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.

The post AI is not the answer to AI-enabled fraud appeared first on Coda Story.

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.

The post Crypto’s corrupt American dream appeared first on Coda Story.

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.

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.

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.

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.

The post The new samizdat appeared first on Coda Story.

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.

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. 

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.

The post How Brazil is starting to rein in Big Tech appeared first on Coda Story.

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

The post The afterlife of empire appeared first on Coda Story.

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.

The post Wealth is health, Insider betting & Trump will see himself in court appeared first on Coda Story.

A coup is underway in Mali, though it has not brought down the governing junta just yet. The country’s military leader, General Assimi Goïta has, after days in hiding, appeared in public to claim, unconvincingly, that the “situation is under control.” But rebel forces — an alliance of Al-Qaeda affiliates and Tuareg separatists — have taken over provincial cities and are calling for a blockade of the capital Bamako. Mali’s military junta hangs on by a thread, in a familiar regional story of violence, civilian suffering and international intrigue.

On April 25, coordinated attacks across Mali exposed the junta’s fragile hold over the country. Jamaat Nusrat al-Islam wal-Muslimin (JNIM), the al-Qaeda affiliate that has driven insurgency across the region for over a decade, joined forces for the first time with Tuareg separatist groups — who have been fighting the central government for even longer — to simultaneously strike cities hundreds of miles apart, including the capital Bamako, Gao, Kidal, Sévaré, and the garrison town of Kati. A suicide car bomber drove into the residence of defence minister General Sadio Camara, killing him along with his wife, two grandchildren, and several civilians. Camara was one of the most influential figures in Mali's ruling junta and had been widely seen as a possible future leader of the country. He was also the key architect of Mali's military alliance with Russia. Mali, Burkina Faso and Niger, which together form the Alliance of Sahel States (AES), have all in recent years realigned away from France, the former colonial power in the region, and towards Russia.

Russian mercenaries, in the form of the Wagner Group and more recently the Africa Corps, have backed military juntas in the Sahel, after coups in Mali, Burkina Faso and Niger led to the withdrawal of French troops from France’s former colonies. But during these latest rebel strikes, it was Russian fighters that were chased out of the northern city of Kidal to the sound of jeers. Africa Corps, the Kremlin-controlled paramilitary group, described the insurgent attacks as a "coup attempt" backed by "Western intelligence services." RT amplified these claims, accusing France and the West of orchestrating the violence, even as it claimed Russian fighters successfully repelled rebels. In 2024, Ukraine’s military agency said it had provided information to help Tuareg rebels ambush and rout a Wagner convoy, killing dozens of Russian mercenaries. Both Mali and Niger have cut diplomatic ties with Kyiv. Burkina Faso has described Kyiv as a destabilizing force in the region, making the Sahel effectively a front in Russia’s war with Ukraine. 

The Kremlin’s combination of misinformation and mercenaries helped exploit growing anti-Western sentiments in the Sahel to give Russia a propaganda win in the region. Former colonial powers such as France didn’t help themselves, as can be seen even now in Madagascar, the latest nation to expel a French diplomat and accuse Paris of fomenting unrest. But the success of Russian propaganda hasn’t been matched on the ground. As Mali struggles to contain a rebel alliance that has fresh impetus and energy, Moscow’s control is weakening and the effectiveness of its military support is under question. Already, with Russian weapons in short supply because of war with Ukraine, it is China that the Malian junta turns to for arms. China’s strategic efforts in the Sahel have been similar to its efforts in the rest of the African continent – a focus on securing infrastructure contracts as part of the Belt and Road Initiative and securing access to mineral resources. But rebel attacks in the Sahel are bad for Chinese business. In February, the Chinese embassy in Niamey, the capital of Niger, warned Chinese companies to take their workers out of the firing line as rebels increasingly targeted Chinese infrastructure projects, including a $4.5 billion oil pipeline from Niger to Benin.

In 2024, the United States was forced to leave neighboring Niger after a coup, to withdraw from a $100 million base. It seemed the U.S. was losing ground to both Russia and China in the Sahel. Earlier this year, though, as security concerns in the Sahel escalated sharply, the U.S. adjusted its approach, choosing to deal pragmatically with military juntas. By late February, the U.S. lifted sanctions on top Malian officials, including General Camara, the recently slain defence minister. It may see closer cooperation with Sahel countries as essential to its security interests and a way to undercut Chinese access to Sahelian resources.

The three Sahel states, Mali, Burkina Faso and Niger, have turned away from France and Europe and towards Russia, while increasingly flirting with the U.S. and reliant on Chinese weapons. The result has been disaster. All three Sahel states are ranked in the top 5 for countries impacted by terrorism. And the humanitarian toll has been severe. Millions of people face internal displacement across the region and cuts in aid programmes mean many millions, especially children, also face acute hunger. But, as the great powers circle the region, jockeying for geopolitical gain, the talk remains about the logistics of propping up failing juntas, providing military solutions to human crises, and maintaining power rather than confronting problems.

Mali, Burkina Faso and Niger – all led by military authorities that came to power in a coup – have also isolated themselves from the rest of their neighbors by withdrawing from the West African regional bloc, Ecowas. Meanwhile, they sell their model as an alternative to Western-style democracy, a narrative that Russian propaganda networks have been all too eager to promote. But the strength of the insurgency against Mali’s government, and Russia’s apparent inability to protect it, sends a different message to the rest of the African continent.

The post Why an insurgency in Mali matters in Moscow appeared first on Coda Story.

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.

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.

The post Why Trump-backer Justin Sun is suing the Trumps’ firm appeared first on Coda Story.

It starts with a simple search term in the Department of Justice’s Epstein Library. “Blue eyes.” Hundreds of results. Jeffrey Epstein’s international trafficking agents send him pictures and descriptions of blue-eyed young girls: potential victims to be dispatched to his various homes. “I spotted two skinny blond blue eyes 21 years old ladies in Monaco last weekend and asked them for CVs,” one agent, whose name has been redacted, wrote. “Trying her best to move from her small town to Moscow; English isn't great. Could be fun for Paris, blue eyes,” wrote another. “Can't understand if her breast is real. Otherwise very pretty and sweet…Very blue eyes as we like.” 

One of Epstein’s victims wrote of being chosen for her eye color in a journal entry later shared with federal prosecutors. "Superior gene pool?!? Why me?" she wrote, describing Epstein's worldview as "Nazi like." "It makes no sense. Why my hair color and eye color?" 

Epstein — himself blue-eyed — seemed to prefer both his victims, and the people he bankrolled, to have blue eyes. “All of my fundees have blue eyes,” he boasted in one email. In the entryway of his Manhattan townhouse, he displayed dozens of prosthetic eyeballs in a frame. Epstein made notes and sent article links to his contacts asking if having blue eyes meant you were more intelligent or a “genius”. He even had a list of scientists and tech leaders with blue eyes — including Elon Musk, Peter Thiel, and Google’s Ray Kurzweil. “Total — 70 people Blue eyes — 41 Unclear (might be blue, but not 100% sure)” the list says. Appearing in the files — whether on this list or elsewhere in Epstein's records — does not connote legal wrongdoing.

Going deeper into the files, Epstein and his network of contacts discussed beliefs about how physical characteristics and race might denote intelligence. They exchanged emails about population control. They spoke of engineering women’s sex drives, building designer babies, and living in a world full of superintelligent humans that could merge with robots. They spoke of getting rid of the elderly, the infirm, and the poor.

The files offer a glimpse into a world where ideas about eugenics and race science have never gone away. On the contrary, they run through our elite universities, through the most powerful companies in Silicon Valley, and through the tech industry itself. Epstein’s was an exclusive club that counted among its members people who harbor dreams of re-engineering human minds and bodies, seizing control of our collective future, and building technology that, they hope, will one day merge with — or even replace — all of us.

In 2002, two decades before the launch of ChatGPT, Epstein hosted an Artificial Intelligence summit on his Caribbean island. In the years that followed, he cultivated close, regular contact with a network of  (predominantly male) scientists, researchers, academics and tech leaders working at the vanguard of AI, biotech, genetics and cognitive science, meeting them at universities like Harvard and at his various homes. 

In August 2018, a year before Epstein was found dead in his jail cell, he was in email correspondence with software consultant and bitcoin investor Bryan Bishop about funding a project to create “designer babies” — children with genes cherrypicked for their looks, health, strength, immune systems, sleep needs and even, in Bishop’s imaginings, abilities to live on a different planet. 

  “Attached is the doc you requested, it's the "use of funds" spreadsheet for the designer baby and human cloning company,” Bishop wrote to Epstein. “This gets us out of our self-funded ‘garage biology’ phase to the first live birth of a human designer baby, and possibly a human clone, within 5 years. Once we reach the first birth, everything changes and the world will never be the same again.”

Bishop went on to discuss how his ultimate ambition was to make “practically unlimited modifications to the cells before generating an embryo.”

In response to a request for comment, Bishop sent Coda a publicly available set of answers to frequently asked questions about designer babies.

“The reason people have an aversion to eugenics, and rightfully so, is because countries used genocide and sterilization to prevent reproduction by populations that they didn’t like. We have no intention of doing anything of the sort,” Bishop writes in the public FAQ. “‘Designer baby’ simply describes a child whose genome has been intentionally altered or chosen by their parents, rather than left entirely to the genetic lottery of natural conception.”

“It’s such a great subject,” Epstein responded after he read Bishop’s proposal. “We need to get a read on legal. Can’t do anything where US rules apply to US citizens regardless of where [they are].” 

