US announces arrest of prolific Chinese state-sponsored contract hacker | Linda Yaccarino stepping down as CEO of Elon Musk’s X | Japan and Canada ink key intel-sharing deal

Plus, Swedish PM's movements leaked by bodyguards uploading workouts on Strava

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The Daily Cyber & Tech Digest focuses on the topics we work on, including cybersecurity, critical technologies, foreign interference & disinformation.

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• The Justice Department announced that Xu Zewei, 33, of the People’s Republic of China was arrested on July 3 in Italy at the request of the United States. Xu and his co-defendant, PRC national Zhang Yu, 44, are charged in a nine-count indictment, unsealed today in the Southern District of Texas, for their involvement in computer intrusions between February 2020 and June 2021. Office of Public Affairs, US Department of Justice

• The CEO of X, Elon Musk’s social network, announced on Wednesday she would resign. “After two incredible years, I’ve decided to step down as CEO of 𝕏,” Linda Yaccarino wrote. South China Morning Post

• Japan has taken another important step toward deepening ties with individual members of the Five Eyes intelligence group by inking a classified information-sharing deal with Canada. Designed to enable exchanges of national security-related data and facilitate two-way defense procurements, the Security of Information Agreement was signed in Tokyo. The Japan Times

Australia

Qantas hackers have Chairman’s Lounge membership data
The Sydney Morning Herald
Chris Zappone
Hackers who stole data from nearly 6 million Qantas customers have information about the airline’s lounge memberships, including who is in the exclusive member-only Chairman’s Lounge. Qantas has determined that 5.7 million customers had records in the system that was accessed by hackers, including information on frequent flyer accounts, addresses and even the food preferences of thousands of travellers.

Good enough to win: rethinking risk in innovation
The Strategist
Jason Van der Schyff
Innovation policy is often built around optimism. But in a world of live contest across the economy, the environment and the broader geostrategic landscape, progress cannot afford to wait for perfection. The scale of technology readiness level was designed to assess the maturity of spacecraft systems. Today, it is embedded across governments and industry, especially in defence.

American science is in crisis. It’s a great opportunity for Australia to snap up top scientists
The Conversation
Kylie Walker
Science in the United States is in trouble. The National Science Foundation, a key research funding agency, has suffered devastating funding cuts under the current administration. Critics say the cuts risk losing an entire generation of young scientists. In addition, about 280,000 scientists and engineers have been affected by US federal workforce cuts. Billions of dollars in further cuts have been proposed to US hospitals, universities and research institutions.

Kate Pounder, OpenAI and the potential for Stargate in Australia
InnovationAus
James Riley
ChatGPT developer OpenAI’s high-profile engagements with policymakers in Australia has opened a door to new possibilities, including the potential for large-scale AI infrastructure investment under the umbrella of the US$500 billion Stargate program, and co-funded local AI development initiatives. There is a lot to take away from the flying visit of OpenAI chief economist Ronnie Chatterji to Australia last week. If nothing else, it signaled that the Australian government has some big, pressing decisions to make in its approach to AI, both in terms of adoption across the economy and in building a globally competitive local industry.

See the leaked teen social media ban tech trial report that has experts worried
Crikey
Cam Wilson
When the people running Australia’s teen social media tech trial claimed their testing proved the technology can work effectively, the trial’s experts wondered why they hadn’t seen the proof. After being underway for the better part of a year, the government-commissioned Age Assurance Technology Trial last month published a list of 12 conclusions. It had broad statements such as “age assurance can be done in Australia and can be private, robust and effective”, but did not include evidence backing them up. The supporting data was set to come in a report later this year.

States consider mandating CCTV in childcare centres but experts say it’s a knee-jerk response
ABC News
Conor Duffy
Australia's education ministers are considering requiring CCTV in some childcare centres nationwide as private providers like G8 swiftly install them in the wake of shocking allegation of sexual assault. "I welcome G8's commitment to install CCTV cameras in all of its centres," Early Childhood Education Minister Jess Walsh said today. "However, this is only one part of the change that needs to be made to make sure that early education and care services are safe environments for children."

