THE RECKONING PROJECT AND CODA STORY PRESENT

Russian officials and propagandists built cover stories for war crimes before those crimes were committed. Lawyers call this an information alibi. And they think it's prosecutable.

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“Whenever you're looking at war crimes, crimes against humanity, there's always the excuse that this is a one-off, there's a bad apple, one person did something. When you see it as a pattern, when you see the actors repeating, then you can go, okay, this is part of a consistent behavior, part of a plan, and it becomes like a character trait for a criminal in a court case.“

Peter Pomerantsev

The Reckoning Project Co-Founder

The Syrian civil war morphed out of the pro-democracy Arab Spring protests of 2011, when demonstrations against President Bashar al-Assad's authoritarian government were met with violent repression. 

The country fractured into a complex conflict involving government forces, armed opposition groups, and jihadist factions including Al Qaeda and Islamic State.

Russia entered the Syrian civil war at the request of President Assad in late 2015. 

Syrian forces had already used chemical weapons against civilians by the time Russia entered the war. By 2016, their use was ‘widespread and systematic,’ according to Human Rights Watch.

"One of the possible mistakes the Russian info alibi machine could have made was to publish information about a strike on the Kramatorsk railway station before it actually took place.

It's a sort of sloppy mistake that you always want the criminal to make. Without all the other evidence, I don't think we'd be seeing the important patterns that we're looking into, but it's always good for a lawyer if the criminal ends up leaving a shoe at the crime scene.”

Peter Pomerantsev 

The Reckoning Project Co-Founder

Photo Credits: 1.Mohammed Khair/Anadolu Agency/Getty Images. 2.Stringer/AFP via Getty Images. 3. White helmets/Handout/Anadolu Agency/Getty Images. 4. Louai Beshara/AFP via Getty Images. 5. Hamza Al-AjwehAFP via Getty Images. 6. Satellite image (c) 2023 Maxar Technologies. 7. Andriy Zhyhaylo/Obozrevatel/Global Images Ukraine via Getty Images. 8. Fadel Senna/AFP via Getty Images. 9. Grzedzinski for The Washington Post via Getty Images.

The post The Alibi Machine: The Pattern appeared first on Coda Story.

“Understanding the system depends in part on knowing who participates in it. So firstly, we have to identify a hierarchical network involved in a particular information operation. This may include senior political leaders, media organizations, and social media influencers… We have to prove that there were some orders or instructions that were given by more senior groups to less senior groups.”

Nadiia Vaskivska,

Legal Advisor at Global Rights Compliance

They distribute the talking points — called “temniki” — directly to editors-in-chief of Russia’s biggest state media outlets: TASS, Channel One, Rossiya, RIA Novosti.

We asked Alexey Kovalev — a Russian journalist in exile who once worked inside one of those outlets — to describe how it functions.

“The presidential administration intervenes with specific instructions. It has a kill switch that can immediately blacklist any coverage in Kremlin-controlled media of any unwanted, undesirable topics, like protests, for example. The presidential administration is like the central nervous system of the beast.” 

Alexey Kovalev

The Kremlin ‘brain’ doesn't only issue orders. It also enforces silence. Russia's official censorship body, Roskomnadzor, can red-flag content and suspend licences. The effect, Kovalev says, is a system that rarely needs to give explicit instructions because everyone already knows the rules.

"You should instinctively know what things to cover, what things not to cover, and from which angle. Do what you think is expected of you." 

Alexey Kovalev

These are the people whose job it is to take Kremlin narratives and project them onto the world stage. As well as Sergei Shoigu, Minister of Defense, and Foreign Minister Sergey Lavrov, several names crop up regularly in the information alibis we’ve looked at:

Igor Konashenkov, spokesman for the Russian Ministry of Defense — the military's public voice, whose briefings provide official cover for Russian military actions.

Maria Zakharova, Russian Foreign Ministry spokesperson, who amplifies narratives across international media from behind her podium.

Vasily Nebenzia, Russia's Ambassador to the United Nations, who takes the alibi to the Security Council, where it can be delivered with diplomatic immunity and broadcast live to the world.

“The Russian mission to the UN plays a very central role in this ecosystem. It picks up and amplifies disinformation that has been seeded in more esoteric parts of the internet and gives it a global platform.”

Peter Pomerantsev

The words of these officials have the full weight of the state behind them. And that helps achieve one of the key goals of the information alibi.

