matchavariani — Mon, 18 May 2026 15:02:45 +0000

Sections:

While much of the media industry focused on the churn of headlines, we became increasingly interested in the undercurrents beneath them: the hidden systems, infrastructures and ideologies shaping events across borders and over time.

Again and again, our reporting led us back to the same realization: for a long time, the struggle over information was understood primarily as a question of censorship or access. Who controls information? Who gets to publish? Who gets silenced?

Those questions still matter. But they no longer fully describe the world we live in.

Today, the struggle over information is about who builds the systems through which reality is organized, distributed and trusted. From state propaganda to algorithmic feeds, from platform monopolies to AI-generated noise, the battle is not over facts. It is over the infrastructures that determine which narratives spread, which voices are amplified and which communities remain connected.

Over the past year, these questions led to a collaboration between Coda and The Continent, the pan-African newspaper founded in Johannesburg by Simon Allison and Sipho Kings. Although our reporting emerges from very different histories and geographies, we found ourselves arriving at remarkably similar conclusions about power, fragmentation and the future of journalism in an age of informational instability.

This two-chapter essay is the beginning of that collaboration, and marks the start of a new project called The Atlas. Pilot edition is available here — please feel free to share with friends, family and colleagues, preferably in its entirety.

In Chapter One, I return to the world of my Soviet childhood: propaganda, samizdat and the search for trustworthy signals through noise.

In Chapter Two, The Continent co-founder Simon Allison presents the Parable of Sinn Sisamouth: the story of how some of the greatest songs ever written were nearly lost, and then found, and then lost again.

Taken together, these essays ask what journalism becomes in a world where information is no longer organized primarily to inform, but to capture attention, manufacture reaction and shape perception at planetary scale.

The Atlas grows out of that question.

Chapter One: Through the Static

Whenever I am asked why I decided to become a journalist, an image from my childhood pops into my head. It’s dusk. I am 10, sitting in the kitchen with my mom. She is glued to a shortwave radio. Outside, the Soviet Union is on the cusp of collapse. Georgia, where we are, is on the brink of civil war. We didn’t use the term back then, but fake news was all we got through official channels. Real news — coming from the West — felt like a lifeline. I was in awe of the crackling radio that held my mother’s full attention. I wanted to become that voice.

Illustration: Anna Jibladze.

Years later, I got my dream job at the BBC and spent much of my adult life moving between wars, uprisings and authoritarian states. Again and again, I found myself in places where truth was contested terrain: Baghdad, Damascus, Donetsk, Sana’a. But over time I realized something fundamental had changed. Modern authoritarianism no longer relied primarily on suppressing information. It had discovered something more effective.

Information could simply be drowned out by static.

That realization became stark for me in eastern Ukraine in the summer of 2014. I arrived in a field of bright yellow sunflowers where the bodies from Flight MH17 still lay scattered across the ground. A Russian missile had blown the passenger plane out of the sky, killing all 298 people on board. Yet almost immediately, the Kremlin flooded the information space with competing explanations. It was a Ukrainian fighter jet. A failed assassination attempt on Putin. The plane had been filled with corpses before takeoff. Each theory contradicted the next, but that hardly mattered. The point was not to persuade, it was to exhaust. It was to create so much noise that truth itself began to feel unstable.

Over the following years, I watched versions of the same logic spread far beyond Russia. Social platforms transformed public conversation into a permanent stream of outrage, performance and distraction, collapsing vastly different kinds of information into the same endless feed. War footage, propaganda, conspiracy theories, journalism and gossip all began competing inside systems designed not to inform people but to capture and hold attention.

Noise became the new censorship.

And increasingly, I found myself thinking about the world of my childhood again. Not because history was repeating itself neatly, but because the emotional landscape felt strangely familiar: confusion, exhaustion, distrust, the constant sense that reality itself was becoming slippery. Back then, people searched desperately for clear signals through the static of Soviet propaganda. Today, we are drowning in a different kind of static, but the instinct, the search for clarity feels remarkably similar.

In the Soviet Union, people developed ways of navigating that confusion. Among my strongest memories from that time is the sound of my parents’ typewriter late at night. Friends would pass around copies of banned Soviet literature and my parents would sit at the kitchen table all night, retyping them page by page so they could be shared again. It was my first encounter with samizdat, although I didn’t know the word then.

Looking back now, what strikes me is that samizdat was never simply about forbidden texts. It was about building trusted alternative systems of circulation when official systems had lost credibility.

At Coda, we have spent years building journalism against the logic of noise. We slowed stories down. We followed themes instead of headlines. We built a reporting system designed to connect events across borders and over time, helping readers see patterns instead of fragments. But as our globally distributed newsroom adapted to an increasingly fractured information landscape, it became clear that journalism alone was not enough. Distribution shapes understanding as much as reporting does.

Around the same time, in Johannesburg, Simon Allison, Sipho Kings and their team were building something that challenged many of the assumptions dominating digital media. The Continent, their pan-African newspaper, spreads largely through direct sharing networks: passed from reader to reader rather than pushed by algorithms.

Illustration: Wynona Mutisi.

Different histories had brought us to remarkably similar questions. What does journalism look like when trust is collapsing, attention is fragmented and the systems that carry information have themselves become instruments of power?

Out of that convergence came The Atlas: a new publication that brings together Coda’s methodology of following systems across borders and over time with The Continent’s radically distributed model for reaching readers beyond algorithmic feeds.

The Atlas is built on a shared conviction: as fragmentation, distrust and informational overload spread across the world, some of the clearest ways through will come from places that have already spent decades navigating propaganda, instability and contested reality. Places once treated as peripheral are becoming essential to understanding the defining question of this age: how can meaning survive systems designed to overwhelm it.

Michael Macor/San Francisco Chronicle via Getty Images.

Chapter Two: The second silencing of Sinn Sisamouth

Imagine if your favourite song disappeared, forever.

Almost every album I have ever loved was recommended to me by my friend An-Rui. A few months ago, he sent me a track by the undisputed King of Khmer Music, the Golden Voice, the Cambodian Elvis himself – Sinn Sisamouth.

I had never heard of him.

I didn’t respond at first, so he nudged me. That night, after the kids were asleep, I put on my headphones, sat in the garden and immediately lost myself in Cambodia’s psychedelic rock scene of the 1960s and ‘70s. I don’t know enough about music to explain exactly what I fell in love with, but within weeks I was, according to Spotify, among the top one percent of Sinn Sisamouth listeners worldwide.

An-Rui had added a note to his recommendation. “the songs are happy but since i know what his fate was and i don’t understand the words, it sounds incredibly sad to me”.

The story goes something like this: A small-town boy with an extraordinary voice moves to the big city, and conquers all before him. He writes hundreds of songs, bridging Khmer musical traditions with new western influences: jazz, rock & roll, bossa nova, blues, the Beatles, and, of course, Elvis Presley. He toured the country. He toured the world. He made music with an actual King, Norodom Sihanouk, and became Cambodia’s most beloved rockstar.

Then, in 1975, the Khmer Rouge seized power. In the course of committing a genocide, the communist regime disappeared Sinn Sisamouth, and banned his music. He has never been seen, or heard from, again.

But his music never died. It lived on brittle records, hidden for generations under floorboards. It lived on scratchy cassettes, passed hand to hand among the diaspora.

It was only decades later that his music was digitised and remastered, and made available on streaming platforms to the likes of me.

When I listen to Sinn Sisamouth, I can’t help but think about how easily we could have lost his masterpieces entirely. And I wonder what else might have been lost that we have not been able to recover.

And then it happened again.

There’s a particular track that I like to play in my car, where I can turn the bass up as high as it goes. I was driving one afternoon and looked for it on Spotify. It was gone, even though the rest of the album was there.

I looked again on my laptop at home. Nothing. Gone from Spotify. Gone from Apple Music. Gone from YouTube. Like it had never been there in the first place. I started to wonder if I had gone crazy, and maybe imagined the song entirely. And then I started to panic: What if I never heard it again?

Eventually, I found a bootleg YouTube version, using a different transliteration of the Khmer title – Kanlang Pnheu Pran, instead of Konlong Phner Bran. Before I tracked that down, I had to wade through dozens of AI-generated Sinn Sisamouth ‘cover versions’, all uploaded to YouTube within the last few months. If I had never heard it before, I would never have been able to tell which was the original.

It’s not unusual for songs to disappear from the Internet, especially when the music is from non-English-speaking countries. I’ve had similar experiences with the music of Sharhabil Ahmed, the Sudanese jazz legend, and Ethiopia’s Tilahun “The Voice” Gessesse.

In fact, it’s not unusual for other kinds of information to disappear from the internet; to be edited after the fact; or to be simply lost among all the digital noise. Digital information is incredibly precarious, and becoming more so by the day. AI slop is taking over social media platforms. Algorithms determine what information we can and can’t see, shaping our cultural and political preferences. And powerful interests are becoming increasingly bold when it comes to brazenly manipulating information in their favour – or, of even greater concern, restricting the flow of information across borders.

Amazon changes the contents of books on people’s Kindles without telling anyone. News websites quietly alter critical stories, post-publication, to remove evidence of wrongdoing (my favourite example: the Financial Express published a story critical of India’s richest family; only to replace it with a glorified press release a few days later. They neglected to amend the URL, however, which contains the original headline). Governments shut down internet access on a whim, or legislate which apps and websites are available to specific populations.

For journalism, this is an existential threat. Our job is not just to hold power to account – it is also to write the first draft of history. But if we can’t preserve that first draft, or distribute it effectively, then what, exactly, is the point?

The Continent and Coda Story are working together to try something different. We want to publish news about the world, produced and verified by humans, that cannot be edited after the fact; and to distribute it in a way that dramatically decreases our reliance on unaccountable algorithms or search engine optimisation. The Atlas — pilot edition available here — is our answer to the precarity of information online. It’s a work in progress.

Stay tuned: if we’re going to succeed, we’ll need your help. And if we do succeed, the secret of our success will be those very same transnational networks that kept the music of Sinn Sisamouth alive. Communities of like-minded people, of friends and families will always find a way to stay connected, no matter how vast the distances between them, or how great the obstacles. So what does a global newspaper look like if we design it with exactly these communities in mind?

As soon as I found that bootleg on YouTube, I ripped an MP3 copy and sent it to An-Rui on Signal. “KEEP THIS SAFE,” I told him. I don’t know what happened to the song on Spotify, or if it is ever coming back. But I can’t take the risk of never hearing that bassline again. And here it is, in case you want to hear it too.

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Legalize Cocaine to save democracy

Irina Matchavariani — Wed, 13 May 2026 11:55:00 +0000

Nigel Farage, the leader of the UK’s right-wing Reform UK party, has taken millions of pounds from crypto people, including one convicted of financial crimes in the United States. There are, despite Farage’s insistence to the contrary, questions around whether he followed the rules. Nonetheless, his party has swept local elections. There’s a lesson here for progressive parties everywhere, including in the United States where senators are seeking documents relating to financial ties between the commerce secretary and Tether. What if you get your ‘gotcha’ moment, turn around to the voters with a broad smile… and they vote for your opponents anyway?

Believers in democracy need to start advocating for more transparency, more enforcement and more restrictions on murky finance if they want to stop unaccountable money from buying influence in their countries. It is not enough to rely on journalists and activists to produce the occasional investigation, and expect voters to do the rest: we need properly-resourced agencies that can keep dirty money out of our systems if we want them to remain clean. If history tells us anything, it’s that criminals get elected all too often.

This is urgent. Tether made more than $1 billion in profits this year, in the first quarter, and is thinking hard about the midterms and how candidates might be encouraged to fight for crypto. And that’s just one company. Progressives who believe in fairer finance, a state’s right to regulate its own economy and the power to oversee who’s buying whom, don’t have that kind of money to spend to influence elections, so they need to start making the argument for campaign finance restrictions much more forcefully.

But there’s another point here too. I am working on an article about money laundering at the moment, and was chatting to two UK detectives last week. They led a successful operation in their city (I’ll post the article when it’s done) and I asked if they thought it had made a lasting difference. “With all crime, you take one out and there is another,” one of the detectives told me. “I'd like to think it has made a dent but there will always be more.”

In the case they worked on, gangs were bringing cash generated via the cocaine trade to be laundered into crypto (no prizes for guessing which cryptocurrency they preferred). The detectives identified £53 million in turnover over two years. It’s great that they jailed the ringleaders, but you can see why they’re not getting too carried away. That total is about a quarter of a percent of the UK cocaine market’s turnover, so the gangs really won’t have noticed the loss. And, for the police, it was five years’ work.

To a fairly large extent, since the first U.S. operation in Miami in 1980, when we’ve spoken about fighting dirty money, we have really been talking about stopping cocaine gangs by taking away their ability to make a profit. And, despite occasional successes like the one I’m writing about, this approach has overall been a catastrophic failure. Cocaine is cheaper, more abundant, and more widespread than ever before.

This is important for many reasons, obviously because entrusting the supply of a dangerous substance to criminals is bad, but also because the existence of a vast underground financial system to move the cocaine trade’s profits creates a mechanism through which Russian spies, terrorists and others can hide their cash too. For me though, the real problem is that we have an urgent threat to democracy posed by hidden unaccountable money. Instead of tackling that problem though, our police officers are fighting an endless war against drugs that was lost decades ago.

My modest proposal therefore is to legalise cocaine. It’s available everywhere already, so there’s no downside. We should tax it, regulate it, make sure kids can’t buy it and, as a useful side effect, take all the liquidity out of the underground economy. Our police officers could then stop running to go backwards, and instead fight a battle they might actually win, which is to stop fascists and kleptocrats from buying our democracies.

Use oligarchs to undermine Putin

Here’s a good article from The Economist by “a former senior official in the Russian Government,” arguing that Vladimir Putin is losing his grip. Now, I’m always a little cautious about articles that tell me what I want to hear, as well as the veracity of information and analysis provided by Russian officials, former or current, but it does make some very interesting points.

Of particular interest to me is the idea that Russia’s elite is annoyed with Putin because its members are worried about having their assets stolen, with $60 billion worth of property nationalised or seized by corrupt officials in the last three years.

“Previously their property rights were outsourced to the West. They used London courts, offshore structures and international arbitration to resolve conflicts or seek protection. Now conflicts must be resolved domestically, without functioning institutions. Demand for rules grows more urgent as redistribution of assets gathers pace,” the article states.

One of the reasons why democracy failed in Russia is because the oligarchs were able to keep their wealth offshore, and thus to essentially colonise their own country, secure in the knowledge they were themselves immune from the unfairness. It would be a pleasing irony if the horrific war in Ukraine ended up undermining not just Putin, but Putinism as a whole.

There is a huge opportunity here for Western governments to capitalise on the dissent, and to start quietly offering sanctions relief to Russians willing to break with Putin, and who’re prepared to surrender a decent chunk of their wealth to help Ukraine in return for being able to keep the rest. There aren’t enough police officers to actually bring the cases needed to investigate, prosecute and confiscate the oligarchs’ wealth anyway (see item above), so we may as well start negotiating and see what they’re willing to do to get it back. In short, this is a big week for me making unfashionable policy proposals.

AI-generated launderers

There’s debate in the United States about getting rid of the Corporate Transparency Act, with Jeff Bezos’ Washington Post supporting repeal, even though the law has never actually been implemented. Opaque shell companies are a weird outgrowth of capitalism that corporations’ original inventors — who wanted to create insurance for entrepreneurs, not getaway vehicles for crooks — never intended to happen, so it’s very odd that they’re now being presented as some kind of human right.

If you want a reason why the appallingly lax American system should be cleaned up, here’s a post on X about someone who tasked two AI agents with making money, and came back to find out they’d registered a Wyoming LLC all by themselves. This suggests the opening of a whole new frontier of automated money laundering, and the consequences are frankly pretty terrifying. The Corporate Transparency Act should be strengthened, not abolished.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Legalize Cocaine to save democracy appeared first on Coda Story.

How Brazil is starting to rein in Big Tech

Irina Matchavariani — Wed, 13 May 2026 11:50:00 +0000

On April 24, Brazil’s competition authority, the Administrative Council for Economic Defense (CADE) announced it was opening an investigation to assess whether Google’s use of news content amounted to unfair competition practices against the Brazilian press. The announcement was welcomed by civil society organizations that have tried to push regulation to limit the reckless power of Big Tech for years. Ajor, Brazil’s Digital News Association, said that “a balanced relationship between digital platforms and journalism organizations is fundamental to the flourishing of journalism committed to the public interest. By ensuring a fair competitive environment, Cade directly advances that goal.”

In spirit and intent, CADE’s investigation into Google is similar to legislation in Australia that recognized that value is being extracted from news publishers without proportionate recompense. In Brazil, the case has been debated since 2019, but the adoption of AI Overviews helped alter the perspective of Brazilian judges. The overviews are artificially generated summaries that synthesize information from several sources and appear at the top of Google Search results. They “raise potentially more concerns,” ruled Judge Camila Cabral Pires Alves, “as they may more profoundly alter the economic function of the interface and expand the ability to retain attention within the platform's own environment.”

CADE will now investigate whether Google should be sanctioned for “alleged abusive exploitation of a dominant position, in light of the technological evolution of the conduct.” While there is perhaps a greater global appetite to regulate the impacts of AI – even the Trump administration has recently acknowledged that some oversight may be necessary – the CADE judges have been under considerable pressure from Big Tech executives to stop investigations into how their control of the market harms Brazilian businesses.

For those of us who have reported on Big Tech, this aggressive lobbying is not surprising. Companies like Google, Meta, Twitter, TikTok, Amazon, and Microsoft have long attempted to interfere in any decision or legislation that can harm their interests in Latin America. According to a joint investigation by journalists across 13 countries, Big Tech lobbyists got away with convincing legislators in Colombia to weaken a rule meant to protect children’s mental health and prevent enforcement of privacy regulations in Ecuador. It took a team of over 40 journalists from 13 countries to uncover this while reporting on the ‘Big Tech Lobby’ in the continent and across the world.

Threats by the U.S. government to retaliate against any country or international entity that sought to regulate Big Tech added another layer to an already complicated and uneven relationship with Silicon Valley. “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” wrote Donald Trump on social media. “Show respect to America and our amazing Tech Companies or consider the consequences!” During the past year, Trump’s envoys have forced dozens of governments around the world to dilute or even shelve regulation in exchange for lifting tariffs.

In “Big Tech’s Invisible Hands,” which I coordinated alongside Maria Teresa Ronderos, from CLIP (Centro Latinoamericano de Investigación Periodistica), journalists mapped a total of 75 executives that were part of “public policy” or “government relations” teams in Brazil. Tech companies utilized a “revolving door” in which public sector employees could go straight into highly paid jobs leveraging their contacts and influence. Doors opened more easily. Invitations to hangouts and events were more likely to be accepted.

Brazilian President Luiz Inacio Lula da Silva meets with U.S. President Donald Trump at the White House on May 7, 2026. Brazilian Government / Ricardo Stuckert / Handout/Anadolu via Getty Images.

Lobbying in Brazil is dialed up to eleven. The country has 163 million internet users, with over 150 million on WhatsApp, and over 120 million on YouTube, Instagram and Facebook. With AI, Brazil is a similarly large, influential market. Portuguese is the sixth most widely-spoken language in the world, with 70% of speakers based in Brazil. Which means that, if an LLM has been trained in this language, it probably used content created by millions of Brazilians going about their business of making friends, debating politics and football online. It’s not just about journalists; we are all unpaid labor for Big Tech.

In the words of Arthur Lira, the Speaker in Brazil’s Congress who filed a criminal complaint against Big Tech executives in 2023, companies adopted a variety of tactics “to shut down democratic debate and intimidate lawmakers” and defeat any attempt at using legislation to force accountability. Google, he said, used its search homepage, used by over 85% of Brazilians, to spread fear that proposed laws would “make the internet worse” or “make it harder to know what is true or false on the internet.” A report by the Federal University of Rio de Janeiro found that Google invested in ads on its own platform so extensively that it tweaked the search, prominently featuring the word “censorship” in connection to the Brazilian bill. Google also hired Michael Temer, a lawyer and former President of Brazil, to influence lawmakers and Supreme Court Justices. Of course, it was not Google alone. Meta executives, for instance, even argued that proposed legislation in Brazil could lead to the Bible being censored.

But Brazilian lawmakers, the Supreme Court, and civil society have persisted. On August 28, 2025, the “Felca Law” was approved, after a video by the influencer Felca denounced the exploitation and exposure of children on social media. The law establishes that digital platforms must take measures like verifying user age, implementing parental controls, and preventing children's exposure to adult content, gambling, and pornography. They must create reporting channels and may face fines of up to 10% of their annual revenue in Brazil.

Brazil’s president Luiz Inácio Lula da Silva and Donald Trump have had a testy relationship, in part because of Lula’s criticism of Big Tech. In February, at the AI Impact Summit in New Delhi, Lula called for global governance of AI, warning: “When few control the algorithms, it is not innovation, but domination. Regulating the so-called Big Tech companies is linked to the imperative of safeguarding human rights in the digital sphere, promoting information integrity, and protecting our countries’ creative industries.”

By sticking to his guns, Lula may now be seeing the tide turn. He was in the White House on May 7, and though neither he nor Trump took questions, both appeared encouraged by the meeting. “Very dynamic,” was how Trump described Lula, while Lula said he was “very, very satisfied” with how the talks went. With a general election in Brazil approaching in October, Lula will be sensitive to how the White House, as it has done in other elections, and Big Tech might offer vocal support for right wing candidates.

But his willingness to stand up to Big Tech is popular with voters. A recent poll found that 78% of Brazilians want to see tech companies being held responsible for the content they publish. Another poll found that 55% of Brazilians defend regulating Big Tech, with 43.9% against it.

And as scams, fake news, and AI slop dominate ever larger swathes of all our digital space, in Brazil, as in much of the rest of the world, the entire experience of the internet is becoming more unappealing. Big Tech, with the assistance of the U.S. government, may be succeeding in slowing down the pace of regulation and watering down the content of that regulation, but in the long run its victories might be pyrrhic. People have had enough and their governments might be forced to listen.

