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July and December are always vicious months in the calendar at Westminster.

No matter when the monarch officiates at the official state opening of parliament, summer and winter are natural climaxes in the year when reckoning takes place.

In 2023, we have already had early casualties as parliament backed the reports of the standards and privileges committee. Boris Johnson has resigned as an MP and so have two colleagues, with more set to follow.

That is the overture to the drama which will unfold next week, when parliament is sitting for the last time before the long summer recess.

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On Wednesday, Rishi Sunak and Sir Keir Starmer are actually billed to turn up for the last PMQs until September, in the hope that they can send their MPs off in good spirits.

Then on Thursday there are three by-elections simultaneously in which the Conservatives are widely expected to lose all three hitherto comfortable seats. Such is the grim mood for Tories it will be an even bigger sensation if the Tories hang on to any of them.

To absorb the shock waves of these events both the prime minister and the leader of the opposition may well carry out long overdue reshuffles of the cabinet and shadow cabinet teams.

The three by-elections have all been triggered by Conservative MPs who resigned voluntarily, albeit with clouds hanging over their heads. Boris Johnson quit before a by-election could be triggered following his lengthy suspension from the house.

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By-election battlegrounds

At the 2019 General Election he had a 7,210 majority and 52.6% of the votes.

A close ally, Nigel Adams, stood down in Selby and South Ainsty after failing to receive the peerage which Mr Johnson had promised him. In 2019, he had 60.3% of the votes and a 20,137 majority.

David Warburton had the Tory whip withdrawn last year following cocaine and sex allegations. He finally quit complaining that he had been denied a fair hearing by parliament’s harassment investigators. He had 55.8% of the vote and a 19,219 majority in 2019.

By-elections are often exaggerated expressions of how the voters are feeling about the government.

There have been 13 by-elections this parliament

Early in this parliament, Boris Johnson’s popularity in the so-called red wall constituencies was proved by the Conservative’s unlikely victory in the formerly rock-solid Labour seat of Hartlepool, once held by the New Labour mastermind Peter Mandelson.

The tide has turned since then. There have been 13 by-elections this parliament, many held by the incumbent party, but the Conservatives have lost three seats to the Liberal Democrats and one to Labour.

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MPs spend 88,000 hours working elsewhere

Labour regained Wakefield after Imran Ahmed Khan, the incumbent Tory MP, was jailed for child sexual assault. The Liberal Democrats won in North Shropshire after Mr Johnson tried to protect his friend Owen Paterson from suspension for commercial lobbying.

They picked up Tiverton and Honiton after Tory MP Neil Parrish quit after being reported for watching online pornography in the Commons chamber. There was no scandal around the death of Dame Cheryl Gillan. She had campaigned vigorously but unsuccessfully on her constituents’ behalf to stop her government’s HS2 railway.

By-elections are useful political weathervanes. More often than not the biggest drops in support for the ruling party at by-elections come in the years leading up to a change of government.

On average, the Conservatives were down 14.1% before Harold Wilson beat Sir Alec Douglas Home, and 19.9% before the New Labour landslide victory in 1997. Harold Wilson was down 17.3% before Ted Heath’s surprise victory in 1970.

General sense is the Conservatives are heading for defeat

Jim Callaghan’s Labour was down 9.3% before the 1979. Gordon Brown was down 10.4% by 2010, although one of the biggest erosions was 19.9% in Labour support in the previous 2001 parliament. It just wasn’t big enough to destroy the massive lead built up under Tony Blair.

The general sense at Westminster is that the Conservatives are heading to defeat at the next election. That explains the pessimism about Tory chances on Thursday.

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‘Have you overpromised domestically?’

The well-known American pollster Frank Luntz told a private meeting of Conservative MPs that anyone with a majority of 15,000 or less should be seriously worried about their chances of holding their seat. On that basis, the Conservative candidates in North Yorkshire and Somerset should be hopeful.

Unfortunately for them that is not what polling in either Somerton or Selby points to. By-elections bring additional media attention and voters tend to punish parties if their MP has been forced out in disgrace or bothered them by called an election unnecessarily.

Mayor’s plan to extend ULEZ is not popular with many

An upset, which these days means the Conservatives hanging on, looks most likely in Uxbridge and Ruislip, the most marginal constituency of the three being contested. Boris Johnson brought celebrity glamour to suburban London, and some of his former voters still love him and resent him being forced out, as they see it.