“The Russian use of info alibis has to be seen in their general kind of strategy of ultimately avoiding responsibility and giving their allies enough “implausible” deniability about what the Russians are up to… It gives allies at the UN, for example, a way to go ‘well, we just don't know what happened, maybe this was an accident, maybe the Ukrainians bombed themselves.’”

Peter Pomerantsev

The Reckoning Project Co-Founder

This includes organizations that look independent, but which are actually funded by and have direct links to the Russian state.

ANO Dialog and the Social Design Agency — both now sanctioned by the U.S., UK and EU — are the engine room of this layer.

ANO Dialog — reportedly directly linked to Sergey Kiriyenko and the Presidential administration — distributes billions of rubles in grants to social media creators. Its network of social media channels started spreading fakes about Ukraine from the start of the invasion. One of the examples — a pseudo fact-checking Telegram channel War on Fakes, with over 400k subscribers.

“It's a way to ensure that every content creator is hooked on the government money… The ‘don't bite the hand that feeds you’ mentality.”

Alexey Kovalev

The Social Design Agency (SDA) operates differently — it focuses on creating and spreading Russian disinformation abroad.

“The Social Design Agency is industrialized disinformation, and it can be terrifyingly effective because explicitly pro-Kremlin narratives created by the SDA were shared by people like Elon Musk and Marjorie Taylor Greene. The stuff that they're creating is really bleeding into mainstream Western discourse.”

Alexey Kovalev

Let’s take the Mariupol hospital attack as an example. 

It appears that bloggers and Telegram channels were the first to point to maternity wards being used as firing positions.

A week before the attack, DPR People's Militia channels were claiming that maternity wards were being used as firing positions. Pro-war Telegram channels amplified it within hours. 

It was after that, that official spokespeople reinforced the message:

• Igor Konashenkov, Defense Ministry spokesman, accused the Ukrainian army of turning hospitals into firing positions. 

• Vasily Nebenzia, UN Ambassador told the Security Council that Ukrainian forces had placed a firing position in a Mariupol maternity ward before the attack, and reminded them of his warning two days after the attack.

• Maria Zakharova, Foreign Ministry spokesperson — remember the briefing she gave just four hours before the bombs fell on the maternity ward?

And then, almost before the dust had settled, the bloggers and Telegram channels echoed the narrative the spokespeople had told the world.

So, as far as who’s leading who, Vasily Gatov, former Russian media strategist and disinformation researcher, thinks it’s a two-way street. Some indications come from the Kremlin, other initiatives are launched from the bottom.

“My opinion is that most of these information operations are created in small groups, mostly people with very limited knowledge of psychology and especially media effects. Some are military, maybe military intelligence. Some are journalists, war journalists. And most of them are people who make their living from telling the Kremlin they're doing a great job.”

Vasily Gatov

Alexey Kovalev agrees that, in his experience as a journalist, there are rarely detailed instructions flowing from the top. Each individual is expected to use their own judgment, as long as it’s favorable to the Kremlin.

“It's a way of controlling by omission that you should not say under any circumstances, and that is anything that is not on the Russian defense ministry's website. Steer clear from any Ukrainian perspective. It doesn't matter. Ukrainians don't have agency. Flood the zone with shit, with a million conflicting narratives. It doesn't really matter that they don't make any sense or it falls apart at the slightest scrutiny. Seeds of doubt have been sowed.”

Alexey Kovalev

“We can tell when an info alibi is peaking. We can look at the online patterns and see how it's spiked. We can see so many telltale signs that this is not organic activity, but part of a planned operation. The technology is a double-edged sword and I think this war is going to be a game changer globally for holding propagandists accountable.”

Peter Pomerantsev

The Reckoning Project Co-Founder

The post The Alibi Machine: The Suspects appeared first on Coda Story.

Scott Martin, International Lawyer at Global Rights Compliance

Scott Martin: There's nothing wrong in general with propaganda, disinformation, information operations — they're a common form of any military operation. But when something helps to contribute to the perpetration of a crime, if it helps to conceal crimes or if it obstructs investigations, it shouldn't be seen as background support of propaganda but actually an operational aspect of a kinetic military action. And legally relevant as a consequence.

Free speech is a protected right. Don’t you risk infringing on that right?

SM: This report was done by a group of human rights lawyers with a firm commitment to an expansive understanding of freedom of expression or freedom of speech. However, the right to speak, the right to freely express yourself, ends when speech becomes a tool of a crime. Propaganda is lawful. Information operations are lawful. Participation in a crime is not.