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The afterlife of empire

Irina Matchavariani — Tue, 12 May 2026 11:54:43 +0000

On May 3, an unusual procession moved through Washington DC. Several hundred people walked beneath the monuments of the American capital carrying portraits of Red Army soldiers. Children waved Soviet flags. A live orchestra played wartime songs at the World War II memorial. The Russian embassy had filed the permit; the DC Metropolitan Police provided an escort. Russian state media celebrated the event as proof that, with the return of Donald Trump, historical truth too had returned to America.

One organizer told Russian state television: “We love, respect Russia, honor the memory of our heroes.”

Similar marches took place in Paris, Amsterdam and Busan. In Berlin, authorities announced that Soviet flags, Russian symbols and military songs would once again be banned near Soviet war memorials during May 8 and 9 commemorations.

But in Moscow, Victory Day itself appeared haunted by fear.

For decades, May 9 has been Russia’s most sacred annual political ritual, binding victory, patriotism and state power into a single language. But this year, Kremlin spokesman Dmitry Peskov was reduced to announcing that the Immortal Regiment march in Moscow would continue only “in electronic format.”

The run up to this year’s Victory Day became the most anxious Moscow has experienced in recent memory. The Kremlin canceled the traditional procession in the Russian capital, moving it online. Military equipment was removed from the parade. Mobile internet access across Moscow was intermittently shut down in the days leading up to May 9. Spectator numbers in St. Petersburg were reportedly slashed from thousands to just a few hundred. The Victory Parade in Kaliningrad was canceled entirely. Russian media outlets published extraordinary reports about Vladimir Putin retreating deeper into protected bunkers amid fears of Ukrainian drone strikes and assassination attempts.

Russia’s Foreign Ministry even warned foreign governments to evacuate diplomats from Kyiv before May 9, threatening massive retaliation if Ukraine targeted the celebrations with drones.

And then came another extraordinary twist. Volodymyr Zelensky publicly “allowed” the parade to proceed. In a deliberately tongue-in-cheek decree issued after negotiations around a temporary ceasefire, the Ukrainian president formally excluded Red Square from Ukraine’s operational strike plans for the duration of the celebrations, even listing the exact geographic coordinates of the square itself.

Watching it all unfold, I kept wondering whether empires collapse more easily than the systems of feeling they create. The Soviet Union fell apart more than 30 years ago, but the architecture built around victory, sacrifice and historical grievance survived it, stretching across borders, diasporas and rival political projects. What began as Soviet myth-making about liberation has evolved into a transnational political language through which governments, activists, diasporas and rival ideological movements compete over legitimacy, victimhood and belonging.

Over the years, at Coda, in our Rewriting History current, we have tracked how the remembrance of World War II became central to Putin’s machinery of legitimacy and repression. Soon after he came to power, Russian public culture became saturated with stories of the Great Patriotic War. Watching Russian state television often felt as if the war had ended yesterday. New films, schoolbooks, drama series, speeches, parades and television specials turned victory into the emotional foundation of Putin’s Russia. Scholars of Russian memory politics have described how, under Putin, collective memory of the war became a tool for claiming legitimacy, discrediting opposition and presenting the Russian state as the eternal defender against fascism.

It resonated because it tapped into genuine emotion passed on for generations. It was never just propaganda. It rested on something real: the scale of Soviet loss and the private grief carried by millions of families.

The Immortal Regiment began in 2012 in the Siberian city of Tomsk as a local act of remembrance. Ordinary people walked through the streets carrying photographs of relatives who died in the war. By 2015, Putin was leading the Moscow procession himself, while state-backed organizations coordinated chapters in dozens of countries. But in Putin’s Russia, where victory had already become the central organizing myth of the state, the boundary between private mourning and political mythology dissolved.

The speed of that transformation still feels important to me. It says something about the way modern political systems absorb private emotion and fold it back into the language of the state.

The Kremlin framed these Victory Day rituals as a defense against what it called Western attempts to “rewrite history” by minimizing the Soviet role in defeating fascism or equating Stalinism with Nazism. Ukraine and many Eastern Europeans came to see the marches instead as vehicles for imperial nostalgia and wartime propaganda.

But the argument, it seems, is no longer only about what happened in the past. It is about who gets to turn memory and grief into political legitimacy in the present.

This year Germany found itself in the extraordinary position of having to ban Soviet flags and military songs near Soviet memorials, effectively regulating the symbolic language of antifascism itself. Historian Timothy Snyder once warned that “if fascists take over the mantle of antifascism, the memory of the Holocaust will itself be altered.” That is precisely the moral and historical dilemma Berlin has now forced into the open. What happens when the symbols of genuine antifascist sacrifice become inseparable from the imagery of an ongoing war? When the flags carried by the soldiers who liberated Auschwitz are also flown at embassy-organized rallies while Russian bombs fall on Kharkiv?

At Coda, we explored some of these tensions years ago, in our documentary “What To Do With Stalin,” which examined the strange afterlife of Stalin’s image across the former Soviet world. While filming in Georgia, we encountered arguments that now feel strikingly familiar: whether remembering Stalin represented patriotism or denial, historical pride or historical amnesia.

https://www.youtube.com/watch?v=NdfTH6rfe7E

Even then, it was obvious these battles were never really about the past.

Putin himself acknowledged as much during this year’s Victory Day speech, describing the war in Ukraine as a “just” continuation of the struggle against fascism and accusing the West of fueling confrontation with Russia “to this day.” Hours later, he suggested the war might finally be over. “I think that the matter is coming to an end,” he told reporters.

Victory Day 2026 may ultimately be remembered not for the military parade itself, but for revealing how unstable that memory system has become. Moscow performed triumph while fearing attack. Berlin restricted Soviet symbols in the name of democratic security. Washington hosted embassy-linked Soviet commemorations beneath American monuments.

I was ten years old when the Soviet Union collapsed. For those of us who grew up inside it, the end of the empire felt at once chaotic and exhilarating. Borders opened, old certainties disappeared and ideology lost its grip almost overnight. I still feel fortunate that, as a child, I witnessed an empire built on terror and repression collapse into history.

In the decades that followed, we watched Russia slowly turn the symbols and emotional reflexes of the Soviet system into instruments of political power once again. Victory Day became one of the most potent of these instruments: a ritual that fused together grief, patriotism, historical trauma and state legitimacy into a single, powerful sentiment.

Russia’s ambassador to Washington, Alexander Darchiev, praised what he described as the Trump administration’s dramatically changed attitude toward Victory Day commemorations. The holiday, he said, now played “an unequivocally positive role” in Russia-US relations. He pointed specifically to the marches held in the center of Washington, DC.

But the more I think about this year’s Victory Day, the less it feels like a story about Russia alone. When the Soviet Union collapsed, many of us assumed its emotional architecture would disappear with it. Instead, parts of it were patiently cultivated and repurposed for a new era by the men in charge of Putin’s Russia.

The emotional logic that once underpinned the Soviet system no longer belongs only to Russia and the shattered geography of its former empire. Grievances, historical trauma and rituals of belonging now shape political life all around the world. Digital networks and algorithmic systems did not create these emotional impulses, but they amplified them at a scale the Soviet state could only dream of. Perhaps that is the true afterlife of an empire: not the survival of its borders or ideology, but of the emotional systems it builds to organize fear, belonging and historical destiny.

Additional research by Masho Lomashvili and Irina Matchavariani

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Wealth is health, Insider betting & Trump will see himself in court

Teona Tsintsadze — Wed, 06 May 2026 11:51:52 +0000

Inequality is bad for you, and new figures in the UK show that the number of years when people can live healthy lives have fallen everywhere and furthest in the country’s poorest areas. This is partly a lingering after-effect of COVID, but is mostly a result of cuts imposed on health services by the last government. The results are dramatic, with the average person in a wealthy area expected to enjoy almost 20 years more good health than someone in a more deprived area. The situation in the United States is similar, and declines in health have also been observed in Germany, Canada and the Netherlands.

“Reducing smoking and improving diet and physical activity can delay the onset of illness and improve day-to-day wellbeing,” notes this extremely commonsensical analysis from the UK healthcare think tank The Health Foundation. “Secure work, good-quality housing and supportive local environments all influence physical and mental health.”

Being unhealthy is just terrible in all ways, and the problem is clearly getting worse, so you would expect the disrupters of our new economy to be finding ways to respond to this challenge. And at first glance, the Sam Altman-backed Retro Biosciences — with its focus on targeting “aging mechanisms to increase healthy lifespan” — looks promising. So does Altos Labs, with its mission to reverse “disease, injury, and the disabilities that can occur throughout life.” And there’s Saudi Arabia’s Hevolution, which is catalysing “the shift from lifespan to healthspan.”

And that’s before we get to the start-ups operating in a “free city” off the coast of Honduras, which has the brave approach of basically letting people do whatever medical research they like (“Prospera is a unique place where we can do such things,” says one businessman) to help drive progress towards an illness-free future.

But don’t get your hopes up. They’re not looking at ways to help people to get vaccinated, eat healthily, stop smoking or do more exercise. Instead, they’re working on gene therapy, stem cells, and other extremely expensive treatments that will only benefit people who can afford them, and who are thus already likely to be doing well. In the UK meanwhile, Genflow is also aiming to slow the ageing process in dogs, to make sure the super-rich aren’t left without their pets in this artificially prolonged future.

It’s tempting to see this as a metaphor for late-stage capitalism in the West, with its focus on the needs of the few (and their pets) rather than of society as a whole, except that we’re seeing a similar pattern in other places too. In Russia, Moscovites live longer than people from the provinces (although the picture is complicated by the relatively good health of the non-drinkers from Muslim regions), so you would have expected Vladimir Putin to be concerned about how to close that gap. But when he was chatting with Xi Jinping last year in China (where inequality has also harmed health), they were instead more focused on how to live forever.

“Human organs can be continuously transplanted, and people can live younger and younger, and even achieve immortality,” Putin said. (Three important questions: firstly, does this mean he will be president of Russia literally forever, the world’s first un-dead head of state? Secondly, are they farming people as a source of organs for him? Thirdly, does he really believe this?)

“This century, there's a chance of also living to 150,” replied Xi, who could — under that scenario — rule China for another 77 years, which is longer than he’s been alive, by which time his nation’s population could well, according to UN estimates, have halved.

I, for one, wouldn’t mind having a vote on whether this is a future I want to be a part of.

An insider betting scam

Here’s a fascinating piece of research from the Anti-Corruption Data Collective about prediction markets, looking at how often “long shot” bets on military and security matters pay off compared to what you would expect: fully 52% succeed, compared to only 14% across Polymarket as a whole.

“Government officials and members of our military being able to turn a profit on insider information incentivises corrosive corruption in public office and undermines national security,” notes David Szakonyi, Co-Founder of the Anti-Corruption Data Collective.

The analysis follows the indictment of a U.S. serviceman who made $400,000 betting on the bid to capture Nicolas Maduro in Venezuela, with 13 “yes” wagers on various aspects of the operation in December and January. And that was only a comparatively small military campaign. Just imagine how much money privileged insiders could have made in the past, if only they’d had access to prediction markets before D-Day, before the first nuclear bomb test, or before the assassination of Archduke Ferdinand in Sarajevo.

I really enjoyed this recent episode of Planet Money about prediction markets, particularly with its clear explanation that — like so much “financial innovation” of the past — they’ve not invented anything new at all; they’ve just found a clever way around regulations that previously stopped people making bets in this way.

There is fierce competition between the two leading players — Kalshi and Polymarket — although they have common ground in one area: they both employ Donald Trump Jr.

Trump sues his own government

There are so many things happening in the United States at the moment that it’s hard to keep track, but I did like this analysis from David Allen Green of a particularly strange lawsuit, in which President Trump is suing the federal government for $10 billion. The judge is, unsurprisingly, concerned about a situation where the president is basically suing himself, and wants more information about how that’s going to work.

This could, however, be a whole new money-making front for the first family, and why should the Trumps stop at just $10 billion? They could presumably take the government for every penny it’s got. I’m amazed no one has done this before.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Why Trump-backer Justin Sun is suing the Trumps’ firm

Oliver Bullough — Wed, 29 Apr 2026 11:55:00 +0000

Donald Trump and the crypto world have done well out of each other. The Trump family has made profits of several billion dollars, and ‘cryptopreneurs’ have found the United States a newly supportive environment for their products. But the crypto world is not a single entity, and there are potential differences of opinion and approach between the parts that specialise in fraud, money laundering, and speculation (as well as the small number of societally beneficial uses), and a court case between billionaire Justin Sun and the Trump family’s World Liberty Financial threatens to blow those divides wide open.

Sun is a colourful gentleman and a firm favourite of this newsletter, thanks to his efforts to essentially buy the Pitcairn Islands, his voyage into kind-of space, his consumption of a $6.2 million banana, his stewardship of the Tron blockchain, his premiership of Liberland, and his frankly adorable continued usage of “H.E.” (his excellency) as a title despite losing his Grenadian ambassadorship three years ago after being accused of fraud by the Securities and Exchange Commission.

He also had a key role in transforming Trump from cryptosceptic into cryptoenthusiast after investing millions of dollars in World Liberty Financial in late 2024, which helped to persuade the president — then running for re-election — that there was money to be made on the blockchain.

Considering the improbability of the Trump family building an actually successful crypto company, and the strong likelihood World Liberty Financial would find a way to keep investors’ money as has happened with Trump ventures in the past, quite a lot of people assumed Sun’s money was in reality more of a gift than an investment. But it appears these doubters were wrong, at any rate that’s what it says in the suit that Sun has filed in California alleging that World Liberty Financial has abused his rights.

“Mr. Sun invested $45 million to purchase $WLFI tokens from World Liberty not only because of the project’s claims that it would promote adoption of decentralized finance… but also because of the Trump family’s association with the project,” his claim states. “But as Mr. Sun unfortunately has learned, World Liberty’s operators, including Chase Herro, see the project as a golden opportunity to leverage the Trump brand to profit through fraud.”

Sun has been careful to make clear this is not an attack on the president (“Unfortunately, certain individuals on the World Liberty project team have been operating the project in a manner that goes against President Trump’s values,” he posted on X), who is, he says, being betrayed by underlings — as autocrats have always been throughout history — but he is certainly airing a lot of dirty laundry, which is likely to upset influential people.

Perhaps the most significant allegations, which World Liberty Financial denies, is that the Trump family’s company is on the verge of collapse, having paid most of its money to its owners, and that it tried to extort money from Sun to keep it in business. This is not just significant for its investors but also for America’s diplomatic ties, since Abu Dhabi has invested $2 billion via World Liberty Financial’s USD1 stablecoin, and the United States can ill-afford to further irritate its allies in the Gulf right now.

The timing of the lawsuit is interesting. It was notable that, shortly after Trump returned to the White House, the Securities and Exchange Commission paused its investigation into Sun. In March, that investigation was finally wrapped up, with Sun paying $10 million but not admitting wrong-doing, so he is perhaps no longer concerned about facing legal action himself.

Sun was also a major investor in Trump’s memecoin, but is not the only person who seems to have soured on that particularly unlovely project. One of the perks of being an investor in the token is the right to have dinner with Trump, but the value of that ticket dropped this year to just $539,000 from $3.28 million in 2025, with the Financial Times quoting an expert as calling the friendship between Trump and the crypto-world “a shotgun marriage,” which seems fair.

The Trump family has, however, made $320 million in fees from the memecoin alone, so I suspect they’re not that bothered.

A tale of two scammers

There was, hard though it is to imagine, a time when Trump was just a strangely-tinted TV personality with strong views on where Barack Obama was born. And back then, in those prelapsarian days, 2014’s billion-dollar Moldovan bank fraud was a big deal. It’s great to see that mega-oligarch Vlad Plahotniuc has been jailed for 19 years for his involvement in a crime that ruined his homeland.

Moldova has struggled through the resulting period of economic, financial, diplomatic and political turmoil, and it was great to see that Viktor Orbán’s defeat in Hungary has meant it can make progress on its movement towards membership of the European Union.

The other mastermind of the bank fraud is pro-Kremlin politician Ilan Shor who was convicted and sentenced in absentia. He remains, of course, at liberty. Though his A7A5 sanctions-evading cryptocurrency has still not recovered the trading volume it had before the recent hack of the Grinex trading platform where people bought and sold it. Grinex blamed the hack on Western intelligence agencies, but Chainalysis has an interesting alternative explanation, based on the fact that A7A5 is gradually being squeezed by Western sanctions (including the latest ones from the European Union).

“Faced with mounting international pressure and a shrinking operational footprint, actors associated with Grinex could be using the guise of an alleged hack to quietly siphon liquidity and execute an exit scam,” Chainalysis suggested. I’m not saying that is what happened and to be honest, I think it’s more likely that this was the handiwork of Ukrainian hackers or standard financial criminals. I mention it, however, because Shor does have a previous record when it comes to setting up a money laundering scheme and then defrauding everyone who was foolish enough to trust him with their money.

The billion-dollar bank fraud was a clever way to profit out of the ‘Moldovan Laundromat,’ which had been allowing Russians to smuggle money out of their homeland before Shor and his co-conspirators destroyed the Moldovan banking system and stole everyone’s cash. It would be remarkable if he had basically done the same thing for a second time with his stablecoin. Crypto people call it a rug pull.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Why Europe must disable Russia’s crypto ecosystem

Oliver Bullough — Wed, 22 Apr 2026 11:55:32 +0000

Someone recently asked me what mark out of 10 I’d give for the efforts of governments to tackle financial crime. It got me thinking about that one bright spot of recent times — the West’s response to Russia’s full-scale invasion of Ukraine four years ago — and how it is now looking. Back in 2022, a lot of us were pleasantly surprised by the speed and ambition with which Western governments sanctioned the Russian government, state-owned companies and wealthy individuals. While Western pressure did not prevent the war, the asset freezes did impose a real cost on those conducting it. Four years on, however, those sanctions are beginning to look a bit shopsoiled. If they began at 7/10, they’re now scoring a lot lower.

There are reasons for this: Donald Trump does not appear particularly interested in Ukraine; the now former Hungarian prime minister Viktor Orbán has been snarling things up; and so on, as laid out in this analysis from Tom Keatinge. To make things worse, Trump’s latest adventure in Iran has pushed the oil prices sharply higher, earning more money for Russia while also giving Trump cover to lift sanctions, a temporary measure he has recently extended.

Keatinge argues that European countries need to be far more focussed on going after Russia’s payment mechanisms, particularly digital. “The extent to which crypto activity supports Russia’s war effort is clear,” he writes, “yet repeated initiatives to elevate the importance of opening a concerted line of effort on this issue are ignored. This must change.”

I agree, though it won’t be easy, considering the diffuse crypto ecosystem, and the increasing sophistication of Russian involvement in it. As long as Telegram is willing to host markets, the markets will continue to function to some extent whatever Western countries do (see the story of Xinbi, a Chinese-language hub for illicit crypto.) However, it does look like someone somewhere has lost patience with the ease with which Russia is funding itself.

“The sanctioned Russia-linked cryptoasset exchange Grinex announced an immediate suspension of its operations, citing a ‘large-scale cyberattack,’” reports Elliptic. According to the statement, which Kyrgyzstan-registered Grinex posted on Telegram, it lost around $13 million worth of USDT in the hack, blaming the theft on Western intelligence agencies.

“Today the attempts to destabilise our fatherland’s financial sector hit a new level, with the direct theft of the assets of Russian citizens and companies with the involvement of complex cyberattacks,” the statement said. Grinex is the successor to Garantex, which was shut down just over a year ago after years of effort by Western law enforcement. I would be surprised if Western countries had decided to take direct action against Grinex, as the exchange claims they did. Westerners tend to be a bit too legalistic for this kind of smash-and-grab, and I would expect any operation to more closely resemble what worked a year ago, conducted with Tether’s cooperation.

Instead, I suspect this attack is the work of hacktivists, perhaps working for or with the Ukrainians. Whatever the answer, it is embarrassing for the Russians, shows their crypto-security is not impregnable, and has made a noticeable dent in trading volumes of the A7A5 ruble-denominated stablecoin, which has become a key sanctions evasion tool. Three birds with one stone.

The important point is that sanctions were never supposed to be permanent: they are a foreign policy tool, not a law enforcement one. Hundreds of billions of Russian-owned dollars are languishing in various frozen bank accounts, and Western countries need to start thinking about what to do with them. They can confiscate them, investigate them or — if they’re feeling brave — use their potential return as leverage to persuade wealthy Russians to break with the Kremlin. What they shouldn’t do is leave them as they are to gather dust.

Hopefully, now that Orbán is out of the way, European countries will be able to take firmer collective action but they also need to be imaginative, and to start behaving as if they actually want Ukraine to win, rather than just not lose.

A defeat for transparency

Of course, the United States will have a lot to say about that too, and what it ends up saying about how to tackle the Russian crypto operations will depend on what happens in the midterm elections this year. So, it strikes me as a big deal that crypto firms are once more pouring tens of millions of dollars into campaign vehicles in their quest for, what they euphemistically refer to as, “regulatory clarity.” Among them, of course, is Tether.

If you’re wondering quite how it’s possible to spend that much money on elections, I draw your attention once more to the great Integrity Index, with its records for who’s been spending what. It boggles my mind that, for example, the three Democratic rivals to the Republicans’ Susan Collins for the Maine Senate seat have raised more than $17 million just for the primary. Collins herself has raised over $10.5 million. There really shouldn’t be that much money in politics.

Besides, when it comes to value for money, investing in court cases beats investing in politics every day of the week. I don’t know how much the (ironically) anonymous plaintiffs in the 2022 case against corporate transparency in Luxembourg paid their lawyers, but its effects just seem to keep compounding to the benefit of those who want to hide their wealth from society.

The European Union’s retreat from revealing the ownership of shell companies has given cover for Britain’s tax havens as they resisted efforts from London to force them to open up their own corporate registries. It looks like those efforts may have finally failed. “We are committed to full transparency, but I don’t think there will be any turning back,” said the British Virgin Islands’ Junior Minister for Financial Services Lorna Smith in comments confirming that the islands are in fact very much not committed to full transparency.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Peter Thiel is building a parallel justice system — Powered by AI

Nic Dawes — Mon, 20 Apr 2026 13:06:44 +0000

In 2016, when Peter Thiel killed Gawker, he insisted that he wasn’t attacking journalism writ large.

