Key Takeaways

• OpenAI CEO Sam Altman delivered approximately 4 hours of testimony in the federal lawsuit filed by Elon Musk in Oakland, California
• Altman maintained that Musk left OpenAI voluntarily, contradicting Musk’s allegations of a stolen charitable mission
• According to Altman, Musk demanded complete majority ownership of OpenAI, a proposal that left him “extremely uncomfortable”
• Defense attorneys questioned Altman’s credibility, referencing previous allegations of dishonesty from former colleagues
• The trial moves to closing statements on Thursday; the jury will provide an advisory verdict only

Sam Altman, CEO of OpenAI, appeared in federal court on Tuesday to defend against claims made by Elon Musk that he and fellow executives undermined OpenAI’s foundational nonprofit principles.

During his roughly four-hour testimony at the Oakland, California federal courthouse, Altman presented a clear counternarrative: rather than having his charitable endeavor taken from him, Musk chose to walk away from the project.

“We were kind of left for dead,” Altman stated during his testimony.

The legal proceedings originated from a 2024 complaint filed by Musk against OpenAI, Altman, and Greg Brockman, OpenAI’s president. Musk alleges that this trio diverted the organization from its initial nonprofit framework. Additionally, he contends that his approximately $38 million in contributions were redirected toward commercial ventures without his consent.

Altman denied making any commitments to Musk regarding maintaining OpenAI’s nonprofit status. He characterized their relationship as one marked by fundamental disagreements over strategic direction, ultimately leading to Musk’s complete loss of confidence in the organization.

To support his account, Altman referenced a December 2018 email from Musk stating: “My probability assessment of OpenAI being relevant to DeepMind/Google without a dramatic change in execution and resources is 0%. Not 1%.”

Altman emphasized these words were “burned into my memory.”

The Battle Over Ownership

A significant portion of Altman’s court appearance centered on Musk’s insistence on securing majority ownership of any for-profit iteration of OpenAI. According to Altman, Musk demanded controlling authority while making only vague references to potentially reducing his stake in the future.

Altman expressed skepticism about this happening. “My belief is he wanted to have long-term control,” he told the court.

He recounted what he characterized as a “hair-raising” exchange. When fellow co-founders questioned what would become of OpenAI should Musk pass away while maintaining control, Musk allegedly responded casually, suggesting his children could potentially inherit his stake.

Altman emphasized that OpenAI’s founding principle centered on preventing any individual from controlling artificial general intelligence. This made Musk’s ownership demands fundamentally incompatible with the organization’s values.

During negotiations, Musk floated the idea of combining OpenAI with Tesla. Altman declined, arguing that Tesla’s identity as an automotive manufacturer made it unsuitable for advancing OpenAI’s objectives.

Musk officially departed from OpenAI’s board in February 2018. Altman testified that staff reactions were mixed, with some experiencing a “morale boost,” while others feared Musk might pursue “vengeance.”

Defense Targets Altman’s Trustworthiness

Steven Molo, representing Musk, utilized cross-examination to cast doubt on Altman’s reliability. His questioning began bluntly: “Are you completely trustworthy?” Altman initially responded “I believe so,” before modifying his answer to an unqualified yes.

Molo highlighted previous accusations from former associates, including Dario Amodei, who founded Anthropic, and cited Monday’s testimony from Ilya Sutskever, OpenAI’s former chief scientist. Sutskever claimed to have documented what he characterized as recurring instances of dishonesty by Altman.

Altman also discussed his temporary 2023 ouster as CEO. He described the experience as an “incredible betrayal” and noted that board members offered minimal justification beyond claiming he hadn’t been forthcoming with them.

“I had poured the last years of my life into this,” Altman testified. “I was watching it about to be destroyed.”

OpenAI currently carries a valuation exceeding $850 billion according to private market investors. Musk’s lawsuit seeks the removal of both Altman and Brockman, along with redirecting over $130 billion to OpenAI’s nonprofit foundation. Final arguments are set for Thursday. The jury will deliver an advisory opinion, with final authority resting with Judge Yvonne Gonzalez Rogers.

Nigel Farage, the leader of Reform UK and a member of Parliament, is facing a formal investigation by the parliamentary standards watchdog after failing to declare a 5 million-pound ($6.8 million) gift from crypto billionaire Christopher Harborne, news services including the Guardian reported Wednesday.

Farage received the donation from Harborne, a Thailand-based businessman with a 12% stake in stablecoin issuer Tether, weeks before announcing he would stand as a candidate in the 2024 general election, and did not declare it when elected as MP for Clapton. New MPs must register all financial interests received within the 12 months preceding their election.