Building a super-race of humans, and parachuting humanity into a different evolutionary era — or even obsoleting the human race as we know it — is a running theme in the Epstein files, and an increasingly prominent ambition for tech evangelists today.

“It’s eugenics all the way down,” said Jacob Metcalf, a founding partner at Ethical Resolve, a consulting firm working with tech companies to develop their ethics protocols. A common fantasy in tech circles, he said, is “to essentially control human destiny. And a lot of the times that human destiny is for humans to be replaced. That's the really bleak thing here. What could be more eugenic than getting rid of humans.”

In 2008, Epstein began conversations with the computer scientist Ben Goertzel. Over the years, Epstein would send Goertzel more than $360,000 to fund the researcher’s plans to build towards Artificial General Intelligence (AGI), a term Goertzel himself popularized.

“I remain eager to move forward on working together to accelerate progress toward a human-obsoleting thinking machine,” Goertzel wrote to Epstein in May 2008. Eighteen years on, and the idea of obsoleting humans with artificial intelligence is widely discussed in the tech world.

When asked to comment on his exchange with Epstein, Goertzel told Coda: “I do think we will create forms of transhuman intelligence going beyond the scope of humanity as we know it, but I also very much hope and envision a strong role for humans even after this happens.”

Goertzel went on to describe a future where the world reaches the “Singularity” — a Silicon Valley buzzword signifying a tipping point where AI surpasses human intelligence. “I do think AI will eventually gain its own superhuman autonomy, but I think this can happen in a way that respects and nourishes human life rather than being harmful to it,” he said. “Epstein and I discussed this face to face a few times and indeed I was a bigger fan of the human species than he was, and more optimistic about its flourishing post-Singularity.” 

In an email to Epstein, Goertzel laid out a scenario where AI systems would start running their own economic activity. He envisioned this Artificial Intelligence economy acting as a “parasite to overcome the regular human economy” that would eventually “gain its own superhuman autonomy.” The ideas Epstein and Goertzel exchanged mirror a broader conversation unfolding in the tech world that imagines a future where ultimately, human labour could be rendered superfluous, and ultimately be replaced by artificial intelligence and robots.

Together, Goertzel and Epstein also discussed modifying human brains — a concept popular in Silicon Valley today, where numerous brain-computer projects are researching ways to cognitively enhance the human brain, and alter human personality, memory, and mental capabilities.

In 2008, when Epstein told Goertzel he was “off to jail” for a year, after he was convicted of soliciting a minor for prostitution, Goertzel suggested the solution to his problems might one day be solved if human brains could be re-programmed.

“According to my understanding, the girls you were involved with were old enough to know what they were doing, so society really has no ‘moral right’ to lock you up,” Goertzel wrote to Epstein. “This is a fucked-up society we live in. But past ones have really been no better -- the fault is really w/ the human brain architecture, which is precisely what I'm aiming to supercede in my AGI work.”

When asked to comment on these remarks — and in particular the implication that Epstein’s problems might be solved if his accusers' brains were one day re-engineered — Goertzel told Coda: “This was a general observation that the messed-up nature of our society generally is rooted in the way our brains have evolved... and that advanced tech will let us modify our brains to make ourselves and thus our society better.  There was no implication intended (nor stated) that women’s brains are any more or less messed up or in need of improvement than men’s.”

Goertzel reflected that his comments on Epstein’s victims being “old enough” were “regrettable and unfortunate in hindsight,” adding that his impression was that Epstein had been involved with adult women, not “disgustingly curating high school students for sexual purposes. I should have paid more attention.” 

In 2013, three and a half years after Epstein was released from jail, Goertzel approached Epstein for funding to build a “toddler robot”. Given Epstein’s criminal history of abusing minors, this has inevitably attracted attention online. “When we were discussing measuring the IQ of robot toddlers, the topic was never sexualized in any way,” Goertzel told Coda when asked about the project. “While I had nothing to do with Epstein's perverse sexual tastes or abuse of women, what I have read about his awful doings in the newspapers relates to his interest in teenage girls not toddlers.”

Epstein was particularly interested in funding projects that built — like Goertzel’s –- on transhumanist theories. Transhumanism is a worldview that captivates many of the most prominent tech leaders in Silicon Valley today. It believes in a future when the human body can be endlessly altered, genetically engineered, and ultimately fused with artificial intelligence. 

“Transhumanism is a much more radical concept than eugenics,” explained Timnit Gebru, a computer scientist and researcher who has written extensively about eugenicist ideas within artificial intelligence. “In eugenics, you're trying to create a more superior human by breeding humans through generations. In transhumanism, you're trying to get rid of humans altogether.”

For transhumanists, she added, “their idea is to get rid of any undesirable properties they see with humans."

Perhaps the most well-known proponent of transhumanism in the Epstein files is Peter Thiel.

“I think you would prefer the human race to endure, right?” New York Times journalist Ross Douthat asked Thiel last year. “Uh—,” Thiel said. “This is a long hesitation!” Douthat said. “Should the human race survive?” “Yes, but I would like us to radically solve these problems,” Thiel said. “We want you to be able to change your heart and change your mind and change your whole body.”

Thiel’s name appears in the files more than 2000 times, and Epstein reportedly invested some $40 million into Valar Ventures, a firm co-founded by Thiel. The two spoke of building secret societies and shared an interest in transhumanism and cryogenics — Epstein wanted to freeze his brain and penis when he died, so that one day he could be revived, while Thiel has also stated his body will be frozen after his death. 

They also appeared to share an interest in bringing an end to the democratic systems of today, imagining a different system altogether. Epstein, for his part, spent his life puppeteering the most powerful people in the world and undermining democratic systems. Thiel, meanwhile, first expressed his own anti-democratic views in 2009 when he wrote: “I no longer believe that freedom and democracy are compatible,” adding that since women were allowed to vote, the notion of a capitalist democracy became impossible. When the Brexit vote came through, Epstein wrote to Thiel: “Brexit, just the beginning.” Thiel asked — “of what”; Epstein said – “Return to tribalism, counter to globalization, amazing new alliances.” 

Globalization — and the idea of internationally powerful governing bodies — is a worldview that both Epstein and Thiel seemed to distrust. In March, in a palazzo in Rome, a stone’s throw from the Vatican, Thiel gave one of his infamous lectures in which he espoused his views about an “antichrist” that gets in the way of technological progress. This antichrist, he suggested, could be an internationally powerful body; the product of globalization. I stood outside the palace as attendees — priests, students, researchers — mutely hurried out, refusing to speak to the cluster of reporters waiting for Thiel’s black Mercedes. 

“He has a totally irrational side, which lives on fear, of what danger might happen,” one audience member told me of Thiel on condition of anonymity, recalling how, up close, Thiel looked haunted and ill. “His head is full of future scenarios, which is what’s killing him. I think he’s scared.”

Thiel did not respond to multiple requests for comment. 

Epstein didn’t confine himself to lofty conversations about a future collapse of the global order or re-engineering humanity. He also had ambitions for his own personal eugenics project. In 2019, it emerged that he wanted to seed the world with his DNA — and reportedly have 20 women impregnated at a time at Zorro ranch, his New Mexico property.

Epstein tried to recruit Virginia Giuffre for this very project. He “fantasized about improving the human race by fathering children who carried his superior genes,” she recounted in her memoir, published posthumously late last year.  “He’d talk about using his Zorro ranch as a literal breeding ground to propagate babies.” When Giuffre was 18 years old, she recalled, Epstein asked if she would carry his child and hand over all legal rights to it – “like a modern-day handmaid.”

In a haunting diary entry from another Epstein victim, written between the ages of 16 and 17 and shared with federal prosecutors, a girl describes being told she will be sent to Zorro ranch — possibly to participate in the very same project. “Go to New Mexico? What in the hell? This makes no sense. What about school?” she writes, describing how Epstein chose her for her hair color and eye color, and tried to convince her she would create “perfect offspring.”

The teenager chronicles her pregnancy, pasting a sonogram into the scrapbook, before giving a traumatic account of giving birth with Ghislaine Maxwell beside her. “Ghislaine said to push all the pain away. I don't understand. Blood and water all over the bed.” As the baby was born, she writes, Maxwell covered her eyes. “I saw between her fingers this tiny head and body in the doctors hands.”

The girl describes hearing the baby’s “tiny cries” before “they took her.”

“I’m nothing but your property and incubator,” the teenager writes of Epstein. The diary is a terrifying piece of evidence that appears to link to Epstein’s longstanding fixation with creating genetically bespoke humans. The diary author’s lawyers, Wigdor LLP, declined to comment.   

Epstein’s fever-dreams of creating an army of children carrying specific genes reflect a broader trend of “pronatalism” — a movement historically tied to eugenics — that’s thriving in Silicon Valley.

 Millions of dollars of funding are currently being poured into projects creating “superbabies,” while billionaire tech oligarchs including Elon Musk — whose name appears more than 1000 times in the files — reportedly want to use surrogates “to reach legion-level before the apocalypse.” Musk did not respond to requests for comment.

In the files, women appear either as victims, as objects, or as vessels for genetic engineering experiments. They are an inconvenient reality, people to be controlled and re-booted. Epstein wrote a 2013 email implying that women “are like shrimp. You throw away the head and keep the body.” 

“The obsession with "artificial" life appears tied to a masculine desire to try control the production of life – ultimately ridding themselves of their dependency on women," said Gabriella Razzano, Co-Founder of OpenUp, a social impact tech lab based in Cape Town, who is also a senior advisor at the African AI Observatory. “I think there is important work to be done on tying the narratives that are very revealing in the Epstein files to understand how, and why, technology is being developed as it is.” 