On the contrary, he told the New York Times, he’d spent $10 million secretly backing Hulk Hogan’s lawsuit against the news outlet because: “I saw Gawker pioneer a unique and incredibly damaging way of getting attention by bullying people even when there was no connection with the public interest… if I didn’t think Gawker was unique, I wouldn’t have done any of this. If the entire media was more or less like this, this would be like trying to boil the ocean.”

10 years later with the aid of an “AI tribunal,” a team of intelligence and law enforcement veterans, and a political climate vastly more hostile to press freedom, he is trying to do exactly that, bypassing the courts, short-circuiting the first amendment, and making it much, much cheaper to indulge in the quasi legal harassment of journalists.

Objection.ai is a new startup funded by Thiel, and cofounded by Aron D’Souza, who worked closely with him on the Gawker case. It promises “a fast affordable way to challenge statements in the media.” Anyone can file an objection, which will trigger an investigation by a team hired, the company says, from the CIA, FBI, and British intelligence agencies. Targeted outlets and reporters will have an opportunity to respond, and the results will be fed to an AI model, which will render a verdict. The complainant, and the target, are asked to agree to binding arbitration, with an unspecified range of potential consequences. Financial details are vague, but the company has said the process will cost around $2,000 — far less than the retainer of a crisis communications expert.

An initial slate of cases includes objections against the New York Times, for reporting on how Thiel’s fellow traveller David Sacks, former PayPal chief operating officer and Donald Trump’s former “AI and Crypto Czar,” uses his White House position to benefit Silicon Valley connections; The Wall Street Journal for its revelations about the doodle contributed by Donald Trump to Jeffrey Epstein’s birthday book (a case recently dismissed by a federal judge); and British reporter Hannah Broughton for an aggregated story in the UK tabloid the Mirror about allegations that Amazon workers were told to continue working while a colleague lay dead on the warehouse floor. A smattering of social media provocateurs (Candace Owens) and politicians (Bernie Sanders) round out the roster, but the aggregate effect is indisputable: Thiel’s animus was about journalism all along. Indeed, the Objection.ai team couldn't be clearer about that.

“Gawker was not unique,” writes D’Souza on the company’s website. “It was simply the first large media company to be tested against reality in the age of clicks, outrage, and algorithmic amplification. Since then, the same structural failure has spread everywhere.”

“Peter Thiel and I … did not just fight Gawker,” he goes on. “ — We demonstrated that facts still mattered if someone was willing to enforce them.”

This is worse than revisionism. D’Souza is banking on everyone having forgotten that the Hulk Hogan case had nothing to do with “reality.” It was undisputed that the sex tape published by Gawker was real. The original suit, which failed, was for copyright infringement and the ultimate $140 million award that bankrupted the company was for invasion of privacy and intentional infliction of emotional harm.

This foundational lie is important, because it is a warning against the temptation to engage Objection.ai on the merits. It would be easy enough to conduct a good faith debate to take at face value D’Souza’s argument that tech platforms and algorithms amplify false claims to millions, that courts are expensive and slow, media ombuds toothless, and fact-checkers partisan. And it would not be hard to demonstrate that he is harnessing widely shared concerns about a disordered information environment to mobilize support for an AI powered justice system controlled by a hyperpartisan private company with a track record of attacking the very institutions that are holding the line on consensus reality.

It would also be a mistake. There is nothing good faith about this effort. Rather, it is classic Thiel: an attempt to hack the principles of accountability, and turn them against journalism. Leave it to his less sophisticated Silicon Valley peers to rail against the media, create in house news outlets or buy them. The PayPal co-founder is going for the heart of the system, and financing infrastructure that will enable anyone who can afford a used Honda Civic to launch a harassment campaign, cloaked in the language of legitimate investigation. James O’Keefe, but with the judicial rather than journalistic process as its governing metaphor.

It will be tempting, too, to question the likely financial sustainability of Objection. That will be the least of its founders' concerns. The for-profit structure supports a story about the company’s purpose. It may work, or not, but its goals are nonfinancial. We reached out to Thiel for comment on Objection.ai before publication and will update this article as soon as he responds.

Providing funding, alongside Thiel, is Balaji Srinivasan, the investor and author of “The Network State,” a book about social networks with “a sense of national consciousness” replacing the nation state. He once outlined an early version of the Objection.ai model in an email to the far right theorist Curtis Yarvin about dealing with critical coverage. "If things get hot,” he suggested “it may be interesting to sic the Dark Enlightenment audience on a single vulnerable hostile reporter to dox them and turn them inside out with hostile reporting sent to *their* advertisers/friends/contacts."

These men understand the limits of the Gawker verdict’s impact. It bankrupted the company, a personal victory for Thiel, but perhaps the least important outcome of the case. At a more systemic level, it struck fear into the hearts of media insurers and newsroom counsel, focusing attention on third party litigation finance as potential threat.

If people with limitless resources could sponsor litigation against news organizations they disliked, constitutional protections would be no match for the sheer cost and complexity of defense.

Now, they’ve found an AI-assisted way to supercharge those effects.

The Gawker case routed around the First Amendment by relying on a privacy claim. Objection.ai does so by building a hallucination of the legal process. Any journalist foolish enough to agree to binding arbitration by the company probably deserves what they get, but that will be a vanishingly small minority. For those who don’t, a phone call, or a knock on the door from a former FBI agent, or defense intelligence operative, will be chilling, and an ex-parte verdict rendered by Thiel’s custom-tuned AI will act as a cudgel on social media and via traditional PR. Journalists will be assigned a “trust score” to act as an additional goad.

In an environment of less peril for press freedom, it might be easy to laugh off Objection.ai as the confection of a thin-skinned millenarian. Right now, with the crony capture of broadcast news far advanced, swathes of the tech community openly hostile to journalism, and the White House onside, it would be wise to take it seriously. That starts with seeing it for what it is, and refusing to engage with a process which, unlike the real courts, Peter Thiel has no legal power to compel.

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The performative war on money laundering

Oliver Bullough — Wed, 08 Apr 2026 12:11:58 +0000

Dutch friends like to tell me that their nation’s primary characteristic is bluntness, and the Netherlands’ Court of Audit has done nothing to challenge the stereotype with its bracing assessment of the country’s and, by extension, the world’s failure in fighting money laundering. Published last month, after an extensive analysis of the country’s efforts to stop dirty money, the Court’s report concludes that the system is expensive, discriminatory, and — possibly — completely ineffective. No one has really checked on that last point, so they can’t be sure, which if anything makes it all worse.

The Netherlands hosts the largest port in Europe, and is therefore home to a vast smuggling industry — Dutch politicians not infrequently warn that it’s becoming a narco-state — which requires an equally vast money laundering industry to service its profits. The Court of Audit set out to check the government’s response to this challenge, concluding that it cost banks €1.6 billion a year. It’s a price tag that has increased by almost 17% between 2021 and 2024, during which time the number of reports the banks’ 13,000 compliance officers made more than doubled.

“We think it is important that these employees make a meaningful societal contribution to preventing and combatting money laundering. There is no evidence that shows that they do,” the report witheringly observes.

The court sent surveys out to “politically-exposed people” (PEP is a jargon term meaning anyone in a position of power, or a close relative or associate) asking about their experiences. One person’s 83-year-old mother was asked to explain the source of an inheritance she received after the PEP applied for a loan. It is an eye-opening section, revealing how process is prioritised over any kind of judgement about where the risk of money laundering genuinely lies, but the real shock is in the section about different religious groups, which shows how the transactions of immigrant-focussed churches and mosques are systematically checked more thoroughly than local Protestant or Catholic congregations.

“A bank told a mosque that it was not possible to collect so much money after a prayer meeting,” the report notes. “The mosque’s trustees said the bank could come and see for itself but the bank declined. Feeling powerless and unable to deposit the money with the bank, the trustees hid it in the mosque.”

Imagine if we had an ongoing health crisis. And imagine that the government had created an expensive, intrusive system to tackle it, which was generating an endlessly increasing amount of paperwork, employing thousands of people and actively discriminating against religious and ethnic minorities. Surely, someone would at least put in the hours to check if the system worked, whether it was making people healthier, and assess therefore whether all these bad side effects were justified?

With anti-money laundering policy, that is simply not happening. It’s based on faith rather than facts: we just need to do more of the same thing, and eventually we’ll get the results we want; if we don’t, we need to do the same thing even more. Interestingly, Texan judge Jeremy Kernodle — fresh from gutting the Corporate Transparency Act — has returned to the fight against anti-money laundering regulation. He has killed Geographic Targeting Orders, which were supposed to collect information around real estate transactions. “FinCEN’s explanations are vague, conclusory, and unpersuasive,” the court ruled. “The fact that some bad actors have conducted non-financed real estate transactions does not make such transactions categorically ‘suspicious.’”

I’m not saying I agree with Mr. Kernodle, because I don’t, but I don’t think pushback on anti-money laundering orthodoxy is necessarily a bad thing, since it obliges us to think more deeply about what actually works, rather than just going along with ineffective old policies. I hope people outside the Netherlands read the Court of Audit’s report and start wondering whether this approach isn’t long past time for a complete overhaul.

How do you solve a problem like crypto?

It’s quite unusual for there to be a divide in the UK’s anti-corruption community, which tends to agree on technocratic solutions to the problems around illicit finance, but one has emerged around the role of cryptocurrencies in political donations. Spotlight on Corruption doesn’t think the government’s moratorium on crypto donations goes far enough. There needs to be a ban, they argue, in primary legislation with additional safeguards. I agree.

The folks at RUSI, on the other hand, think a moratorium on crypto donations is a better idea since it would prime the country to take regulating cryptocurrencies more seriously, and prepare the way for them to be widespread. Take a look, judge for yourself, and let me know what you think. The difference may reflect deeper and unresolvable political differences in how countries should respond to globalisation, but it’s an interesting one to think about.

One thing I think we all agree on is the need for an urgent overhaul of all rules around electoral finance, while there’s still an honest system to approve them.

On that note, interesting news from Cambodia, which has extradited Li Xiong to China. Xiong, who is accused by governments worldwide of playing a key role in the now-collapsed Huione group, which was laundering money for crime syndicates on an industrial scale, with particular expertise in cryptocurrencies. Of course, the criminals have not stood still and have new markets up and running, but it is striking how quickly the extradition went ahead.

In contrast, the legal proceedings around the mammoth tax fraud exposed two decades ago by Sergei Magnitsky grind tortuously on, with the culprits still safe in Russia. They certainly enjoyed themselves in Europe for a while, however, as a court case in Paris shows. “The spending spree included: €668,517, ($771,703) at a Parisian art and antique gallery; €696,015 ($803,445) across two high-end French women’s fashion brands; €96,814 ($111,757) at a luxury jewellery store in Courchevel, an exclusive ski resort in the French Alps; and €127,182 ($146,813) for a Courchevel tour package.”

There are few things that reveal the moral bankruptcy of the regime in the Kremlin more than this case. It’s not enough that corrupt officials could kill a good man who exposed their $230 million theft from the Russian people, but the Russian state then shielded them while they splashed the loot on European luxury holidays, and continues to do so to this day.

Nothing on the same scale is happening in the United States of course, but still this analysis of how enforcement of the Foreign Corrupt Practices Act is being politicised is a bit grim: “The transformation of U.S. antibribery tools into economic weapons also threatens to undo the global system the United States helped establish to punish business corruption.”

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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Memeification and digital slop: AI and the fog of war

Nic Dawes — Mon, 30 Mar 2026 13:02:59 +0000

A funny thing happened on the day OpenAI announced it was shutting down Sora, its video generation app: Iran went all in on synthetic propaganda and very quickly started winning the global meme war. The timing is a coincidence, no doubt, but it is the kind of coincidence that illuminates.

Watching the explosive virality of the clips offers a powerful lesson in asymmetric media operations. They deploy cultural sophistication, an understanding of online communities and the enormously powerful creation tools made available by American tech companies, tools that give everyone on the internet access to a personal reality distortion field — drones, but for your feed.

On Wednesday, as Donald Trump was trying desperately to talk down the oil markets with hints of a deal, a stream of videos, carefully calibrated for U.S., regional and third country audiences rolled out on X via embassy accounts, Russia Today, and disaffected Maga influencers. The clips, by broad social media consensus, are good. Some lean heavily on the extremely online grammar of the U.S. right. Some remix Hollywood characters and likenesses in exactly the way that OpenAI’s now nixed billion-dollar deal with Disney was supposed to sanction. Others lean more heavily into Islamic iconography, featuring Donald Trump and Benjamin Netanyahu as worshippers of Baal, the foreign demon god who figures in both the Quran and the Hebrew Bible. The Lego movie is an especially rich resource, but so are TikTok formats, and the kind of idealized AI figures beloved of Trump administration meme makers. You can watch a few of them here.

Notably, faked war footage is far from the dominant format. All of these clips foreground and celebrate their own artificiality: some are sentimental, some triumphal, many are full of the gleeful adolescent wit of gamers on discord forums.

https://twitter.com/politblogme/status/2036909041566306565?s=20

Researchers have long been warning that generative tools will undercut the authority of visual evidence, compounding and accelerating the damage created by slower, cruder forms of fakery: photoshop, selective editing, even gaming clips passed off as combat footage. Of course, we are already there, and have been for a while. Russia has been the paramount master of this game, in Ukraine and in its ongoing influence operations around the world. But others have learned quickly. Last year, when India and Pakistan were engaged in a brief aerial battle, social media bullshit overwhelmed and compromised traditional coverage. More recently, Israel’s obliteration of Gaza was accompanied by a sustained and comprehensive blizzard of visually compelling misinformation, propaganda, and official lies.

That continues. On March 28, Israel killed three journalists in a targeted strike in Southern Lebanon, claiming without evidence that one of them, Ali Shoaib, was a member of Hezbollah’s Radwan forces. They later distributed a photograph of him in military fatigues to reinforce the point, but explained to Fox news that in fact, they’d had to photoshop the uniform in because no such picture existed.

Meanwhile, in the Trump administration’s domestic war on immigrants and political opponents, we’ve seen a complete resetting of norms around the tone of official communication and any expectation that it is rooted in fact. Nowhere was that more evident than in the altered footage posted by the White House of the arrest of the prominent Minneapolis activist Nekima Levy Armstrong in January. In the video, shared by the official White House handle, a handcuffed Levy Armstrong is sobbing, her skin visibly darkened. In fact, she had faced arrest calmly.

Questioned by reporters about this blatant falsification, deputy White House communications director Kaelan Dorr responded: "Enforcement of the law will continue. The memes will continue.” Collapsing the distinction between a meme and the factual record with the aid of AI is the final step in this administration's insistence that its preferred narrative simply is reality.

The problem for the White House and its allies is that their choices in tech policy, official communication, and press freedom level the playing field for information war in ways that Tehran’s media strategists understand and they, for all their immersion in online worlds, do not.

Iranian propagandists know that the currency of visual information online has already been completely debased. They’ve dealt with it plenty, and no doubt practiced it themselves in regional battles for narrative dominance. Their insight is that as cheap and easy as it is to create and distribute fakes, returns on the effort of mobilizing what disinformation researchers call “coordinated inauthentic action” are diminishing. They still do it, but it isn’t where the action is.

Sam Altman, Elon Musk and Mark Zuckerberg have, in a very practical sense, wrought this moment in concert with Peter Thiel, Alex Karp, JD Vance and Donald Trump. At their urging, the U.S. has surrendered unrivaled dominance in scarce, expensive information and cultural assets in exchange for a political economy of media that widely distributes cheap, abundant ones.

Tech leaders and conservative politicians have worked consistently for a decade to deprecate the trustworthiness of American journalism and constrain its liberties. They have smeared its practitioners as “enemies of the people”; they have captured the commanding heights of the broadcast and culture industries through crony deals, and they have launched an assault on both press freedom and standards, two assets that once made American news outlets the envy of the world. Needless to say, the economic collapse of traditional media companies fostered by Google’s and Meta’s advertising duopoly only served to deepen the damage. Jeff Bezos’s Washington Post shuttered its Middle East bureaus just days before the war began.

Meanwhile, lying from agency podiums and the Oval Office, makes Karoline Leavitt barely distinguishable from Baghdad Bob, Iraq’s minister of information in 2003 whose surreal, truth-dodging press conferences during the U.S.-led invasion made him a global laughingstock. And the DOGEing of both the nominally independent Voice of America, as well as the state department’s Global Engagement Center leaves the administration with neither broadcast nor digital counter-propaganda assets.

When no one can be trusted with the actual truth, we are left with the AI equivalent of 19th-century editorial cartoons, produced at industrial scale and distributed globally. America has little advantage in that war, particularly when it is at a moral, political and legal nadir.

If anything, Iran, which combines repression with an enormously rich literary culture, film scene and advertising market brings serious capabilities to the fight.

Of course, the ebbing of information power was already under way during the first Trump administration, and during Joe Biden’s term in ways that are indissociable from broader democratic decline. The “trust and safety” architecture adopted by big platform companies was designed — implicitly if not always visibly — to conserve information authority, and ensure that it functioned in broadly pro-democratic ways.

After the disastrous failures of the Rohingya genocide — which rights groups and UN investigators blamed Facebook for facilitating — and the fears surrounding the manipulation of the U.S. electoral environment in 2016, there was a clear threat to the commercial and political health of Twitter, Facebook and YouTube. Tech companies, governments, researchers and human rights experts devised rules and norms for content moderation grounded in existing standards, tools for detecting coordinated inauthentic behavior, and a framework for crisis response.

The community of practitioners and institutions that sprung up to combat the flesh-eating virus attacking the body politic were working with bandaids in the battlefield hospital even before Covid, a coordinated attack from the right, and the second Trump victory hit them, but they succeeded in imposing some limits. That project now lies in ruins.

The Stanford Information Laboratory has been shut down. Trust and Safety teams at Meta and X have been disbanded. The national security arm of the project, centered around the State Department is gone, and private funding for countering misinformation has largely dried up.

Where are the hyperscalers, the AI titans, whose tools are being so effectively deployed, in all of this?

The trust and safety people who do work at OpenAI are dutifully putting out reports every few months. They are detailing how they foiled efforts to use ChatGPT for a Chinese influence campaign aimed at Sanae Takaichi, the Japanese prime minister, and exposing a Russian content mill feeding African newspapers. “Pro-tip for governments,” wrote Head of National Security policy Sasha Baker on LinkedIn of the February report. “Please don’t use our products to spread lies online.”

Governments, in the world of Sam Altman’s “democratic AI” do not include that of the United States. OpenAI has not mentioned a single U.S. ally — let alone the administration itself — in these reports.

OpenAI has hired multiple ex-Clinton, Obama and Biden officials, and in their work a weird, attenuated piece of the old national security approach to information integrity lives on, alongside the project of selling products to the Pentagon. The company’s leaders clearly treat these issues as a complement to messaging around Western AI, or a picayune adjunct to the bigger questions of AI risk, which are handled way up in the organizational stratosphere, as they are at Anthropic.

Perhaps the larger lesson is that you can’t really shut down Sora, or put AI-generated video back in its box. If you choose to prosecute an illegal war of choice after surrendering the hard-won high ground of a robust, democratic information environment, high tech weaponry will not offset the deficit. On the contrary, you will have compounded the risk of both tactical failure and strategic geopolitical defeat. When that happens, and in some ways it already has, those who made this war, and their enablers in Silicon Valley, will have only themselves to blame.

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Our corrupt world, run by oligarchs for oligarchs

Oliver Bullough — Wed, 25 Mar 2026 12:47:51 +0000

One difficulty in writing about corruption is explaining what it is. You’re either too specific — “it’s taking bribes”. Or too vague — “it’s being bad”. Another difficulty is obtaining the raw material to analyse: corrupt people don’t tend to speak openly about it, which means you’re left looking at corruption’s visible manifestations, which is like trying to understand a virus only from its spots.

So huge kudos to Earth League International for producing a detailed, specific and thoughtful report on how corruption facilitates wildlife crime globally, which is packed full of lessons for the study of corruption in general as well. Corruption is a system, everything is connected. It’s the water in which criminals swim, and it will drown the rest of us if we let it.

Earth League International embeds investigators in corrupt networks all over the world, and reveals how it is so much more than just the “abuse of entrusted power for private gain” and their report quotes multiple specific examples. The choice for an official standing in the way of a Transnational Criminal Organisation (TCO) is not between taking a bribe and being honest, it’s between taking a bribe and having a family member killed.

“Corruption tilts the playing field of justice by turning some officials or even agencies into additional arms of criminal networks, akin to painting a group of white chess pieces red and then commencing a match, giving the criminal side a decided advantage”, notes the report. And, it adds, “Transnational Criminal Organisations are savvy about which officials they approach, assessing weaknesses such as debt or family ties that may make them more vulnerable to financial offers or threats.”

It estimates the value of global wildlife-related crime at over $1 trillion annually, which is an astonishing amount of money, but an important point to take is that this is not a separate form of corruption. The same border officials that wave through illegal shipments of timber or shark fins also help with other forms of smuggling. The money that criminals funnel into politics undermines democracy in all ways. “Corruption is not the sole purview of less wealthy nations. It is everywhere. During investigations into illegal wildlife trafficking for (traditional Chinese medicine) in Europe, for example, Earth League International found enablers in San Marino, Italy, Belgium, and Poland,” notes the report.

There is something grimly ironic that so much of the despoliation that is making things worse for everyone is driven by the trade in “medicine” and thus a desire to make the world better. In reality, of course, pangolin scales and totoaba swim bladders are no more medicinal than my toenail clippings. Perhaps the ultimate expression of this is the demand for hallucinogenic toad venom, as detailed in this excellent article from a few years ago, which supposedly helps us all access the inner divine, but which is meanwhile wiping out the unfortunate toads that secrete it. “Most harvesters don’t have a consciousness about the sacredness of the species”, said a toad practitioner. “It’s just a hustle business.”

On a more geopolitical and less psychedelic level, this report on how Russia is repurposing its influence networks in Europe so as to maintain its fossil fuel exports show that other forms of corruption have huge environmental impact of their own. “The time for polite half-measures is over. Stronger enforcement, embargoes and tariffs on Russian fossil fuels to cripple exports, personal sanctions, and transparency rules are the only way to dismantle Russia’s covert influence architecture,” it concludes.

I’d add to that: we all need to build renewable energy sources like there’s a war on, because there is, and democracies urgently need to gain the freedom to act independently of autocracies’ control of fossil fuel supplies. You can’t act freely if someone’s hands are around your neck.

