The UK’s top civil servant described “being at the end of my tether” over Boris Johnson’s indecision during the pandemic and said he “cannot lead”.
WhatsApp messages shown to the COVID inquiry on Monday reveal the then prime minister’s leadership ability frustrated some of the most senior figures in government.
In one particularly disparaging message from September 2020, Cabinet Secretary Simon Case said Mr Johnson “cannot lead and we cannot support him in leading with this approach”.
Mr Case, in a group that included then chief advisor Dominic Cummings, said: “I am at the end of my tether.
“He changes strategic direction every day (Monday we were all about fear of virus returning as per Europe, March etc – today we’re in ‘let it rip’ mode cos (sic) the UK is pathetic, needs a cold shower etc.)
“He cannot lead and we cannot support him in leading with this approach.
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“The team captain cannot change the call on the big plays every day. The team can’t deliver anything under these circumstances.”
Image: A WhatsApp message shows Cabinet Secretary Simon Case saying Boris Johnson’s leadership was ‘making it impossible’ to govern with a ‘weak team’
Mr Case goes on to admonish a “weak team”, appearing to name former health secretary Matt Hancock and former education secretary Gavin Williamson, saying we “definitely cannot succeed in these circs (sic). IT HAS TO STOP!”.
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He added: “Decide and set direction – deliver – explain. Gov’t isn’t actually that hard but this guy is really making it impossible.”
Mr Cummings replied: “Totally agree, am getting lots of despairing messages from people in [meetings] with him.”
Later in the conversation, Mr Cummings said that “as always, discussions with these ministers is moronic. They cannot understand priorities”.
Mr Case replied that the government “doesn’t have the credibility needed to be imposing stuff within only days of deciding not to”.
“We look like a terrible, tragic joke,” he said.
Image: Boris Johnson flanked by cabinet secretary Simon Case in May 2022
Lee Cain, the Downing Street director of communications, responded with a trolley emoji.
The messages were read out at a hearing in which Martin Reynolds – the former principle private secretary to Mr Johnson – was called to give evidence.
Mr Reynolds admitted Mr Johnson “could blow hot and cold” on some issues.
Asked if that included the “most vital issues which his government faced”, Mr Reynolds said: “Yes, but also the most difficult choices the country was facing – both of which had very difficult consequences.”
The inquiry was also shown a number of extracts from chief scientific adviser Sir Patrick Vallance’s notebooks, including one which said Mr Johnson is “simply not consistent” on COVID.
The Liberal Democrats said the messages lay bare “the culture of chaos in Number 10”.
Health and Social Care spokesperson Daisy Cooper said: “Warring factions, senior figures spinning in circles, and a complete inability to get to grips with any of the major issues facing our COVID response: bereaved families will feel sick to their stomachs hearing about this litany of failings which led to so much unnecessary suffering.
“Many will rightly be furious. Their actions have caused irreparable damage to trust in politics and put millions through unnecessary pain. It is unforgivable.”
Mr Reynolds was infamously nicknamed “Party Marty” after writing a notorious “bring your own booze” email to Downing Street staff during the first lockdown – something he said he was “deeply sorry for” at his hearing today.
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The first part of the inquiry looked at the UK’s resilience and preparedness for a pandemic while the second part, which started this month, focuses on “core decision making and political governance” and will also see Mr Johnson give evidence.
A New York jury was unable to reach a verdict in the case of Anton and James Peraire-Bueno, the MIT-educated brothers accused of fraud and money laundering related to a 2023 exploit of the Ethereum blockchain that resulted in the removal of $25 million in digital assets.
In a Friday ruling, US District Judge Jessica Clarke declared a mistrial in the case after jurors failed to agree on whether to convict or acquit the brothers, Inner City Press reported.
The decision came after a three-week trial in Manhattan federal court, resulting in differing theories from prosecutors and the defense regarding the Peraire-Buenos’ alleged actions involving maximal extractable value (MEV) bots.
