Two serving ministers have broken cover to urge Rishi Sunak’s government to “lead the way” and increase defence spending to at least 2.5% at a time of growing threats.
In a highly unusual intervention, Anne-Marie Trevelyan, a foreign office minister and former defence minister, and Tom Tugendhat, the security minister and an experienced soldier, published an article online that does not appear to have been sanctioned by Downing Street.
“It’s clear to us that the UK needs to lead the way in increasing our own domestic defence and security spending commitments to 2.5% and beyond,” they wrote in a piece posted on Ms Trevelyan’s LinkedIn page on Friday evening.
“Former defence secretary Ben Wallace and prime minister Boris Johnson made inroads into growing our defence budgets, which had been shrinking in real terms for years. But that only filled the hole. Now we need growth.”
The alarm call by two serving ministers with deep expertise in defence and security comes amid growing disquiet among Conservative MPs and military insiders at a failure by Chancellor Jeremy Hunt to announce new funding for the armed forces in his spring budget, even though the defence secretary has warned the UK is in a “pre-war world”.
Instead, Mr Hunt just reiterated a vague pledge to increase defence spending to 2.5% of national income – from just over 2% at present – “as soon as economic conditions allow”.
Underlining their focus, Ms Trevelyan and Mr Tugendhat urged the government to strengthen the UK’s nuclear deterrent, regrow the Royal Navy, invest in more weapons and ammunition and accelerate plans to build a new generation of fighter jets for the air force.
They also stressed the need to invest in the UK’s defence industrial base.
“None of this is wasted cash. It’s investment in our own economy. And it protects our future economic security,” the ministers said.
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“The sad truth is that the world is no longer benign. Protecting ourselves requires investment. And effective investment means that our industrial complex must grow and strengthen at much greater pace than at present.
“We cannot turn on the complex platforms and weapons which ensure military advantage overnight. We must start that growth now, invest at pace to support our allies and stay ahead of our adversaries.”
Image: British Army soldier training on Salisbury Plain, Wiltshire. Pic: PA
How UK defence spending compares to China and Russia
They pointed to how China has just announced a 7.2% rise in its defence budget to $230bn (£179bn) – more than twice what it was a decade ago.
Russia, they said, “is committed to spending 40% of its expenditure on defence and security this year. Vast sums by any standard to fight its illegal war in Ukraine”.
By contrast, UK defence spending has risen 28% from £43bn to £55bn over the last 10 years, they said.
The ministers did not specifically refer to this year’s budget, but military experts have expressed dismay that the level of funding set out in official tables on Wednesday appeared to track a decline of £2.5bn in defence spending in the financial year to March 2025 compared with the previous 12 months.
The Ministry of Defence said this was because the data did not include new money for the military that was pledged last autumn, as well as assistance to Ukraine.
Image: British soldiers taking part in a NATO allied troops training exercise in North Macedonia. Pic: Reuters
Europe must secure borders, ministers say
Ms Trevelyan, who is charged with the Indo-Pacific region in the Foreign, Commonwealth and Development Office, underlined the importance of Europe stepping up to secure its borders as the United States increasingly focuses on the challenge posed by China.
Mr Tugendhat underlined the threats he sees at home “funded by illicit drug money, weapons trafficking and the abuses of modern slavery and people trafficking”.
He warned: “Those who wish our country, and our way of life, harm are more active than ever.”
The new trade tariffs announced by US President Donald Trump may place added pressure on the Bitcoin mining ecosystem both domestically and globally, according to one industry executive.
While the US is home to Bitcoin (BTC) mining manufacturing firms such as Auradine, it’s still “not possible to make the whole supply chain, including materials, US-based,” Kristian Csepcsar, chief marketing officer at BTC mining tech provider Braiins, told Cointelegraph.
On April 2, Trump announced sweeping tariffs, imposing a 10% tariff on all countries that export to the US and introducing “reciprocal” levies targeting America’s key trading partners.
Community members have debated the potential effects of the tariffs on Bitcoin, with some saying their impact has been overstated, while others see them as a significant threat.
Tariffs compound existing mining challenges
Csepcsar said the mining industry is already experiencing tough times, pointing to key indicators like the BTC hashprice.
Hashprice — a measure of a miner’s daily revenue per unit of hash power spent to mine BTC blocks — has been on the decline since 2022 and dropped to all-time lows of $50 for the first time in 2024.
According to data from Bitbo, the BTC hashprice was still hovering around all-time low levels of $53 on March 30.
Bitcoin hashprice since late 2013. Source: Bitbo
“Hashprice is the key metric miners follow to understand their bottom line. It is how many dollars one terahash makes a day. A key profitability metric, and it is at all-time lows, ever,” Csepcsar said.