So, what’s the answer? As so often with financial crime, it’s possible to be overawed by the scale of the challenge. But the important thing is just to start. Here’s a manifesto from a coalition of British environmental groups, which gives some ideas. I particularly approve of this one: “government should introduce comprehensive protections and safeguards for whistleblowers, followed by financial incentives, to enable whistleblowers to disclose evidence of corruption and money laundering”.

Of course, corrupt officials are not just standing still while we agonise about how to stop them. I am particularly alarmed by the potential appeal of modern prediction markets for allowing politicians, military officers or anyone to profit from their privileged access to advance knowledge of government actions. Here’s a remarkable story about how people betting on the specific details of the Iran War sent death threats to a Times of Israel journalist whose reporting threatened to lose them a wager.

U.S. lawmakers have introduced a bill, the BETS OFF Act, for which acronym they deserve credit — to crack down on the markets that encourage this kind of behaviour, which was also observed in the hours leading up to the U.S. attack on Venezuela. “There’s no getting around the fact that any prediction market where somebody knows or controls the outcome of a bet is ripe for corruption,” said Senator Chris Murphy of Connecticut. “When events that involve good and evil, life and death become just another financial product, morality no longer matters and the soul of America is fundamentally corrupted.”

On that note, I see that someone is trying to juice the price of the $TRUMP memecoin by inviting its biggest holders to dinner at Mar-a-Lago, apparently with a speech by President Donald Trump (or whoever that is in the decidedly weird picture accompanying the announcement — Nigel Farage in a blond wig?), and an exclusive audience for the 29 biggest holders. The president, should he attend, will not, however, be accepting gifts, which is a weight off my mind. I had been worrying that this whole event was a bit dodgy.

The announcement of the event did boost the price of the $TRUMP tokens, as presumably did the announcement that Tether head Paolo Ardoino would be the headlining speaker, a remarkable turnaround for someone whose company was, just 18 months ago, having to vehemently deny it was the subject of a Department of Justice probe. Whether corruption will continue to be seriously investigated and punished, in a newly transactional world order, remains to be seen. The signs, though, are not promising.

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Iran’s cryptocurrency enablers

Oliver Bullough — Wed, 18 Mar 2026 13:55:00 +0000

There has never been a better time to be a billionaire. It’s official, Forbes says so, and it’s got the numbers to prove it. Top of the magazine’s annual list is, of course, Elon Musk who is only a Bernaud Arnault (worth about $147 billion) and some change away from being the world’s first trillionaire.

But to get the real headliner, we need to drop down to number 17 where we find Changpeng Zhao ($110 billion, since you ask), founder of cryptocurrency exchange Binance and business partner of the Trump family’s own crypto firm. Centibillionaires are old hat now but CZ is, as far as I can tell, the first centibillionaire on the Forbes list to have been pardoned by the U.S. president for egregious financial criminality. That feels like quite a big deal so congratulations to him.

CZ’s pardon last October was, according to the White House, because his 2023 plea deal and $4.3 billion fine for enabling money laundering on an industrial scale were the result of “an overly prosecuted case by the Biden administration” and part of a war on cryptocurrency.

Awkwardly for all concerned, Binance is now suing the Wall Street Journal after it reported that $1 billion had moved through the company to Iran-backed terror groups. And the Wall Street Journal has not only declined to spike the story, it has doubled down by reporting that the Justice Department is now investigating the firm’s actions. “The Wall Street Journal couldn’t determine whether the Justice Department is investigating Binance itself for potential misconduct, or solely the customers on its platform,” the WSJ said. But either way, considering the White House has committed to wiping out Iran’s support of terror groups and upended the global energy markets in its quest to do so, the news reports alleging that CZ’s company enabled those same groups would surely be embarrassing for all concerned, were any of them the kind of people capable of embarrassment.

After all, the fact that Iran is using crypto on a huge scale to evade the sanctions placed on its activities, and to support foreign proxies like Hezbollah, with the active connivance of some of the biggest companies in the crypto world, could only be a surprise to the most witlessly incurious of numbskulls. Or perhaps, I suppose, they are all making so much money from crypto that they don’t care who else might be.

While we’re on the subject of Trump, he’s at No. 640 on the list of billionaires as I write this, nearly tripling his wealth in just the last two years. Forbes has this very apropos explanation: “Donald Trump has presided over the most lucrative presidency in American history, adding billions to his net worth, largely by cashing in on crypto.”

But, I hear you ask, what about non-billionaires? How are the few billion of us whose net worth isn’t counted in the billions doing? Well, not great. And I’m beginning to feel a bit concerned about what this all means for democracy. “The widening gap between the rich and the rest is at the same time creating a political deficit that is highly dangerous and unsustainable,” said Oxfam International Executive Director Amitabh Behar back in January, and the situation has gotten worse since then.

The Bank of England’s animal stories

I spend a lot of time at the moment talking in public about money laundering because of my new book. Top of my list for policy suggestions for tackling financial crime, if anyone were to ask, is that governments should stop printing large denomination bills: $100 bills, €200 notes or — worst of all — Switzerland’s colossal 1,000-france banknote are little used by ordinary people, but extremely helpful for criminals looking to transport large amounts of wealth in a small space.

So, in one way it was great that Britain was temporarily convulsed by controversy around banknotes last week. It’s high time we talked more about them. Could this spell the end of the UK’s own big bill: the £50, of which the Bank of England issued almost an extra 30 million last year, even though pretty much the only people that ever use them are criminals and tax dodgers? Would Britain finally get serious about ending the epidemic of financial crime?

No, of course not, the controversy was entirely about the Bank of England’s decision to replace the pictures of people on its next series of banknotes with pictures of animals. For some reason, badgers were mentioned. Also otters. “It says all you need to know about the lack of seriousness of the Bank,” said former business secretary Sir Jacob Rees-Mogg, without any apparent irony, considering his own spectacular lack of seriousness in agreeing to comment on this absurdly unserious confection.

A sledgehammer that cracks nuts

While researching the anti-money laundering system that has grown over the last few decades, I have come to find it strange that there isn’t more public disquiet over the powers that governments have awarded themselves to check ordinary people’s transactions. When there is concern, it tends to come from crypto/libertarian bores (the kind of people who talk about ‘Operation Choke Point 2.0’), so perhaps no one else wants to be associated with it. But I think the situation would be a bit healthier if more of us engaged with what is being done to us in ways that we can get.

I obviously think that tackling money laundering is of huge importance, but I am coming round to the view that more public pushback over exactly how that is being done would be good. It would force policymakers to justify what they’re doing, and therefore come up with some techniques that actually work, instead of the ineffective but intrusive mess we have at the moment.

To cut a long story short, I found this contribution from the Dutch non-profit organisation ‘Privacy First’ to be interesting. “Instead of managing risk, banks seek to eliminate it by withdrawing altogether from customers or sectors perceived as problematic. The burden of compliance and over-enforcement often falls not on criminals, but on already marginalised communities with limited access to remedies,” it says.

I agree with that, and I agree also with its argument that beneficial ownership transparency should not be absolute. Were there to be opt-outs from ownership registries for vulnerable people, there would be less scope for rich crooks to argue that shell company transparency is a violation of their human rights.

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Why Kleptocrats go to war without a care in the world

Oliver Bullough — Wed, 11 Mar 2026 13:22:25 +0000

Kleptocracy is a global system, which allows crooks, thieves, oligarchs, tycoons, and the like to enjoy their wealth while evading any responsibility to the society where they obtained that wealth. It infects different countries to different extents, and I’ve been very impressed by the Bloomberg investigations into how kleptocratic the Iranian elite has become. If you’d like a shortcut to those investigations, this new video is worth watching. Obviously, Iran’s regime has been vicious and aggressive from the start, but I do think there is a new kind of vicious aggression that develops when a country’s elite becomes kleptocratic, and thus is — in essence — colonising its own country.

If it is extracting wealth, hiding that wealth offshore and thus secure in its future, it is able to take risks and make decisions without concerning itself about their effect on ordinary people. “While ordinary Iranians contend with a collapsing currency, rising prices, fuel shortages and now war, elites like (Hossein) Shamkhani have translated political lineage into global capital — buying property abroad, securing foreign passports and moving freely through systems that everyday citizens cannot enter,” Bloomberg notes.

Much of the elite’s ability to enrich itself has come from its evasion of Western sanctions, which Iranians have had decades of practice in learning how to dodge. And the role of cryptocurrencies in enabling Iran’s kleptocrats is clearly significant, as demonstrated by this report from Chainalysis. But of course the backbone of the corruption has been the elite’s control over trade, and thus its ability to move value to safe havens like Dubai (that’s not looking as safe as it did of course but, don’t worry, the money can easily find a new home), which gives it the security to fire missiles without worrying too much about retaliation.

In this though, I’m not sure Iran is particularly unusual. A lot of the governments involved in the crisis in the Middle East are a bit like those F. Scott Fitzgerald characters who “smashed up things and creatures and then retreated back into their money or their vast carelessness”.

Israel’s Benjamin Netanyahu has been dancing on the edge of a corruption trial for the best part of a decade, ever since he was indicted in 2019 for, among other things, accepting “hundreds of thousands of pounds in luxury gifts from billionaire friends”. Donald Trump’s family has assets worth more than double what they were just two and a half years ago. The earnings from crypto alone are enough to guarantee the most comfortable of futures. These two are very definitely careless people, as is everyone around them.

If this ill-planned military adventure ends badly, then the elites of none of the combatant countries will end up suffering in the way that ordinary Iranians, Israelis or Americans will. This sense of impunity infects much of the discussion of the war: how, for example, could someone who feels any connection to other people be exulting in their death in the way that U.S. Secretary of War Pete Hegseth does? In this bloodthirstiness, as in so many other aspects of kleptocracy of course, Russia led the way, but the rest of the world is catching up and I don’t think we’re ready for what that will look like.

An important aspect of this, again long visible in Russia with its dreadful public services and military failure in Ukraine, is that corruption does not just enrich elites, it also degrades state capabilities. “Corruption at the top always rolls downhill. Once it becomes open and acknowledged, it leads to corrupt and slovenly acts throughout a system,” as Phillips Payson O’Brien argues, in a piece which builds on another article in which he lays out how the Russian model might be worth applying to much of what’s happening in the United States.

This of course adds fresh weight, not that it’s needed, to the urgency of shoring up defences not just against foreign interference in the democratic processes of those countries that still have them, but to getting big money out too. It’s great that a U.S. politician has, for the first time, taken the Political Integrity Pledge and won (though admittedly only a primary), but just to get to the stage of standing in the general election, he’s had to raise more than $20 million. Too much of that and pretty soon you’re talking about real money.

This week at Tether

Talking about real money, the latest episode of Tether watch is a weird one: our favourite crypto concern has just invested $50 million in a smart mattress company. Now admittedly, that isn’t even two days’ worth of last year’s profits, so it’s not exactly a big deal for CEO Paolo Ardoino but it’s still sufficiently sinister to be worthy of mention.

I find it disturbing enough that tech companies are harvesting our browsing history to make money from, but it’s a whole other level to have Tether — Tether!?! — monitoring what people get up to in bed. It’s all, apparently, about personal sovereignty, which is to say you should stop trusting big companies with your data and instead trust it to Tether, including with what’s happening in your head: “Paolo's $200 million acquisition of a majority stake in brain-computer interface company Blackrock Neurotech may not be because he is optimistic about the size of the brain-computer interface market, but because he does not want the brain-computer interface to be controlled by others”.

Historians are going to be so confused by this; assuming of course that there will still be historians, which may be an over-optimistic assumption about a future with brain-computer interfaces.

The need to know your enemy

I’ve been talking to quite a lot of people about money laundering of late, and one of the enduring problems is the lack of reliable ways to gauge the scale of the problem. We’ve been saying it’s between 2% to 5% of the world economy since the late 1990s, but beyond repeating that age-hallowed guesstimate, how do you measure it?

Often we turn to other measures, such as how many suspicious activity reports get filed, or how many fines get imposed. So, on that note, is it good or bad that the UK’s Financial Conduct Authority imposed fines last year of just £124 million, a decline of 78% from half a decade earlier? Maybe this means there’s 78% less crime? Or maybe it means that the FCA has stopped investigating 78% of crime? Or maybe 2021 was just a really big year for fines (which it was)? Or maybe something else happened?

The answer to this is that we should properly investigate money laundering not just criminally but also academically, looking at gaps in statistics and devising new methods of measuring how large the criminal economy is, rather than rely on proxies for it. That would not only help us identify what to target, but also help us see what techniques are working as criminal wealth rises and falls. As it stands, it feels like we’re waging a war without a clear idea of where the enemy is, and what the final goal might be, and there’s quite enough of that going on elsewhere at the moment.

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The AI-powered ‘forever wars’ start now

Simon Allison — Fri, 06 Mar 2026 13:55:00 +0000

Between them, the United States and Israel struck more than 2,000 targets within the first 24 hours of their war with Iran.

For even the largest militaries, it is an almost impossible task to identify, select and then precisely locate such a high volume of targets. But the U.S. military had some help. Claude, the “next generation AI assistant” built by Anthropic, was used in the planning of ‘Operation Epic Fury’. This, even though the Department of War recently labeled Anthropic a “supply chain risk”.

Anthropic is one of the world’s leading AI companies. Together with Palantir, another Big Tech company, it has been working since 2024 with the Pentagon to embed its systems in military decision-making – creating what is arguably the operating platform of present-day U.S. warfare and intelligence. Even though secretary of defense Pete Hegseth said the company “delivered a master class in arrogance and betrayal” and that the government would “cease all use of Anthropic's technology,” the company is too integrated into modern U.S. warfare for it not to be essential to the U.S. attack on Iran. The question might be not whether companies like Anthropic can ringfence their tech but whether the Pentagon might just commandeer it.

Craig Jones, an academic who studies automated kill chains at the University of Newcastle, has told reporters that “the AI machine is making recommendations for what to target, which is actually much quicker in some ways than the speed of thought.” Similar AI systems have been used by Israel to coordinate its bombing campaign in Gaza, which is among the most destructive in human history.

Among the first hits in the United States and Israel’s aerial bombardment of Iran was the Shajarah Tayyebeh primary school for girls, in the southern town of Minab. It was a Saturday morning, and school was in session. According to Iranian state media, at least 165 people were killed, mostly young girls between the ages of seven and 12. Another 96 were severely injured. Eyewitness and open source intelligence reports corroborate the claims of mass civilian casualties. Both Iran and Israel have denied responsibility. The United States has said it is “looking into” allegations that the school was destroyed by one of its missiles. Maybe, given the volume of the bombardment, they’ve lost track.

It is too soon to know why the school was targeted – or whether it was an error. Either way, the U.S. military’s reliance on AI raises difficult questions.

AIs get things wrong all the time. Maybe it’s an extra finger in an AI-generated image, or a ‘hallucinated’ reference in a research report. Or, maybe, an algorithm sends a missile to the wrong address. That’s why Anthropic CEO Dario Amodei has said that weapons “that take humans out of the loop entirely and automate selecting and engaging targets” are simply not reliable enough. That position — along with Anthropic’s refusal to allow Claude to be used for mass domestic surveillance (although they are just fine with foreign surveillance) — led to the Pentagon cancelling a $200-million contract with the company on Friday, the day before the attacks on Iran began. The Department of War immediately signed a new deal, minus any ethical guardrails, with OpenAI.

Anthropic’s confrontation with the Pentagon has burnished its reputation as an “ethical” AI company. But it may have found its ethical backbone too late. Critics argue that even within Anthropic’s “red lines”, there is enormous potential for abuse, while a “human in the loop” does not necessarily prevent mistakes — raising questions about who, exactly, is responsible when these mistakes result in fatalities. Francesca Albanese, the United Nations special rapporteur for Palestine, accused Amazon, Google and Microsoft in a 2025 of being “complicit in genocide” for providing cloud storage systems to the Israeli military. Anthropic’s integration into the U.S. military has been much deeper.

While Israel and the U.S. are waging an AI-powered war, Iran is responding with a technological revolution of its own. The Islamic Republic has pioneered the production of low-cost one-way attack drones, most notably the Shahed-136, which costs just $34,000 to produce and as much as $4 million to shoot down. These are battle-tested: Russia has launched an estimated 57,000 Shahed-type drones in its war against Ukraine. Despite U.S. reliance on its own high-tech AI-powered systems, an American version of the Shahed also made its debut, alongside Claude, in the attack on Iran.

In response, Iran has aimed more than 1000 drones at neighboring Gulf states since the war broke out on Saturday. Hundreds have been shot down, but even the most sophisticated air defences struggle with this sheer volume, and dozens have struck their targets, threatening to prolong this war and cause more damage to U.S. allies than anticipated. It is significant that these targets included at least three Amazon data centers in Dubai and Bahrain. Just last month, Amazon announced that it was making Anthropic’s Claude available to its Middle Eastern customers. Claude experienced two global outages this week — it is not clear if these were related to the data center attacks.

Tech evangelists promise that artificial intelligence will, one day, cure cancer, end poverty and greatly increase our quality of life. But the new technology’s most obvious impact has been on warfare. For those with access to them, AI systems like Claude make it dramatically easier to bomb hundreds of targets at the same time — and much harder to figure out who is accountable when something goes wrong. On Truth Social, Donald Trump — who has promised to stop wars, not start them — posted approvingly that technology and munitions now mean Wars “can be fought ‘forever,’ and very successfully.”

As the bombing of Iran continues, we are not far from a time when AI not only parses data to select targets, it actually chooses when to pull the trigger. And advanced AI models have far fewer qualms, for instance, about deploying nuclear weapons than humans faced with similar scenarios. One day, when — if — war crimes investigators are able to pin down exactly who is responsible for killing dozens of young girls in Minab, tech bosses may find themselves implicated alongside military and political leaders. “The AI did it” can’t be their defense.

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Can a Task Force set up to punish the little guy, take on Trump?

Oliver Bullough — Wed, 04 Mar 2026 13:55:00 +0000

This is going to be a big year for the Financial Action Task Force, the world’s standard-setter on money laundering regulations, under its new president Giles Thomson. Quite apart from the standard folderol of plenary meetings, reports and publications, it is due to send a mission to assess the United States.

This whole process will not be quick, and there will be the usual abundant opportunity for acronyms, circumlocution and horse-trading. But eventually the hooves are going to have to hit the road. There is simply no way of hiding the fact that, under Donald Trump, the United States has broken its promise to bring greater transparency to shell companies; nor that it has scaled back prosecution of financial crimes, pardoned convicted financial criminals, and unleashed a crypto frenzy.

Throughout its history the FATF, set up by the G7, has been able and willing to overlook transgressions from big countries that it wouldn’t tolerate from smaller ones. It punished the remote island states of Niue and the Marshall Islands in its first ever blacklist for their lack of transparency around shell companies, for example, while merrily tolerating the fact that not even the Federal Bureau of Investigation could figure out who owned a corporation in Nevada. Nauru got punished for moving dirty Russian wealth while the UK and Switzerland didn’t.

The FATF’s structure, which ensures it is dominated by large economies, is a classic example of how, if you’re not at the table, you’re on the menu. But, in the past, those large economies have at least pretended to go along with its recommendations. They’ve made promises, passed legislation, convened working groups, said the right things: all of which has given everyone the diplomatic cover they need to keep each other off the naughty step.

Trump’s not doing any of that, and it’s hard to believe that he’s going to change that habit. If the FATF criticizes his administration, I think we can safely assume Trump won’t take that well, and could — if past behavior is any guide — pull the United States out. But if the FATF doesn’t criticize what he’s been up to, it will lose all credibility.

Speaking for myself, I think the FATF’s conception, structure and techniques are all flawed, perhaps irreparably, and that it has been part of the problem, rather than part of the solution, for most if not all of its 37-year history. Perhaps, therefore, Giles Thomson should get ahead of the looming fiasco by declaring a complete overhaul of the whole organization, re-examining its recommendations, its memberships, its strategy, and more.

What are the chances of that happening? Well, here’s some news from the Pacific: “Papua New Guinea one step away from being blacklisted, global money laundering watchdog warns”. Is Papua New Guinea the problem? No. Do we get anywhere by pretending that it is? Also no. Will the FATF carry on regardless anyway? I would love to be surprised by the answer to that question.

The need to clean house

I’m a big fan of this video from Transparency International’s UK chapter, which lays out the inglorious history of corruption in British politics, and urges the government to be more ambitious in its new piece of legislation. TI has pointed out three areas where it thinks the government should go further, and I agree with all of them, but I would also like to see a complete ban on crypto donations, which would help prevent compliance departments being overwhelmed by automated efforts to circumvent donation limits.

I would also urge you to read this comment piece from RUSI about the threat to democracy posed by big funders from the American right, which has significance far beyond British politics. The world’s remaining democracies have been slow to recognize how radically the values of many U.S. billionaires have diverged from what we traditionally associate with conservatism, and to shore up their defences against them. “The task now is to strengthen our democratic guardrails — calmly, transparently and proportionately — before those boundaries are redrawn by others,” the writers Neil Barnett and Eliza Lockhart conclude.

Transparency International’s Russian chapter has been in exile since 2022 for obvious reasons (last year, for example, it had to issue a statement to argue that “fighting corruption is not terrorism”) but it has continued to conduct really valuable investigations into how illicit wealth flows in and out of its home country, including a recent one detailing the use of shell companies in the UK’s tax havens to trade with Russia, and identifying $8 billion worth of transactions.

The worst offender as a source of opaque companies was the British Virgin Islands, though Bermuda was also a problem, moving sanctioned products — including lead and zinc — as well as oil and other fossil fuels, a surprisingly large number of yachts, and a jet that ended up belonging to Chechen strongman Ramzan Kadyrov (whose ill-health is, apparently, once more the subject of speculation, poor chap).

“For many years now, we have observed a dysfunctional equilibrium in which illicit financial flows, tax evasion, sanctions circumvention, and other forms of misconduct are channelled through firms and intermediaries registered in unaccountable jurisdictions,” TI-Russia notes. Fortunately, however, the British government is hosting an illicit finance summit this June and so has the perfect opportunity to set an example by making sure this kind of thing stops happening on the territory it’s responsible for if nowhere else.

