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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 US Securities and Exchange Commission (SEC) sent warning letters to several exchange-traded fund (ETF) providers, halting applications for leveraged ETFs that offer more than 200% exposure to the underlying asset.
ETF issuers Direxion, ProShares, and Tidal received letters from the SEC citing legal provisions under the Investment Company Act of 1940.
The law caps exposure of investment funds at 200% of their value-at-risk, defined by a “reference portfolio” of unleveraged, underlying assets or benchmark indexes. The SEC said:
“The fund’s designated reference portfolio provides the unleveraged baseline against which to compare the fund’s leveraged portfolio for purposes of identifying the fund’s leverage risk under the rule.”
The SEC directed issuers to reduce the amount of leverage in accordance with the existing regulations before the applications would be considered, putting a damper on 3-5x crypto leveraged ETFs in the US.
SEC regulators posted the warning letters the same day they were sent to the issuer, in an “unusually speedy move” that signals officials are keen on communicating their concerns about leveraged products to the investing public, according to Bloomberg.
The crypto market took a nosedive in October after a flash crash caused $20 billion in leveraged liquidations, the most severe single-day liquidation event in crypto history, sparking discussions among analysts and investors over the dangers of leverage and its effect on the crypto market.
24-hour liquidations in the crypto derivatives market. Source: Coinglass
Liquidations in the crypto futures market during the last cycle averaged about $28 million in long positions and $15 million in shorts per day.
The current cycle is clocking about $68 million in long liquidations and $45 million in short liquidations daily, according to Glassnode.
Demand for leveraged crypto ETFs surged following the 2024 presidential election in the United States, in anticipation of a better regulatory climate for crypto in the US.
Leveraged ETFs are not subject to margin calls and automated liquidations like leveraged crypto derivatives, but can still deal a serious blow to investor capital in a bear market or even a sideways market, as losses compound more quickly than gains.
Taiwan could see its first stablecoin launched as early as the second half of 2026 as lawmakers advance new rules for digital assets, according to one of the country’s financial regulators.
According to a Focus Taiwan report on Wednesday, Financial Supervisory Commission (FSC) Chair Peng Jin-lon said that, based on the timeline for passing related legislation, a Taiwan-issued stablecoin could enter the market in the second half of 2026.
Should the Virtual Assets Service Act pass in the country’s next legislative session, and accounting for a six-month buffer period for the law to take effect, it would lay the groundwork for the launch of a Taiwanese stablecoin.
Peng said the draft legislation was derived from Europe’s Markets in Crypto-Assets (MiCA) and would eventually allow non-financial institutions to issue stablecoins. Initially, however, Taiwan’s central bank and the FSC would restrict issuance to regulated entities.
Last year, Taiwan’s policymakers began enforcing Anti-Money Laundering regulations in response to alleged violations by crypto companies MaiCoin and BitoPro. As of December, however, regulated entities in the country have yet to launch a stablecoin pegged to either the US dollar or the Taiwan dollar.
In addition to the FSC’s advancement of stablecoin regulations, Taiwan’s policymakers are reportedly assessing the total amount of Bitcoin (BTC) confiscated by authorities. The move signaled that the nation could be preparing to launch its own strategic crypto stockpile.
Ju-Chun, a Taiwanese lawmaker, called on the government to add BTC to its national reserves in May as a hedge against economic uncertainty.
The country’s reserves include US Treasury bonds and gold, but no cryptocurrencies. Other countries, such as the US, have adopted policies that promote Bitcoin and crypto reserves.
Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.
He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”
Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.
“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.
Gensler’s record and industry backlash
Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg
Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.
The politicization of crypto
Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.
“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”
He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.
On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.
Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.
Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.