He added that mining equipment tariffs were already increasing under the Biden administration in 2024, and cited comments from Summer Meng, general manager at Chinese crypto mining supplier Bitmars.
“But they keep getting stricter under Trump,” Csepcsar added, referring to companies such as the China-based Bitmain — the world’s largest ASIC manufacturer — which is subject to the new tariffs.
Trump’s latest measures include a 34% additional tariff on top of an existing 20% levy for Chinese mining imports. In response, China reportedly imposed its own retaliatory tariffs on April 4.
BTC mining firms to “lose in the short term”
Csepcsar also noted that cutting-edge chips for crypto mining are currently massively produced in countries like Taiwan and South Korea, which were hit by new 32% and 25% tariffs, respectively.
“It will take a decade for the US to catch up with cutting-edge chip manufacturing. So again, companies, including American ones, lose in the short term,” he said.
Csepcsar also observed that some countries in the Commonwealth of Independent States region, including Russia and Kazakhstan, have been beefing up mining efforts and could potentially overtake the US in hashrate dominance.
“If we continue to see trade war, these regions with low tariffs and more favorable mining conditions can see a major boom,” Csepcsar warned.
As the newly announced tariffs potentially hurt Bitcoin mining both globally and in the US, it may become more difficult for Trump to keep his promise of making the US the global mining leader.
Trump’s stance on crypto has shifted multiple times over the years. As his administration embraces a more pro-crypto agenda, it remains to be seen how the latest economic policies will impact his long-term strategy for digital assets.
Cryptocurrency exchange OKX is under renewed regulatory scrutiny in Europe after Maltese authorities issued a major fine for violations of Anti-Money Laundering (AML) laws.
Malta’s Financial Intelligence Analysis Unit (FIAU) fined Okcoin Europe — OKX’s Europe-based subsidiary — 1.1 million euros ($1.2 million) after detecting multiple AML failures on the platform in the past, the authority announced on April 3.
While admitting that OKX has significantly improved its AML policies in the past 18 months, the authority “could not ignore” its past compliance failures from 2023, “some of which were deemed to be serious and systematic,” the FIAU notice said.
The news of the $1.2 million penalty in Malta came after Bloomberg in March reported that European Union regulators were probing OKX for laundering $100 million in funds from the Bybit hack.
Bybit CEO Ben Zhou previously claimed that OKX’s Web3 proxy allowed hackers to launder about $100 million, or 40,233 Ether (ETH), from the $1.5 billion hack that occurred in February.
This is a developing story, and further information will be added as it becomes available.
Authorities in the US state of Massachusetts continue targeting unlawful cryptocurrency market practices, with a local court fining crypto financial services firm CLS Global.
A federal court in Boston on April 2 sentenced CLS Global on criminal charges related to fraudulent manipulation of crypto trading volume, according to an announcement from the Massachusetts US Attorney’s Office.
In addition to a $428,059 fine, the court prohibited CLS Global from offering services in the US for a probation period of three years.
CLS Global, a crypto market maker registered in the United Arab Emirates, in January pleaded guilty to one count of conspiracy to commit market manipulation and one count of wire fraud.
CLS agreed to manipulate the FBI’s “trap token” NexFundAI
The charges against CLS Global followed an undercover law enforcement operation involving NexFundAI, a token created by the FBI as part of a sting operation in May 2024.
CLS Global was among at least three firms that took the FBI’s bait and agreed to provide “market maker services” for NexFundAI, including a fraudulent scheme to attract investors to purchase the token.
In October 2024, the Securities and Exchange Commission announced fraud charges against CLS and its employee, Andrey Zhorzhes. The US securities regulator also filed complaints against two other NexFundAI manipulators, Hong Kong-linked ZM Quant Investment and Russia-linked Gotbit Consulting.
CLS Global’s profile
According to CLS Global CEO Filipp Veselov, the company was founded in 2017 to fill in a “huge gap in the market for high-quality market-making solutions and trading consulting.”
Prior to CLS, Veselov worked at the Russian cryptocurrency exchange platform Latoken, which is advertised as a “global digital asset exchange” and has about 370,000 followers on X.
The CLS team also includes chief revenue officer Pavel Singaevskii, who previously served as sales manager at Stex, a crypto platform that reportedly ceased operations without warning in 2023.
According to CLS Global’s X page, the platform continues operating and has more than 110,000 followers at the time of publication.
How much wash trading is in crypto?
Wash trading is an illegal practice involving artificially inflating trading volume by repeatedly buying and selling the same asset, generating a misleading perception of demand.
According to a January 2025 report by the US blockchain analytics firm Chainalysis, the crypto market has at least $2.6 billion in estimated wash traded volumes, or just about 2% of total daily crypto trading volumes, as reported by CoinGecko.
Estimated wash trade volume in crypto. Source: Chainalysis