The trading of ideas about intelligence — both artificial and human — takes a particularly sinister turn in a 2016 exchange between Epstein and the cognitive scientist and AI researcher Joscha Bach, whose research Epstein funded to the tune of $300,000.

Bach writes to Epstein about a study claiming that “black children outperform white children in motor development, even in very poor and socially disadvantaged households, but they lag behind (and never catch up) in cognitive development even after controlling for family income.”

Epstein responds with racist ideas about his notion of how to “make blacks smarter”, adding — “maybe climate change is a good way of dealing with overpopulation. The Earth’s forest fire. Potentially a good thing for the species,” before contemplating a world with “too many people,” where “many mass executions of the elderly and infirm make sense.” 

Epstein then imagines creating a future “Übermensch” — a superior human with cherry-picked attributes. “What I like is the idea that ubermensch could be the melding of humans, put together in one brain,” Epstein writes. This bespoke human, he suggests, would include traits from marginalized groups, who he appears to believe have a stronger awareness of how to navigate power structures because of their historical exclusion. “An increased motor system, an increased awareness, an increased status calculator (Blacks, jews, women). Ubermensch could be the combination of the best of humans, not the best of a specific race or gender. Fun idea.” 

Bach told Coda in a statement: “I was summarizing a scientific study in a private email. Studies like this get often abused in ideological discourse to justify discrimination, which I strongly oppose and condemn.”

“I am firmly opposed to any form of racial discrimination, and I reject the use of group-level statistical claims to make judgments about individuals or to justify unequal treatment.” 

He continued: “It goes without saying that if global warming were to lead to a reduction in the human population, it would be accompanied by immeasurable suffering. Our civilization would break down, leading to a return to dark ages, in which the elderly and infirm were often killed, because people could not support them, and often did not care about supporting them. Every reasonable person understands that this is horrible and not desirable in any way.”

Epstein “was often callous about human suffering in a way that I found disturbing but worth understanding, as a window into the perspectives of the rich and powerful,” Bach added. 

Alongside Epstein’s conversations about mass executions for the old and and the sick, he was also interested in Silicon Valley’s dream concept of living forever — he had numerous email conversations with the longevity guru Peter Attia about prolonging his own lifespan, and funded a Harvard project geared towards “the end of aging.” In an email to Attia, Epstein mused: “I’m not sure why women live past reproductive age at all.” Attia, who published a statement about his relationship to Epstein, did not respond to requests for comment. 

This interest in “longevity” — living for as long as possible, even living forever, is popular among the elite precisely because they find themselves in an elite class, says David Robert Grimes, a scientist and disinformation expert who has written about longevity and race science in Silicon Valley. “They're both sides of the same coin — the Silicon Valley eugenics, and also the longevity stuff. They promote an idea that ‘we are exclusive and we are special',” he said. "It helps them to justify deep social inequality."

The tech elite did not inherit this ideology by accident. Stanford University, the intellectual heart of Silicon Valley, was once a major hub for the American eugenics movement, which later helped to inspire Nazi race laws. Stanford’s founding president, David Starr Jordan, was a prominent eugenicist, campaigning for forced sterilization of people with undesirable genetic traits. The university removed his name from its buildings in 2020 — but in Palo Alto, his beliefs did not disappear with the nameplate.

"Instead of eugenics we just call it longevity or biohacking," Christopher Wylie, the Cambridge Analytica whistleblower who has spent years investigating Silicon Valley's belief systems, said on a panel with me at a journalism conference last year. "It's the same."

The ideology Epstein bankrolled in private is being built in public. It’s a vision of the future in which a select few get to upgrade and extend their lives, while tightening their grip on the systems that determine which humans are worth investing in — and which are not.

It sounds like a dark sci-fi fantasy, except, as the files show, that fantasy is being funded and pushed into reality. Most of us will never be in the rooms where these ideas are discussed. All of us will live with the results.

The post “All my fundees have blue eyes.” Epstein and the tech world’s dark ideology appeared first on Coda Story.

My name is Darina,” says an elfin teen, ponytail pulled through the back of her cap, and “next year I’ll be earning 150,000 rubles (nearly $2,000) a month.” Darina works at what she calls “the world’s largest drone factory,” helping to assemble versions of the Iranian Shahed drone. “My parents are proud of me. Wanna do the same?” She asks as she advertises a polytechnic in Tatarstan. The Russian government, in the face of war and looming demographic disaster, has been relaxing child labor laws since 2022, making it easier to put 14-year-olds to work. Now, legislators are open about the need to reform “outdated” restrictions on employing minors in industries that were “considered dangerous 20 years ago.” Drone production is not the only part of the war effort to which teenagers are being recruited. This month in a “content camp” in Moscow, soldiers and state media propagandists trained 120-plus teens on how to make videos, use AI, and grow their audiences as aspiring influencers. Vladislav Golovin, a former soldier and a leader of Russia’s Young Army Cadets National Movement, said the program had “created a huge team of kids who understand how to broadcast government values.” 

But many young people, subject to year-round conscription, subject to internet shut downs and subject to surveillance, have little desire to spread propaganda. Instead, according to Google Trends data, growing numbers of Russians are seeking information on how to emigrate. A new exodus would accelerate Russia’s deep demographic crisis. Already, up to a million people are thought to have left Russia since the full scale invasion of Ukraine in 2022. According to one recent count, nearly 210,000 Russian soldiers have been killed in the war with Ukraine, with other estimates suggesting over 1.2 million casualties, including 325,000 deaths. And Russian fertility rates are the lowest they have been for 200 years. Anton Kotyakov, the labor minister, has told Vladimir Putin that the country faces a labor shortage of 11 million people by 2030.

So concerning is this crisis that Rosstat, the national statistics agency, has stopped publishing monthly demographic data. State officials and local governors have been told to compete to come up with the most innovative solutions to a seemingly intractable problem. The pressure on Russian officials and the Kremlin is leading to desperate measures, including guidance from the Russian health ministry that women who say they do not want to have children should be referred to a psychologist. Nothing the Russian state has tried has worked, from financial incentives (extended even to schoolgirls under 18) to banning advertising that supposedly promotes “child-free” lifestyles and so-called “LGBTQ propaganda.”   

Alongside “anti-woke” policies disguised as family values, is rising xenophobia and anti-immigrant rhetoric that has led to a marked decline in the number of foreigners living in Russia. The Kremlin’s anti-migrant policies include a new system to monitor migrant workers through biometric registration, location tracking, and intensified police oversight. The Russian parliament is currently debating enhancing the number of offences that can be punished by deportation or substantially increased fines. Much of it is targeted at Russia’s Central Asian migrants who make up an overwhelming majority of immigrant labor. Some Central Asian governments, notably Kyrgyzstan and Tajikistan, have now urged their citizens to think twice about going to Russia for work. 

Russia has been publicizing political stunts such as its “shared values visa” in which applicants from 46, largely developed, nations are given temporary residence permits if they profess to support “traditional Russian values.” The visa, the Kremlin has said, is “Russia’s response to what it perceives as the harmful effects of Western neoliberal policies.” But only a tiny fraction of the immigrants Russia needs will be Westerners who apply for such a visa; instead, Russia has been diversifying its pool of migrant workers by looking further east. Around 72,000 work permits were issued to Indian nationals in 2025, up from just 5,000 in 2021. Russian officials have signaled they are ready to accept “unlimited” numbers of workers from South Asian countries like India, Sri Lanka, and Myanmar.

While the Kremlin is looking to South Asia and Africa to address its immediate need for workers (and soldiers), the ambition in the longer term is to boost Russian birthr rates, despite the signal failure of ongoing attempts. 

In the U.S., there have been several moves borrowed from the Kremlin’s playbook, including the restriction of abortion, the attempt to deny women birth control, and even alarm at the fall in teen pregnancies. But data released this month showed that women in the U.S. gave birth to 710,000 fewer babies in 2025 than they did in 2007, a reflection of two decades of steadily dropping birth rates. Russian demographer Salavat Abylkalikov, at the Leibniz Institute for East and Southeast European Studies in Germany, says “if the birth rate has fallen below the level of simple reproduction, it is almost impossible to raise it back.” Especially when financial incentives cover just a fraction of childcare costs. 

In any case, Abylkalikov says, “in Russia, death is much more profitable than birth: in Nizhny Novgorod Oblast, the government provides around 1,000,000 rubles (about $12,000) for each child, but if one person goes to war and dies, the family receives up to 12 million rubles in total. That's more than $120,000. This is the economy of death.” The evidence, from countries like Russia, Hungary and the U.S., is that appeals to tradition, to religion and to female “responsibility” do not work, when support for families is limited. And while migration is an obvious fix to demographic questions everywhere, it’s politically toxic.

Russia knows it is hurtling towards demographic doom but can do little to halt the momentum. Its policies are riddled with inconsistencies — a strong line in anti-migration rhetoric and bullying, while being forced to import workers and soldiers from Asia and Africa; a patriarchal view of women’s roles, mostly confined to the domestic, while increasingly reliant on women to take the jobs of the men who are fighting and dying in Putin's war; and encouraging more women to give birth, while employing children to build drones. With family values like these, no wonder young Russians are hesitant to procreate.

The post Teens making drones: Russia’s demographic collapse appeared first on Coda Story.

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.

The post Why Europe must disable Russia’s crypto ecosystem appeared first on Coda Story.

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. 

The post Peter Thiel is building a parallel justice system — Powered by AI appeared first on Coda Story.

