There is no threat to Northern Ireland’s power-sharing agreement after the leader of the Democratic Unionist Party (DUP) resigned over allegations of historical sexual offences, First Minister Michelle O’Neill has said.
Sinn Fein vice president Ms O’Neill told Sky News she has approached the leaders of the three other parties in the ministerial executive in Belfast to ensure “cohesion” amid the political fallout.
“I think everybody was shocked,” Ms O’Neill said of Friday’s developments.
“[It’s] a very challenging time, not least for those people that have come forward to the police.”
She added: “I’ve spoken to the new interim leader of the DUP, Gavin Robinson. I’ve also spoken to my executive colleagues, the political leaders around the executive table, just in terms of the work that we have to do, that we need to prioritise cohesion and leadership through these times.”
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‘It’s been a devastating revelation,’ Gavin Robinson says
No threat to power sharing
Ms O’Neill said all the party leaders shared the view there is no threat to the power-sharing institutions.
“The public here rightly deserve our newly formed executive to continue to deliver for them for now and into the future,” she said.
“My priority is to make that power sharing work, my priority is to work with the other political leaders around the executive table.
“That was why I thought it was important yesterday to reach out to each of the political leaders to talk about the need for cohesion, to talk about the need for leadership and to talk about the delivery that we now need to get on with in terms of the executive itself.”
A political earthquake without warning presents a threat to power sharing
“Cohesion and leadership” – the priorities outlined by Northern Ireland’s first minister in her bid to avert a full-blown political crisis.
Sinn Fein’s Michelle O’Neill told Sky News she was “shocked” by the circumstances of Unionist leader Sir Jeffrey Donaldson’s resignation. Shocked is an understatement. Northern Ireland is reeling from a political earthquake without warning and struggling to assess the damage. There is a criminal investigation under way – politicians are choosing their words carefully to ensure they do not compromise it.
But they must, at the same time, attempt to deal with the political fall-out, to steady the ship in unchartered waters. The Democratic Unionist Party has not only lost its leader in inauspicious circumstances but erased him from its online presence. At least three of the Party’s eight Westminster seats were already deemed marginal, and at risk in the upcoming general election. If Jeffrey Donaldson resigns as an MP, it could find itself fighting a by-election in Lagan Valley very quickly.
And those landmines pose a very real threat to the power-sharing government, just eight weeks after it came into existence. Senior DUP figures, who opposed Donaldson’s decision to compromise and restore devolution, could seek to take control of the party. Hardline Unionists outside the party have urged them to do so and terminate power sharing again over controversial post-Brexit trading arrangements.
But does the DUP want to risk a Stormont election and face a general election with the party in chaos? I don’t think so, but one party’s dysfunction can quickly become every party’s problem, if it is not managed carefully.
There wasn’t a whiff of political point-scoring when Michelle O’Neill urged other party leaders to protect power sharing – to be cohesive. But she and Deputy First Minister Emma Little-Pengelly will need every ounce of their leadership to avoid a political shipwreck.
The first minister added she intended to “provide leadership” and to make sure the power-sharing government got results on the “day-to-day matters that people want us to be prioritising”.
“The public rightly expect their political leaders to deliver for them. That’s where I’m going to be focused,” she said.
‘Victims must have opportunity for justice’
It came after Northern Ireland’s deputy first minister Emma Little-Pengelly said she was “shocked and devastated” by the news of the charges against Donaldson.
Image: Emma Little-Pengelly, Northern Ireland’s deputy first minister. Pic: PA
She added: “Victims must always have the best opportunity for justice. This must be fully respected and supported.
“My thoughts are with those suffering who have put their faith in the criminal justice system.
“Protecting the integrity of that process necessitates significant restrictions on what can be said. I have faith in our justice system.”
Ms Little-Pengelly went on to say that she was “determined” to work with the interim party leader Mr Robinson to “provide stability” and continue “tackling the big issues faced by Northern Ireland”.
Donaldson due in court in April
Donaldson has led the DUP since 2021 and has been the MP for Lagan Valley since 1997.
The 61-year-old will appear in court in Newry, Co Down, on 24 April.
A 57-year-old woman has been charged with aiding and abetting offences in relation to the same police investigation.
He has been suspended by the party but it is understood he remains an MP.
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.