So what exactly is the crime? Which law would you use to bring a case?

SM: It's called Article 25(3)(d) [of the Rome Statute] and it relates to the criminalization of contributions to a crime by a group acting with a common purpose.

Can you break down what exactly a prosecutor would need to show?

SM: - Show that an international crime was perpetrated.

- Show that the perpetrators of the crime were part of a group that acted with a common purpose.

- Then demonstrate that the person disseminating the false narrative made a significant contribution to the commission of that crime.

And what counts as a ‘significant contribution’ to the crime?

SM: If the contribution led to impunity for the crime, because the narrative disseminated in advance was strong enough to conceal the perpetration of a crime or otherwise obstruct accountability investigations, then you should be able to argue that that could be a significant contribution.

How do you prove a group is working with ‘common purpose?’ In the information ecosystem, rumours circulate all the time, they get picked up and passed on, details may change as the story mutates. It doesn’t have to  mean there’s coordination between the people involved.

SM: I wouldn't think you'd need to show that here's this group sitting together saying ‘here's how we're going to attack and Vlado this is your responsibility, and Sergei this is your responsibility.’ And international criminal law is a lot like this because we don't have access to many of the conversations that went into a plan. What you do is you draw inferences. And then from there you hopefully will be able to see: Is it accidental? Do we have a group acting together pursuant to a common purpose?

Is that why you need to show a pattern of behavior?

SM: This pattern is important principally for legal reasons. It helps to show that this attack wasn't isolated. It wasn't a mistake. It wasn't opportunistic. It's taking place repetitively in Ukraine. It [the pattern] shows integration between the information operation and the military operation. The speech wasn't just incidental to the military action. It was functionally connected. And as a consequence, maybe providing a material contribution to the crime that takes place and the obfuscation afterwards.

Wouldn’t you need to show direct links between the security services and the people conducting the information operations?

SM: We need to show a full integration and plan of the information operation within the kinetic military action because that's what connects it to the crime. And if we can show that a high-ranking political or diplomatic official in Russia was participating from the beginning, during and after the attack, it leads you to believe that this was being done. But we still must work to ensure an unassailable direct link between the disinformation and the crime that took place. The way it normally comes, in international crimes work, is through an insider who was present at a particular moment and she or he can testify that this information operation was integrated into the military operation as an information alibi.

What gives you confidence a prosecution of Russian propagandists could ever be brought using this law? It’s never been done before.

SM: Its legal coherence is jumping off the page. There was no stretching of definitions. There was no creating new ideas or practices. This was, ‘here's what the law says and here's how it fits and here is supporting jurisprudence.’

There have been plenty of conversations about whether any Russian interference campaigns that they launch online, or these types of disinformation operations can be elevated to a crime. And while a lot of it remains and ought to remain protected speech, when you're looking at it through a human rights lens, in this case, I think we found a very clear example where it should be investigated as a contribution to a crime and perhaps even prosecuted as such.

The post The Alibi Machine: The Case for the Prosecution appeared first on Coda Story.

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For more information about Information Alibi, see the “Maufacturing Impunity” report

The post The Alibi Machine: The Verdict appeared first on Coda Story.

Over the following weeks senior officials, state-backed TV channels and news agencies, war reporters and bloggers echo a version of the same story. 

The details don’t always match. 

Some reports say the maternity ward was used by Ukrainian soldiers, and was therefore a legitimate target. 

Others say the attack was “staged” — that Ukrainian forces carried it out and made it look as though Russia had done it. 

But the conclusion is always the same: Russia is not to blame for this attack.

“Sometimes things are just chaotic because war is chaotic. At other times, spreading many, many, many different versions of the same event is a very classic Russian tactic to blur the reality of what happened… This is the way you undermine the very idea of truth and belief and just create a sort of a haze around what really happened.”

Peter Pomerantsev 

The Reckoning Project Co-Founder

Independent investigations have determined that the hospital was clearly identifiable and operational.  

There was no evidence of Ukrainian military positions. 

The OSCE calls the attack a "clear violation of international humanitarian law" and a "war crime."

“The narratives were planted well in advance. And I can essentially break them down into:

1 - “We didn’t do it.”

2 - “We warned you that Ukraine was planning to do it.”

3 - “Even if we did it, the maternity ward was a legitimate target.”

They create so many alternative versions of the truth that if you are having at least some doubt you can pick and choose the one that suits you the most and go with it.”

