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The government has agreed to have an independent IT expert review of a Post Office software system predating Horizon, amid claims dozens more sub-postmasters may have been wrongly convicted.

The Capture software was rolled out across branches in the 1990s, years before the notorious Horizon system was introduced.

Post Office minister Kevin Hollinrake has met with a former sub-postmaster and a lawyer representing 35 people who believe they were wrongly accused of stealing.

It was agreed between MPs and the Post Office minister that an independent IT expert would assess evidence claiming to “prove” Capture software was prone to glitches.

Capture IT system
Image:
The Capture IT system

Steve Marston, 68, believes he was wrongly convicted of theft and false accounting after errors caused by Capture accounting software.

Auditors found shortfalls of £79,000 at his branch in Greater Manchester in 1998. He subsequently pleaded guilty to theft and false accounting.

A predecessor to Horizon, the Capture software was developed by the Post Office and rolled out from 1992.

More on Post Office Scandal

‘Extremely happy’

Mr Marston, representing numerous others claiming to be victims, met with Post Office Minister Kevin Hollinrake in Central London.

Speaking to Sky News's Politics Hub with Sophy Ridge, postal services minister Kevin Hollinrake said the government did "not want to interfere with the court and the judicial process".
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Postal services minister Kevin Hollinrake

He tearfully told Sky News after the meeting that he was “overwhelmed” and “extremely happy” with the way the meeting went.

He presented a copy of the original Capture software, also shown to Sky News, which Mr Marston describes as “definitive proof” of wrongful convictions.

Campaigners discovered floppy disks with the software on them, dating back to the 90s.

Mr Marston says they show that errors in the system could generate false shortfalls in accounts, and believes Capture evidence was used in his prosecution.

Steve Marston
Image:
Steve Marston

A ‘significant meeting’

Neil Hudgell, who is representing 35 former sub-postmasters who used Capture, said it was a “significant meeting” with the Post Office minister.

“What we are going to do now, with the consent of the government and agreement of the Department for Business and Trade,” he said, “is run that past an independent person to stand up what we say is the case.

“It is a very similar pattern of IT glitches that predate the Horizon system by a number of years.”

Former sub-postmasters say that it appears errors occurred when upgrades were made to the software in the 90s.

Other factors such as power cuts are also thought to be another possible reason for faults.

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‘I was forced to sell my family home’

Steve Lewis lost his job in 2000, after raising concerns about shortfalls and Capture software glitches.

“I’ve always been looked on as being the man who robbed the post office,” he said. “I lost my post office, the commercial buildings that I had moved my office to, and was forced to sell my family home.”

Mr Lewis claims he was warned “not to be a troublemaker” and told the issues were only happening to him.

It wasn’t until he watched the ITV drama Mr Bates Vs The Post Office that he “realised” similarities between Horizon victims and himself such as “unexplained losses”.

Read more:
More than £1m claimed as ‘profit’ may have come from victims
Post Office hero Bates had seemingly been preparing for this day

Alan Bates (centre) speaking outside the High Court in 2019 and Toby Jones as Alan Bates in the ITV series Mr Bates
Image:
Alan Bates (centre) speaking outside the High Court in 2019 and Toby Jones as Alan Bates in the ITV series

‘Mirror image of what Post Office did with Horizon’

Documents seen by Sky News also show that the Post Office knew Capture was prone to glitches which could cause accounting issues.

In January the government ordered the Post Office to investigate the claims related to Capture.

Labour MP Kevan Jones has taken up the cause and describes one case as being “a mirror image” of what “the Post Office did with Horizon victims”.

He continued: “Added to that, we’ve now got the original computer floppy disks where I think it proves that it does throw up shortfalls.

“I think that’s quite a compelling case for these cases to be looked at again and compensation awarded.”

‘We continue to investigate’

A Post Office spokesperson said: “We are in contact with Steve Marston and other past users of Capture and are grateful to them for all the information they have so far shared with us.

“We continue to actively investigate a number of lines of inquiry relating to Capture and throughout this we have regularly kept the Department for Business and Trade and Kevan Jones MP up to date with our findings.

“We have now shared a recommendation with the Department about what should happen next and hope to provide further information with past users of Capture as soon as we’re able to.”

A Department for Business and Trade spokesperson said: “As soon as these accusations came to light, we asked the Post Office to investigate the Capture system.

“We are now reviewing all the materials provided to us, including those from postmasters and Post Office, and we will set out next steps shortly.”