“They’re shooting smoke at protesters.”

“They broke doors.”

“They brought an armored vehicle.”

In Aarhus, Denmark, Hemad Nazari lay in bed, refreshing his phone.

It was early evening in Iran on January 8, when the messages began arriving from Rasht, the northern city where he grew up.

Nearly two hours later, another message appeared: “We are trapped in our home.”

Then the messages stopped.

For the next eight days, Hemad heard nothing from his family.

He wasn’t the only one. Several million Iranians are part of an educated, relatively prosperous diaspora spread across the world, particularly North America and Europe, a diaspora that grew from the mass emigration of professionals and intellectuals after the 1979 Iranian revolution.

Nazari lives in Aarhus, Denmark’s second-largest city. He works for a real estate company. He’s a photographer, an active part of the local climbing community, and over the past year, he has been cycling across the world with his girlfriend.

It looks and feels like freedom. And in many ways, it is.

But Nazari hasn’t set foot in Iran for eight years. In that time, he has met his parents three times — twice in Turkey, once in Nepal.

As for now, with a nationwide internet blackout still in effect amid a flickering, faltering peace process, he can, like everyone else around the world, only watch — and wait.

Hemad Nazari left Iran in 2016, at 27. He was not at the time a political exile. He was a civil engineer with a steady job and a passport that made most borders difficult to cross. He wanted to travel. To see the world. To live somewhere else for a while.

The sanction-ridden Iranian economy was in a state of collapse. Nazari’s salary, once worth a few hundred dollars a month, shrank rapidly as the currency fell. Saving money became meaningless. Planning a future felt abstract — a concept more than a tangible goal.

So he left. He went to Vietnam first. Then Nepal, Georgia, Turkey. What began as travel, slowly turned into something more permanent.

“I didn’t leave because I thought Iran would change,” he told me. “I left because I could see that it wouldn’t.”

And it wasn’t because people were satisfied, or afraid of change. The January protests, in which many thousands of Iranians were killed, were no eruption, no sudden flaring of anger.

Since 2019, Iran has experienced three major waves of mass protest. That year, demonstrations sparked by a sudden rise in fuel prices spread rapidly across the country. The response was immediate. There was, typically, a near-total internet shutdown and, according to a Reuters investigation, as many as 1,500 people may have been killed during the crackdown. Human rights groups said more than 10,000 people were arrested during and after the protests, with many of them held incommunicado and at risk of being tortured or facing capital punishment.

The demonstrations ultimately collapsed under isolation and fear.

For Nazari, whose travels had enabled him to put distance between himself and his homeland, the 2019 protests made it apparent that Iran was no longer an option for him, no longer a place he wanted to call home. He was not a persona non grata. There was no letter. No summons. No official declaration. Nothing that could be quoted or appealed.

Instead, he had changed.

When the internet inside Iran is shut down, information can only escape through fragments: phone calls, short videos, people with rare access still intact. From abroad, Iranians like Nazari become intermediaries by default. He translated. Shared. Verified. Some of his posts were picked up by Persian-language television channels broadcasting from outside Iran, including BBC Persian and Iran International. Channels watched closely by the authorities.

Nazari did not think much of it at first. He was not an activist by profession. He did not belong to an organization. He was simply using his name, his language, his access. But others who had said less had been detained on arrival in Iran. Cartoonists. Writers. Ordinary social media users. Some disappeared into prison for years. Some emerged broken. Some did not emerge at all.

“You don’t need to be told,” Hemad says about knowing he couldn’t go back. “You understand.”

In early 2020, after Iranian forces shot down a Ukrainian passenger plane and initially denied responsibility, crowds returned to the streets. Once again, arrests followed. So did the silence.

Hemad Nazari’s activity increased again. His real name was public. His face was visible; he didn’t hide. It was a choice he made despite the risk not just to himself, but to his family. “If they can’t get to you,” he told me, “they get to the people around you.”

Since then, eight years have passed.

“It’s not that I chose not to go to Iran,” he says. “It’s that every time I tried, the door closed again.” He does not refer to it as exile. But, in a manner of speaking, he had been made stateless, effectively stopped from going home, from seeing his family, from resuming the life he knew.

By  late December 2025, daily life in Iran once again became untenable. Food prices surged, paychecks were worth less every day, and families thought only about short term survival, unable to think even a month ahead.

According to Nazari, official inflation figures — though already extremely high — failed to capture the reality on the ground. By February, he told me, the cost of basic goods rivaled those in Denmark. Wages, he said, stagnated “at around $110 or $120 a month, with many people earning much less than that.” The minimum wage, the official figures from Iran’s Supreme Labor Council show, increased by 45% and still only reached $110 per month.

“The protests were fuelled by the economy,” Hemad says. “When shopkeepers and traders joined, it was a sign that frustration had reached a boiling point. But people don’t just want better prices. They want freedom. They want new leadership.”

In Rasht, his hometown in northern Iran, even families with children took to the streets in protest. “In my city, a lot of mosques are gone,” he says. “They burned them down. That tells you something.” What struck Nazari most, though, was not only who was protesting, but what they were saying, what they appeared to want. 

“For the first time, the main chant on the street was the name of the prince,” he told me. “The son of the former shah: Reza Pahlavi.” Nazari is quick to stress that he himself is “principally a believer in democracy.” But the chants were telling. 

“For 40 years, only loyalists dared utter the name Pahlavi. Now it’s spoken openly across all layers of society,” It was not about restoring the past. Instead, suggests Nazari, “for the first time, we had a plan.” People, he says, “were asking, ‘what happens if the regime collapses?’ And for the first time, there was an answer.”

In January, there was, as Nazari describes it, a rare sense of readiness among people he knew inside Iran. Friends who had never protested before were sending messages saying they would go. Family members spoke with a kind of cautious hope. This time, it felt different. It felt like change was possible.

Two days earlier, the son of the former shah had issued a public call for people to take to the streets on January 8 and 9 — not to follow a detailed program, but to say openly what they had long been afraid to say. 

From Denmark, Nazari watched the buildup hour by hour. On January 8, as protests reached their peak, the internet went dark. The blackout was not unprecedented. Iran’s authorities had used these tactics before. Inevitably, as access disappeared, reports of mass arrests and the use of live ammunition to dispel crowds spread through the few remaining channels still connected to the outside world. 

In Rasht, Nazari’s close friends sent him a video from their apartment window. Smoke drifted through the street. Shouting echoed between buildings. Gunfire cut through the noise.

During the blackout, Nazari continued to receive fragments of information — through people with Starlink terminals, through friends who still had limited access. By January 10, the informal network of activists and diaspora Iranians he was part of believed that at least 2,000 people had been killed.

Eventually, his mother managed to call him. “We’ve been trying to reach you,” she said. With international charges for calls piling up every second, they had been trying to call him for days. Since that brief call, contact has been sporadic. A snatched few minutes. And then silence again.

“People showed everything they had,” Nazari says of the protests. “They did what they could do.” He’s trying not to romanticize what happened in January, he tells me. He’s not saying, he insists, that the protests were heroic. “Iranians,” he says, “are just desperate.” As for Nazari, he tells me up until the U.S. and Israel attacked Iran, he was “constantly debating whether to go home.” Right now, he adds, “it could have severe consequences, potentially a death sentence.” But, he pauses, “if it comes to civil war, I will go. My life doesn’t matter.”

For years, Nazari believed — as many Iranians did — that pressure, negotiations, sanctions, or appeals to international institutions might eventually force the regime to change. Over time, that belief had eroded. By January, he says, “it was gone.” It’s why he supported the attacks on Iran by Israel and the U.S., the execution of Ayatollah Khamenei and key regime figures.

“I’ve been saying for years that they are not going to leave peacefully,” he says. “They will fight. If the choice is that many people die, including me and my family, but the country becomes free — and then in 10 years we are back as a people, it will be worth it.”

He stops himself.

“I don’t say this because I like death, I say it because I don’t see another way. There is no peaceful path left.”

But  the hope Nazari felt when Donald Trump said the United States would respond forcefully if Iranian authorities continued killing their own people, has also now died.

On February 28, when U.S. and Israeli strikes on Iranian leadership and critical infrastructure began, some diaspora Iranians gathered to celebrate what they saw as the fall of a regime figurehead they had opposed for decades. Others responded with shock, caution, or grief, warning of what might follow.

In Denmark, where roughly 25,000 people of Iranian origin live, that divide played out in public. In Aarhus, several hundred Iranian Danes gathered in the city center with flags, music and open calls for regime change. Some thanked the U.S. and Israel for the strikes. At the same time, a pro-regime memorial for Ayatollah Khamenei in Copenhagen drew around 200 participants.

Their response to U.S. actions were playing out in a country where the broad view of the U.S. as a friend and force for good in the world had shifted sharply. In Denmark, as war in Iran broke out, people were still thinking of Greenland and Trump’s threats to annex the territory. In a January 2026 poll, 60% of Danes said they now see the U.S. as an opponent rather than an ally, while just 17% still considered it an ally.

Among Iranians, inside Denmark as in the wider diaspora, this ambivalence towards the U.S. is all too familiar. In a recent article in the Dagbladet Information, Iranian-born activist Nahid Riazi warned against celebrating a war that seemed to have little to do with emancipation for Iranians.

“Who says that war brings freedom?” she wrote. “It is us who are being hit. It is our children who are being destroyed.” 

Nezari says he has heard this argument. He does not dismiss it. But, he asks, “what is the alternative?” If the war stops, he says, “and the regime stays, how do you guarantee they won’t keep killing people like they have since 1979? How do you guarantee they won’t start the street executions again?”

