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Today, the Biden administration suspended federal funding to the scientific nonprofit whose research is at the center of credible theories that the COVID-19 pandemic was started via a lab leak at the Wuhan Institute of Virology.

This morning, the U.S. Department of Health and Human Services (HHS) announced that it was immediately suspending three grants provided to the New York-based nonprofit EcoHealth Alliance (EHA) as it starts the process of debarring the organization from receiving any federal funds.

“The immediate suspension of [EcoHealth Alliance] is necessary to protect the public interest and due to a cause of so serious or compelling a nature that it affects EHA’s present responsibility,” wrote HHS Deputy Secretary for Acquisitions Henrietta Brisbon in a memorandum signed this morning.

For years now, EcoHealth has generated immense controversy for its use of federal grant money to support gain-of-function research on bat coronaviruses at the Wuhan lab.

In a memo justifying its funding suspension, HHS said that EcoHealth had failed to properly monitor the work it was supporting at Wuhan. It also failed to properly report on the results of experiments showing that the hybrid viruses it was creating there had an improved ability to infect human cells.

Congressional Republicans leading an investigation into EcoHealth’s research in Wuhan, and the role it may have played in starting the pandemic via a lab leak, cheered HHS’s decision.

“EcoHealth facilitated gain-of-function research in Wuhan, China without proper oversight, willingly violated multiple requirements of its multimillion-dollar National Institutes of Health [NIH] grant, and apparently made false statements to the NIH,” said Rep. Brad Wenstrup (ROhio), chair of the House’s Select Subcommittee on the Coronavirus Pandemic in a statement. “These actions are wholly abhorrent, indefensible, and must be addressed with swift action.”

Beginning in 2014, EcoHealth received a grant from NIH’s National Institute of Allergies and Infectious Diseases (NIAID) to study bat coronavirus in China. Its initial scope of work involved collecting and cataloging viruses in the wild and studying them in the lab to spot which ones might be primed to “spillover” into humans and cause a pandemic.

Soon enough, EcoHealth used some of the viruses they’d collected to create “chimeric” or hybrid viruses that might be better able to infect human lung cells in genetically engineered (humanized) mice.

This so-called “gain-of-function” research has long been controversial for its potential to create deadly pandemic pathogens. In 2014, the Obama administration paused federal funding of gain-of-function research that might turn SARS, MERS, or flu viruses into more transmissible respiratory diseases in mammals.

In 2016, NIH flagged EcoHealth’s work as likely violating the 2014 pause.

EcoHealth President Peter Daszak argued to NIH at the time that the viruses his outfit was creating had not been proven to infect human cells and were genetically different enough from past pandemic viruses that they didn’t fall under the Obama administration pause.

NIH accepted this argument under the condition that EcoHealth immediately stop its work and notify the agency if any of its hybrid viruses did show increased viral growth in humanized mice.

But when these hybrid viruses did show increased viral growth in mice, EcoHealth did not immediately stop work or notify NIH. It instead waited until it submitted an annual progress report in 2018 to disclose the results of its experiments.

A second progress report that EcoHealth submitted in 2021, two years after its due date, also showed its hybrid viruses were demonstrating increased viral growth and enhanced lethality in humanized mice.

In testimony to the House’s coronavirus subcommittee earlier this month, Daszak claimed that EcoHealth attempted to report the results of its gain-of-function experiments on time in 2019, but was frozen out of NIH’s reporting system.

The HHS memo released today says a forensic investigation found no evidence that EcoHealth was locked out of NIH’s reporting system. The department also said that EcoHealth had failed to produce requested lab notes and other materials from the Wuhan lab detailing the work being done there and the lab’s biosafety conditions.

These all amount to violations of EcoHealth’s grant agreement and NIH grant policy, thus warranting debarment from future federal funds, reads the HHS memo.

That EcoHealth would be stripped of its federal funding shouldn’t come as too great a shock to anyone who watched Daszak’s congressional testimony from earlier this month. Even Democrats on the committee openly accused Daszak of being misleading about EcoHealth’s work and manipulating facts.

Rep. Raul Ruiz (DCalif.), the ranking Democrat on the House’s coronavirus subcommittee, welcomed EcoHealth’s suspension, saying in a press release that the nonprofit failed its “obligation to meet the utmost standards of transparency and accountability to the American public.”

An HHS Office of the Inspector General report from last year had already found that EcoHealth had failed to submit progress reports on time or effectively monitor its subgrantee, the Wuhan Institute of Virology.

When grilling Daszak, Democrats on the Coronavirus Subcommittee went to great lengths to not criticize NIH’s oversight of EcoHealth’s work. The HHS debarment memo likewise focuses only on EcoHealth’s failures to abide by NIH policy and its grant conditions.

Nevertheless, it seems pretty obvious that NIH was failing to abide by the 2014 pause on gain-of-function funding when it allowed EcoHealth to go ahead with creating hybrid coronaviruses under the condition that they stop if the viruses did prove more virulent.

NIH compounded that oversight failure by not stopping EcoHealth’s funding when the nonprofit did, in fact, create more virulent viruses, and not following up on a never-submitted progress report detailing more gain-of-function research until two years later.

The House Subcommittee’s investigation into NIH’s role in gain-of-function research at the Wuhan lab is ongoing. Tomorrow it will interview NIH Principal Deputy Director Lawerence Tabak. In June, it will interview former NIAID Director Anthony Fauci.

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Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

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Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers.