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Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

Politics latest: PM outlines ‘benefits’ for UK from closer EU ties

The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

Read more:
What could a UK-EU reset look like?
Starmer’s stance on immigration criticised

On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Return to customs union ‘remains a red line’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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Politics

Retired artist loses $2M in crypto to Coinbase impersonator

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Retired artist loses M in crypto to Coinbase impersonator

Retired artist loses M in crypto to Coinbase impersonator

Retired artist Ed Suman lost over $2 million in cryptocurrency earlier this year after falling victim to a scam involving someone posing as a Coinbase support representative.

Suman, 67, spent nearly two decades as a fabricator in the art world, helping build high-profile works such as Jeff Koons’ Balloon Dog sculptures, according to a May 17 report by Bloomberg.

After retiring, he turned to cryptocurrency investing, eventually accumulating 17.5 Bitcoin (BTC) and 225 Ether (ETH) — a portfolio that comprised most of his retirement savings.

He stored the funds in a Trezor Model One, a hardware wallet commonly used by crypto holders to avoid the risks of exchange hacks. But in March, Suman received a text message appearing to be from Coinbase, warning him of unauthorized account access.

After responding, he got a phone call from a man identifying himself as a Coinbase security staffer named Brett Miller. The caller appeared knowledgeable, correctly stating that Suman’s funds were stored in a hardware wallet.

He then convinced Suman that his wallet could still be vulnerable and walked him through a “security procedure” that involved entering his seed phrase into a website mimicking Coinbase’s interface.

Nine days later, a second caller claiming to be from Coinbase repeated the process. By the end of that call, all of Suman’s crypto holdings were gone.

Retired artist loses $2M in crypto to Coinbase impersonator
Crypto scammers impersonate Coinbase support. Source: NanoBaiter

Related: Bitcoin breaks out while Coinbase breaks down: Finance Redefined

Coinbase suffers major data breach

The scam followed a data breach at Coinbase disclosed this week, in which attackers bribed customer support staff in India to access sensitive user information.

Stolen data included customer names, account balances, and transaction histories. Coinbase confirmed the breach impacted roughly 1% of its monthly transacting users.

Among those affected was venture capitalist Roelof Botha, managing partner at Sequoia Capital. There is no indication that his funds were accessed, and Botha declined to comment.

Coinbase’s chief security officer, Philip Martin, reportedly said the contracted customer service agents at the center of the controversy were based in India and had been fired following the breach.

The exchange has also said it plans to pay between $180 million and $400 million in remediation and reimbursement to affected users.

Magazine: Arthur Hayes $1M Bitcoin tip, altcoins’ powerful rally’ looms: Hodler’s Digest, May 11 – 17

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UK to require crypto firms to report every customer transaction

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UK to require crypto firms to report every customer transaction

UK to require crypto firms to report every customer transaction

United Kingdom crypto companies will need to collect and report data from every customer trade and transfer beginning Jan. 1, 2026 as part of a broader effort to improve crypto tax reporting, the UK government said.

Everything from the user’s full name, home address and tax identification number will need to be collected and reported for every transaction, including the cryptocurrency used and the amount moved, the UK Revenue and Customs department said in a May 14 statement.

Details of companies, trusts and charities transacting on crypto platforms will also need to be reported.

Failure to comply or inaccurate reporting may incur penalties of up to 300 British pounds ($398.4) per user. The UK Revenue and Customs department said it would inform companies on how to comply with the incoming measures in due course.

However, UK authorities are encouraging crypto firms to start collecting data now to ensure compliance readiness.

The new rule is part of the UK’s integration of the Organisation for Economic Development’s Cryptoasset Reporting Framework to improve transparency in crypto tax reporting.

The changes reflect the UK government’s aim to establish a more robust regulatory framework that supports industry growth while ensuring consumer protection.

Related: Bitwise lists four crypto ETPs on London Stock Exchange

UK Chancellor Rachel Reeves also introduced a draft bill in late April to bring crypto exchanges, custodians and broker-dealers within its regulatory reach to combat scams and fraud.

“Today’s announcement sends a clear signal: Britain is open for business — but closed to fraud, abuse, and instability,” Reeves said at the time.

A study from the UK’s Financial Conduct Authority last November found that 12% of UK adults owned crypto in 2024 — a significant increase from the 4% reported in 2021.

UK’s approach contrasts with EU’s MiCA

The UK’s move to integrate the crypto rules into its existing financial framework contrasts with the European Union’s approach, which introduced the new Markets in Crypto-Assets Regulation framework last year.

According to the MiCA Crypto Alliance, one key difference is that the UK will allow foreign stablecoin issuers to operate in the UK without needing to register.

There will also be no cap on stablecoin volumes, unlike the EU’s approach, which may impose controls on stablecoin issuers to manage systemic risks.

UK to require crypto firms to report every customer transaction
Source: MiCA Crypto Alliance

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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