Trump, despite the failure of the first 21 hours of peace talks in Pakistan, continues to say the war is “very close to over,” that the Iranian government wants to make a deal. A deal, presumably, that enables them to stay in power.

The Islamic Republic may have been dealt a devastating blow, but it remains intact. Its leadership structure has shifted but not collapsed. To Nazari, that does not show resilience so much as the nature of the system itself.

He rejects the idea that the Islamic Republic functions like a government in any conventional sense. It behaves, he says, more like a cartel or an armed network — something held together not by institutions, but by force and succession. Too many powerful men remain alive, still able to operate. And a system like this, he argues, does not surrender because its center has been hit. It keeps going until every center is removed.

“Not until all the heads are cut off,” he says.

But U.S. attempts to bully the world into joining a war where the goals remain so varied and nebulous have been unsuccessful. The popularity of the war inside the U.S., even among Trump supporters, is low. The uncomfortable question now is what comes next — and whether anything has truly changed.

Still, Nazari argues that the current state of purgatory, in which the war is neither ongoing nor over, is not evidence of failure, but of what was always going to happen.

“We were not living in Iran,” he says. “We were living in a military compound with cities in between.” Even if negotiations resume, he believes something irreversible has already happened. The fact that the regime’s leaders now have to hide underground means, to him, that there is no real return to the old order.

“There’s no going back to how it was,” he says. But for now, Nazari is still in Denmark. His family is still in Iran. He still holds his phone close, hoping for news. Any news. Like Iranian exiles everywhere, and like the war itself, he is trapped in stasis, caught between distance and a sense of responsibility to his homeland — deeply involved, fundamentally powerless, yet unable to look away.

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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.

The post The performative war on money laundering appeared first on Coda Story.

On the night of January 16, 2024, Egana Djabbarova was awoken by her wife and told that she needed to leave the country immediately. Djabbarova, her wife said, had been denounced by pro-war activists and framed as an enemy of the country. She had recently published her novel, “My Dreadful Body,” with a small, indie press that had been praised by mainstream critics, unexpectedly propelling her into the public eye. One of the book's central themes is surveillance: growing up in a community with strict behavioural codes, the protagonist's every move is under scrutiny.

In a dark echo of her work, Djabbarova was now under online surveillance herself. “I was just the perfect enemy,” she tells me, “because I’m queer, I’m not Slavic, I worked on decolonial and feminist projects… So boom, it happened.”

She is speaking to me from Hamburg, where she now lives. Djabbarova is part of the so-called fifth wave of writers exiled from Russia, alongside Maria Stepanova, Lyudmila Ulitskaya, and Maxim Osipov to name a few. Her upbeat tone during our call gives little indication of the arduous journey she has endured since fleeing Russia. Upon receiving a humanitarian visa from Germany, she spent months in a refugee camp. She lived, she says, “in a container house, literally a shipping container. You feel like you're not a subject, not a human being.” 

More permanent accommodation has provided a degree of safety and stability, but a sense of precariousness lingers. She describes her position as an exile as “strange” — on the one hand she has been welcomed into Germany’s cultural elite in winning the Hamburger Literaturpreis; on the other, she feels like a “ghost,” unable to express herself in German and often bewildered by the unfamiliarity of everyday tasks in a new country, and in a new city which, she tells me jokingly, is quaint and polite like the well-behaved boy next door. 

But there’s a deeper, historical layer to Djabbarova’s story of exile. Her father was a refugee from the region of Nagorno-Karabakh, while her mother was forced out of her family home. “Homelessness and exile — this is my heritage,” she says. Being othered became a common theme of Djabbarova’s childhood, as a child of Azeri parents living in Yekaterinburg. “In Russia you are constantly reminded that you're not Russian,” she says. “Then during the summer you visit your relatives in Azerbaijan and they laugh because you cannot speak Azerbaijani properly.”

This sense of double estrangement is mirrored in “My Dreadful Body” (published in Russian in 2023 and recently translated into English by Lisa Hayden). At only a touch over 100 pages, it is a slim but powerful account of the pressures on one woman growing up among the strict codes of an Azerbaijani family living in Russia. A sense of surveillance and conditional belonging defines the narrator’s upbringing: “In the world where I grew up,” she writes, “gazes penetrated every little corner. The evil eye, the neighbors’ eyes, the relatives’ eyes, the random pedestrian’s eyes, the unscrupulous men’s eyes, the women’s unhappy eyes. Life in the community was reminiscent of a reality show with constant video surveillance: no action, word, or undertaking went unnoticed.”

The story is based on Djabbarova’s own life. “Maybe 70-80% of this story is absolutely true”, she confirms. The narrator is named Egana, she grows up in an Azerbaijani family in Russia, too Russian for the family, not Russian enough for her friends at school. She also, like Djabbarova, suffers from a debilitating autoimmune disorder that is eventually diagnosed as dystonia, a neurological disorder that causes involuntary muscle contractions. During one episode, she describes her body as resembling “willow branches gone mad from a strong wind” — a potent image of struggle against external forces. Djabbarova describes the book as a way to reclaim her body through language. “I was trying to tell this story in a poetic way. I wanted to change my body into poetry.” 

Each chapter of “My Dreadful Body” begins with a different body part (“Eyebrows,” “Eyes,” “Hair” and so on), like the poetic blazons spun by Renaissance poets. Where those poems encouraged an idealized, sensationalized reading of each body part, Djabbarova’s chapters are more sober explorations of the physical limits — and personal and cultural stories — these body parts contain. 

In one of many poignant scenes, the narrator’s head is shaved in preparation for a procedure. She cries on seeing her “shorn scalp,” but the sadness is not aesthetic, it’s ancestral; the act marks a symbolic rupture with her lineage. “My past,” she writes, “the past of all the women in my family, the memory of my ancestors, the history of a single body — all that now lay on the cold floor.” After this scene, her grandmother’s dictum that only long hair was considered beautiful, rings even more sharply. 

Illness then emerges as another form of exile, from one’s sense of self, from what’s perceived as “normal” in society, from the culture and community one belongs to. “They do not see you as a subject, as a human being, and they do not recognize your existence… I realized if I wanted to be seen as a subject, I needed to do it myself.” Djabbarova is talking about the plight to be believed about her symptoms here, but she could easily be talking about the often dehumanizing experience of exile. In both instances there is something fundamental under question, or as Djabbarova puts it, “You’re trying to prove that you have the right of being. You’re trying not to be erased.” 

We often talk about exile in the context of loss, but how might exile liberate? Paradoxically, Djabbarova tells me, her diagnosis became a form of liberation. “I always felt I had so many expectations on me as a girl, as a woman, so when I was finally diagnosed it was a liberation because my parents realized I would never be this type of girl.” Exile breeds a particular creative liberation, too, evidenced by the fact Djabbrova wrote the novel from Taiwan where she was briefly teaching Russian. “Here I had enough distance from my own life and my own experience,” she says. “Maybe it’s easier to write about your story being on an island in the Pacific Ocean.”

Writing is arguably the real heroine of Djabbarova's novel. For the narrator Egana, it is a place free from surveillance and a source of protection, “like an invisible amulet.” Poetry, she told me “was the only safe space for me because nobody was asking anything of me. It's the only place where I don't feel judged. I don’t feel ashamed. I don’t feel questioned.”

The chapter “Hands” opens: “The most important parts of a woman’s body were her hands: they prepared food, rocked children, did laundry, ironed men’s shirts, sewed clothes, swept, washed the floor, and dusted.… Any woman in our family knew that her hands were not given to her for writing.” To use her hands, then, to write becomes both a symbolic and quite literal form of resistance against such gendered codes.

Notably, Djabbarova is not alone in invoking the body as a space to explore the upheavals of exile. In Maria Stepanova’s autofictional work “The Disappearing Act” — recently translated into English by Sasha Dugdale — the narrator attempts to purge herself by volunteering to be cut in half as part of a circus trick. Djabbarova’s approach to reclaim identity and agency through the body is less literal, and more personal, but through this specificity she has landed somewhere indisputably universal. 

“I realized the only way I can write this novel is through my body,” she says. “Because the only way I can rehabilitate my being, my agency, my subjectivity is through my body. And that's why I wanted every reader to feel my body… It's really important for all of us not to forget that this right of being is basic. It's not given. It's something you have from birth." 

At the end of our conversation, Djabbarova (who has been speaking in English) struggles to recall a word and jokes that learning German is slowly pushing her English out. “Certain words I only remember in German!” she laughs. Is this the beginnings of a kind of homemaking for Djabbarova, a sign that the seeds she has scattered in her new country are taking root? Like her protagonist, who finds solace and safety in words, it seems that Djabbarova’s most trusted tool for survival, for managing the condition of exile, is language. 

The post Exiled at Midnight appeared first on Coda Story.

Viktor Orbán, Hungary’s prime minister since 2010, faces an election dogfight. Behind in the polls, he has been effectively endorsed by both the Kremlin and the White House, and a host of conservative world leaders. As wars in Iran and Ukraine exacerbate the fissures that have weakened NATO, as well as the U.S.’s relationship with the European Union, this is an election that is being followed with bated breath in Washington, Moscow, Kyiv and Brussels. 