A weekly YouGov poll of voting intentions has Reform UK gaining the largest share of votes, at 28%, putting Farage as the frontrunner to become the next prime minister. If the watchdog finds he breached the code of conduct, he could face suspension and potentially be forced to fight again for his parliamentary seat.

Farage, who is supportive of the crypto industry, has said that because Harborne’s donations were intended to cover his security expenses he was not compelled by law to declare them. Reform UK recently said the gift falls under the exemption for purely personal gifts. Labour and other parties argue that Harborne’s donations are subject to the rule, and the gift was referred to the parliamentary commissioner last month.

The parliamentary commissioner for standards, Daniel Greenberg, is set to investigate Farage under rule 5 of the code of conduct, which compels lawmakers to “fulfil conscientiously” requirements relating to their registration of interests, the Guardian said.

The Reform UK leader does not appear on the commission’s list of current investigations.

In April, BitMEX co-founder Ben Delo said in an op-ed for CoinDesk that he had given the party 4 million pounds since the start of the year.

The U.K. government imposed a moratorium on political crypto donations in March, citing a review warning that digital assets could be used to channel foreign money into U.K. politics. The ban covers donations of any size and will be written into the Representation of the People Bill, with criminal penalties for non-compliance.

Read more: Nigel Farage takes 6% stake in UK bitcoin treasury firm Stack BTC

Metaplanet (3350), Japan’s largest corporate bitcoin holder and the world’s third-largest bitcoin treasury company holding 40,177 BTC on its balance sheet, has confirmed a delay in its planned preferred share listing.

CEO Simon Gerovich discussed the complexity of navigating Japan’s underdeveloped preferred equity market as the primary reason for the hold-up.
The company’s planned instrument would be only the seventh listed preferred in Japan, Gerovich said, and, notably, the first-ever perpetual preferred share in the market.

Metaplanet announced back in November a two-tier listed preferred share class, Mars and Mercury. The move came after Strategy launched its own preferred shares, with Stretch (STRC) among the most popular.

Two key obstacles have stood in the way of Metaplanet’s listing of preferred shares.

First, Japanese exchange rules require preferred dividends to be backed by sustainable, recurring cash flows assessed across multiple market conditions. Metaplanet must demonstrate that its Bitcoin Income Generation Business can produce stable returns even in adverse bitcoin environments, and has just a six-quarter operating track record.

Second, the company’s ambition to pay monthly dividends is far more frequent than Japan’s typical once or twice-yearly cadence, which requires building entirely new dividend infrastructure around record dates.

Gerovich concluded that the company is committed to delivering preferred shares to the market and highlighted Japan’s status as one of the world’s most yield-starved major capital markets.

On the earnings, the company delivered net sales of $19.5 million (¥3.08 billion, up 251% year-on-year) and operating income of $14.4 million (¥2.27 billion, up 283%). Meanwhile, bitcoin yield came in at 2.8% quarter-to-date.

Metaplanet shares are down 25% year to date.

Binance founder Zhao Changpeng (CZ) said he prefers investing in the underlying infrastructure powering artificial intelligence rather than AI applications themselves, framing the current boom as an “infrastructure-first” investment cycle.

Speaking during a Binance online livestream, CZ described his preferred strategy as focusing on the “shovels” of AI — including data centers, power supply systems and large-scale computing infrastructure required to support model training and inference workloads.

His comments reflect a growing investor narrative that the AI economy is not just about algorithms or software, but about energy, hardware and compute availability at industrial scale.

AI infrastructure becomes the dominant investment layer

CZ noted that while NVIDIA currently dominates the AI chip market, the long-term landscape may shift toward more specialized and customized compute solutions tailored to different AI workloads.

This view aligns with a broader industry trend in which hyperscale data centers, energy infrastructure and semiconductor supply chains are becoming the primary bottlenecks in AI expansion rather than software innovation itself.

He also said he is monitoring developments in robotics, suggesting that AI-driven physical automation may become a major adjacent investment theme alongside compute infrastructure.

The “shovels in a gold rush” analogy has become increasingly common across venture capital and macro investing circles, where capital allocators prioritize foundational layers that benefit from multiple waves of adoption rather than single-product AI companies.

Web3 remains core as CZ keeps crypto allocation dominant

Despite growing interest in AI-related infrastructure, CZ emphasized that his investment firm YZi Labs continues to focus primarily on the crypto and blockchain sector, which still represents roughly 70% to 80% of its portfolio.