Here’s an interesting story from the Netherlands, where luxury firm Louis Vuitton was fined half a million euros for failing to identify customers spending large amounts of cash. This case was part of an investigation into the Chinese money laundering technique known as ‘daigou’, in which value is transferred internationally not via the financial system but by buying expensive objects and then reselling them in China. High-end fashion is often used in the system, and it will be intriguing to see if other countries follow the Dutch lead and investigate unusual cash purchases.

And here’s a piece on our favorite crypto company Tether, which is apparently valued by market participants at between $200 and $350 billion. That is less than estimates made in the summer, but still an awful lot of money. Fun fact: finance firm Cantor Fitzgerald has a five percent stake in Tether, which is thus worth $10 to $17.5 billion, via a convertible bond. Another fun fact: Cantor Fitzgerald is owned by Commerce Secretary Howard Lutnick’s children.

Interesting question, would the prospect of your family earning a windfall of that size affect how stringently you would approach the regulation of a financial institution accused of involvement in industrial-scale money laundering? Lutnick, who led Cantor Fitzgerald for over 30 years, is of course not the kind of man who would let petty cash cloud his judgement, so this question is of academic interest only, but still, worth thinking about.

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The strike, the illusion of regime change, and what comes next

Jim Muir — Mon, 02 Mar 2026 08:34:29 +0000

That Iran's Supreme Leader, Ayatollah Ali Khamenei, should disappear, or be disappeared, from the scene was not a novel notion.

Throughout my nearly five years in Tehran at the turn of this century, speculation about his health and longevity was a near-constant background hum. He was reported, or rumoured, to be mortally stricken by prostate cancer, his constitution already weakened by an assassination attempt in 1981 that left his right arm largely useless. Who would succeed him was far from clear, and the object of further speculation.

As he lived on into more recent times, reaching the same age of 86 attained by his predecessor – the Islamic Republic's founding father Ayatollah Ruhollah Khomeini – the prospect of his demise became a more immediate issue, though the question of succession remained equally shrouded in uncertainty. As Supreme Leader, Ayatollah Khamenei was the commanding voice behind the ruthless crackdown that took the lives of tens of thousands of citizens early this year in the latest and greatest of many escalating protests, at which the slogan "Marg Bar Diktator!" — Death to the Dictator! — became an increasingly prominent slogan.

Their wish was confirmed to be true at 5 a.m. local time on Sunday morning by Iranian broadcasters. The previous morning, Khamenei’s compound in Tehran was demolished as the Israeli-American onslaught got under way while the Ayatollah was heading a meeting of the Defence Council. That ensured that top military figures were also killed, including the commander of the Revolutionary Guards, Mohammad Pakpour, the Army Chief of Staff Abdolrahim Musavi, and Khamenei's top military adviser, Ali Shamkhani, who had been wounded but survived the attack in June last year.

The Iranian leadership appears to have been caught by surprise, as it was last year when the opening Israeli strike, which culled many top military leaders as well as nuclear scientists, was launched between two rounds of indirect negotiations between Iran and the U.S. Oman, which was mediating the talks, was furious then, denouncing Israel as the real destabilising factor in the region.

Perhaps the Iranian leaders — and the Omani mediators — thought that such a dirty trick could only be pulled once. But it has happened again, with no evidence that the talks in Geneva had broken down. The chief Omani negotiator, Badr Albusaidi, was livid. Only hours before the strike, he was in Washington for meetings “to explain that a peace agreement between the U.S. and Iran is now within reach. No nuclear weapons. Not ever. Zero stockpiling. Comprehensive verification. Peacefully and permanently. Let’s support the negotiators in closing the deal.”

After learning of the attack, he expressed his outrage in another tweet: “I am dismayed. Active and serious negotiations have yet again been undermined. Neither the interests of the United States nor the cause of global peace are well served by this. And I pray for the innocents who will suffer. I urge the United States not to get sucked in further. This is not your war.”

But Donald Trump and the U.S. were already thoroughly sucked in, and it was indeed their war, or at least his. According to the Israelis, the date had been decided jointly weeks before, after months of planning. Which meant that the Geneva negotiations, focused on the nuclear issue, were simply deceptive camouflage designed to give time for the U.S. to complete the marshalling of its biggest naval and air buildup in the region since the 2003 invasion of Iraq.

Trump and the Israeli prime minister Benjamin Netanyahu soon made it clear that the campaign now had little to do with the niceties of Iran's nuclear programme: the agenda was regime change in Tehran, and a surprise attack to decapitate the regime was an essential element.

With Iran's air defences largely taken out in last year's 12 days of war, it was like shooting fish in a barrel. Hundreds of air, missile and drone strikes were carried out on missile launchers, military bases and other targets around the country, with inevitable "collateral damage", including a girl's primary school in the southern town of Minab where scores of children were reported killed.

People gathered in Tehran's Revolution Square to mourn the assassination of Iran's Supreme Leader Ayatollah Ali Khamenei on March 1, 2026.

The Iranians did their best to live up to their dire warnings of deadly reprisals against Israel, and against American bases and allies on the Arab side of the Gulf and elsewhere. Missiles hailed down on airports and other installations in Kuwait, Bahrain, the UAE, Saudi Arabia and even Oman, despite its active mediation. While some U.S. bases may have been hit, so too were many civilian sites such as Dubai's iconic Burj al Arab hotel. Explosions too are being heard in Beirut, after Hezbollah fired rockets and drones at northern Israel to "avenge" Khamenei's death and the Israel Defense Forces struck back.

Air traffic was halted throughout a region rich in international hubs, sowing chaos worldwide. Iran's declaration that the strategic Strait of Hormuz was closed to shipping forced cargo shippers to suspend the voyages that transport some 20% of the world's oil and a lot of liquid gas, causing tremors through international markets. Once again, a decision taken by a tiny circle of men in Washington, Jerusalem and Tehran instantly rewired daily life, reminding us who actually gets to pull the global emergency brake.

What all this would do to Iran's relations with the Arab side of the Gulf was one of many open questions. While Oman was actively mediating, the other Arab oil states had been pressing the Americans not to allow a campaign that would predictably destabilise the region, and declaring their airspace not available for any hostilities. But any sympathy for Tehran quickly evaporated when the missiles started flying in: the Gulf Arab states closed ranks.

Trump and the Israelis made it clear that this was not one quick spectacular strike, but an ongoing campaign that would last days, perhaps even weeks. Presumably at the end, Iran would find its missile capabilities "obliterated," in Trump's favourite term, along with any nuclear activities.

Once the bombs stop falling, Trump and Netanyahu urged, the Iranians should come out of their basements and take over a government that would be theirs for the taking. A historic opportunity that would likely not recur for generations, Iranians were told.

But it is hard to imagine such regime change being wrought remotely from the skies. The regime lost little time in filling the leadership vacuum, setting up a three-man ruling council in line with the constitution, composed of the President, Masood Pezeshkian, the head of the Judiciary, Gholamhossein Mohseni-Ejei, and Ayatollah Alireza Arafi from the Council of Guardians. All regime loyalists, and the latter two noted hard-liners. So business as usual as far as they are concerned. But the fact is that the assassination of the Supreme Leader and the attendant bludgeoning of the regime's capabilities will inevitably usher in a new and unpredictable phase in Iran's turbulent history.

On the streets, reactions were fractured: jubilation in areas that had long chanted “Death to the dictator”, state-promote mourning in others, but also fear and a grim resignation, an understanding that power vacuums are often filled with fresh repression or civil war.

A smooth transition to a peaceful democracy is about the least likely scenario among the many possibilities. So too is an imminent return of the monarchy, with a comeback by Israeli-backed Reza Pahlavi, son of the Shah ousted by the 1979 revolution. So far there has been no sign visible to the outside world of a split in the ranks of the defenses built up by the Islamic Republic, which still has regular military forces numbering around 400,000, Revolutionary Guards of up to 190,000, and its auxiliary militia enforcers, the Basij, who may be able to mobilise around a million at street level.

There must be much anger among regime loyalists, which may fall on the heads of any opposition protestors who imagine they can move in and take over the reins of government from the bombed-out wreckage of the Islamic Republic. The U.S. military is not likely to be able to remain engaged in the detail of defanging the regime once the main thrust of the campaign is done. But Israel likely will. Its equivalent of the CIA, the Mossad, has spent years building up formidable intelligence at street level, and will be doing its utmost to continue hamstringing the regime from within and fomenting opposition.Among the many unanswerable questions is whether all this will lead simply to chaos and fragmentation, which is probably Israel's preferred outcome, or to a more compliant regime willing to compromise with the U.S. in order to get crippling economic sanctions lifted. As Trump concedes the war might last weeks, who knows what Iran will eventually emerge from the smoke and the rubble?

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The phoney war: Will the U.S. strike a decisive blow against Iran?

Jim Muir — Fri, 27 Feb 2026 13:55:00 +0000

Will he or won't he? The Middle East is on tenterhooks as the U.S. continues to build up a massive and menacing military posture around Iran, threatening an attack that could trigger a conflagration whose tremors would be felt throughout the region.

If anybody hoped that the man on whose word it all hangs, President Donald Trump, might clarify his intentions in his State of the Union address on Tuesday night, they were disappointed.

Speaking 36 hours before a third round of indirect and ultimately inconclusive talks with the Iranians in Geneva on Thursday, he said, "My preference is to stop this problem through diplomacy but one thing is for certain, I will never allow the world's number one sponsor of terror, which they are by far, to have a nuclear weapon...they want to make a deal, but we haven't heard those secret (sic) words, 'We will never have a nuclear weapon.’”

In the run-up to the Geneva talks, led on the U.S. side by real estate moguls Steve Witkoff and Trump son-in-law Jared Kushner, Iranian officials voiced optimism that a deal could be struck and insisted they would be flexible on the nuclear issue. Various formulas were being bandied around, such as Iran sending abroad half of its estimated 300kg of highly enriched uranium and diluting the rest under supervision, participating in a regional consortium for peaceful enrichment and so on.

In theory, for Iran to say "We will never have a nuclear weapon" should not be an issue — it has said all along that it is not pursuing that goal, which is banned by a fatwa. Iranian foreign minister Abbas Araghchi posted on X this week that Tehran “will under no circumstances ever develop a nuclear weapon.” Which begs the question as to why it has enriched uranium to 60% — short of weapons grade but well beyond the levels needed for peaceful civilian purposes.

Witkoff and Kushner will be vigilant for signs of Iranian duplicity and foot-dragging. But with another set of talks ending with no deal apart from promises of more talks, both sides might simply be playing for time, Iran to delay the feared blow, and the U.S. to finish assembling the assault force, its biggest mobilization of naval and air power in the region since the 2003 invasion of Iraq.

There is strong apprehension in the region that the huge and costly U.S. buildup must mean business. American bombs and missiles would hit Iran. The Iranians would make good on their threat to make it a regional war, not a symbolic retaliation as happened in the 12-day war in June last year after American bunker-buster bombs hit Iran's nuclear facilities in Isfahan, Natanz and Fordow. This time Iranian missiles would target U.S. military assets, bases on the Arab side of the Gulf and elsewhere, and perhaps oil installations. And Israel. The Israelis would hit back hard. Hezbollah in Lebanon would do its best to join in, prompting a further massive Israeli response.

There were ominous straws in the wind. The U.S. withdrew non-essential personnel from bases in the Gulf, and from its embassy in Beirut. The Israelis reportedly warned Lebanon that if Hezbollah joined in, they would hit back at government targets, including Beirut airport, which were unscathed throughout the earlier hostilities. They stepped up their daily attacks on suspected Hezbollah targets, including a big missile attack on February 20 on the eastern Beqaa valley which left 12 dead, including eight Hezbollahis. Since the November 2024 ceasefire, Hezbollah has not fired so much as a peashooter at Israel while well over 400 of their people have been killed in Israeli attacks on Lebanon.

Does all this mean the doomsday scenario is inexorable? Are the Americans set on a clear game plan, with identified objectives and the means to attain them?

Apparently not. Trump is reportedly receiving divided counsel from his advisers, military and political, some more hawkish and others more cautious than others. Above all, he has an eye on the looming mid-term elections in November. He was elected on a platform of ending the "forever" wars in the Middle East, yet could be on the brink of starting another one, which would not go down well with part of his MAGA base or the public in general.

The signs are that he was hoping the swashbuckling display of power would intimidate the Iranians into buckling. Witkoff admitted Trump was puzzled that Iran had not capitulated. “Why, under this pressure, with the amount of sea power and naval power over there, why haven’t they come to us and said, ‘We profess we don’t want a weapon, so here’s what we’re prepared to do?’ And, yet, it’s sort of hard to get them to that place,” he told Fox News. Iran's Foreign Minister Abbas Araqchi explained: "It's because we're Iranian."

Trump's adrenalin was clearly set pumping by the adventure in Venezuela, where a similar military buildup culminated in the operation to abduct President Nicolas Maduro. But Iran is not Venezuela. It is a highly militarized regime which has spent 47 years preparing its internal and external defences, and which has different power bases that make it hard simply to decapitate. There is no magic bullet that might not set the region on fire.

Taking out the Supreme Leader, Ayatollah Ali Khamene'i (who is also a religious leader, and this is Ramadan) would not be likely to bring about a change in regime behavior as in Venezuela. Bringing the regime down altogether would require a prolonged and detailed campaign that the U.S. military machine might not be able to sustain.

That's where Israel comes in. Some White House advisers reportedly believe it would play better politically for Israel to strike first rather than the U.S., and thus force Iran to retaliate. Like Trump, Israel’s Prime Minister Benjamin Netanyahu is a man with an eye on impending elections (October at the latest) is Prime Minister Benjamin Netanyahu, who makes no secret of his ambition to see the Iranian regime brought down. Netanyahu — backed by almost the entire Israeli political spectrum — is clearly champing at the bit, but aware of the danger of being seen to drag the U.S. into a potentially messy embroilment. One reason perhaps for the unusually discreet nature of Netanyahu's sixth visit to the White House on February 11 — in through the back door, no lovefest press appearances.

Which may also actually have been a sign that the two allies might not be on the same strategic page. Plunging Iran into fragmentation and chaos would absolutely fit Israel's playbook, but not necessarily America's. The two are working at cross-purposes in Syria, where the Israelis are pushing against a strong central government which the U.S. is supporting, even against its erstwhile Kurdish allies in the north-east.

If there are two constants in the current equation, they are that the Iranian people’s disillusionment and rage against the regime will not go away, and neither will Israel's desire to overthrow it. But if Trump does not share that goal, he will have to find a face-saving way to wriggle off the hook he has created with his ostentatious military buildup.

A version of this story was published in this week’s Coda Currents newsletter.Sign up here.

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Why we must make elections cheap again

Oliver Bullough — Wed, 25 Feb 2026 13:55:00 +0000

I like writing about the huge consequences of tiny details: a compromise made at a G7 meeting in 1989 by people who didn’t know what they were doing that now defines all anti-money laundering work; an opportunist deal among London bankers in the mid-1950s which created the globalized financial system; things like that (read my books if you want more.)

Few tiny details are more consequential than the rules around democratic processes, and particularly those that define who pays for them: just look at the effects of the U.S. Supreme Court’s decision in a dull-sounding case in 2010. A lot of other democracies are looking at the U.S. right now and thinking they’d like to avoid replicating this experiment with endless money, which is one reason why the UK has a new ‘Representation of the People Bill’.

As it stands, it looks like a big missed opportunity.

Much of the requirement for the tighter rules proposed in the bill is the need to tackle foreign interference, a concern stoked by suggestions that the Kremlin helped secure victory for both Brexit and Donald Trump in 2016. Although I can see why we don’t want Vladimir Putin near our political systems, I’ve always thought these concerns missed the point: home-grown oligarchs dislike democracy as much as Russian ones do and, since they are more numerous, richer and far better-connected, we should worry about them more.

So, it is a great shame that the UK’s new bill hasn’t imposed a cap on political donations to prevent the kind of funding arms race that has infected the United States, and which is gearing up in the UK too, or stripped away a lot of the unnecessary complexity in the existing regulations that create the kind of loopholes exploited in the Brexit referendum. Most importantly, it has failed to address the growing threat of cryptocurrencies and impose the same kind of ban on crypto donations that Ireland has.

A democracy is sovereign, and a crucial defence of that sovereignty is ensuring only actual voters fund its operations. British law enforcement agencies acknowledge that they already don’t have the resources they need to keep up with what bad actors are doing with crypto, so why would politicians take the risk of allowing crooks to buy influence by making it easier for them to hide what they’re doing?

“If you put an element of crypto in what is already a complicated and sometimes lengthy trail to hide the true source of the funds, you are just adding another layer of complexity. Anything we can do to take away that friction is good,” said Rachael Herbert, director of the National Economic Crime Centre, to a parliamentary committee.

It is not too late to close this gap in the bill, and to prevent it from becoming one of those little details with huge consequences. Blocking cryptocurrencies will not solve the problem caused by oligarchs’ assault on democracy, but at least it would help not make it worse, and it is always easier to mend things before they break.

On that note, credit to Daniel Lobo-Lewis for trying to use some of the mechanisms of the unregulated U.S. political funding system for a good cause (“Give us money to get money out of politics. It makes sense if you don't think about it too hard”) by creating the political integrity project. He’s built a tracker so you can see how much cash different candidates have raised, and which of them have pledged to try to get money out of politics, and it’s a lot of fun to play around with.

Here’s what it looks like when there is unfettered money in politics. Lobbyists for crypto firms are planning to spend $263 million on the midterm elections this year. That is not only more than the entire oil and gas industry spent in 2024, but more than double the total spent by all parties in the UK’s last general election. This is not healthy.

I’ve largely avoided writing about the Jeffrey Epstein revelations, because I don’t feel like I have anything to add to what everyone else has already said, but they do spectacularly demonstrate the size of the threat posed to girls in particular and society in general when the political, cultural, financial and economic elites of a country become entangled, give each other money, do each other favours, and generally take over the world.

Preventing this kind of collusion is why it’s important to keep big money out of politics, so at least there is a source of power in society that’s independent of the oligarchs.

Crooks thriving in chaos

While on the subject of human trafficking, Chainalysis has produced this alarming report on how crypto helped traffickers move their profits last year, including from child sexual abuse material (CSAM), with a staggering 85% increase in them dong so over 2024.

“CSAM networks have evolved to subscription-based models and show increasing overlap with sadistic online extremism (SOE) communities, while strategic use of U.S.-based infrastructure suggests sophisticated operational planning,” the report notes.

The report gives more evidence for how Chinese money laundering networks based in Southeast Asia are using cryptocurrencies to expand their influence globally (as they also are in fraud), with business deals coordinated via the encrypted messaging app Telegram, and laundered via sophisticated techniques beyond the reach of law enforcement even at the best of times.

And this is not the best of times, what with the United States having abdicated its traditional role as the only country serious about investigating, prosecuting and convicting financial criminals.

“Enforcement is now solely in Washington’s hands, allowing politically driven cases to proceed or be stifled,” noted John Lothian in this scathing commentary contextualised by the FT. “Given the pardons issued by President Trump, there has never been a better time to be a crook. This chaotic formula for enforcement is a disaster or a cluster of disasters waiting to happen, given the explosive growth in retail futures trading, prediction markets, and legitimized crypto trading… ‘God help us’ is the last defence.”

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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First, they came for the journalists

Isobel Cockerell — Mon, 23 Feb 2026 14:00:00 +0000

Hundreds of journalists are forced into exile each year, from every corner of the world. As authoritarianism and censorship rise, reporters are among the first to feel the pressure — pushed out of their homes and separated from the careers, sources and communities they’ve built. The number of journalists forced into exile is rising. In Latin America alone, more than 900 journalists were forced into exile between 2018 and 2024. Almost half of the journalists killed around the world last year were by Israeli forces in Gaza; the tally is close to 300 for the duration of the war. The genocide created impossible conditions for Palestinian journalists, forcing some to flee the Gaza strip entirely.

In a digitized, connected world, exile doesn’t mean silence. Using open source intelligence techniques, encrypted messaging, and data, journalists can report in real time from thousands of miles away, serving communities they can no longer reach in person.

We spoke to four journalists from four countries who have spent the past decade working in exile. Some left gradually, step by step. Others had only hours to abandon their lives. Every year, hundreds more join them — barred from returning home, facing imprisonment or persecution if they do, uncertain when or whether they’ll see their families again.

Still, they keep reporting. These are their stories.

Ekaterina Fomina – Russia

When Ekaterina Fomina was working as a reporter in Moscow, her favorite kind of journalism was old-school shoeleather reporting: traveling to far-flung regions of Russia, knocking on doors, talking to rural families who lived most of their lives offline. “My main tools were my legs and arms,” she said.

In the lead-up to Russia’s invasion of Ukraine, Fomina began to grasp that one day soon, she might have to leave the country. Media outlets across Russia were facing intense pressure. As each day passed, the government implemented new censorship and repression laws. “We knew that if the government labeled us an “undesirable organization”— a criminal label in Russia — we could be arrested,” she said. Every newsroom had some kind of contingency plan in place for leaving, but the plans were vague and abstract. Fomina and her colleagues made sure they had visas ready in their passports for Europe, in case they had to leave quickly. “But we were not ready for a real tragedy.”

Russia launched its full-scale invasion of Ukraine in February 2022, and Fomina went into overdrive, covering the war.

“The polarization, the open war towards another country, made me realize that my position in society was completely different from those of many people around me. It was very difficult for me to accept that my fellow citizens could support such cruelty,” she said. “In the first weeks of the war, seeing this support made me realize that it would be very hard to live in this country.”

Fomina — who was reporting for the independent outlet iStories — understood it would be impossible to cover the war from inside the country without facing prosecution. “The only option was to leave the country and continue covering the war openly.”

It was not immediately obvious how long she would be away for. Her friends and colleagues reassured her that this wouldn’t last forever, but she wasn’t so sure. “Everything was unpredictable, and it was unclear how it would affect our destinies,” she said. She had no illusions that she would ever come back to Russia.

“I don’t even remember the whole process of escape, because in the very first days of the war my colleagues and I were constantly working — covering events, talking to people on both sides, but especially people in Ukraine.” In the meantime, she packed up her life in one day. She packed just one suitcase, giving a few things to her mother, and throwing the rest away. She took a handful of souvenirs from Russia — gifts from friends and family, a T-shirt with Cyrillic letters on it, talismans of the life she was leaving behind.