Anastasiia Vorobiova

Legal Advisor at Global Rights Compliance

The post The Alibi Machine: The Crime appeared first on Coda Story.

One difficulty in writing about corruption is explaining what it is. You’re either too specific — “it’s taking bribes”. Or too vague — “it’s being bad”. Another difficulty is obtaining the raw material to analyse: corrupt people don’t tend to speak openly about it, which means you’re left looking at corruption’s visible manifestations, which is like trying to understand a virus only from its spots.

So huge kudos to Earth League International for producing a detailed, specific and thoughtful report on how corruption facilitates wildlife crime globally, which is packed full of lessons for the study of corruption in general as well. Corruption is a system, everything is connected. It’s the water in which criminals swim, and it will drown the rest of us if we let it.

Earth League International embeds investigators in corrupt networks all over the world, and reveals how it is so much more than just the “abuse of entrusted power for private gain” and their report quotes multiple specific examples. The choice for an official standing in the way of a Transnational Criminal Organisation (TCO) is not between taking a bribe and being honest, it’s between taking a bribe and having a family member killed. 

“Corruption tilts the playing field of justice by turning some officials or even agencies into additional arms of criminal networks, akin to painting a group of white chess pieces red and then commencing a match, giving the criminal side a decided advantage”, notes the report. And, it adds, “Transnational Criminal Organisations are savvy about which officials they approach, assessing weaknesses such as debt or family ties that may make them more vulnerable to financial offers or threats.”

It estimates the value of global wildlife-related crime at over $1 trillion annually, which is an astonishing amount of money, but an important point to take is that this is not a separate form of corruption. The same border officials that wave through illegal shipments of timber or shark fins also help with other forms of smuggling. The money that criminals funnel into politics undermines democracy in all ways. “Corruption is not the sole purview of less wealthy nations. It is everywhere. During investigations into illegal wildlife trafficking for (traditional Chinese medicine) in Europe, for example, Earth League International found enablers in San Marino, Italy, Belgium, and Poland,” notes the report.

There is something grimly ironic that so much of the despoliation that is making things worse for everyone is driven by the trade in “medicine” and thus a desire to make the world better. In reality, of course, pangolin scales and totoaba swim bladders are no more medicinal than my toenail clippings. Perhaps the ultimate expression of this is the demand for hallucinogenic toad venom, as detailed in this excellent article from a few years ago, which supposedly helps us all access the inner divine, but which is meanwhile wiping out the unfortunate toads that secrete it. “Most harvesters don’t have a consciousness about the sacredness of the species”, said a toad practitioner. “It’s just a hustle business.”

On a more geopolitical and less psychedelic level, this report on how Russia is repurposing its influence networks in Europe so as to maintain its fossil fuel exports show that other forms of corruption have huge environmental impact of their own. “The time for polite half-measures is over. Stronger enforcement, embargoes and tariffs on Russian fossil fuels to cripple exports, personal sanctions, and transparency rules are the only way to dismantle Russia’s covert influence architecture,” it concludes.

I’d add to that: we all need to build renewable energy sources like there’s a war on, because there is, and democracies urgently need to gain the freedom to act independently of autocracies’ control of fossil fuel supplies. You can’t act freely if someone’s hands are around your neck.

So, what’s the answer? As so often with financial crime, it’s possible to be overawed by the scale of the challenge. But the important thing is just to start. Here’s a manifesto from a coalition of British environmental groups, which gives some ideas. I particularly approve of this one: “government should introduce comprehensive protections and safeguards for whistleblowers, followed by financial incentives, to enable whistleblowers to disclose evidence of corruption and money laundering”.

Of course, corrupt officials are not just standing still while we agonise about how to stop them. I am particularly alarmed by the potential appeal of modern prediction markets for allowing politicians, military officers or anyone to profit from their privileged access to advance knowledge of government actions. Here’s a remarkable story about how people betting on the specific details of the Iran War sent death threats to a Times of Israel journalist whose reporting threatened to lose them a wager.

U.S. lawmakers have introduced a bill, the BETS OFF Act, for which acronym they deserve credit — to crack down on the markets that encourage this kind of behaviour, which was also observed in the hours leading up to the U.S. attack on Venezuela. “There’s no getting around the fact that any prediction market where somebody knows or controls the outcome of a bet is ripe for corruption,” said Senator Chris Murphy of Connecticut. “When events that involve good and evil, life and death become just another financial product, morality no longer matters and the soul of America is fundamentally corrupted.” 