A MEV attack occurs when traders or validators exploit transaction ordering on a blockchain for profit. Using automated MEV bots, they front-run or sandwich other trades by paying higher fees for priority.
In the brothers’ case, they allegedly used MEV bots to “trick” users into trades. The exploit, though planned by the two for months, reportedly took just 12 seconds to net the pair $25 million.
In closing arguments to the jury this week, prosecutors argued that the brothers “tricked” and “defrauded” users by engaging in a “bait and switch” scheme, allowing them to extract about $25 million in crypto. They cited evidence suggesting that the two plotted their moves for months and researched potential consequences of their actions.
“Ladies and gentlemen, bait and switch is not a trading strategy,” said prosecutors on Tuesday, according to Inner City Press. “It is fraud. It is cheating. It is rigging the system. They pretended to be a legitimate MEV-Boost validator.”
In contrast, defense lawyers for the Peraire-Buenos pushed back against the US government’s theory of the two pretending to be “honest validators” to extract the funds, though the court ultimately allowed the argument to be presented to the jury.
“This is like stealing a base in baseball,” said the defense team on Tuesday. “If there’s no fraud, there’s no conspiracy, there’s no money laundering.”
What’s at stake for the crypto industry following the verdict?
Though the case ended without a verdict, the mistrial has left the crypto industry divided, with many observers debating the legal and technical implications of treating MEV-related activity as a potential criminal offense. Crypto advocacy organization Coin Center filed an amicus brief on Monday after opposition from prosecutors.
“I don’t think what’s in the indictment constitutes wire fraud,” said Carl Volz, a partner at law firm Gunnercooke, in a Monday op-ed for DLNews. “A jury could conclude differently, but if it does, it’ll be because the brothers googled stupidly and talked too much, for too long, with the wrong people.”
The shutdown of the US government entered its 38th day on Friday, with the Senate set to vote on a funding bill that could temporarily restore operations.
According to the US Senate’s calendar of business on Friday, the chamber will consider a House of Representatives continuing resolution to fund the government. It’s unclear whether the bill will cross the 60-vote threshold needed to pass in the Senate after numerous failed attempts in the previous weeks.
Amid the shutdown, Republican and Democratic lawmakers have reportedly continued discussions on the digital asset market structure bill. The legislation, passed as the CLARITY Act in the House in July and referred to as the Responsible Financial Innovation Act in the Senate, is expected to provide a comprehensive regulatory framework for cryptocurrencies in the US.
Although members of Congress have continued to receive paychecks during the shutdown — unlike many agencies, where staff have been furloughed and others are working without pay — any legislation, including that related to crypto, seems to have taken a backseat to addressing the shutdown.
At the time of publication, it was unclear how much support Republicans may have gained from Democrats, who have held the line in demanding the extension of healthcare subsidies and reversing cuts from a July funding bill.
Is the Republicans’ timeline for the crypto bill still attainable?
Wyoming Senator Cynthia Lummis, one of the market structure bill’s most prominent advocates in Congress, said in August that Republicans planned to have the legislation through the Senate Banking Committee by the end of September, the Senate Agriculture Committee in October and signed into law by 2026.
Though reports suggested lawmakers on each committee were discussing terms for the bill, the timeline seemed less likely amid a government shutdown and the holidays approaching.
Japan’s financial regulator, the Financial Services Agency (FSA), endorsed a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.
In a Friday statement, the FSA announced the launch of its “Payment Innovation Project” as a response to progress in “the use of blockchain technology to enhance payments.” The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.
The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.
The participating companies are expected to ensure that users are protected and informed about the systems they use. “After the completion of the pilot project, the FSA plans to publish the results and conclusions,” the announcement reads.
The announcement follows the Monday launch of Tokyo-based fintech firm JPYC’s Japan-first yen-backed stablecoin, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.
Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.
Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.
At the same time, Japan’s securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.