In the middle of a cold March night in Moscow, she said goodbye to her mother and grandmother, not knowing when she would see them again. “The scale of my personal tragedy couldn’t be compared to the scale of the tragedy happening in Ukraine. Only years later can I evaluate how awful, how tragic, and how traumatic those events were for me. But at that moment, it was just a feeling of adrenaline,” she said. “At an intuitive level, I felt that this was the last peaceful moment of my life in Russia.”

Living in exile in Europe, Fomina began to reorient her reporting techniques. She could no longer be a shoeleather reporter, using her legs and arms as tools and knocking on doors. She began investigating war crimes using open-source intelligence techniques.

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Not long into her exile, she investigated Russian soldiers who had been there during the massacre in Bucha. She started by tracing evidence from a survivor’s phone. The phone and its calling credit had been confiscated by Russian soldiers, then used to call their families back home. When it ran out of credit, the soldiers left it behind. One survivor recovered it and gave it to Fomina. Using investigative techniques and leaked data, she identified the numbers on the call log as belonging largely to relatives — mothers and wives — of Russian soldiers. She was then able to verify precisely which soldiers had been deployed in the area.

For her work on this investigation, Fomina was arrested in Russia in absentia in the summer of 2024. Then, on March 31, 2025, a Moscow court sentenced Fomina to 8.5 years in prison for disseminating “fake news” about Ukraine out of “political hatred.”

“On the one hand, you know that you did everything right,” Fomina said, describing her schooling, her education, her constant pursuit of the truth in journalism. “But on the other hand, you are facing such limitations and such punishment.”

“I suppress my trauma in order to continue doing this,” she said. “But I can’t stop doing my work because the war crimes are continuing.”

It is now four years since Fomina fled Russia. Barring a dramatic regime change in the future, there’s no prospect she’ll ever return.

Luz Mely Reyes - Venezuela

Luz Mely Reyes left Venezuela in slow motion. In 2015, she was the editor-in-chief Efecto Cocuyo, a small newspaper in Caracas. “Our heart as journalists was not to be too close to power. Power can be very seductive. But when you are too close to power you can lose the heart of your duty. So we tried always to be close to the common people,” she said.

In 2018, a Venezuelan politician and opposition member called Fernando Albán mysteriously fell from a tenth-floor window while being held in custody. Nicolás Maduro’s government said he jumped. Reyes wasn’t so sure. “I asked questions on my Twitter account — why was he on the 10th floor, how did he jump?” she recalled. After tweeting, she turned her phone off to focus on writing. Suddenly, her husband’s phone began to ring. It was a tip-off: police were discussing Reyes’ tweet online, and talking about detaining her. Reyes scrambled to leave the country, only coming back a few months later when the dust had settled.

All too soon, she had to leave Venezuela again — this time because of her coverage of a journalist who had been arrested in the middle of a blackout.

And so her wandering years began. Whenever Reyes felt too much pressure from the authorities, she would leave Venezuela for extended periods, spending time in neighboring Brazil and Colombia, before slipping back into Venezuela when she felt it was safe.

“I had to accept that I wouldn’t be able to live in Venezuela anymore,” she said. But she continued to shuttle back and forth. The authorities canceled her passport twice, threatened to imprison her, increasing the pressure all the time. Her team told her how it didn’t make sense to be in Venezuela — that she couldn’t do her work properly while she was constantly in hiding, on high alert.

Finally, after five years of this, she booked a one-way ticket out of Venezuela. She now lives in Austin, Texas, and doesn’t know if she’ll ever go home.

“I had been struggling for about five years to accept that the government was expelling me from the country. I finally accepted that I was in exile — because if you can’t return to your country without the risk of being persecuted, well, you’re an exile.”

Reyes hasn’t stopped working for the people of Venezuela. During the US military strike on Venezuela and the capture of Maduro, she mobilized her sources and contacts across the country. She and her team livestreamed updates for ten hours straight, confirming the facts, debunking disinformation as the extraordinary events of January 3 unfolded.

She feels the pain of being away from home acutely. “They say there are seven stages of grief when you’re forced to migrate. One grief I always have is for the landscape, for the weather, for the beach, for the space I was in, for the sun,” she said. “It’s very physical. I feel like a tree that has been ripped out of the ground.”

There is no job she would rather do, though. “If I had to do it all over again, I would choose to be a journalist.”

Zahra Joya - Afghanistan

Zahra Joya’s world changed forever over just a few days in August 2021. On August 14, she was working in Kabul as editor-in-chief of Rukhshana Media, an Afghan women’s journalism platform. The following day, Kabul fell to the Taliban. Joya joined the chaos of people fleeing the country out of Kabul airport. She arrived in a hotel room in London on August 26 — in less than a fortnight, everything she knew was gone. “Everything vanished overnight,” Joya said. From her hotel, she couldn’t stop reporting.

“I personally was safe, but when I looked back to all our achievements, to all the work that we had done, it gave me this chance to rethink my circumstances. I realized I could not stop my work. So we continued.”

Rukhshana Media’s burgeoning team scattered to the four winds following the collapse — some made it out of Afghanistan like her, others took shelter within the country, where it was no longer safe for them to keep working openly.

Founded in 2020, Rukhshana Media is a platform for female journalists — a space for stories by and about women in Afghanistan. It was named after an Afghan teenager who was stoned to death after being accused of adultery in 2015.

Joya had to find a way to keep Rukhshana Media alive. She began, frantically, to build a completely new team, from thousands of miles away.

“It was a terrible moment of my life. It was something I never, ever imagined I would go through,” she said. ““It was impossible for me to not think about Afghanistan just because I was outside.”

Joya scoured social media for new reporters. Then came the complex problem of how to hire them. How to look after journalists on the ground in Afghanistan under Taliban rule, keep them anonymous, and keep them safe, from thousands of miles away? She drew up a security plan and a code of conduct for her team. “I tell my colleagues, “please prioritize your safety. No information is worth your safety.”” She decided not to tell each reporter who their colleagues were, so that if they were captured by the Taliban, they would have no information to hand over under interrogation.

Bathed in the glow of her computer in her government-issued hotel room in London — where she stayed for a year — Joya worked and worked to publish as many stories as possible from on the ground in Afghanistan.

“For the women of Afghanistan, one of the only ways to raise their voices is through media,” Joya said, describing how Afghan families often call her asking for help, asking if she can write about their situation. Families of female activists call Joya as soon as their relatives are imprisoned by the Taliban.

“I feel guilty sometimes because people rely on me. They’re inside the country and they want to raise their voice,” she said. “My colleagues are taking their life in their hands to gather information.”

To evade capture, Rukhshana Media’s reporters often need to switch phone numbers without warning, meaning people can go dark at any time, and there are panicked moments where Joya doesn’t know what’s happened to them.

In September 2025, the entire country went dark without warning. The Taliban had shut down the internet completely — stating it was being blocked "for the prevention of vices." All of Joya’s contacts, reporters and sources stopped responding.

“Afghanistan was cut off from the world. It was terrible. It reminded us of the fall of Kabul all over again. We had no idea what was going on in the country,” she said. When the internet came back on, her work continued, the pace relentless — and it hasn’t stopped since.

Jesús Adonis Martínez Peña - Cuba

The idea for El Estornudo — a narrative journalism magazine covering Cuba — started on a balcony in Havana in 2015. A group of young people, many of them university students, gathered together and talked about their dream to tell the stories of Cuba on their own terms.

“It was a time of bilateral tension between the United States and Cuba, and the situation in Cuba wasn't as serious in terms of the social, political, and economic crisis as it is now,” remembers the editor-in-chief of El Estornudo, Jesús Adonis Martinez Peña. Widespread internet had not yet arrived in Cuba, but more and more people were getting access every day, and new media outlets were springing up –– “basically in what had been, up until that point, a wasteland in terms of independent media.”

Together, the young journalists drafted a manifesto for their magazine, which they published on March 16, 2015, Journalist’s Day in Cuba.

“In Cuba, the press is a neo-colonial republic. With flags, coats of arms, statutes, organizations, prizes, forums, infinite debates — but without independence,” they wrote. “If you want to know Cuba beyond the clash of slogans and the three or four topics recycled by the contemporary media world, you have to read this magazine.”

They decided to call their magazine ‘El Estornudo’ — The Sneeze. The name, they said, reflected their own reflexive need to “react against the prevailing climate, the urgent need to expel something.”

More than a decade has passed since that balcony brainstorming session. “Ten years later, and here we are. And most of our founders are scattered around the world,” Peña, who is now based in Chicago, said. Peña himself believes he can still go back to Cuba if he stays low-profile, doesn’t work, and just sees his family. But a number of his colleagues can’t. “My colleague who edits the magazine with me, they wouldn’t even let him board the American Airlines flight.”

The situation for Cuban journalists is specific to the island. “In Cuba, no one is going to shoot us in the head for journalism,” the Estornudo staff wrote in their founder’s letter ten years ago. This still holds true today — and it’s important, Peña said, “to respectfully acknowledge the realities for our colleagues in the region, in Central America, in countries like Mexico, where there are journalists being killed. We have the imperative, the duty, to do journalism under our own specific conditions of totalitarianism.” Reporters in Cuba exist within an insidious culture of fear and control. “The press is constantly under siege by state security. They monitor our colleagues, restrict their movements within the island, put police patrols in front of their houses — it functions almost like a temporary house arrest,” Peñam said. “There have been arrests, interrogations; they put pressure on the families of journalists too, pushing them into exile too.”

Since the Trump administration’s kidnapping of Venezuelan President Nicolás Maduro and the subsequent blocking of Venezuelan oil to Cuba, the country has been plunged into fresh crisis. President Trump has called on Cuba to “make a deal before it’s too late” and threatened to implement Secretary of State Marco Rubio as the “next President of Cuba.” Looking on, Peña’s team has been on high alert. They’re preparing themselves for every outcome — from a spiralling social crisis resulting from the U.S.-imposed fuel blockade, to a direct American attack on Havana. “We are considering every scenario, and we are not ruling anything out. And whatever happens, we are ready to report.”

Drop in Illustrations by Teona Tsintsadze.

The Age of Exile

This story is part of our Age of Exile series, which explores how displacement has evolved from historical punishment into a defining condition of our time—one that reveals profound transformations in how we construct identity, maintain community, and exercise power across borders. In an era where digital connection enables presence without physical proximity, exile has become more complex, more global, and more central to understanding our world. Explore The Age of Exile series

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The war against corruption: Why corruption is winning

Oliver Bullough — Wed, 18 Feb 2026 13:55:00 +0000

Transparency International has published its annual Corruption Perceptions Index and, for once, I think this rather tiresome survey of how likely various countries’ public officials are to be crooked has something important to tell us. Generally speaking, the CPI spends its time informing us that poor countries have worse governance than rich countries, which is not a very useful insight. What it fails to do is tell us that a significant reason for this fact is that rich countries make it very easy for poor countries’ rulers to steal from their subjects, obscure the theft, and spend the proceeds on property in Mayfair, Miami or St Moritz.

But I do think it’s important that, this year, influential Western countries are sliding down the rankings: the United States has dropped to its lowest-ever score and last year’s crackdown on independent media and judges haven’t even been reflected in that score yet. “We’re seeing a concerning picture of long-term decline in leadership to tackle corruption,” noted TI. “Even established democracies, like the U.S., UK and New Zealand, are experiencing a drop in performance. The absence of bold leadership is leading to weaker standards and enforcement, lowering ambition on anti-corruption efforts around the world.”

Hopefully, TI’s index and its grave conclusions will help galvanize opposition to the pro-oligarch policies that are infesting the world, and help to stave off oligarchical takeover in places that are still doing okay. That is, I suppose, valuable.

Still, I haven’t changed my opinion that the Corruption Perceptions Index should be abolished. It is absurd that Hong Kong is ranked as the 12th cleanest jurisdiction in the world, while China — the country it exists to loot — is 76th. Just as ridiculous is the position of the United Arab Emirates at 21st in the list, considering its growing role as a lynchpin of global kleptocracy, including from Russia (ranked a lowly 157).

The United Kingdom may have fallen to 20th but that is still far too high for a country that, by its own admission, launders a hundred billion pounds a year. That’s equivalent to the entire GDP of Kenya, which is down at 130 in the list.

You simply cannot understand corruption on a country-by-country basis because kleptocracy is a globalized phenomenon, and anything that suggests you can — particularly something so crude as a league table — is too misleading to be useful.

Talking about multijurisdictional wizardry, check out this report from the FACT coalition on how U.S. companies structure their affairs. Thanks to new accounting rules, it is possible to see how and where U.S. corporations pay tax. Some of the results are pretty remarkable: Boeing pays more tax in Germany than in the United States; Tesla pays only $28 million to the U.S. Treasury, fully 27 (!) times less tax than it pays in China.

Of course, a large chunk of these companies’ profits barely get taxed at all, but instead are routed to countries that treat them generously, of which Ireland, the Netherlands, Bermuda and Singapore are particular standouts.

The fact that this information is disclosed is good, because it allows ordinary citizens to see how big companies win special treatment, and hopefully thus increases public pressure for fair taxation. I would not therefore be at all surprised if some skilled and energetic lobbyists are right now working very hard to make sure the disclosures end as soon as possible.

Of course, you do not need to leave the United States to obtain complicated corporate structures, as shown in this recent piece from Bloomberg, about how the Russian oligarch, party-goer and billionaire Suleiman Kerimov opened a Delaware-based trust to, er, manage assets held by a Liechtenstein-based foundation but originating from his business empire in Russia, where he remains a member of the upper house of parliament. But then Kerimov was sanctioned in 2018 for what the first Trump administration called “worldwide malign activity”. He was specifically accused of bringing millions of euros into France in suitcases, using it to purchase villas, and evading taxes on them (there’s no school like the old school).

Despite the sanctions, Kerimov continued to benefit from the trust, according to Bloomberg. But the Treasury Department has gradually been catching up with everyone involved: a $216 million fine for a venture capital firm in June; an $11.5 million settlement from a private equity firm in December; and a $1.1 million fine for an attorney around the same time.

I’d like to say that hopefully this will focus minds on the majesty of sanctions and the importance of complying with them. And there are certainly some — such as the excellent folks of Collectif Sassoufit who are campaigning against corruption in Congo — who want the United States to designate more people, since justice can’t be obtained at home. I, however, think it’s time to have a serious reconsideration of Western over-reliance on sanctions, particularly in the light of the way that the United States is using them now.

If you want an example of what I mean, consider the case of Kimberly Prost, an impeccably-credentialled Canadian judge at the International Criminal Court who was sanctioned because the White House didn’t like the way she’d authorised investigations into U.S. military personnel in Afghanistan (other ICC staff were also sanctioned for investigating other alleged American and Israeli transgressions), and who suffers repeated indignities as a result. “I have an e-reader,” she said. “it’s not even an American product, but for some reason, I assume tied to the payment, I’d purchase books, I’d start to read them and then they’d disappear.” You just, she admitted, “sort of end up using cash a lot.”

Frivolous sanctions like this are just driving countries to find ways around the restrictions (it’s notable that banks in Canada, the UK, and the Netherlands are happy to keep serving her, and it seems unlikely they’d be doing that without permission from their respective governments) and, in decades to come when genuine criminals can bank with impunity, future generations will despair at how U.S. governments wasted the powerful weapon that was their dominance of the global financial system.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post The war against corruption: Why corruption is winning appeared first on Coda Story.

Why the law lets financial criminals off the hook

Oliver Bullough — Wed, 11 Feb 2026 13:55:00 +0000

There’s a story I often tell when I talk about my new book: a couple of years ago, an adviser to a senior politician here in the UK asked me for some suggestions for policy proposals for tackling financial crime. I told him I’d like more resources for law enforcement agencies. His reply: “that’s not going to get us many headlines, is it?”

This story is intended to illustrate how one of the reasons for the world’s failure to stop money laundering is that politicians are addicted to the sugar rush of new policy announcements, but shun the hard work of enforcing old ones. But it’s indicative of a problem with journalism too. Journalists like to talk about shiny new things — crypto! AI! — and ignore the old ones that we’ve already reported on.

This is the lesson I draw from the horror of the Jeffrey Epstein revelations, with the rich, powerful men dividing up the world between themselves. Crooks and thieves may invent new tools, but they’re always designed to do the same old job: steal. A world-weary shrug — “politicians on the take? How is that a story? Bring me something new” — just lets them off the hook.

So in a small gesture towards being the change I want to see in the world, this week’s newsletter is about massive problems that have been going on for so long that everyone’s kind of forgotten about them, but which we should still be trying to solve because they’re still massive problems.

Global Financial Integrity, a research and advocacy organisation in Washington DC, has been arguing for almost two decades that we need to spend as much time looking at how illicit value flows through the trade system as we do looking at the financial system. In simple terms, by lying on the documentation that accompanies trade shipments, exporters can suck wealth out of poorer countries and — according to GFI’s analysis — have been doing so on a vast scale for decades.

In its latest analysis of trade flows out of Sub-Saharan African nations, GFI has identified “a renewed intensification of trade misinvoicing risks across the region”, with an average of $112.97 billion in value disappearing each year over the past decade, and at an accelerating rate. This total significantly exceeds that of the countries’ new debt over the same period, meaning that they should be seen effectively as net creditors to the world, rather than as net debtors.

“Illicit outflows on the scale observed in Africa have dire consequences for development. Every dollar siphoned out of African economies is a dollar not taxed or invested at home,” GFI concludes.

This phenomenon is often called ‘Trade-Based Money Laundering’, and is central to how illicit finance works, including the business model of the giant new ‘Chinese Money Laundering Networks’, but policy proposals for how to tackle it are sorely lacking.

There has been, however, no shortage of suggestions for how to stop criminals being able to hide their identities behind shell companies when moving illicit funds. Corporate transparency has been pushed by the Financial Action Task Force since its earliest days.

Efforts to achieve that goal have foundered in the European Union and the United States, but the UK has been a bright spot, with its notoriously filthy corporate registry of a decade ago adopting new rules to clean itself up. It would be nice to think this would mean we’d no longer see insiders from ex-Soviet republics using UK-registered companies to arrange questionable deals, but here’s the Organised Crime and Reporting Project to set us right.

“Two UK companies with no prior record in the mining industry have won tens of millions of dollars in Uzbek state procurement contracts,” the report states. “One was owned, on paper, by a septuagenarian British bookkeeper with no evident ties to Central Asia. The other, by a UK corporate services provider that for years managed corporate structures that shielded their true ownership from public view.”

The real meat in this sandwich, however, is how — after the journalists asked questions about the companies — their owners were able to seamlessly change the inconsistent pieces of information in the registry, much of it backdated, despite the supposedly more stringent new requirements.

I know this may all seem a bit academic because, thanks to the gutting of the U.S. Corporate Transparency Act, it’s easier, cheaper and murkier to use an American shell company these days anyway, but it’s important to remember that the battle hasn’t yet been won anywhere.

And one of the reasons it hasn’t been won is incompetence by underfunded and under-supported regulatory bodies. This was once again on display in the disastrous attempt to punish a British lawyer for allegedly persecuting a whistleblower who helped to expose the workings of the vast OneCoin scam.

Everything about the case has been a fiasco: the fact that the fraud happened in the first place; the fact that the fraudster was able to retain a British lawyer; the fact that the regulatory action took eight years to happen; the fact the tribunal threw the case out; and now the fact the regulator is on the hook for everyone’s costs. I would say this has achieved nothing, but it’s worse than that: now the regulators have a reason to be even more timid than they already are.

It means that theft keeps happening and even when efforts are made to find the stolen wealth and punish those responsible, the damage has already been done. For instance, it’s good that UK prosecutors are launching a case against Nigeria’s notorious former oil minister, but how much better would it have been if theft hadn’t been so easy in the first case?

Of course that’s not to say that we shouldn’t talk about shiny new problems too, so here’s this week’s instalment of Tether watch. Fair warning — it is unusually gross, even by the low standards of this newsletter’s most regularly-appearing crypto company.

“Private Telegram groups for the sharing of secretly taken footage of women and girls take payment via the popular Chinese digital payments systems Alipay and WeChat Pay, as well as the cryptocurrency Tether.” One group “offers access to more than 40,000 videos of secretly taken footage from hotels, homes and public toilets for a $20 ‘V.I.P.’ membership”.

Tether denies any wrongdoing, and says that it cooperates with dozens of law enforcement agencies worldwide. It’s clearly doing something right anyway, since it claims to have made more than $10 billion in profits last year, having issued $50 billion worth of new crypto currency, and has launched a separate stablecoin — USAT, as opposed its normal USDT — for the American market.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Why the law lets financial criminals off the hook appeared first on Coda Story.

How Stablecoins make it easy to sidestep sanctions

Oliver Bullough — Wed, 04 Feb 2026 14:33:34 +0000

In recent years, Western countries have been very reliant on sanctions as a tool of foreign policy and I think it’s a mistake. It’s not too much of an exaggeration to say that sanctions are law enforcement by press release. They punish people without a trial, with little if any chance of appeal, while outsourcing all the hard work to private companies.

There’s a small insight into what this looks like in practice from a fine imposed on Britain’s Bank of Scotland last week over its failure to notice that a new customer had been sanctioned for his role in Russian-occupied Crimea. He had registered with a slightly-different spelling of his name — “a changed character and an additional character in the forename, a missing middle name and a changed character in the surname” — which briefly out-foxed the bank’s compliance systems.

I’ve written about this particular gentleman’s adventures in transliteration before. Having opened the account, the bank failed to notice that although he had been removed from the European Union’s sanctions list, he had not been removed from the equivalent UK list, meaning that for 18 days he had access to financial services he should not have had, until various automatic systems and manual checks caught up with him.

In the circumstances, the Bank of Scotland is probably happy to pay its 160,000-pound fine, which also serves to remind financial institutions to invest in all possible compliance-related software, to employ more people who can check and double-check everyone and everything, just in case the next fine is bigger and comes with sharper teeth.

The upshot is that sanctions just got more expensive, more laborious and more complicated. But have they got any more effective? For that, we need to remember what they were supposed to achieve. “Our actions, taken in coordination with partners and allies, will degrade Russia’s ability to project power and threaten the peace and stability of Europe,” said then-Treasury Secretary Janet Yellen in February 2022, when announcing a first tranche of sanctions, to which many others have since been added, in many countries.