Before the elections on April 12, a scandal engulfed the Hungarian government. On leaked recordings, foreign minister Péter Szijjártó can be heard deferentially acquiescing to his Russian counterpart Sergey Lavrov and passing on information from EU meetings. Szijjártó appeared willing to help the Kremlin’s cause in Brussels, to remove oligarchs and their relatives from the EU blacklist, and to block efforts to aid Ukraine. Hungary’s advocacy for the Kremlin’s agenda culminated in its recent veto of fresh sanctions on Russia and over $100 billion in loans to Ukraine. On X, Polish prime minister Donald Tusk wrote that while “Hungary is and will be in the European Union, Victor Orbán and his foreign minister left Europe long ago.” And the Irish taoiseach Micheál Martin described Szijjárto’s calls with Lavrov as both “sinister” and “alarming.”

Szijjárto alleged that “foreign intelligence services, with the active involvement of Hungarian journalists, have been intercepting my phone calls.” It is a plot, the Hungarian government claims, to influence the upcoming polls. Orbán directly blames Ukraine for seeking to unseat his government. The opposition, led by Peter Magyar, has a healthy lead in the polls and describes the Hungarian government’s closeness to the Kremlin as “treason.” According to European intelligence reports, Moscow sent a three-person team to Hungary, overseen by Putin confidant Sergei Kiriyenko who ran an operation to interfere in the Moldovan election back in September. His tactics encompassed “vote-buying networks, troll farms, and on-the-ground influence campaigns.” A Kremlin-linked media consultancy, facing EU sanctions, was hired to dismiss Magyar as a Brussels stooge and portray Orbán as the only candidate strong enough to to be treated as an equal by world leaders, as evidenced by the strength of his relationship with Trump. 

Despite a war with Iran that doesn’t appear to be going entirely to plan, the U.S. president took time out to back Orbán with enthusiasm and at considerable length on Truth Social. Trump said Orbán was “a true friend, fighter, and WINNER.” JD Vance, the vice president, is scheduled to visit Hungary on April 7, just five days before the election. And secretary of state Marco Rubio went to Hungary in February. It is now part of the U.S. National Security Strategy to work towards “cultivating resistance to Europe’s current trajectory within European nations.” To that end, notes the U.S. government, “the growing influence of patriotic European parties indeed gives cause for great optimism.” Orbán speaks MAGA’s language on immigration, traditional values and the Christian essence of Western societies. He is, like Putin and Trump, in MAGA’s view, an implacable opponent of secular, progressive, globalist politics as symbolised by Brussels.

Orbán, the longest serving current head of government in the EU, has become a figurehead for populist, nationalist movements across the world. The recent CPAC Hungary summit was attended by several of these leaders including France’s Marine Le Pen, Italian deputy prime minister Matteo Salvini, and the Netherlands’ Geert Wilders,who called Orbán “a lion on a continent led by sheep.” Latin American leaders close to Trump , including Javier Milei of Argentina and Jose Antonio Kast of Chile, also attended. Milei, who gave the longest speech at the summit, said Orbán was “a beacon for all… who refuse to accept that the West's destiny is one of managed decline.” This international network, with the United States and Russia included, has a vested ideological interest in seeing Orban continue to remain a thorn in the EU's side. 

But what can Brussels do? The answer, it appears, is not much. The EU is consensus driven; it needs all its parts to act in concert, giving holdouts like Orbán considerable power to hold the whole bloc hostage. But given Orbán’s prominence as an ideologue, when Hungary blocks sanctions or delays support for Ukraine, it is more than a single nation going rogue. Alice Weidler, co-chair of the far-right AfD, the largest opposition party in the German Bundestag, was among those who spoke at the CPAC Hungary conference last month. Robert Fico, prime minister of Slovakia, is an Orbán ally. On April 19, Bulgaria will have its eighth general election in just five years. Former president Rumen Radev’s new Progressive Party leads the polls and shares Orbán’s pro-Kremlin, anti-EU inclinations.

So polarized is the Hungarian election, that right wing groups are deploying their own observers from Argentina, Austria, the Czech Republic, Kenya, Poland, Germany, Italy, Spain, Serbia, Tanzania and the United States to monitor proceedings. EU observers have said the Hungarian government controls the national media and a recent documentary alleges that a desperate government is resorting to vote-buying, gerrymandering and intimidation tactics. It’s hard to see how either Orbán or Magyar will accept the election result without protest, unless the margin is crushing. But, given Trump’s disdain for NATO allies and the EU, an Orbán election defeat would be a much-needed victory for European unity. 

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

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It’s good to celebrate the wins, and I’m delighted the British government has decided to cap political donations from voters overseas at 100,000 pounds a year. It has long been grotesque that a wealthy citizen could move to a tax haven, stop paying towards the upkeep of his home country, and use the money he’d saved in taxes to buy influence in the politics of the country he’s left behind. I’m delighted that this has (largely) stopped.

This policy came from the independent Rycroft Review into foreign interference in UK politics, which other countries will be looking at closely as well. For believers in liberal democracy, which is on the retreat everywhere, this issue has only been getting more urgent thanks to Russian interference in Moldova, Romania and Hungary; as well as Chinese spying scandals; and the new U.S. strategy of supporting far right parties in Europe.

There’s a good summary of the Rycroft report here, but perhaps the most contentious recommendation is for a moratorium on any cryptocurrency donations to politicians until a time when the government feels regulations around digital assets are robust enough for them to be safe. Nigel Farage of the Reform Party popped up to say this was a retrograde step against innovation, but the real question is whether a moratorium is strong enough.

So much of the threat to democracy arises from the fact that wealthy people have been able to park their money wherever they like, to exploit multiple countries’ loopholes to evade taxes, scrutiny and investigations, and then use their money to project influence anywhere they wish. This is what doomed Russia’s chance of gaining democracy, and it’s now threatening many other places too. 

I would love to see the governments of the remaining few liberal democracies be far more proactive in advocating the benefits of their systems, rather than staying in the perpetual defensive crouch that they seem to be in at the moment. 

Money is global, but politics is local, so rich people can buy influence in ways that are not available to others, not just because they’re richer but because they can afford a whole world full of tricks to make their money go further. The answer to this problem is either to make politics more global, so it can stand up to the money, or to make money more local, so it is subject to countries’ political processes.

This is what the Rycroft review is doing with its cap on overseas donations, and it’s also why I think a complete ban on crypto donations would be better than just a moratorium. 

The health of democracy is far too important to be subject to the whims of the unaccountable, nomadic class of the mega-rich, and nothing exemplifies their influence so much as cryptocurrencies, which are privatised money. A ban would be harder for a future government to overturn than a moratorium. And it would also send a signal that liberal democracy has its own currency, which is that it abides by rules set democratically and doesn’t need or want to outsource any aspect of that to the billionaires who dominate crypto.

A moratorium on crypto suggests a time when crypto may become acceptable, and thus a time when we won’t want money to have democratic oversight, and will be comfortable with obeying the whims of its owners. Financial innovation can be good, but we don’t need to innovate in how we pay politicians, that is too risky a game to play. So play with crypto by all means, but if you want to play with democracy, you need to abide by its rules. And democracies need to be more confident about asserting that principle. 

Democracies also need to enforce their own laws properly, which means — as Rycroft suggests — hiring and training specialist police officers who can investigate attempts to slip dirty money into politics.

Crypto’s digital dodge

On that note, I’m glad it wasn’t me that had to write the new U.S. national money laundering risk assessment. Glad it wasn’t me who had to balance the obvious reality that cryptocurrencies are the most potent new tool for financial criminals since the invention of the shell company with the political fact that the White House really likes cryptocurrencies. “Uneven and often inadequate regulation and supervision across jurisdictions allows digital asset service providers and illicit actors to engage in regulatory arbitrage,” notes the report. But without pointing out that the United States itself is a major source of that particular problem.

Case in point, Tether, the El Salvador-headquartered company behind the dollar-pegged USDT stablecoin, has hired the Big Four accountancy firm KPMG to audit its books and confirm everything is as it should be. This is, the FT notes, all part of a plan to expand into the United States and to raise money there, though you would imagine that a first audit of a company with a murky regulatory history and claiming such a vast haul of assets could take a while. 

In other crypto news: the UK has sanctioned Xinbi, an illicit online marketplace in Southeast Asia, and #8 Park, a compound where criminals can keep up to 20,000 trafficked people to engage in global scam operations. Xinbi moved something like $20 billion between 2021 and 2025, much of it stolen from vulnerable victims, to the benefit of Chinese gangsters. The transactions tend to be arranged on the messaging app Telegram. Vladimir Putin has been restricting access to Telegram for a while now, to build a government-issued surveillance app. I don’t agree with Putin’s reasons for shutting Telegram down, but I do think that the world would be better off without it. And without Tether.

It’s hard to imagine that Tether will care about British sanctions nor that they will make much of a dent in these activities, but I think we need to keep an eye on how the situation evolves when other countries take an interest too. Xinbi has already launched its own payment app, and has expanded to use other messaging apps, including Telegram, suggesting it is working to make itself immune from regulatory actions.

This replicates what we saw with Russian crypto operators moving to the rouble-denominated A7A5 in response to the freezing of notorious crypto exchange Garantex’s assets last year. USDT is still central to how value moves globally, but the new tokens create a secure bridge in and out of it, which cannot be touched by Western regulators or governments.

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

The post How dodgy digital finance destroys democracy appeared first on Coda Story.

In the flatlands of Italy’s Po Valley, the decommissioned Caorso nuclear power plant can be seen for miles, the reactor looming into the sky. When Alessandro Maffini, now an assistant professor at the Polytechnic University of Milan, was growing up in the 1990s, the plant's distant silhouette captured his imagination. “The physical presence of that thing was so significant to me as a child. It was a very visible, tangible, concrete presence,” Maffini remembers. “It was like a white Duomo, there on the horizon, always in the background.” For many others, though, it was a specter of disaster, a ghost nuclear plant — shuttered, alongside all of Italy’s nuclear power stations, in the wake of the Chernobyl accident.