The Labour Mayor of London’s plan to extent ULEZ, the ultra-low emission zone, to all of London including the constituency is not popular with many, since it would penalise those with polluting vehicles. The Labour candidate is now opposing his party’s ULEZ plan.

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A surprise Tory victory in Boris Johnson’s old stomping ground would be a mixed blessing for Rishi Sunak. It would be bound to encourage his supporters to claim that Mr Johnson and his polices are what the voters really like.

To prove it Nadine Dorries, another unhappy peerage refusenik, might at last execute her long delayed threat to resign her own seat in Bedfordshire Mid (2019 majority 24,664, 59.8%), plunging the government into further by-election turmoil.

There may well be another tricky by-election for the government soon in Tamworth (2019, Conservatives 66.3%, majority 19,634). A recall petition is due following the suspension of Chris Pincher from parliament for sexual misconduct.

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A similar recall petition is under way in Scotland in the Rutherglen and Hamilton West Constituency following the suspension ex-SNP MP Margaret Ferrier for breaking COVID lockdown rules. If the expected by-election takes place, Labour is hoping to oust the SNP.

Politicians often like to play down opinion polls saying they prefer real votes in real ballot boxes. That is exactly what parliamentary by-elections are. The three results will be scrutinised closely as they come in on Friday, including on Sky News.

They will give a true pointer of which way the wind is blowing and pile conflicting pressures on the party leaders for their reshuffles. To improve their electoral performance should they trim towards the centre or play to their party activists?

Looking at the prospects and the reasons for the elections in Yorkshire, London and Somerset it looks as if tidying up is taking place at the end of a fraying and exhausted government, but it is real voters who will decide next week.

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Germany seizes $38M in crypto from Bybit hack-linked eXch exchange

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Germany seizes M in crypto from Bybit hack-linked eXch exchange

Germany seizes M in crypto from Bybit hack-linked eXch exchange

German law enforcement seized 34 million euros ($38 million) in cryptocurrency from eXch, a cryptocurrency platform allegedly used to launder funds stolen after Bybit’s record-breaking $1.4 billion hack.

The seizure, announced on May 9 by Germany’s Federal Criminal Police Office (BKA) and Frankfurt’s main prosecutor’s office, involved multiple crypto assets, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Dash (DASH). The move marks the third-largest crypto confiscation in the BKA’s history.

The authorities also seized eXch’s German server infrastructure with over eight terabytes of data and shut down the platform, the announcement added.

eXch exchanged crypto without AML

In the statement, the BKA described eXch as a “swapping” service that allowed users to exchange various crypto assets without implementing Anti-Money Laundering (AML) measures.

The platform had operated since 2014 and reportedly facilitated about $1.9 billion in crypto transfers, some of which were believed to be of “criminal origin,” including assets laundered during the Bybit hack.

Germany seizes $38M in crypto from Bybit hack-linked eXch exchange
Example of flow of Bybit exploit funds moving through eXch and bridging back and forth between Ether and Bitcoin. Source: TRM Labs

“Among other things, a portion of the $1.5 billion stolen from the Bybit crypto exchange, which was hacked on Feb. 21, 2025, is said to have been exchanged via eXch,” the authorities wrote.

Multisig, FixedFloat among laundering cases

According to a post by crypto sleuth ZachXBT, eXch was also involved in laundering millions of funds from other crypto thefts and exploits, including Multisig, FixedFloat and the $243 million Genesis creditor theft.

Those were in addition to “countless phishing drainer services over the past few years with refusal to block addresses and freeze orders,” ZachXBT said.

Germany, AML, Crimes, Hacks, Policy, Bybit
Source: ZachXBT

ZachXBT was among the first security analysts to report on eXch’s links to laundering $35 million of crypto assets stolen from Bybit soon after the hack was confirmed.

Related: Hacken CEO sees ‘no shift’ in crypto security as April hacks hit $357M

“Lazarus Group transferred 5K ETH from the Bybit Hack to a new address and began laundering funds via eXch (a centralized mixer) and bridging funds to Bitcoin via Chainflip,” ZachXBT wrote in a Telegram post on Feb. 22.

eXch announced termination of services by May 1

After initially denying involvement in laundering funds from the Bybit hack, eXch eventually announced it would cease operations by May 1 in a Bitcoin Talk post published in mid-April.