Now, I’m not saying this hasn’t been completely without effect – Russian oil revenues dropped sharply last year, for example — but it’s important to remember she was talking almost exactly four years ago, which means Ukraine has been resisting Vladimir Putin’s Russia for longer than either the USSR or the USA spent fighting Adolf Hitler’s Germany. Whatever the argument about the effectiveness or otherwise of sanctions in eventually stopping Putin’s war machine, you have to agree that they haven’t worked very quickly.

And this creates a problem. As with incompletely applied restrictions on money laundering, sanctions imposed without other enforcement mechanisms fail to defeat the people they’re aiming at, while incentivising them to learn how to circumvent restraints.

So what’s the solution? Should we just give up on sanctions altogether and create a financial free-for-all equivalent of this year’s Enhanced Games, when cheating will be legalised so a rich man “with a mission to build superhumanity” can pay poorer people to take performance-enhancing drugs and see what happens?

You might think that’s a rhetorical question to which the answer is “OBVIOUSLY NOT!!!”, but that’s kind of what’s already happened. In April, Donald Trump’s Department of Justice decided to step back from the Biden administration’s policy of trying to make crypto companies obey the law. “The Department will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users,” the deputy attorney general said in a memorandum titled ‘ending regulation by prosecution’.

It is hard to over-stress quite how wildly this Enhanced Games-esque policy diverges from the approach taken towards money laundering since 1970, when the authors of the Bank Secrecy Act specifically stated that banks were responsible for the criminal acts of their clients, a financial anti-doping policy subsequently adopted by the whole world.

What’s been the result of the White House’s unilateral surrender? Obviously, it’s too early to see the full effects, but the general outlines of a catastrophe are already visible.

“Illicit cryptocurrency addresses received at least $154 billion in 2025. This represents a 162% increase year-over-year, primarily driven by a dramatic 694% increase in the value received by sanctioned entities,” said Chainalysis, the respected crypto investigations organisation. “We must caveat that this figure represents a lower-bound estimate based on illicit addresses we’ve identified to date.”

That means sanctioned entities moved almost seven times more value via crypto in 2025 than in 2024! That whole approach of using Western dominance of the financial system to restrain geopolitical adversaries is gone, and who knows what, if anything, will replace it.

Stablecoins now account for 84% of all illicit volume, according to Chainalysis, which also separated out the booming business being done by Chinese money laundering networks, which are seizing an ever-greater share of the market with their “industrial-scale processing capacity, operational resilience, and technical sophistication”.

US officials love stablecoins, since their issuers tend to buy Treasury bills to guarantee their assets’ value, which helps provide some extra support for the long-term U.S. policy of piling debt onto future generations rather than raising taxes on presidents’ wealthy friends. But if the approach now involves handing a sanctions-evasion opportunity to mobbed-up Chinese kleptocrats, Russians and others, then it is even more disastrously short-termist than it already appears.

Stablecoin giant Tether, by the way, may be buying a lot of U.S. government debt but is also hedging its bets and investing heavily in gold, of which it buys two tonnes a week. Of course, it keeps its stash in nuclear bunkers in Switzerland. Because why wouldn’t the people behind Tether want to resemble Bond villains even more than they do already? Next month perhaps they’ll announce a new corporate headquarters inside a Japanese volcano, with its own shark pool, stealth catamaran, and space station.

And that’s before we get to the effect of artificial intelligence on how criminals can complicate and obfuscate crypto laundering schemes, something I’ve been hearing about for a while. “The intersection of AI and cryptocurrency reflects the operational reality of contemporary jihadism,” notes one rather terrifying report. “Current counter-terrorism finance systems” it warns, “are structurally misaligned with how terrorists use crypto today.” I see no sign that any government minister anywhere is close to being ready for any of this, or to be honest, even aware that it’s happening.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post How Stablecoins make it easy to sidestep sanctions appeared first on Coda Story.

Always on the outside: Exile isn’t about the country you leave

Garry Pierre-Pierre — Mon, 02 Feb 2026 14:10:01 +0000

The rumor spread like a storm. One moment it was a whisper in a small Ohio town; the next, it was tearing across newspaper headlines and through talk shows nationwide: Haitians in Springfield were eating cats and dogs.

By the time it reached my inbox, I already knew the lie was out there. What arrived was the first backlash — a venomous email that made clear how deeply the lie had seeped into the American bloodstream. At The Haitian Times, we’ve spent years reporting on Haitians as whole people: musicians, entrepreneurs, artists, families who create, build, celebrate, and endure. We’ve also covered the darker chapters — gang violence, earthquakes, cholera, and migration through unforgiving terrain.

But this lie — this grotesque, calculated fabrication — landed like a punch to the chest. Because it wasn’t just a rumor. It was a diagnosis of how America still sees us.

People imagine exile as geography — leaving one home for another. But exile can also be internal, a quiet ache carried from room to room. Mine began not through my own displacement but by watching my parents live out theirs. Though I’m not technically an exile, I grew up in a household where exile seeped through the walls. My parents were part of the early wave of Haitian migration to New York — educated, middle-class, ambitious. In Haiti they had status. In America they had survival.

50 years on, and belonging still felt conditiona l— granted just until someone decided to snatch it away.

Springfield wasn’t an anomaly. It was a lie engineered to trigger the oldest reflex in this country: the instinct to believe the worst about Black people. Say anything about us — no matter how implausible — and a segment of America will nod along, ready to turn virulent fiction into unimpeachable fact.

In September 2024, during the U.S. presidential campaign, the lie leapt from fringe conspiracy to national talking point. J.D. Vance — then Donald Trump’s running mate — first amplified the claim, asserting that Haitian migrants in Springfield were abducting and eating pets, even after local officials told his staff the allegations were baseless.

Days later, during his first and only debate with Kamala Harris, Trump repeated the claim on national television, declaring that in Springfield, Haitian immigrants were “eating the dogs” and “eating the cats.” On air, the moderator cited the city manager’s office, which said there were no credible reports of pets being harmed by immigrants.

Fact-checkers, including Reuters, also found no evidence. But by then, the damage was done.

Springfield had been on our radar for years. Haitians there had been followed, attacked, and robbed as they carried cash to send home. We’d reported on those incidents, and on how a small Midwestern city struggled to absorb a new Haitian community.

We knew Haitians were no longer settling exclusively in New York or Florida. We were migrating to the Midwest, the Southwest, and the Deep South — regions less accustomed to us and often less welcoming.

At The Haitian Times, we pushed back forcefully against the pet-eating hoax — publishing extensive reporting that debunked it, amplifying local officials’ denials, and demanding accountability. For that, we paid a price. Over the following months, our inboxes and message boards filled with blistering attacks — emails drenched in racism and vitriol, accusing us of lying, covering for “savages,” or participating in imagined conspiracies. The more we insisted on truth, the more determined some were to punish us for it.

We planned two town halls in Springfield — one with local officials, another with the Haitian community. Both were canceled amid bomb threats, rising hostility, and word that white supremacist groups intended to march through the city. Local leaders told us plainly: they could not guarantee our safety.

Then came a phone call I will never forget.

Macollvie Jean-François Neel, our special projects editor, called me early on the Monday after she returned from Springfield. Her voice was taut but steady. She had been doxxed and swatted — targeted by a form of harassment in which someone makes a false emergency report to provoke an armed police response. An anonymous email to Catholic Charities in Rochester, New York, claimed a brutal murder had occurred at her Brooklyn home.

Seven NYPD officers surrounded her house. Guns holstered but ready.

A “wellness check,” they called it.

Every Black family in America knows how quickly such encounters can turn deadly. Breonna Taylor, a 26-year-old emergency technician in Louisville, Kentucky, was killed in her apartment during a botched late-night police raid. Officers fired more than 30 rounds. She never stood a chance. Atatiana Jefferson, a 28-year-old Black woman in Fort Worth, Texas, was shot through her bedroom window while playing video games with her nephew. Police had arrived for a “welfare check” after a neighbor noticed her door ajar. They never announced themselves. She was killed within seconds.

For many white Europeans, these stories sound unimaginable. For Black Americans, they form a grim, familiar pattern. The dangerous imagination of others is often deadlier than any reality.

After Macollvie finished recounting the incident, I closed my laptop and went on my daily walk, my stride propelled by fury. For nearly an hour I marched through my neighborhood’s nature trail, furious at the fragility of our lives, of the threats to our safety in this country we call our own. Back home, still simmering, I wrote two posts — one on LinkedIn, one on Twitter. They were raw, unfiltered. Within hours, both went viral. Messages poured in. Television bookers reached out. Reporters sought analysis. Allies offered solidarity. Everyone wanted me to turn this wound into words.

And then it clicked: Exile isn’t about a country you leave. It’s about the distance between who you are and who the world insists you must be.

Rally in solidarity with the Haitian community at Boston Common in Boston in September 2024, after the story of Haitian migrants eating pets went viral on social media. Joseph Prezioso/AFP via Getty Images.

A large-scale ground mural depicting Breonna Taylor at Chambers Park in Annapolis, Maryland. The mural was organized by Future History Now in partnership with Banneker-Douglass Museum and The Maryland Commission on African American History and Culture. Patrick Smith/Getty Images.

The dual exile

My mother worked in a SoHo garment factory long before the neighborhood became a destination, taken over by galleries and loft apartments. She came home with fingers pricked from sewing needles, the smell of machine oil clinging to her clothes. “School is your salvation,” she’d tell me. “Don’t end up like me.” My stepfather worked as a mechanic at the United Postal Service. My uncles drove taxis, worked factory shifts, held multiple jobs that drained their dignity by the hour. Their friends slid down the American class ladder: teachers became janitors, accountants cleaned office buildings, nurses tended to the elderly in strangers’ homes. Edwidge Danticat once said her Barnard classmates remarked on the irony of our lives in the U.S.: “In Haiti we had maids; here we were the maids.”

My mother, her husband and I, Elizabeth, NJ.

On weekends my parents and their friends gathered in cramped salons across Brooklyn and Queens — passing around rum, grief, gossip. They spoke of a bright, sun-washed Haiti they carried on their person like a pressed flower. They dreamed of returning once the regime fell.

They would turn the music up as loud as the room would allow and sing along to “Haiti”, the iconic ballad by Skah-Shah, then the darling of the Haitian community. I watched their faces as they belted out the lyrics — laughter and grief sharing the same space in their eyes, their voices cracking and rising together.

This morning I woke up with tears in both eyes.
I miss my country. Haiti chérie.

Oh God, give me strength.
My family back home criticizes me when I don’t write letters.
They don’t know my heart is broken.
Life in New York is hard.

https://youtu.be/SY5ukYOkZg8?si=n0r1UW3HDZXV-C8p

Skah Shah - Haiti.

As the band slipped into a long, melodic instrumental passage, something shifted. Hips and heads began to sway. Conversation faded. A small living room in Brooklyn filled with movement, with a kind of quiet, shared trance — half celebration, half mourning. This was not simply music; it was a ritual, a way of keeping Haiti alive when distance and circumstance conspired to erase it.

What filled that room was nostalgia — not sentimental, not indulgent, but heavy and necessary. A longing for a homeland that remained painfully present and impossibly distant at the same time. Haiti was close enough to sing to, to dance with, to invoke by name. And yet it was far enough away to break hearts nightly, right there on American couches, under American ceilings.

That was exile, long before I had a word for it.

But the Duvaliers never fell, the regime never changed.

François “Papa Doc” Duvalier ruled through terror. His Tonton Macoutes disappeared intellectuals, tortured dissidents, murdered without hesitation. When he handed power to his nineteen-year-old son, Jean-Claude “Baby Doc,” in 1971, the repression modernized but did not cease.

By the early 1980s — two decades after they had left — my parents acknowledged a truth that crushed them: they would never return home. Haiti had changed. They had changed. Their exile had hardened.

I came of age as part of a bridge generation linking Haiti and America, carrying our parents’ grief in one hand and our futures in the other.

And yet, there were moments of joy — brief flickers where we felt we belonged in America. In elementary school, making the basketball team thrilled me. In high school, soccer became a sanctuary. Team sports offered respite from isolation, a glimpse of camaraderie, a doorway into American culture. For a while, I thought that was what belonging meant, what it felt like — this rush, this folding into something larger.

My buddies and I striking a pose, Elizabeth, NJ.
Summer league team Sunshine Football Club, Elizabeth, NJ

The closest I ever came to that sensation of belonging was in college, at Florida A&M University in Tallahassee. The historically Black university sits atop one of the city’s seven hills, and when I arrived it felt less like a campus than a citadel — an elevated space of Black thought, ambition, and self-possession. Almost immediately, I felt the intellectual electricity that coursed through the student body. Most students came from Florida, but many arrived from the Midwest and the Northeast, carrying with them different accents, histories, and shades of Blackness.

I sought out FAMU deliberately. Growing up in Elizabeth, New Jersey, tensions between Haitians and African Americans simmered constantly. There was suspicion on both sides. We didn’t understand one another. We didn’t speak the same way. We didn’t trust one another. I remember telling my mother, shortly after arriving in New York, that I was surprised by how many Haitians there were. She laughed and said there weren’t — that I was mistaking Black Americans for Haitians. That confusion captured something essential: in America, Blackness is often flattened, stripped of its histories and distinctions.

FAMU took what was flattened and gave it shape. It was a place where learning how to navigate white power in America was not incidental but central to the institution’s mission. Late at night, between studying and watching Black Entertainment Television, we debated politics, culture, and survival — how we would confront the world waiting beyond campus. That search for connection carried me to West Africa as a Peace Corps volunteer in Benin and Togo, where I deepened my Pan-African quest to understand the relationship between continental Africans and the diaspora.

Still, even in that Black oasis, belonging proved brittle. The mother of a woman I was dating despised me. One day, she looked me in the eyes and said, flatly, that Haitians ate cats. It was a chilling reminder that even among our own, exile stuck to us, a second skin.

It was with this inheritance — the contradictions, aspirations, flashes of connection — that I founded The Haitian Times in 1999. Not just as a newspaper, but as a repository for our stories, where they could be kept without distortion. It was a ledger of our collective presence. A home for a scattered people. Over 25 years, the paper has chronicled immigration battles, homeownership milestones, the rise of Haitian nurses in American healthcare, the emergence of entrepreneurs, artists, and scholars reshaping Haitian American identity. We became a mirror — and often a megaphone — reflecting a community still discovering how to belong.

But journalism, too, would show me my place.

When I joined The New York Times, I was welcomed but not fully claimed. Editors called one of my beats “immigration.” I called it covering immigrants — the lifeblood of New York’s buses, subways, corner stores, and neighborhoods. I wrote about cab drivers navigating midnight streets, nannies raising other people’s children, shopkeepers who kept entire blocks alive. Immigrants animated the city; I simply made them visible.

Yet I always operated with one hand on the door. The profession embraced me, but not always my perspective. The city was my subject, but rarely my home.

Running The Haitian Times deepened this duality. By day, I covered life in America; by night, I remained tethered to Haiti’s turmoil and beauty.

Two places claimed me. Neither fully let me in. That was the essence of my dual exile: belonging everywhere and nowhere at once.

My mother Yvette sitting on top of the car, surrounded by her friends, Elizabeth, NJ.
Family gathering in Jamaica, Queens

The rotating outsider

After 50 years in America, I’ve learned that each generation selects its “other”: Italians; Jews; Irish; Chinese; Indians. Each group, at different moments, was caricatured and feared. Over time — through numbers, proximity, and the strange elasticity of whiteness — they moved inside the circle.

I’ve seen this happen among South Asians. Some came with little money, scraping by as taxi drivers, convenience store owners, warehouse workers. Their stories echo the struggles of the countless immigrants navigating America’s lower rungs. But others arrived with advanced degrees, English fluency, caste and class privilege, and global networks. Many entered the American middle and upper-middle class swiftly, achieving what sociologists call adjacency — not whiteness, but a comfortable (and falsely comforting) proximity to power.

When Zohran Mamdani, an Indian-Ugandan-American of considerable social and cultural privilege, became the city’s first Muslim and first South Asian mayor, his victory — powered by a multiracial, multi-class coalition — showed how adjacency can become influence, and how an immigrant-led movement can capture the helm of America’s largest city.

But Haitians do not enjoy adjacency.

We arrived at the intersection of Blackness and foreignness — the two most enduring definitions of “other” in American life. We did not come through elite work visas or tech pipelines. We fled dictatorships, poverty, violence. We arrived with determination but often without capital, language, or protection. And in America, race does not rotate like ethnicity does.

A white ethnic group can become white-er.

A Black immigrant group can only become Black-er.

This is why the Springfield lie metastasized so quickly and so easily. Why strangers felt entitled to weaponize their fear against my colleague. And yet the irony is astonishing. Haitians are cast as permanent outsiders in a country we helped shape from its earliest days. It was a Haitian, Jean Baptiste Point du Sable, who founded the city of Chicago. Haitian refugees fleeing the revolution ignited cultural, political, and demographic transformation in New Orleans. In 1779, more than 500 free Black soldiers from Saint-Domingue, the Chasseurs-Volontaires, fought alongside American revolutionaries in the Battle of Savannah. They bled for a nation that today treats their descendants as intruders.

The outsider label is not simply a misunderstanding. It is deliberate erasure.

A color lithograph produced by Ackerman & Sons in 1930, depicting the cabin of Jean Baptiste Point du Sable, the first permanent settler of Chicago. Chicago History Museum/Getty Images.

Always on the outside

Bob Dylan — my favorite poet of contradiction — wrote a line that has lived with me for decades:

“Always on the outside of whatever side there was.”

The moment I heard it, I recognized myself. It linked me to a lineage of Black artists and intellectuals for whom exile became a survival strategy: Richard Wright. James Baldwin. Chester Himes. Nina Simone. They left because America made it too hard to breathe, too hard to think, too hard to exist with dignity.

Baldwin said leaving America saved his life. In Paris he found the distance he needed to see his country clearly — and to write about it with a heat that still sears.

Sometimes I wonder what might have happened had I chosen their path.

But I stayed, remaining in the place that wounded me even as I strove to be the change that I wanted to see in America. Journalism allowed me to confront exile directly, to define myself before others misdefined me or my community. It gave me a language for the fracture I had always felt both within and without.

There is a line often attributed to Baldwin — not literal, but true to his philosophy: The place in which I’ll fit will not exist until I make it.

So, I made something. A newsroom. A community institution. A bridge for the bridge generation.

But creation did not erase exile. It only gave it form — Springfield, Macollvie’s swatting, my parents’ sacrifices, the precariousness shadowing every Black immigrant life. These moments showed me that America will welcome our labor, our tragedies, our “resilience” — but still choose not to welcome us. I am not on the outside because I failed to belong. I am on the outside because America’s borders of belonging were never drawn with people like me in mind.

François Duvalier is shown with his wife Simone, September 1957, Haiti.
Duvalier, Jean Claude 'Baby Doc' (center) surrounded by military personnel 1972, Haiti.
Haitians march past the gleaming white National Palace after "Papa Doc" took over the Presidency for Life, Port-au-Prince, Haiti, 1964. Bettmann / Contributor.

Claiming belonging

After Springfield, after Macollvie’s ordeal, after months of racist email invective and those two viral posts, I realized something else: Belonging in America is not given, is not granted. It is claimed. It is not secured by citizenship, longevity, or contribution. It is forged through community, through institutions, through memory.

But even those who would claim belonging, now face the anger and aggression of those who would deny it to them. In recent years, The United States has witnessed:

ICE raids tearing families, schools and cities apart
Asylum seekers detained in maximum security prisons
The Muslim ban, the casual abuse directed at those from “shithole” countries
Family separations at the southern border
The normalization of open xenophobia
The resurgence of white supremacist violence

Under the Trump presidency, these are not expressions of our worst selves. They are public policy. They reveal a nation increasingly comfortable with cruelty, increasingly hostile to outsiders, increasingly eager to weaponize belonging. And now the question is: What will post-Trump America look like?

Even when the man exits the stage, the movement he unleashed will outlive him. Suspicion once fringe is now mainstream. Scapegoating once coded is now explicit. Viewing neighbors as threats is common currency.

These currents are not confined to the United States. Across Europe — from France to the U.K., Italy to Hungary — immigration has become a proxy for deeper anxieties about culture, identity, and power. Borders harden. Parties shift rightward. The definition of “belonging” becomes forbiddingly narrow.

For immigrants — especially Black immigrants — this means we must build parallel structures of safety, connection, and truth. We cannot rely on our nations to protect us. We must protect ourselves.

Mural displaying the face of Breonna Taylor, David McAtee, Sandra Bland, George Floyd and others in Louisville, Kentucky. Joshua Lott for The Washington Post via Getty Images.

In recent months, I’ve found myself returning to what happened in Springfield in August and September 2024, and to the question that kept rising in the quiet afterwards: How did we find the will to continue to report, to insist on telling our truth even when fear crept inside our own newsroom, to insist that we had a right to be here, to be seen and to be heard?

For me, the answer arrived slowly, like a figure emerging through fog. There are forces in this country — loud, coordinated, and intentional — that want people like us to feel like exiles. They want us to retreat into silence, to internalize the idea that we are perpetual outsiders whose presence can be erased with a rumor, a smear, a threat.

My parents and their peers had lived under Duvalier’s dictatorship, where fear was a currency and silence a survival tactic. They fled a regime that demanded their obedience through terror. But in these United States, I refused to reenact their posture of cowering and running.

America likes to imagine itself as a shining city on a hill — a beacon, a north star. But Springfield revealed an America where the light feels less like a guiding glow and more like a rotating lighthouse beam: illuminating some, ignoring others, blinding many.

After 50 years, I have learned this: Exile describes where others place you. Belonging is what you build with your own hands.

So I stand my ground. Not because I believe in the myth of the hill, but because I believe — fiercely — in our right to stand upon it.

Even if America insists on keeping me just outside the circle, I will stand outside it and keep writing. From this vantage, I can see my country clearly enough to tell the truth about it. And I can see Haiti clearly enough to honor it. I can see my parents clearly enough to understand their sacrifices. And I can see the next generation: those Haitian American children who will read our stories and recognize themselves within them.

That — more than safety, more than acceptance, more than any passport — is belonging.

This essay is an adaptation from his upcoming memoir “Always on the Outside.”