 “If that plant explodes, we’re all dead,” Maffini’s mother used to intone, looking out at the defunct Caorso station, once the largest in Italy. As Maffini rode his bike six miles across the countryside to get a closer look at the plant from a nearby overpass, his mother’s doom-laden words rang in his ears. Her warning scared him. It also made him want to learn more. When he left home to go to university, Maffini decided to work in nuclear physics. “Radioactivity is a strange thing,” he says. “You can’t see it, you can't hear it, you can't smell it. It leaves a lot of room for imagination, for speculation, for fear.”

Four decades on from Chernobyl, and Italy has some of the highest energy bills in Europe. The country is scrambling to disentangle itself from its dependence on Russian gas in the wake of Russia’s invasion of Ukraine, and build out its energy sovereignty. War in Iran, and a growing European consensus that turning away from nuclear power was, in the words of European Commission president Ursula von der Leyen, a “strategic mistake,” has given more impetus to the Italian government’s argument that the country needs to move past its qualms.

Last year, the Italian cabinet approved a new draft law reintroducing the prospect of returning to nuclear power. “The government has approved another important measure to ensure clean, safe, low-cost energy that can guarantee energy security and strategic independence,” the Prime Minister Giorgia Meloni announced. 

Italy is already surrounded on all sides by nuclear power plants: Slovenia’s Krsko plant is 90 miles away from the border, and there are four French nuclear power plants within 110 miles. Italy is the world’s second-largest importer of electricity, with nuclear power, largely imported from France, making up 5% of its energy basket. Italy also plays host to more U.S. nuclear warheads than any other European country. An estimated 35 thermonuclear gravity bombs are stored at two NATO airbases in northern Italy, according to the Nuclear Threat Initiative. 

Now, as data centers spring up in Italy’s industrial north, the country’s energy needs are expected to increase exponentially and the government is turning, albeit cautiously, to a long-held Italian taboo. Since the spring of 1986, when the most serious accident in nuclear history unfolded in Unit 4 of the Chernobyl Nuclear Power Plant in northern Ukraine, the Italian population has lived in fear of nuclear energy. It voted to shutter its once-burgeoning nuclear industry in 1987, and in 2011, after the Fukushima nuclear accident, when 94% of voters rejected government plans to revive the industry. 

It is a fear that has transformed Italy’s energy fortunes, making it reliant on imports and vulnerable to volatility and price shocks. 

“The international crises of recent years have clearly demonstrated the risk of excessive dependence on imported fossil fuels or vulnerable supply chains,” said Fiorella Corrado, communications chief at Italy’s environment and energy ministry. “The government approaches this issue with great respect for the country's history and the democratic choices expressed by citizens. The 1987 and 2011 referendums profoundly impacted the national energy strategy at very different historical moments. Precisely for this reason, the point is not to ignore those choices, but to acknowledge that today's technological, climatic, industrial, and geopolitical context has radically changed.”

For Meloni’s government, the argument is not so much whether Italy needs to revive its nuclear industry, it’s whether the country is ready to shake its demons, to shake the cultural memory of what happened at Chernobyl forty years ago, a thousand miles away from Rome. 

In the early hours of April 28, 1986, in the control room of the Latina nuclear power plant south of Rome, a young technician called Ruggero Dell’Aquila was working the night shift. “Everything was perfectly quiet,” he recalled. As morning broke, teletype messages from Northern Europe began to rattle in. A clerk came down from the control room with reports from the Forsmark Nuclear Power Plant in Sweden. Their monitoring stations were registering radiation spikes far above background levels, and no one knew why. 

That evening, nuclear physicist Sergio Malossi, a director at the Latina plant responsible for monitoring radioactive risk, drove home. His mind was turning over what the clerks had been reporting. “He came in extremely agitated,” remembers his daughter, Roberta Malossi, who was 16 at the time. “We knew he was worried about something going wrong at the facility, but we didn’t understand.” Malossi says that her father’s first paranoid thought was that there had been a malfunction in his own plant, that radiation was leaching into the air, and that it was somehow his fault. 

At 9 p.m. Moscow time — aperitivo hour in Latina — the Soviet Union announced there had been an accident at the Chernobyl nuclear plant. In the ensuing days, Italian news was full of dire warnings. 

“Television was showing these clouds that would soon reach Italy. Everyone was terrified. The only information we got was from state TV, and the news was shocking,” said Monica Tommasi, President of Friends of the Earth Italy, who was a child at the time. Radiation, the news said, would rain down on the population. “The fear from the sky,” ran one La Repubblica headline. “The cloud above us, the doubt within us,” ran another.

On the night of April 30, 1986, Italy’s nuclear monitoring stations began recording increases in radioactivity. The cloud moved over the Valley of the Po, and while the government called for calm, the country began to descend into panic. In the minds of the Italian people, the worst had happened, explained Luca Romano, a writer and activist campaigning for the return of nuclear power in Italy. “Nuclear annihilation, death by radiation, the radioactive cloud and the nuclear holocaust, had arrived,” he said. Nuclear armageddon was a fear that had gripped the West for decades. This was not a nuclear war, but in the Italian collective consciousness, that didn’t make a difference. 

The reality was, says Barbara Curli, Professor of Contemporary History at the University of Turin, that “Italy was only marginally affected by the cloud.”

The cloud in northern Italy meant radioactivity levels peaked briefly, but ten days later they had fallen dramatically back down. Because this spike was short-lived, the total radiation exposure remained low. A United Nations committee report recorded that northern Italy received an additional radiation dose of about 380 microsieverts in the year following Chernobyl — less than a fifth of the normal background radiation humans absorb in a year; equivalent to taking about six transatlantic flights. It was much smaller than the doses received by neighboring countries like Bulgaria, Austria and Greece, and in the south of Italy the dose was lower still. 

Down by the Latina power plant, though, the community was shaken by events in Chernobyl, and rumors and misinformation began to spread about the fallout. The friends and family of the technician, Ruggero Dell’Aquila, started asking him if a Chernobyl-style disaster could happen at Latina, too. “Everyone was afraid, asking — ‘can it explode, can it explode?’” he recalled. 

The reality was, a Chernobyl-style explosion was not possible at Latina, because its reactor lacked the unstable characteristics of the Soviet design. But this was not such an easy concept to explain. 

“The problem was that a slew of journalists took over, telling lies,” Malossi said, recalling paranoid rumours about radioactivity causing mutations in nature. People started telling stories, Malossi said, about “frogs with three heads, animals and fish with four tails. Strange things. When in fact absolutely nothing like that was happening.”

The government advised people to avoid fresh vegetables and dairy products, particularly for children. Farmers destroyed crops and poured away milk. Sergio Malossi ignored the warnings, having measured radiation levels in the air himself. “My father and others from the plant brought the vegetables home and we ate them,” his daughter recalled.

It was these warnings — delivered amid a lack of clear information — that shifted public attitudes toward nuclear energy, said Renzo Colombo, 65, who was just beginning a career in nuclear engineering when the explosion happened. Now a member of Nucleare e Ragione, a nonprofit that promotes a rational approach to nuclear energy in Italy, he recalls how quickly fear took hold. “A real phobia was born, a panic about radioactivity,” he said. “And this panic marked the next 25 years.”

The months after the accident were a shadowy, uncertain period for Italians working in the nuclear industry. “I have to be honest, I felt a little guilty,” said Colombo. “As a nuclear engineer, I thought ‘what have we done?’ My colleagues and I always thought we were designing something useful for humanity. And at that moment we felt betrayed by our own profession.”

Outside Italy’s nuclear plants, crowds began to gather. A coalition of environmental groups and political parties started pushing for people to vote against nuclear power in an upcoming referendum.

This movement was not new. “Many years before Chernobyl, an environmentalist culture was born — and it didn’t just concern nuclear power, but risky industry in general,” explained Curli, the Turin historian. The anti-nuclear environmental movement, which spread across Europe in the 1970s, was particularly potent in Italy — a country rocked by violent political turmoil, organized crime, and corruption scandals. Public fears, explained Curli, were sharpened by the Seveso disaster, an accident at an industrial plant in the north of Italy in 1976 that exposed tens of thousands of people to a toxic cloud of chemicals. Nuclear power, she said, “was not perceived by public opinion as a credible policy because there's this underlying distrust in institutions.” 

In 1977, almost a decade before Chernobyl, a 10,000-strong crowd of protesters showed up at Montalto di Castro, to protest against a large new nuclear plant that was planned. A Time magazine correspondent described the activists as “an improbable mix of elegant members of the Italian nobility, radical students in American Indian garb, middle-class citizens and Christian Democratic and Communist politicians.”

In the wake of Chernobyl, Renzo Colombo was working at that very same plant, helping to build the thermohydraulic cycle. By then, the station was nearly complete. “It was a beautiful plant,” Colombo said. “I loved working there.”

In November 1987, 18 months after the Chernobyl accident, the Italian government held a referendum on nuclear energy. Nearly 80% of Italians voted in favor of measures that would end the country’s use of atomic energy.

One morning, following the referendum, the Montalto di Castro plant’s director called the workers to a meeting. Colombo remembers him saying: “‘Ragazzi, gather round, I need to talk to you. I’ve just been to the ministry, and Italy has decided that we are closing all nuclear activity and will focus on coal and gas instead.’” The room went silent. “I was young,” said Colombo. “But there were people there who were older and had devoted years of their life to the nuclear field. There was just this urge to cry.” 