He also suggested that AI’s broader economic impact will extend into biotechnology and robotics, but said the firm does not plan to aggressively expand into large-scale biotech exposure at this stage.

Instead, the strategy remains centered on digital asset infrastructure, decentralized networks and blockchain-based financial systems, even as capital increasingly flows into adjacent high-growth sectors like AI compute and automation.

This positioning reflects a broader convergence theme across technology investing, where AI, energy, semiconductors and blockchain infrastructure are increasingly viewed as interconnected parts of a single computational economy.

Infrastructure-driven narrative spans AI, crypto and global markets

CZ’s comments arrive at a time when global markets are increasingly rewarding infrastructure-heavy plays across multiple sectors — from semiconductor manufacturing and defense systems to energy grids and cloud computing.

In a similar macro pattern, investors have been rotating toward companies and assets that provide foundational capacity rather than end-user applications, especially as demand for compute-intensive technologies accelerates.

This infrastructure-first mindset also overlaps with broader macro uncertainty, where capital is increasingly concentrated in tangible capacity providers during periods of geopolitical fragmentation and supply chain stress.

Within this context, crypto infrastructure remains positioned alongside AI and data center expansion as part of a wider digital-physical convergence cycle, where compute, energy and financial networks are becoming tightly linked investment themes.

The UK Parliamentary Standards Commissioner has opened a formal inquiry into Nigel Farage, the Reform UK leader, over whether he breached House of Commons rules by failing to declare a £5 million gift from crypto-backed financier Christopher Harborne. The BBC reported the inquiry on Wednesday, underscoring a fresh wave of scrutiny surrounding political finance and crypto-linked contributions in the United Kingdom. Farage has argued there was no obligation to declare the payment, which he received before his election to Parliament in 2024. Critics contend that once he became a member of Parliament, registration obligations applied.

The Conservative Party has urged the parliamentary standards watchdog to investigate the matter, and the Electoral Commission is reportedly weighing whether to launch a formal probe into the donation. Together, these developments broaden the focus on how crypto-fueled funding intersects with political finance rules, amplifying regulatory attention on the sources and disclosure of money in UK politics.

The case sits within a broader regulatory backdrop as UK lawmakers and regulators deepen their examination of the role of digital-asset money in political life. The discourse has intensified in recent weeks after the UK Liberal Democrats urged the Financial Conduct Authority to investigate whether Farage breached market rules by featuring in a Stack BTC promotional video while holding a financial stake in the company. Farage had previously disclosed a $286,000 equity investment in Stack BTC after acquiring a 6.31% stake through his media vehicle Thorn In The Side in March.

Related: Liberal Democrats push FCA probe over Farage Stack BTC concerns

Key takeaways

• The Parliamentary Standards Commissioner has opened a probe into whether Farage breached House of Commons rules by not declaring a £5 million gift from Christopher Harborne, a crypto-linked financier, received before Farage’s 2024 election.
• The inquiry follows a Conservative push to initiate an official review and signals heightened regulatory interest in crypto-linked political financing and post-election disclosure obligations.
• The Electoral Commission is reportedly assessing whether to launch a formal investigation into the donation, adding a potential enforcement dimension to the case.
• UK political crypto donations are legal under current Electoral Commission guidance, but the issue has sparked calls for a moratorium and tighter governance, as lawmakers seek statutory guidance ahead of the next general election.
• The broader regulatory context includes scrutiny of Farage’s crypto exposure (including a disclosed Stack BTC investment) and ongoing debates over how crypto interests should be disclosed and regulated in political activities.

Regulatory proceedings and political-finance implications

According to BBC reporting, the Standards Commissioner’s inquiry centers on whether Farage failed to register a significant gift from a high-profile crypto backer. The rules governing registration are clear in principle, but the timing and filing requirements can become contested when gifts are received before a candidate attains parliamentary status or when individuals transition into public office. Critics say that post-election registerability should apply to large contributions or gifts connected to political activity, whereas proponents of Farage’s position argue there was no binding obligation to declare outside the usual framework.

In parallel, the Conservatives wrote to the parliamentary standards watchdog requesting a formal review, a move that aligns with broader questions about accountability and transparency in political financing. The Electoral Commission’s reported consideration of a formal investigation would add a separate layer of compliance scrutiny, potentially triggering procedural reviews of donor disclosure, donor verification, and the public reporting of electoral money. These developments arrive as UK authorities intensify oversight of how crypto wealth is used in political contexts, a trend that may shape future enforcement actions and guidance for political parties.

