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3:35
Deported sex offender says police ignored him
The Metropolitan Police confirmed to Sky News: “Shortly after 1pm on Tuesday 4 November, the Met was informed by the Prison Service that a prisoner had been released in error from HMP Wandsworth on Wednesday 29 October.
“The prisoner is a 24-year-old Algerian man.
“Officers are carrying out urgent enquiries in an effort to locate him and return him to custody.”
Sky News understands the prisoner was serving time for trespass with an intent to steal but has previously committed sexual offences.
It is understood he is not an asylum seeker.
Image: HMP Wandsworth in south London. Pic: PA
‘Utterly unacceptable’
It is not yet clear why it was nearly a week between the latest release at Wandsworth and the police being informed that an offender was at large.
Sir Keir Starmer was not aware of the incident until the Met Police announcement, Downing Street said.
The prime minister’s spokesman told reporters: “The Met have released a statement I think in the last few minutes.”
He said “one mistaken release is one too many” and the case was “utterly unacceptable”.
“It’s important the police are given the time and space to bring him back into custody. And we will look into the circumstances behind this as a matter of urgency,” he added.
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4:01
‘What on earth is going on within the Prison Service?’
The PM’s spokesman could not say when Mr Lammy became aware of the error, after the cabinet minister refused to answer several questions in the House of Commons on the incident from the shadow defence secretary.
Tory leader Kemi Badenoch wrote on X: “James Cartlidge asked the Deputy PM FIVE times to tell us if ANOTHER migrant sex offender had been accidentally released from prison.
“Instead of answering, Lammy lost his temper.
“Now we read it HAS happened again & he’s been on the run for a week.
“This is a shambles of a government.”
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1:46
Lammy refuses to say if more prisoners mistakenly released
Lammy ‘outraged and appalled’
Sky News understands Mr Lammy did know about the prisoner release before he stood up in the Commons and was pressed on the issue by the Conservatives.
“If we knew, one can only assume the justice secretary knew,” a spokesman for Ms Badenoch said, adding Mr Lammy should come back to the chamber “and do a statement as soon as possible”.
Mr Lammy said afterwards he was “absolutely outraged and appalled by the mistaken release of a foreign criminal wanted by the police”, adding his “officials have been working through the night to take him back to prison”.
“Victims deserve better and the public deserve answers,” he said.
It is understood Mr Lammy believed it would have been irresponsible to talk about the case – involving several agencies – while details were still emerging.
Reform UK leader Nigel Farage posted on social media: “Another dangerous criminal is on the loose thanks to Labour. What a total farce.”
The numbers of these types of errors has risen recently, with 262 instances between March 2024 and March 2025.
The Conservatives described the Kebatu episode as a “national embarrassment”.
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5:26
Lammy has ‘egg on his face’, former prison governor says
In the aftermath of the Kebatu manhunt, Mr Lammy promised “the strongest release checks that have ever been in place”.
He also ordered an independent investigation into the Kebatu release, which is being led by former Deputy Commissioner of the Met Police Dame Lynne Owens.
“This latest incident exposes deeper flaws across the failing criminal justice system we inherited,” Mr Lammy added in his statement on Wednesday on the HMP Wandsworth error.
“Dame Lynne Owens’ investigation will leave no stone unturned to identify these issues, so we can fix them, improve safeguards and ensure the public is properly protected.”
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5:51
Analysis: Did Lammy walk into a trap?
‘Dangerous situation’
The Liberal Democrats’ justice spokesperson Jess Brown-Fuller said: “Just when you couldn’t think things could get any worse for the Ministry of Justice, somehow they have. It would be laughable if the situation weren’t so dangerous.
“This is yet another grave mistake from the government. The public deserves a full explanation about how this has happened again. That should start with David Lammy coming back before Parliament this afternoon for why he failed to answer this pressing question in PMQs as well as a full explanation of how it took almost a week for this to come to light.
“It’s utterly unacceptable that public safety has been put at risk yet again. Both the government and the Prison Service must own up to their failures and guarantee that these mistakes will stop happening once and for all.”
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.
The European Union is considering a partial halt to its landmark artificial intelligence laws in response to pressure from the US government and Big Tech companies.
The European Commission plans to ease part of its digital rulebook, including the AI Act that took effect last year, as part of a “simplification package” that is to be decided on Nov. 19, the Financial Times reported on Friday.
If approved, the proposed halt could allow generative AI providers currently operating in the market a one-year compliance grace period and delay enforcement of fines for violations of AI transparency rules until August 2027.
“When it comes to potentially delaying the implementation of targeted parts of the AI Act, a reflection is still ongoing,” the commission’s Thomas Regnier told Cointelegraph, adding that the EC is working on the digital omnibus to present it on Nov. 19.
EU’s AI Act entered into force in August 2024
The commission proposed the first EU AI law in April 2021, with the mission of establishing a risk-based AI classification system.
Passed by the European Parliament and the European Council in 2023, the European AI Act entered into force in August 2024, with provisions expected to be implemented gradually over the next six to 36 months.
An excerpt from the EU AI Act’s implementation timeline. Source: ArtificialIntelligenceAct.eu
According to the FT, a bulk of the provisions for high-risk AI systems, which can pose “serious risks” to health, safety or citizens’ fundamental rights, are set to come into effect in August 2026.
With the draft “simplification” proposal, companies breaching the rules on the highest-risk AI use could reportedly receive a “grace period” of one year.
The proposal is still subject to informal discussions within the commission and with EU states and could still change ahead of its adoption on Nov. 19, the report noted.
“Various options are being considered, but no formal decision has been taken at this stage,” the EC’s Regnier told Cointelegraph, adding: “The commission will always remain fully behind the AI Act and its objectives.”
“AI is an incredibly disruptive technology, the full implications of which we are still only just beginning to fully appreciate,” Mercuryo co-founder and CEO Petr Kozyakov said, adding:
“Ultimately, Europe’s competitiveness will depend on its ability to set high standards without creating barriers that may risk letting innovation take place elsewhere.”
The EU’s potential suspension of parts of the AI Act underscores Brussels’ evolving approach to digital regulation amid intensifying global competition from the US and China.