China

Justice Department announces arrest of prolific Chinese state-sponsored contract hacker
Office of Public Affairs, US Department of Justice
The Justice Department announced that Xu Zewei (徐泽伟), 33, of the People’s Republic of China was arrested on July 3 in Italy at the request of the United States. Xu and his co-defendant, PRC national Zhang Yu (张宇), 44, are charged in a nine-count indictment, unsealed today in the Southern District of Texas, for their involvement in computer intrusions between February 2020 and June 2021, including the indiscriminate HAFNIUM computer intrusion campaign that compromised thousands of computers worldwide, including in the United States. Xu was arrested in Milan, Italy, and will face extradition proceedings.

China wants 115,000 Nvidia chips to power data centers in the desert
Bloomberg
Andy Lin, Mackenzie Hawkins, Colum Murphy and James Mayger
There’s a construction boom under way on the edge of the Gobi desert in Xinjiang, where cranes are at work in fields of rock and the sound of jackhammers fills the air. Here in the modest county of Yiwu, China is building out its ambitions to lead the world in artificial intelligence. The futuristic structures are data centers that the operators seek to equip with high-end American semiconductors — chips that the US government doesn’t want its geopolitical rival to obtain.

China’s tech groups turn to stablecoins for growth
Financial Times
Roula Khalaf
In mainland China, cryptocurrencies remain banned. But stablecoins, or digital tokens pegged to traditional currencies, are starting to draw interest from local policymakers. As Hong Kong prepares to implement its stablecoin licensing rules on August 1, it is positioning itself as a test bed for what could become one of the most significant steps in creating a digital renminbi that circulates offshore.

USA

US state department tightens cyber security after Marco Rubio impersonation
Financial Times
Guy Chazan
The US Department of State has said it was tightening its cyber security after an imposter used artificial intelligence to impersonate secretary of state Marco Rubio and contact at least three foreign ministers. The department was “aware of this incident and is currently monitoring and addressing the matter”, said spokesperson Tammy Bruce.

Conspiracy theories about the Texas floods lead to death threats
WIRED
David Gilbert
On Sunday afternoon, Michael Meyer, the founder of anti-government extremist group Veterans on Patrol, posted a warning on his Telegram channel. “Due to the recent weather weapon deployed against Texas, which resulted in a high number of child murders, efforts to eliminate this military treason are being escalated,” Meyer, who is commonly known as Lewis Arthur, wrote.

US space industry sounds alarm over budget cut to collision alert system
Financial Times
Peggy Hollinger
Hundreds of US space companies are sounding an urgent alarm over the government’s proposal to cut funding for a planned space traffic co-ordination system designed to prevent collisions in orbit. Seven trade organisations representing more than 450 US space-related companies, including SpaceX and Blue Origin, sent a letter to congressional leaders warning that slashing funding by nearly 85 per cent for the Office of Space Commerce would jeopardise safety in space.

A new era of internet regulation is about to begin
The Atlantic
Alan Z. Rozenshtein
For three decades, America ran a radical experiment: What if the government only lightly regulated the most powerful communication medium ever invented? In the foundational Supreme Court cases of the 1990s that shielded the nascent internet from censorship, and in the sweeping immunity that’s been granted to platforms under Section 230, the reigning philosophy was one of libertarian restraint—usually in the name of protecting Americans’ freedom of speech and expression. The Supreme Court just signaled that the experiment is coming to an end.

The real AI race
Foreign Affairs
Colin H. Kahl and Jim Mitre
Discussions in Washington about artificial intelligence increasingly turn to how the United States can win the AI race with China. One of President Donald Trump’s first acts on returning to office was to sign an executive order declaring the need to “sustain and enhance America’s global AI dominance.” At the Paris AI Action Summit in February, Vice President JD Vance emphasized the administration’s commitment to ensuring that “American AI technology continues to be the gold standard worldwide.” And in May, David Sacks, Trump’s AI and crypto czar, cited the need “to win the AI race” to justify exporting advanced AI chips to the United Arab Emirates and Saudi Arabia.

North Asia

Japan and Canada ink key intel-sharing deal
The Japan Times
Japan has taken another important step toward deepening ties with individual members of the Five Eyes intelligence group by inking a classified information-sharing deal with Canada. Designed to enable exchanges of national security-related data and facilitate two-way defense procurements, the Security of Information Agreement was signed by Foreign Minister Takeshi Iwaya and his Canadian counterpart, Anita Anand, in a ceremony Tuesday in Tokyo.