Crypto donations in UK politics: regulatory landscape and policy debates

Reform UK became notable for being the first major party to publicly accept cryptocurrency donations in 2025, reflecting a broader shift in fundraising practices among political movements. The party recently disclosed a £ million-level gift from Harborne in the fourth quarter of 2025, following a record donation in the prior quarter. While crypto donations are legal under current Electoral Commission guidance, the evolving nature of digital assets has driven calls from parliamentary committees for a temporary pause on crypto donations until the Commission issues statutory guidance ahead of the next general election, which is expected no later than 2029.

On March 18, the Joint Committee on the National Security Strategy urged the government to impose an immediate moratorium on crypto donations until formal guidance is in place. The committee also proposed structural reforms, including the creation of a Political Finance Enforcement Unit and a reduction of the declaration threshold for political donations—from approximately £12,000 (roughly $14,900) to around £500–£600 range—reflecting concern over foreign influence and the potential for strategic influence through digital assets. Earlier, Matt Western, the committee’s chair, urged a temporary ban on crypto donations to mitigate foreign interference risks and safeguard the integrity of political processes.

These policy discussions occur against a backdrop of ongoing regulatory exploration in the UK, including the use of digital assets within the financial system and the potential cross-border implications for governance and oversight. The evolving framework seeks to balance innovation and fundraising flexibility with robust disclosure, provenance, and anti-foreign interference safeguards, a tension that will shape the regulatory envelope for crypto-enabled political giving in years to come.

Farage, Stack BTC and compliance risk

Beyond the gift at the center of the standards inquiry, Farage’s crypto-related ties have drawn regulatory attention. Cointelegraph reported that the Liberal Democrats pressed the FCA to examine whether Farage violated market rules by appearing in a Stack BTC promotional video while holding a stake in the company. Separately, Farage disclosed a $286,000 equity position in Stack BTC after acquiring a 6.31% stake via Thorn In The Side in March, highlighting the potential for perceived conflicts of interest when political figures participate in or back crypto ventures. These disclosures intensify the compliance considerations for MPs engaging with crypto projects and the responsibilities associated with asset ownership, public representation, and disclosure obligations.

From a governance perspective, the juxtaposition of a high-profile political figure with crypto investments underscores the need for clear, enforceable rules around disclosure, voting conflicts, and political messaging tied to financial interests. For compliance professionals and institutional observers, the case highlights the importance of rigorous due diligence, transparent record-keeping, and consistent application of donor and asset disclosure requirements across party lines. It also illustrates the evolving nature of regulatory risk in an area where technology, finance, and politics intersect.

Related reporting has connected these debates to broader policy discussions about stablecoins and digital assets within the UK financial ecosystem, including indicators of how regulators might approach non-traditional fundraising tools in the future. For context, UK policymakers have already engaged with the topic through regulatory sandboxes and targeted inquiries into crypto-enabled finance, signaling a cautious but progressive stance toward normalization and oversight of crypto activities in public life.

Closing perspective

As parliamentary institutions sharpen their oversight of crypto-linked funding and asset ownership, the Farage inquiry illustrates the practical implications for compliance frameworks, donor governance, and political communication. The case could influence how political actors manage disclosures, how parties structure fundraising in digital assets, and how regulators align enforcement with evolving market practices. The next steps—whether the Electoral Commission formalizes an investigation, how the standards inquiry proceeds, and how policy proposals unfold—will shape the regulatory and political environment for crypto-related contributions in the UK.

Watch for further developments as committees, enforcing agencies, and political actors navigate the intersection of crypto money, disclosure rules, and public accountability.

Attribution: For broader context on related regulatory debates, Cointelegraph has reported on the Liberal Democrats’ push for FCA action and other UK crypto-political issues.

Key Highlights

• Fidelity International unveils FILQ, a blockchain-based liquidity fund developed alongside Sygnum and Chainlink
• The fund receives AAA-mf assessment from Moody’s, ensuring institutional-grade credit quality
• Chainlink infrastructure delivers real-time NAV data directly on blockchain networks
• Sygnum’s Desygnate platform enables regulated tokenization for Fidelity’s digital fund
• Major asset managers accelerate adoption of tokenized treasury products as market approaches $15 billion

Fidelity International has made its debut in the blockchain-based fund sector by unveiling a digital liquidity product created in collaboration with Sygnum Bank and Chainlink. This initiative represents a significant milestone in connecting conventional financial instruments with distributed ledger technology. The move demonstrates how established investment firms are increasingly exploring on-chain distribution channels for cash management solutions.