The Age of Exile

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Imagining the unimaginable annexation of Alberta

Natalia Antelava — Fri, 30 Jan 2026 16:51:53 +0000

There was nothing special about the scenes from Edmonton: orderly lines of people in winter coats snaking across a snowy park, bare trees stark against a pale winter sky, the mundane choreography of civic participation playing out in a provincial capital most Americans couldn't locate on a map.

Albertans queuing to sign a petition, even one to secede from Canada, could never compete for attention with the tragic, disorienting developments that filled the first long month of 2026: the ICE shooting in Minneapolis, Donald Trump's bombastic threats to annex Greenland, and Canadian prime minister Mark Carney's tense warnings from Davos about middle powers ending up "on the menu."

But for those who've tracked how sovereignty collapses, these winter queues had an eerie resonance.

Almost as soon as he took office for his second term, Trump began calling Canada "the 51st state," declaring that the country "only works" if it becomes part of the United States. He'd refuse to use proper titles, referring to Canadian prime ministers as "Governor Trudeau" and later "Governor Carney." He posted altered maps showing Canada as U.S. territory. It played as crude humor, vintage Trump bluster designed to dominate the news cycle and unsettle an ally he viewed as weak. But by January 2026, as Trump’s threats to annex Greenland dominated headlines, his drip-drip taunting of Canada had calcified into something concrete on the ground in Alberta, had given shape and momentum to a once low-key secessionist sentiment.

The Alberta Prosperity Project needs 177,732 signatures by May to trigger a referendum on secession from Canada. Their representatives claim they've made "repeated visits" to Washington to meet with senior Trump administration officials, meetings they say took place inside the kind of secure facility reserved for discussing classified intelligence.

Treasury Secretary Scott Bessent publicly declared that Alberta should "come down into the U.S." as a "natural partner." Republican Congressman Andy Ogles told the BBC that Albertans "would prefer not to be part of Canada and be part of the United States because we are winning day in and day out." According to the separatists' own materials, their vision includes a "common market" with the U.S., zero tariffs, adoption of the U.S. dollar and construction of two oil pipelines through American territory. Spokesperson Jeffrey Rath has claimed the U.S. would potentially provide a $500 billion line of credit to the newly independent Alberta.

A participant holds a placard outside the Alberta Legislature in Edmonton, Alberta, Canada, on May 3, 2025. Artur Widak/NurPhoto via Getty Images.

Widening the Overton window

A referendum on Albertan secession, should it happen, appears almost certain to fail. Polls show only 24% of Albertans support joining the U.S., with 65% strongly opposed. Most media outside Canada has treated this as a fringe story. But the language being used by the Trump administration in support of secession is becoming a textbook example of how the Overton window shifts: say the outrageous thing, let it be dismissed as mischievous troublemaking, and then watch as domestic actors race to occupy the newly opened political space. Repeat until the "absurd" becomes debatable, and the debatable becomes negotiable. When a U.S. Treasury Secretary publicly advocates for a Canadian province to secede and join America, he's not predicting the future — he's manufacturing a present in which such conversations become possible. There’s no master plan; the chaos itself creates opportunity.

The timing matters. Mark Carney has emerged as the strongest voice pushing back against Trump's increasingly aggressive rhetoric, most notably in his Davos speech warning that middle powers risk ending up "on the menu." Daniel Béland, a political scientist at McGill University who studies Canadian federalism, sees Alberta separatism as potentially serving a strategic purpose for the Trump administration: "Mark Carney is standing up to Trump. We saw what happened in Davos, right? So maybe they see that what's happening in Alberta is weakening both Canada and Carney."

The reason this story matters has less to do with the petition itself than with the narrative infrastructure being built around it. Recently, the exiled Russian news agency Meduza obtained a manual that the Kremlin had distributed to state-owned and pro-government media outlets instructing them how to cover Trump's Greenland standoff. The directives were explicit: emphasize that territorial expansion is what "strong countries" do, that Trump is "aiming for Vladimir Putin's success," that conflicts with European countries "will be forgotten, but the territories will remain." Journalists were told to frame NATO as "collapsing" and Putin as "forcing America to engage in equal dialogue" while European leaders "halfheartedly protest on social media."

For Russian and Chinese state outlets, coverage of Albertan separatism is in keeping with the broad narrative that Western alliances are fracturing and sovereignty is negotiable for resource-rich regions. Former Trump adviser Steve Bannon, meanwhile, has spent the past year articulating what he calls a doctrine of "hemispheric defense," framing Canada not as an ally but as territory that needs to be controlled. A "rapidly changing" Canada, he has said, in which 25% of the population is "foreign-born" means "these people are hostile to the United States of America." Canada, Bannon claims, “is the next Ukraine."

While Bannon has spoken extensively about hemispheric defence and Canada’s strategic value as a U.S. protectorate, there's been no official movement towards such a goal — no Pentagon study, no Congressional authorization hearings, no legal pathway to annexation. Trump can troll, Bannon can theorize, Bessent can advocate, but no one appears to be seriously suggesting executing a plan. The damage isn't in the doing, it’s in the destabilization, it’s in normalizing the conversation.

A parallel playbook doesn't mean identical outcomes. There will be no little green men, no masked special forces in Calgary. But in 2014, when Russia entered Crimea, it wasn't military occupation alone, it began with the systematic deployment of narratives that made annexation appear inevitable, even locally driven, before troops ever arrived. And now the Kremlin argues hypocrisy when the United Nations Secretary General says the principle of the “self-determination of peoples has a number of requisites.”

Déjà vu

My view is shaped by what I've witnessed: Russian-backed separatists taking over my grandparents' house in Abkhazia in the 1990s, years of reporting from South Ossetia before Russia seized it in 2008, and standing outside a Ukrainian military base in Perevalnoe in 2014, watching Russian soldiers in unmarked uniforms take control while Moscow denied they were even there.

Map of Ukraine locating territories claimed by Russia (Including Crimea, which was annexed in 2014) as of August 17, 2025. GUILLERMO RIVAS PACHECO,JEAN-MICHEL CORNU/AFP via Getty Images.

The annexation of Crimea showed how the ground for seizing sovereignty is laid through manufactured political theater. A politician whose party won 4% of the vote in 2010 was installed at gunpoint and held a referendum under occupation that reported 96.7% of people supported joining Russia. He's still in charge.

Provinces and regions challenge sovereignty regularly. In Scotland's 2014 referendum on whether it should be independent of the United Kingdom, nearly 45% voted ‘yes.’ Catalonia's 2017 referendum saw 48% back independence from Spain before Madrid blocked it through force, both physical and legal. Quebec came within 1% of secession in 1995, a margin so narrow it prompted federal legislation defining how provinces could leave.

What distinguishes Alberta isn't the referendum mechanism, it's the involvement of a foreign power. In every previous case, challenges to sovereignty remained internal disputes. Spain's government opposed Catalonia, but secessionists didn’t visit France to seek €500 billion in credit from the French government. Canada addressed Quebec's grievances, but the U.S. Treasury Secretary at the time didn't suggest that Quebec should "come down into the U.S."

The overt encouragement of Albertan secession is without precedent among Western democracies. Canada faces provocation by a superpower neighbor whose cabinet officials actively encourage provincial secession, whose political figures meet separatist leaders in secure intelligence facilities, and whose state apparatus treats a G7 ally's territorial integrity as negotiable. "This is something that, at least to my knowledge, is unprecedented," says Béland, referring to US State Department meetings with Alberta separatists.

The architecture of erosion

The conditions in Alberta and Crimea are, of course, fundamentally different: no troops, no armed separatists, and Alberta is a democracy in which roughly 76% oppose joining the U.S., if not necessarily Albertan independence. What's comparable though is the vocabulary being used in the U.S.: the systematic framing of sovereignty as conditional, resources as rightfully belonging to a more powerful neighbor, and local grievances as requiring external "solutions."

The rhetorical architecture that made Crimea possible is now being constructed around Alberta. That architecture requires foundation stones, and Alberta has them. When the province joined Canada in 1905, Ottawa retained control of Alberta’s natural resources though Ontario and Quebec got to keep theirs. This inequity was corrected in 1930, but the resentment lingered. In 1980, Prime Minister Pierre Trudeau imposed a 25% federal tax on Alberta's oil and seized control of pricing. The backlash was fierce: unemployment soared, projects collapsed, and "let the eastern bastards freeze in the dark" became a rallying cry. Separatist movements have flared and faded for decades, always returning to the same core grievance: Alberta produces 90% of Canada's oil, Canada sells 95% of it to the United States, yet Alberta feels like a resource colony for Eastern Canada's benefit.

Russia exploited similar dynamics in Crimea: real economic marginalization, language politics, the feeling of being a colony for Kyiv's benefit. External powers don't create these grievances, but they weaponize them. And just as in Crimea, it's indigenous populations raising the alarm first. The Sturgeon Lake Cree Nation filed a lawsuit arguing that Alberta cannot hold a referendum without indigenous consent, and explicitly warning that a referendum "will enable foreign interference from the most powerful neighbor to the south." In Crimea, the indigenous Tatar population boycotted the 2014 referendum and suffered systematic repression afterward.

Alberta's premier, Danielle Smith, has walked a careful line, speaking about her desire to stay a part of Canada while defending the need to hold a referendum. She met Trump at Mar-a-Lago days before his inauguration last year, speaking of the "need to preserve our independence while we grow this critical partnership." But when the referendum petition was approved, she framed it as a democratic duty: "You need to have a pressure-release valve on issues that people care about." According to the Globe and Mail, Canadian defense officials have recently modeled a U.S. invasion scenario for the first time in over a century: a theoretical planning exercise, not an operational war plan. The modeling assumed American forces would overcome Canadian positions in as little as 2 days, prompting examination of asymmetric responses: sabotage, drones, dispersed resistance. Officials stressed an invasion remains highly unlikely. But allies don't conduct theoretical exercises in fratricide unless something fundamental has shifted.

The shifting burden

Stories matter. The current collapse of Europe's post-Cold War security arrangement began with narratives that made that collapse imaginable.

From the mid-2000s, Russian state television started hosting marginal voices questioning Ukraine's right to exist. In 2008, the Russian daily Kommersant reported that in a private meeting, Putin told George W. Bush that Ukraine was "not even a state" and that the Kremlin would be encouraging secession in both Crimea and eastern Ukraine. Six years of this rhetoric made Ukrainian sovereignty negotiable before a single soldier crossed the border.

Trump has spent over a year declaring Canada "only works" as part of the United States while his Treasury Secretary publicly advocates for Alberta's secession and Bannon, whose finger is frequently firmly on MAGA’s pulse, calls the country "hostile" and "the next Ukraine." Béland warns that the damage from this process extends beyond the referendum's outcome: "Even if the ‘no’ wins, the remain side wins, and even if it's an easy victory... having a referendum campaign is highly divisive in and of itself, and it opens the door to potential U.S. interference."

Sovereignty doesn't collapse with a single referendum. It erodes in the accumulation of moments when defending it appears unreasonable, when maintaining it requires constant justification, when the burden of proof shifts from those who would divide to those who would preserve.

With additional reporting from Masho Lomashvili

Your Early Warning System

This story is part of “The Playbook,” our special issue in which Coda acts as your early warning system for democracy. For seven years, we’ve tracked how freedoms erode around the world—now we’re seeing similar signs in America. Like a weather radar for democracy, we help you spot the storm clouds.

Explore The Playbook series

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The new boss? Not the same as the old boss

Oliver Bullough — Wed, 28 Jan 2026 13:55:00 +0000

In the good old days, all a money launderer had to do was take a bag full of cash into a bank, hand it over, and walk out with a cashier’s cheque. Annoying rules and regulations have long made that kind of thing difficult/laborious, but fortunately for launderers they now have crypto-for-cash brokers who do the same job.

We’ve seen the same pattern all over the world — a criminal hands cash to a middleman, and receives cryptocurrency in exchange — but rarely has it been so well explained as in this affidavit attached to the indictment of Jorge Figueira, a 59-year-old Venezuelan charged this month with laundering more than a billion dollars.

In some ways, this was a very old-fashioned scheme, with funds derived from the South American drugs trade being shuttled between as many as seven different accounts to confuse any pursuers before being transferred to their recipients. Were it not for the crypto element, this could have happened at any time since the 1980s, but it is the crypto element I want to focus on: and, once again, it was Tether’s USDT.

“Basically, it is used for what we are doing,” said Figuera in a tapped phone conversation transcribed in the affidavit. “It is used to transfer money in a quick way, even to make it get to jurisdictions that have some type of issues, etc. For example, to send it to China… Let me be clear with you, (USDT) is used a lot for laundering money.”

The USDT was transferred specifically on the Tron blockchain which, said FBI Special Agent Stephen Walker, “is commonly used by individuals involved in money laundering.” You may be rolling your eyes that I’m talking about Tether yet again. And while a day may come, to egregiously misquote Aragorn, Son of Arathorn, when I don’t bang on about USDT, it is not this day. Because there is an important point to make here.

Last week, Commerce Secretary Howard Lutnick went to Davos as part of a strong U.S. team that wasted no time in expressing its contempt for everyone else in Europe, if not the world. “With President Trump, capitalism has a new sheriff in town,” Lutnick wrote in the Financial Times. (Question to American readers: is this kind of clichéd Wild West tosh as jarring to your ears as it is to mine when a UK politician does that whole “my dear chap” posho act?)

On the face of it, the indictment of Jorge Figueira does indeed look like the stereotypical muscular American sheriff in action again, ropin’ up the bad hombres and bringin’ ‘em into town tied to his saddle. America has after all historically been very good at prosecuting financial criminals. But this new sheriff operates in new ways.

It was Lutnick’s company Cantor Fitzgerald — overseen since last February by his sons Kyle and Brandon — that provided Tether with the services it needed to operate, which back in 2023 no other major institution would provide. With Tether valued at perhaps $500 billion thanks to the healthy demand for its products from people like Figueira, Cantor’s own windfall from it could total $25 billion, enough to vault members of Lutnick’s family into the stratospheric wealth club.

The owner of the Tron blockchain meanwhile — our old friend Justin Sun, consumer of a $6.2 million banana, generous investor in the Pitcairn islands, and so on — has been a substantial investor in the Trump family’s World Liberty Financial, although the relationship has not been entirely smooth.

I have no personal experience of the American Old West, but I’ve watched a lot of Westerns, and traditionally a good sheriff’s family members do not profit mightily from companies named in the indictments that the sheriff brings, nor from those that help the sheriff’s strategic enemies build a whole new system outside of the sheriff’s jurisdiction. (If you’d like a more extensive, thoughtful and sophisticated version of this argument, without the silly jokes, I think this is a very interesting paper.)

Because it’s not just money laundering where companies like Tether are implicated. “The Central Bank of Iran has acquired at least $507 million in USDT, the US dollar-backed stablecoin,” notes Elliptic in this new piece of research. “The CBI also appears to be constructing a ‘sanctions-proof’ banking mechanism that replicates the utility of international dollar accounts. By treating USDT as ‘digital off-book eurodollar accounts’, the regime creates a shadow financial layer capable of holding US dollar value outside the reach of U.S. authorities.”

I’m sure everyone has either watched, read, or read about Mark Carney’s speech at Davos, and I think his conclusions — about mid-sized countries needing to help each other in this uncertain new world — apply as well to financial crime as they do to geopolitics. Their law enforcement agencies need to band together and start investigating the kind of companies that have been welcomed into the United States, and to stop relying on the U.S. to do their job for them because the new sheriff in town really is not like the old one. Perhaps these middle powers could call their cooperation “a posse.”

At present, however, I can see no recognition of the urgency of this task, although I notice that the European Union’s Anti-Money-Laundering Agency has laboriously ticked one more bureaucratic box in the mammoth task of thinking about maybe beginning to actually start doing something. Meanwhile, the UK has heroically completed part of a consultation into whether it should slightly change its own AML regulatory set-up.

One of the offshore centres I wrote about in my last book was Gibraltar, which has not had nearly as much scrutiny as places like the British Virgin Islands, partly because it specialises in gambling rather than kleptocracy, but also because a particular kind of Brit sees any criticism of The Rock as tantamount to spitting at the royal family.

But there are serious problems in this strange little overseas territory, with worrying implications for the governance of a place that has previously been central to several European smuggling networks and could easily become so again. “Sir Peter Openshaw’s findings are clear as light and day: the man running Gibraltar had tried several times to hobble a police investigation into matters relating to national security, which was grossly improper,” says this Transparency International report, which deserves reading.

My new book is very shortly to be out in the wild, and has even had a nice review, so I am doing lots of events (come along!) in which I tell people about how dreadful the world’s money-laundering system is and hopefully don’t leave them so depressed that they break down and cry, which in this line of work is always a risk.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post The new boss? Not the same as the old boss appeared first on Coda Story.

Launderers turn to the Euro, and an Arctic tax haven?

Oliver Bullough — Wed, 21 Jan 2026 13:55:00 +0000

It’s an accepted truth in much of the English-speaking world that the European Union is sclerotic, sluggish and weighed down by bureaucracy. Now that may or may not be true in the formal economy, but in the criminal world, a key statistic has indeed suggested that for several years European crooks have been falling behind.

The value of banknotes in circulation is a useful proxy for the size of the illicit economy, because they are used less than ever by ordinary people in ordinary transactions. So a primary source of demand for physical cash comes from criminals and money launderers. Since 2022, however, while the value of all the physical US dollars, Australian dollars, and pounds has been rising, the value of Euro banknotes in circulation has stagnated.

This is especially notable because, in the giant €200 bill, the European Central Bank provides a super-convenient banknote for transporting large values around in a relatively small box.

But it’s happy days for those looking for the green shoots of a revival in European criminal dynamism. In December, the value of Euro banknotes in circulation finally hit its first new all-time high — of €1.619 trillion — since June 2022, when it was €17 billion lower. Interestingly, however, the share of €200 bills in that total is falling. Consumers appear to prefer €100 bills and, if there are any money launderers out there able to explain why that is, please get in touch.

The Geenland gyp

I’m not going to express an opinion on the embarrassing idiocy of Donald Trump’s “policy” on Greenland, but I am interested in what the world’s biggest island would look like as the 51st state (as proposed in this bill from the improbably-named Congressman Randy Fine) from a financial crime perspective.

Greenland may be larger than Alaska, but it is the world’s least-densely populated territory, with only 57,000 inhabitants. That’s about the same number as people in Carson City, Nevada where there’s so little going on that it’s almost a relief to escape to the comparatively vast Reno, which isn’t something I’d otherwise imagine myself saying about such a barren wasteland. Greenland has a tenth of the population of Wyoming, the current least-populous US state, which might give you a clue about why I’m concerned should Greenland be accepted into the warm embrace of the USA. In recent decades, many of America’s least-populous states have enthusiastically embraced financial secrecy as a useful source of additional income, in that it allows them to swipe business/tax revenue from their larger fellows.

South Dakota and Delaware are the most famous examples, but Wyoming, Nevada, Alaska, Oregon and others are involved too. It is famously easier to get a shell company up and running than a library card in many states, and those companies help their anonymous owners evade tax, launder money, hide stolen wealth, and more.

One of the reasons for this phenomenon is that it’s just so much easier for lobbyists to get pieces of enabling legislation passed through the legislatures of small states, which have fewer competing industries and smaller numbers of lawyers. Now, if that’s the case in Wyoming, just imagine what it would be like in Greenland – laws could be rushed through in minutes, rather than hours. There’s no tax revenue to speak of, so why bother having any taxes at all? It would be a criminality haven for the ages.

It would, I admit, be quite amusing to watch the fury of Republican-voting states as they lost all this lucrative business to somewhere whose accession to the Union they had so enthusiastically endorsed. There would also be a tremendous irony in the extent to which shady Chinese and Russian money could pour through a secrecy haven even murkier than Delaware, considering the stated justification for the mooted annexation. But, more broadly, this would be absolutely awful for democratic accountability and other good things, so let’s hope it never happens.

Tether rides in with the cavalry

Tether, issuer of the world’s largest stablecoin USDT, has frozen $182 million worth of crypto that it thinks is linked to Venezuelan sanctions evasion. In this, it repeats a pattern familiar from its playbook of jumping aggressively to enforce Western governments’ rules just as soon as it has absolutely no choice about it.

The fact that Caracas was relying on USDT to fund most of its oil trade was common knowledge, helping both to support a corrupt and dictatorial regime and to ensure a healthy source of demand for Tether’s signature product for years. The same was previously true of Garantex, a Russian crypto exchange much used by criminals and sanctions evaders, which continued to shift large amounts of USDT for two years after it was designated by US authorities. When Garantex was finally shut down in a laborious joint operation by Finnish, German and US authorities, Tether rushed into belated action, freezing $23 million. Similarly, it hurried to assist US authorities only after Trump had sent in special forces to kidnap the Venezuelan president, thus keeping the money flowing till the bitter end.

It shouldn’t be necessary to say it, but this isn’t supposed to be how anti-money laundering works. The whole point of global standards is that companies report their suspicions to the authorities and freeze accounts while those suspicions are investigated, so that assets can be confiscated if shown to be of criminal origin.

With Tether, however, it appears to be the other way round, that is keeping silent for as long as possible until the authorities compel them to act, which may help explain why USDT is proving to be so very popular. After all, who wouldn’t want a version of the dollar without any of the downsides?

Tether insists that it does cooperate with law enforcement agencies, and recently announced a partnership with the United Nations Office for Drugs and Crime. “Supporting victims of human trafficking and helping prevent exploitation requires coordinated action across sectors,” said Paolo Ardoino, CEO of Tether, in a recent joint statement with the UN agency. There is a grim irony to this, considering that USDT remains the currency of choice for the horrific scam farms of Southeast Asia, where huge numbers of trafficked people are abused if they fail to meet their fraud targets.

“Aside from [the messaging app] Telegram, the cryptocurrency Tether also plays a key role in scam markets — the popular “stablecoin” is the preferred tool for all of the markets’ money-laundering transactions,” noted this analysis from Wired. “Tether and Telegram’s efforts to combat the ballooning scam industry’s use of their tools is comparable to Southeast Asian law enforcement’s minimal, often performative shows of raiding scam compounds, only to allow them to rebuild and resume operation.” Or indeed Tether’s performative rush to freeze Venezuelan crypto holdings.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Launderers turn to the Euro, and an Arctic tax haven? appeared first on Coda Story.

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This essay is an adaptation from his upcoming memoir “Always on the Outside.”