“Even though we have been able to operate despite some failed attempts to shut down our infrastructure […], we don’t see any point in operating in a hostile environment where we are the target of SIGINT [Signals Intelligence] simply because some people misinterpret our goals,” it wrote.

Addressing the seizure, senior public prosecutor Benjamin Krause stressed the importance of action against “quick and anonymous opportunities for money laundering for any amount.”

“Crypto swapping is an essential component of the underground economy, used to conceal incriminated funds from illegal activities such as hacking or trading in stolen payment card data, thus making them available to perpetrators,” he said.

Magazine: Finally blast into space with Justin Sun, Vietnam’s new national blockchain: Asia Express

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Can a trade deal with Trump save Starmer?

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Can a trade deal with Trump save Starmer?

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

With Ruth away, Beth and Harriet are joined by Salma Shah, a former Conservative special adviser from 2014-2018 and now a political commentator.

They unpack Donald Trump’s surprise UK trade deal announcement and what it means for Sir Keir Starmer, who’s also landed a deal with India and is gearing up for key EU negotiations.

But while the global optics look strong, the domestic mood is tense. Harriet has some advice for the Labour backbenchers who are unhappy over welfare cuts and the winter fuel allowance policy.

Also – does Sir Keir need a hand with his comms?

Come and join us live on Tuesday 20 May at Cadogan Hall in London, tickets available now: https://www.aegpresents.co.uk/event/electoral-dysfunction-live/

Remember you can also watch us on YouTube!

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Red Wall MPs should focus on two-child benefit cap rather than winter fuel, Harriet Harman says

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Red Wall MPs should focus on two-child benefit cap rather than winter fuel, Harriet Harman says

Red Wall MPs should push for the two-child benefit cap to be lifted rather than a reversal of the winter fuel payment policy, Baroness Harriet Harman has said.

Baroness Harman, the former Labour Party chair, told Sky’s Electoral Dysfunction podcast that this would hand the group a “progressive win” rather than simply “protesting and annoying Sir Keir Starmer” over winter fuel.

Earlier this week, a number of MPs in the Red Wall – Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

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They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing doing so “isn’t weak, it takes us to a position of strength”.

Labour’s decision to means test the policy has snatched the benefit away from millions of pensioners.

But Baroness Harman said a better target for the group could be an overhaul of George Osborne’s two-child benefit cap.

More on Harriet Harman

The cap, announced in 2015 as part of Lord David Cameron’s austerity measures, means while parents can claim child tax credit or Universal Credit payments for their first and second child, they can’t make claims for any further children they have.

Labour faced pressure to remove the cap in the early months of government, with ministers suggesting in February that they were considering relaxing the limit.

Baroness Harman told Beth Rigby that this could be a sensible pressure point for Red Wall MPs to target.

She said: “It could be that they have a kind of progressive win, and it might not be a bad thing to do in the context of an overall strategy on child poverty.

“Let’s see whether instead of just protesting and annoying Sir Keir Starmer, they can build a bridge to a new progressive set of policies.”

Jo White, the Labour MP for Bassetlaw and a member of the Red Wall group, suggested that her party’s “connection” to a core group of voters “died” with the decision to means test the winter fuel payment for pensioners.

“We need to reset the government,” she told Electoral Dysfunction. “The biggest way to do that is by tackling issues such as winter fuel payments.

“I think we should raise the thresholds so that people perhaps who are paying a higher level of tax are the only people who are exempt from getting it.”

Pic: AP
Image:
Pic: AP

A group of MPs in the Red Wall, thought to number about 40, met on Tuesday night following the fallout of local election results in England, which saw Labour lose the Runcorn by-election and control of Doncaster Council to Reform UK.

Following the results, Sir Keir said “we must deliver that change even more quickly – we must go even further”.

Some Labour MPs believe it amounted to ignoring voters’ concerns.

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One of the MPs who was present at the meeting told Sky News there was “lots of anger at the government’s response to the results”.

“People acknowledged the winter fuel allowance was the main issue for us on the doorstep,” they said.

“There is a lack of vision from this government.”

Another added: “Everyone was furious.”

Downing Street has ruled out a U-turn on means testing the winter fuel payment, following newspaper reports earlier this week that one might be on the cards.

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