The effect of the referendum was all-encompassing: construction was halted, and over the next three years Italy’s nuclear plants were shut down for good; its nuclear engineers scattered — many going to work abroad, or, like Colombo, re-training to work in other industries. 

It was hailed as a victory for Italian environmentalism, says Curli. But the result was that there was a push to “gasify” Italy. That is, she says, “to choose the gas route — less expensive, and less demanding than nuclear power. But this made Italy almost completely dependent on Russian gas, Libyan gas, Algerian gas.” The Montalto di Castro site was converted into a fossil-fuel powered plant, running on gas and fuel oil.

Decades on from that post-Chernobyl referendum — and a second referendum in the wake of the Fukushima nuclear accident in 2011 — Italy remains in the process of dismantling its nuclear power stations, even as it now contemplates a return to nuclear power.

Watching them work is Enrico Bastianini, director of operations at the Latina plant. As I walk with Bastianini through the plant, we come to the old control room. When it first opened in 1963, the Latina plant was the largest nuclear power station in Europe — a feat of Italian and British engineering (the reactor was of UK design) and a symbol of Italy’s post-war industrial growth. 

“We were emerging from the destruction of the war, and this was progress. And it was what allowed us to escape the economic hardships of war, and have low-cost energy,” Bastianini says.

Now, over 60 years on from when the plant opened, more than half of its existence has been spent being taken apart. Critics of nuclear power often focus on precisely this point: the long and complex process of dismantling nuclear plants, and the problem of managing radioactive waste, some of which takes millennia to decay. 

There are two phases to the process of taking apart the plant. “The first phase allows us to dismantle everything that’s nuclear except the reactor. That’s because the reactor contains a huge amount of graphite,” Bastianini explains. “When we have a national repository, it can be removed. But for now, it’s safest if it stays in the first phase.”

Bastianini leads me into a deposit room where radioactive material is being stored in steel containers, inside an earthquake-resistant facility. These containers are only for temporary storage.

There were attempts in the early 2000s to establish a national nuclear waste repository at a salt mine in Basilicata in southern Italy, but huge protests forced the government to abandon its plans. Today, SOGIN, the state-owned Italian company in charge of decommissioning nuclear sites, is still actively searching for a suitable location for a permanent repository and faces considerable opposition. 

Rumours and anxiety swirl around the Latina plant itself — just as they did in the 1980s, when Malossi heard stories of radioactive fish with four tails. Last April, an article by the Italian magazine L’Espresso published claims that the Latina plant could leach radioactive material into the soil. The plant vigorously denies these claims — a spokesperson for SOGIN said the company periodically checks the quality of vegetables, milk and fodder as well as air, soil and groundwater for radiation and that “as always, the results of the analyses confirm radiologically negligible environmental impacts.”

In the gloaming of a summer evening in Umbria, Monica Tommasi drives me through the twilight-darkened hills surrounding the medieval city of Orvieto. This land is rich in archeological and ecological heritage — filled with ancient tunnels, Etruscan caves, untapped archeological sites, wild places where wolves and boar roam. Tommasi is the President of Amici Della Terra — "Friends of the Earth" in Italian — an organization that was once the Italian chapter of the international Friends of the Earth network before breaking away in 2014. "We left, because we argued a lot," she said of the split, describing how the network "wanted to put turbines and panels everywhere, and we couldn't be in favour of that approach." 

The International Friends of the Earth association was born from the anti-nuclear movement in America, where the group successfully lobbied to shut down two reactors, and has since 1969 made anti-nuclear campaigning a core part of its identity.

But Tommasi remembers precisely when she first began to reconsider nuclear power. “I started thinking about it in 2011, when I began to see that the government was investing heavily in solar and wind power, which would invade and industrialize the natural landscape,” she recalled. Many of these green transition projects have been fraught with problems in Italy — wind farm companies accused of corruption and profiteering, of erecting wind farms in areas where there’s little wind, and laying waste to nature. 

For the first time, Tommasi began to think about ways to decarbonize “that don’t destroy the environment where people live and the landscape around them.”. She became intrigued by the nuclear option. “We needed to start reasoning and changing our minds,” she said. 

Tommasi now advocates for a national conversation about nuclear power. “This choice must be accompanied by a public debate,” she told me, “but it isn’t happening because everyone is still afraid.” 

“The future of Italy's energy sector must lie in nuclear,” she said, adding that if Italy was to continue pursuing solar and wind energy alone, “it means destroying all the natural areas that are still left.”

I asked the government to respond to allegations about how criminality, speculation and land-grabs in the renewable energy sector might be affecting Italians’ opinions on nuclear power. 

“We do not believe it is appropriate to frame the energy debate by ideologically pitting nuclear power against renewables, nor should we use any administrative or criminal issues in certain sectors to discredit a technology as a whole,” said Fiorella Corrado, communications chief at Italy’s environment and energy ministry. “Nuclear power is not an alternative to renewables, but their best ally,” she said. 

On a warm autumn day in Rome, several thousand people gathered for an annual “climate pride” march. They brandished homemade cardboard wind turbines that spun in the breeze. Vincenzo Migliucci, 83, was among them. He worked for more than three decades for ENEL, Italy’s energy corporation, and he’s been anti-nuclear for much of his life. After the Chernobyl accident, he protested outside the nuclear plant under construction in Montalto di Castro almost every day, picketing the workers as they went through the gates.

“The wrath of God happened,” he said, referring to Chernobyl. “And when a true estimate is made, we’ll one day see how many disasters Chernobyl caused.” 

Migliucci is against nuclear power plants of all types — arguing for solar panels instead — and is particularly concerned about what happens to the plants after they become obsolete and must, like the Latina plant, be slowly dismantled over decades. “The decommissioning costs a fortune; the nuclear waste repositories cost a fortune,” he said.

He began telling me some of the stories that surround Italy’s shuttered nuclear plants. “Near the Garigliano power plant,” he told me, “a child was born with only one eye.” His own eyes widened as he pressed a finger into the middle of my forehead. “Sheep and cattle,” he said, “were born with six legs, or entirely red in colour. It’s not a myth, it’s real.” 

Younger generations of Italians don’t have the same collective impressions around nuclear power, nor around Chernobyl or its aftermath, explained Luca Romano, a young pro-nuclear influencer with a quarter of a million followers on Instagram. Romano makes videos with his partner, Luiza Munteanu, about the advantages of nuclear power. The main problem he runs up against, he says, is that “we have a very low scientific literacy, the level of debate is abysmal.” And culturally, he adds, “Italy has always been a country that looks backwards rather than forwards.”

In May, the director general of the International Atomic Energy Agency visited Italy’s Lombardy region, and signed a Memorandum of Understanding with the governor to cooperate on applying nuclear science for development across the region. The choice of Lombardy was significant. It is home to Milan, and is at the heart of Italy’s digital infrastructure. Speckled with no fewer than 60 data centers, with more cropping up, Lombardy has opened itself up to Silicon Valley. Microsoft is investing billions in the area to boost its AI and cloud computing infrastructure. Amazon Web Services has committed to spending over $1 billion to expand its data center operations around Milan.

How northern Italy’s growing AI infrastructure will be powered, though, is still a problem to be solved — one that cuts to the heart of Italy’s energy dependence. Since Giorgia Meloni became prime minister in October 2022 — which coincided with the launch of ChatGPT a month later — the Italian government has been broaching the topic of nuclear power as essential to Italy's energy future. “World population and economic growth will significantly increase energy demand,” Meloni said at a sustainability summit in Abu Dhabi. “Not least due to the growing requirements arising from the development of generative artificial intelligence.” 

Artificial intelligence is a “highly relevant topic,” said Corrado, the communications chief at Italy’s environment and energy ministry. “As more things run on electricity, the economy goes digital, and data centers and AI expand, demand for steady, low-emissions power will rise. Nuclear energy can help as a reliable, controllable source that works alongside renewables.” 

In August, it emerged that the government had set aside €7.5 million purely for pro-nuclear communication and information campaigns directed at regions where new plants may be built. One focus of the Meloni administration is on the prospect of building small modular reactors, sometimes called “mini nukes.” They are compact fission plants, a fraction of the size of the traditional, cathedral-like nuclear power stations. They have a smaller core, and proponents argue their safety features mean there’s minimal chance of an epic, Chernobyl-scale nuclear disaster, something the government is keen to get across to voters. 

Currently, only China and Russia have these small reactors up and running, but mini nuclear plants have attracted significant attention in Silicon Valley. OpenAI’s Sam Altman was chairman of Oklo, a nuclear startup focused on SMRs, while U.S. nuclear startup Kairos has signed an agreement with Google to develop these reactors to power its data centers. This month, the European Commission unveiled a strategy for rolling out small modular reactors and bringing them “online” by the 2030s.

Soon, Italy may take the first steps towards the reconstruction of a nuclear industry that has been abandoned for decades. “I believe it won't be easy to relaunch nuclear energy,” said Barbara Curli, the Turin historian. “Knowing a little about the history of nuclear power in Italy and its political dimension, I'd be quite skeptical about the possibility of relaunching nuclear power here in Italy — but let’s see.” 

A little under 1,500 miles away, in the Chernobyl exclusion zone, among wild boar, birds, and deer, radiation levels in some areas have dipped below around 0.3 microsieverts per hour, lower than background radiation levels in many European cities. Not least the eternal city of Rome.

The post How Italy’s Chernobyl ghosts might stop a new atomic age appeared first on Coda Story.

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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