On that note, I see that someone is trying to juice the price of the $TRUMP memecoin by inviting its biggest holders to dinner at Mar-a-Lago, apparently with a speech by President Donald Trump (or whoever that is in the decidedly weird picture accompanying the announcement — Nigel Farage in a blond wig?), and an exclusive audience for the 29 biggest holders. The president, should he attend, will not, however, be accepting gifts, which is a weight off my mind. I had been worrying that this whole event was a bit dodgy.

The announcement of the event did boost the price of the $TRUMP tokens, as presumably did the announcement that Tether head Paolo Ardoino would be the headlining speaker, a remarkable turnaround for someone whose company was, just 18 months ago, having to vehemently deny it was the subject of a Department of Justice probe. Whether corruption will continue to be seriously investigated and punished, in a newly transactional world order, remains to be seen. The signs, though, are not promising.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Our corrupt world, run by oligarchs for oligarchs appeared first on Coda Story.

There has never been a better time to be a billionaire. It’s official, Forbes says so, and it’s got the numbers to prove it. Top of the magazine’s annual list is, of course, Elon Musk who is only a Bernaud Arnault (worth about $147 billion) and some change away from being the world’s first trillionaire.

But to get the real headliner, we need to drop down to number 17 where we find Changpeng Zhao ($110 billion, since you ask), founder of cryptocurrency exchange Binance and business partner of the Trump family’s own crypto firm. Centibillionaires are old hat now but CZ is, as far as I can tell, the first centibillionaire on the Forbes list to have been pardoned by the U.S. president for egregious financial criminality. That feels like quite a big deal so congratulations to him.

CZ’s pardon last October was, according to the White House, because his 2023 plea deal and $4.3 billion fine for enabling money laundering on an industrial scale were the result of “an overly prosecuted case by the Biden administration” and part of a war on cryptocurrency.

Awkwardly for all concerned, Binance is now suing the Wall Street Journal after it reported that $1 billion had moved through the company to Iran-backed terror groups. And the Wall Street Journal has not only declined to spike the story, it has doubled down by reporting that the Justice Department is now investigating the firm’s actions. “The Wall Street Journal couldn’t determine whether the Justice Department is investigating Binance itself for potential misconduct, or solely the customers on its platform,” the WSJ said. But either way, considering the White House has committed to wiping out Iran’s support of terror groups and upended the global energy markets in its quest to do so, the news reports alleging that CZ’s company enabled those same groups would surely be embarrassing for all concerned, were any of them the kind of people capable of embarrassment.

After all, the fact that Iran is using crypto on a huge scale to evade the sanctions placed on its activities, and to support foreign proxies like Hezbollah, with the active connivance of some of the biggest companies in the crypto world, could only be a surprise to the most witlessly incurious of numbskulls. Or perhaps, I suppose, they are all making so much money from crypto that they don’t care who else might be.

While we’re on the subject of Trump, he’s at No. 640 on the list of billionaires as I write this, nearly tripling his wealth in just the last two years. Forbes has this very apropos explanation: “Donald Trump has presided over the most lucrative presidency in American history, adding billions to his net worth, largely by cashing in on crypto.” 

But, I hear you ask, what about non-billionaires? How are the few billion of us whose net worth isn’t counted in the billions doing? Well, not great. And I’m beginning to feel a bit concerned about what this all means for democracy. “The widening gap between the rich and the rest is at the same time creating a political deficit that is highly dangerous and unsustainable,” said Oxfam International Executive Director Amitabh Behar back in January, and the situation has gotten worse since then.

The Bank of England’s animal stories 

I spend a lot of time at the moment talking in public about money laundering because of my new book. Top of my list for policy suggestions for tackling financial crime, if anyone were to ask, is that governments should stop printing large denomination bills: $100 bills, €200 notes or — worst of all — Switzerland’s colossal 1,000-france banknote are little used by ordinary people, but extremely helpful for criminals looking to transport large amounts of wealth in a small space.

So, in one way it was great that Britain was temporarily convulsed by controversy around banknotes last week. It’s high time we talked more about them. Could this spell the end of the UK’s own big bill: the £50, of which the Bank of England issued almost an extra 30 million last year, even though pretty much the only people that ever use them are criminals and tax dodgers? Would Britain finally get serious about ending the epidemic of financial crime?