FILQ Digital Fund Goes Live Through Sygnum Partnership

The asset management firm introduced the Fidelity USD Digital Liquidity Fund—abbreviated as FILQ—via Sygnum Bank’s tokenization infrastructure. Moody’s Ratings awarded the fund its highest AAA-mf designation for money market instruments. This assessment reflects superior credit worthiness and robust liquidity characteristics for institutional cash products.

The offering creates a bridge between traditional regulatory frameworks and blockchain technology. It establishes the firm’s foothold in the rapidly growing tokenized investment vehicle sector. With approximately $1 trillion under management globally, Fidelity International brings substantial institutional credibility to digital asset markets.

Sygnum’s Desygnate technology handles the tokenization and issuance mechanics. This platform enables compliant investment vehicles to function within digital asset ecosystems. Consequently, the digital fund merges conventional fund governance with continuous blockchain settlement capabilities.

Real-Time Fund Metrics Powered by Chainlink Oracle Network

Chainlink’s decentralized oracle system will deliver on-chain net asset value calculations and distribution information for FILQ. This infrastructure allows investors to access current fund valuations and payout details with minimal delay. The arrangement enhances visibility for the digital fund while preserving its underlying regulatory framework.

JPMorgan serves as the authorized provider of daily NAV calculations for the product. Chainlink then transmits this verified data through blockchain channels. This configuration enables FILQ to share authenticated fund metrics within tokenized ecosystems.

The collaboration builds upon previous joint initiatives among the three organizations. During 2024, these partners explored on-chain NAV delivery mechanisms for digital securities. The current liquidity fund represents the evolution of that experimental work into a commercial application.

Blockchain-Based Money Market Products Experience Rapid Expansion

FIDILQ’s introduction coincides with tokenized government securities and money market vehicles nearing $15 billion in total value. Investment managers, trading platforms, stablecoin providers, and decentralized finance applications have collectively fueled this expansion. This environment provides favorable conditions for the new digital liquidity offering.

BlackRock and Franklin Templeton have previously introduced blockchain-based money market solutions. JPMorgan has submitted regulatory filings to establish a tokenized money market fund operating on Ethereum infrastructure. These developments indicate growing institutional appetite for yield-generating instruments on distributed networks.

Fidelity International’s entry through FILQ brings another prominent global institution into this space. The fund integrates Moody’s credit evaluation, Sygnum’s tokenization capabilities, Chainlink data distribution, and JPMorgan’s valuation services. This launch represents a meaningful advancement for regulated cash management products operating on blockchain technology.

A leaked list has revealed over 100 amendments filed by the Senate Banking Committee members to a crypto bill set for a markup on Thursday.

The proposed changes are linked to stablecoins, software developers, and ethics.

Amendments Ahead of Markup

The list, obtained by Politico, reveals substantial proposed amendments. Democratic senators have proposed several changes, while Republican senators sought minor adjustments. Most amendments are centered around key issues that have been debated for months, including crypto software developer protections, ethics provisions, and stablecoin yield as the committee seeks to advance the bill to the Senate floor.

The leaked list shows an amendment introduced by Democratic senators Jack Reed and Tina Smith to strengthen interest yield prohibitions by using a substantially similar test instead of an equivalence test.

Another amendment by Democratic senator Chris Van Hollen introduces an ethics provision barring the President, Vice President, senior officials, members of Congress, and their families from promoting, owning, or being affiliated with crypto. The amendment has received support from Democrat and Republican lawmakers.

Democratic senator Catherine Cortez Masto plans to introduce an amendment protecting software developers. The proposal has garnered support from several crypto groups.

Other amendments deal with sanctions, institutions involved with crypto, and one to re-establish the Justice Department’s National Cryptocurrency Enforcement Team, dismantled last year.

Sharp Divisions

The crypto market structure bill defines how market regulators oversee crypto.

The House passed its version of the bill, called the CLARITY Act, in July.

However, crypto and banking industry executives failed to agree on key provisions related to stablecoins and the involvement of government officials in crypto.

Restrictions on stablecoin yield have also been a contentious issue, with no resolution despite months of negotiations.

A draft version of the bill released on Monday banned third-party platforms from offering stablecoin yield that mirrors traditional bank deposit interest.

The previous markup was indefinitely postponed in January after Coinbase withdrew support citing fatal flaws in the draft bill.

Republicans hold a majority in the Senate and the Senate Banking Committee.

However, some members have refused to support the market structure bill if certain provisions were not added.

Republicans also need Democratic support to pass the bill with a three-fifths majority and avoid a filibuster.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.