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Also: Oracle Suit Points to AI Revenue Forecasting Risk; the AI Sovereignty PushIn this week's panel, four editors discussed the growing role of artificial intelligence in U.S. federal government cybersecurity, Oracle's investor lawsuit over its projected cloud sales to frontier AI lab OpenAI and what AI sovereignty means for enterprises.
New York-Based Kyndryl Can't Buy Amsterdam-Based Solvinity GroupThe growing push for European technological sovereignty from the United States claimed a significant scalp in the Netherlands, where authorities blocked the American takeover of a crucial secure cloud company.
Also: the UK's $7B Bitcoin Case, Implications of Vectra's NetographyIn this week's update, ISMG editors examine how the U.S. shutdown and the lapse of CISA 2015 liability shield are straining cyber operations, what Vectra’s move for Netography signals for multi-cloud visibility and NDR, and how British prosecutors unraveled a bitcoin hoard now worth $7 billion.
Defense Department Suspends, Reviews Microsoft 'Digital Escorts' ProgramThe Pentagon is reviewing Microsoft's decade-long use of "digital escorts" - U.S.-based staff who review code from Chinese engineers - into military cloud systems, a workaround now deemed a "breach of trust" that may have exposed sensitive but unclassified government data.
In May 2025, the U.S. government sanctioned a Chinese national for operating a cloud provider linked to the majority of virtual currency investment scam websites reported to the FBI. But more than a month later, the accused continues to openly operate accounts at a slew of American tech companies, including Facebook, Github, LinkedIn, PayPal and Twitter/X.
The U.S. government today imposed economic sanctions on Funnull Technology Inc., a Philippines-based company that provides computer infrastructure for hundreds of thousands of websites involved in virtual currency investment scams, commonly known as “pig butchering." In January 2025, KrebsOnSecurity detailed how Funnull was being used as a content delivery network that catered to cybercriminals seeking to route their traffic through U.S.-based cloud providers.
The U.S. government on Wednesday announced the arrest and charging of two Sudanese brothers accused of running Anonymous Sudan (a.k.a. AnonSudan), a cybercrime business known for launching powerful distributed denial-of-service (DDoS) attacks against a range of targets, including dozens of hospitals, news websites and cloud providers. One of the brothers is facing life in prison for allegedly seeking to kill people with his attacks.
The threat actor known as Storm-0501 has targeted government, manufacturing, transportation, and law enforcement sectors in the U.S. to stage ransomware attacks
'It's not our job to find the culprits – That's what we're paying you for' lawmaker scolds Brad Smith Lawmakers on Thursday grilled Microsoft president Brad Smith about the Windows giant's businesses dealing in China — and the super-corp's repeated security failings — at a time when Beijing-backed spies are accused of breaking into Microsoft-hosted email accounts of American government officials.…
Rule Is a Bid to Deter Malicious Foreign Use of US IaaS ProvidersCloud providers told the government they aren't very happy about a proposed regulation requiring them to verify the identity of foreign customers, but their complaints are unlikely to stop the U.S. Department of Commerce from proceeding with the rule.