The move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, according to a May 25 report by local news outlet 24NewsHD TV Channel.

In the first phase, the government plans to channel excess power into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb said the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.

The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.

Related: Trump-backed World Liberty Financial partners with Pakistan Crypto Council

Pakistan unveils tax incentives to attract investors

Per the report, interest from international Bitcoin (BTC) miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships.

To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.

Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly welcomed the development, calling it a “turning point” for the country’s digital economy.

Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors.

Saqib first proposed using the country’s runoff energy to fuel Bitcoin mining at the Crypto Council’s inaugural meeting on March 21.

The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.

Related: Pakistan proposes compliance-based crypto regulatory framework — Report

Pakistan creates Digital Asset Authority

On May 21, Pakistan’s Ministry of Finance endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country.

The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.

The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.

Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in ninth, mainly due to strong retail adoption and transactions at centralized services.

Pakistan allocates 2,000MW power for Bitcoin mining and AI centers
Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: Chainalysis

Data from Statista also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.

Magazine: Bitcoin bears eye $69K, CZ denies WLF ‘fixer’ rumors: Hodler’s Digest, May 18 – 24

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Crypto investor charged with kidnapping, torturing an Italian for passwords

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Crypto investor charged with kidnapping, torturing an Italian for passwords

Crypto investor charged with kidnapping, torturing an Italian for passwords

A Manhattan crypto investor is facing serious charges after allegedly kidnapping and torturing an Italian man in a disturbing bid to extract access to digital assets.

John Woeltz, 37, was arraigned on Saturday in Manhattan criminal court following his arrest on Friday. He stands accused of holding a 28-year-old Italian man captive for weeks inside a luxury townhouse in Soho, reportedly rented for $30,000 per month.

According to police reports cited by The New York Times, the victim arrived in the US on May 6 and was allegedly abducted by Woeltz and an accomplice.

The attackers are said to have stolen the man’s passport and electronic devices before demanding the password to his Bitcoin (BTC) wallet. When he refused, the suspects allegedly subjected him to prolonged physical abuse.

Crypto investor charged with kidnapping, torturing an Italian for passwords
Source: Mario Nawfal

Related: Violent crypto robberies on the rise: Six attacks that targeted investors

Crypto victim beaten, electroshocked

The victim described being beaten, shocked with electricity, assaulted with a firearm and even dangled from the upper floors of the five-story building.

He also told police that Woeltz used a saw to cut his leg and forced him to smoke crack cocaine. Threats were also reportedly made against his family.

Photographic evidence found inside the property, including Polaroids, appears to support claims of sustained abuse. The victim managed to escape on Friday and alert authorities, leading to Woeltz’s arrest.

Woeltz was charged with four felony counts, including kidnapping for ransom, and entered a plea of not guilty. Judge Eric Schumacher ordered him to be held without bail. He is expected back in court on May 28.

A 24-year-old woman was also taken into custody on Friday in connection with the incident. However, she was seen walking freely in New York the next day, and no charges against her were found in the court’s online database.

Authorities have yet to clarify the relationship between the suspect and the victim or whether any cryptocurrency was ultimately stolen.

Related: Crypto crime goes industrial as gangs launch coins, launder billions — UN

Crypto executives turn to bodyguards

Executives and investors in the crypto industry are increasingly seeking personal security services as kidnapping and ransom cases surge, especially in France.

On May 18, Amsterdam-based private firm Infinite Risks International reported a rise in requests for bodyguards and long-term protection contracts from high-profile figures in the space.

French authorities have responded by introducing enhanced protections for crypto entrepreneurs and their families, including security briefings and priority access to police assistance.

This comes amid a recent surge in kidnappings and ransom attempts. David Balland, the co-founder of hardware wallet company Ledger, was kidnapped in January 2025 and held for ransom for several days before being rescued by French police.

In May 2024, the father of an unnamed crypto entrepreneur was freed from a ransom attempt after French law enforcement officials raided the location in a Paris suburb where the individual was being held hostage by organized criminals.

Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express

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Gail’s backer plots rare move with bid for steak chain Flat Iron

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Gail's backer plots rare move with bid for steak chain Flat Iron

A backer of Gail’s bakeries is in advanced talks to acquire Flat Iron, one of Britain’s fastest-growing steak restaurant chains.

Sky News has learnt that McWin Capital Partners, which specialises in investments across the “food ecosystem”, has teamed up with TriSpan, another private equity investor, to buy a large stake in Flat Iron.

Restaurant industry sources said McWin would probably take the largest economic interest in Flat Iron if the deal completes.

They added that the two buyers were in exclusive discussions, with a deal possible in approximately a month’s time.

The valuation attached to Flat Iron was unclear on Sunday.

Flat Iron launched in 2012 in London’s Shoreditch and now has roughly 20 sites open.

The chain is solidly profitable, with its latest accounts showing underlying profits of £5.7m in the year to the end of August.

It already has private equity backing in the form of Piper, a leading investor in consumer brands, which injected £10m into the business in 2017.

Flat Iron was founded by Charlie Carroll, who retains an interest in it, but the company is now run by former Byron restaurant boss Tom Byng.

Houlihan Lokey, the investment bank, has been advising Flat Iron on the process.

McWin has reportedly been in talks to take full control of Gail’s while TriSpan’s portfolio has included restaurant operators such as the Vietnamese chain Pho and Rosa’s, a Thai food chain.

A spokesman for McWin declined to comment.

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