The UK government has been accused of a U-turn after accepting Russian and Belarusian athletes can compete at the 2024 Olympics.
Last year, Culture Secretary Lucy Frazer said athletes “funded by their states” or “who are in receipt of funding or sponsorship directly aligned to their states” cannot be considered neutral in the context of the invasion of Ukraine.
Britain is part of a coalition of like-minded countries which had called for a ban on such athletes due to this funding.
But the government has now confirmed it agrees with the International Olympic Committee (IOC) that Russian and Belarusian athletes can compete under a neutral banner at the upcoming Paris Games.
Ms Frazer said on Friday those athletes will be taking part under the “strictest neutrality conditions possible”.
After the position was revealed by The Times earlier this month, there were accusations of a government U-turn on the issue.
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Richard Caborn, who was sports minister between 2001 and 2007, said: “This is a humiliating U-turn by Frazer after her forceful speech one year ago to the Council of Europe setting out why Britain should support the total ban of Russian athletes participating in the Paris Olympics.”
The government has rejected the suggestion that it changed course following an IOC threat to prevent the UK from hosting Olympic qualifying events.
Ms Frazer said on Friday that she and sports minister Stuart Andrew are “personally committed to supporting Ukraine in the face of Putin’s illegal invasion”.
They said it was for each sporting body, like the IOC, to make their own determinations.
Ms Frazer added: “But our position is clear. Putin’s regime does not deserve to see its athletes line up on the starting blocks of races or stand on podiums during medal ceremonies as representatives of their countries.
“This has never been about punishing individual Russian or Belarusian athletes.
“What we stand against is athletes competing representing the states of Russia and Belarus.
“We continue to vigorously oppose Russian and Belarusian state participation. Our policy has never been a complete and total ban on neutral athletes from Russia and Belarus participating at all.”
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Inside Paris 2024 preparations
The minister pointed out Russians and Belarusians have been able to compete as neutrals in UK tennis competitions.
She insisted the efforts of the government and coalition have been focused on urging Olympic organisers to “change their approach, apply the strictest neutrality conditions possible and ensure they are implemented rigorously”.
“After two years of concerted lobbying, they have done that. And the result is that the number of athletes from Russia and Belarus expected to participate in the Olympics is in the tens, not hundreds.
“As a result, we have written to the IOC and International Paralympic Committee noting that their final neutrality rules for Paris achieve the widely accepted baseline of ensuring that Russia and Belarus are not represented as states in international sport.”
The IOC expects as many as 54 Russian athletes to compete in Paris.
They will not be able to compete in team disciplines, cannot compete in Russian colours or under the Russian flag and medals will not be included together in a table.
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The IOC is leaving it up to the individual sports to make decisions on whether to allow Russian and Belarusian athletes to compete even as neutrals – World Athletics, for instance, has imposed an outright ban.
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.