Southeast Asia

Indonesia targeted in Rafale fighter jet disinformation
The Interpreter
Nava Nuraniyah, Jennifer Williams and Julian Droogan
This week, French intelligence accused Beijing of spreading disinformation to smear the reputation of Dassault Aviation’s Rafale fighter jets, including in Indonesia, where the government was set to buy 42 Rafale jets under a 2022 agreement. According to French authorities, the online rumours, combined with active lobbying by Chinese embassy officials were intended to sway countries, including Indonesia, towards purchasing Chinese-made jets instead. Our monitoring of Indonesian social media environment, using a non-intrusive digital ethnography and thematic coding, reveals a parallel trend.

Europe

Swedish PM's movements leaked by bodyguards uploading workouts on Strava
Euronews
Kieran Guilbert
Swedish secret service bodyguards who uploaded details of their running and cycling routes on the fitness app Strava have been accused of exposing sensitive information about the prime minister's location and risking his safety. On at least 35 occasions, bodyguards for Prime Minister Ulf Kristersson shared their workouts on the app and revealed his location, routes and movements — including details of hotels and his private residences — Swedish daily Dagens Nyheter reported.

• Kristersson's safety at risk: Bodyguards' routes leaked online
  Sweden Herald
  Dagens Nyheter has reviewed seven bodyguards within the security police, Säpo, with the task of protecting the Prime Minister. Their training activities have been open on the internet since they were registered on the training app.

Big Tech

Linda Yaccarino stepping down as CEO of Elon Musk’s X
The Guardian
Blake Montgomery and Nick Robins-Early
The CEO of X, Elon Musk’s social network, announced on Wednesday she would resign. “After two incredible years, I’ve decided to step down as CEO of 𝕏,” Linda Yaccarino wrote. Musk replied to her tweet: “Thank you for your contributions.” The outgoing CEO said, “When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company. I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App.”

Apple hits back against 'unprecedented' €500m EU fine
BBC News
Liv McMahon
Apple is appealing against a €500m (£430m; $586m) fine handed down by EU regulators over alleged anti-competitive behaviour on its App Store. The European Commission said in April that the tech giant had breached its laws by restricting app developers in their ability to inform customers of alternative offers or marketplaces that could be found outside its own and steer them towards purchases.

Twitter co-founder launches Bitchat, a security-focused, bluetooth messaging app – no internet required
TechRepublic
J. R. Johnivan
Jack Dorsey, co-founder of Twitter and founder of Bluesky, has launched a new messaging app called Bitchat. The app leverages Bluetooth to facilitate secure, peer-to-peer communication, eliminating the need for the internet, servers, or phone numbers. Developed as an alternative to traditional messaging platforms, Bitchat aims to provide fully decentralized communication using Bluetooth mesh networks. According to its GitHub page, the app allows “pure encrypted communication” without any central infrastructure or account setup, emphasizing user privacy and offline access.

Microsoft patches 130 vulnerabilities, including critical flaws in SPNEGO and SQL server
The Hacker News
Ravie Lakshmanan
For the first time in 2025, Microsoft's Patch Tuesday updates did not bundle fixes for exploited security vulnerabilities, but the company acknowledged one of the addressed flaws had been publicly known. The patches resolve a whopping 130 vulnerabilities, along with 10 other non-Microsoft CVEs that affect Visual Studio, AMD, and its Chromium-based Edge browser. Of these 10 are rated Critical and the remaining are all rated Important in severity. "The 11-month streak of patching at least one zero-day that was exploited in the wild ended this month," Satnam Narang, Senior Staff Research Engineer at Tenable, said.

Artificial Intelligence

AI can provide 'emotional clarity and confidence' Xbox executive producer tells staff after Microsoft lays off 9,000 employees
TechRadar
Eric Hal Schwartz
Microsoft has been hyping up its AI ambitions for the last several years, but one executive's pitch about the power of AI to former employees who were recently let go has landed with an awkward thud. Amid the largest round of layoffs in over two years, about 9,000 people, Matt Turnbull, Executive Producer at Xbox Game Studios Publishing, suggested that AI chatbots could help those affected process their grief, craft resumes, and rebuild their confidence.

Events & Podcasts

The Sydney Dialogue 2025
The Australian Strategic Policy Institute is pleased to announce the Sydney Dialogue, the world’s premier policy summit for critical, emerging and cyber technologies, will return on 4-5 December. Now in its fourth year, the dialogue attracts the world’s top thinkers, innovators and policymakers, and focusses on the most pressing issues at the intersection of technology and security. TSD has become the place where new partnerships are built among governments, industry and civil society, and where existing partnerships are deepened.

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