No, of course not, the controversy was entirely about the Bank of England’s decision to replace the pictures of people on its next series of banknotes with pictures of animals. For some reason, badgers were mentioned. Also otters. “It says all you need to know about the lack of seriousness of the Bank,” said former business secretary Sir Jacob Rees-Mogg, without any apparent irony, considering his own spectacular lack of seriousness in agreeing to comment on this absurdly unserious confection.

A sledgehammer that cracks nuts

While researching the anti-money laundering system that has grown over the last few decades, I have come to find it strange that there isn’t more public disquiet over the powers that governments have awarded themselves to check ordinary people’s transactions. When there is concern, it tends to come from crypto/libertarian bores (the kind of people who talk about ‘Operation Choke Point 2.0’), so perhaps no one else wants to be associated with it. But I think the situation would be a bit healthier if more of us engaged with what is being done to us in ways that we can get.

I obviously think that tackling money laundering is of huge importance, but I am coming round to the view that more public pushback over exactly how that is being done would be good. It would force policymakers to justify what they’re doing, and therefore come up with some techniques that actually work, instead of the ineffective but intrusive mess we have at the moment.

To cut a long story short, I found this contribution from the Dutch non-profit organisation ‘Privacy First’ to be interesting. “Instead of managing risk, banks seek to eliminate it by withdrawing altogether from customers or sectors perceived as problematic. The burden of compliance and over-enforcement often falls not on criminals, but on already marginalised communities with limited access to remedies,” it says.

I agree with that, and I agree also with its argument that beneficial ownership transparency should not be absolute. Were there to be opt-outs from ownership registries for vulnerable people, there would be less scope for rich crooks to argue that shell company transparency is a violation of their human rights. 

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Iran’s cryptocurrency enablers appeared first on Coda Story.

As the Iran war pushes oil prices over $100 a barrel, and ships are attacked and mines are being laid in the Strait of Hormuz, a taboo has been broken and nuclear energy is back in fashion. European Commission president Ursula von der Leyen acknowledged that “the current Middle East crisis is a stark reminder” that it was “a strategic mistake for Europe to turn its back on” nuclear energy. 

She was speaking at an International Atomic Agency summit hosted by France. Just days before the summit, French president Emanuel Macron spoke — a nuclear submarine looming behind him — of the need to increase the country’s stockpile of nuclear warheads for the first time in several decades. “In this dangerous and uncertain world,” Macron said, “you have to be feared if you want to be free.” 

In February, the ‘New START treaty’, a mutual agreement between Russia and the U.S. to reduce and limit their nuclear arsenal, officially expired. The U.S. said China had conducted secret tests and that Beijing had to be part of any future non-proliferation agreement. For its part, the Chinese accused the U.S. government of seeking to mask its own expansionist ambitions. In the wake of the Iran war, started apparently because the Iranian regime was just days away from securing a bomb, other countries have spoken openly of their nuclear ambitions. After the start of the Iran war, North Korean leader Kim Jong Un spoke pointedly about preparing a nuclear-ready navy while inspecting a new destroyer and observing the testing of nuclear-capable cruise missiles. Even Polish prime minister Donald Tusk said Poland “will not want to be passive when it comes to nuclear security in a military context.”

On X, Tusk posted that Poland is in talks with France about joining its nuclear deterrence program. “We are arming together with our friends,” he wrote, “so that our enemies will never dare to attack us.” France is the only nuclear-capable European country, its systems (unlike the UK’s) completely independent of the U.S. and its new deterrence framework will include collaborations with Germany, Poland, Greece, Sweden, Denmark, the Netherlands and Belgium. Macron is calling France’s new strategy “advance deterrence,” a willingness to spread French nuclear armaments across the continent. A senior Pentagon official said the U.S. would “obviously at a minimum strenuously oppose” European countries seeking to acquire nuclear weapons. The U.S., as part of a NATO agreement, already deploys over 100 nuclear weapons in Europe — in Germany, Belgium, Italy, the Netherlands, and Turkey. 

Europe’s anti-nuclear tradition grew out of grassroots movements in the 1970s. In West Germany, protests against a planned nuclear plant in the small wine-growing town of Wyhl began when local farmers feared pollution would destroy their land and crops. By the 1980s, millions of Europeans were protesting nuclear weapons and the deployment of NATO missiles across the continent, bringing nuclear security debates into the public arena and pushing governments toward disarmament efforts. The political impact of those protests were long-lasting. Across Europe, nuclear energy programs were curtailed or abandoned entirely. Denmark banned nuclear power plants in 1985, Germany shut down its last nuclear reactors in 2023, and several countries imposed strict limits on nuclear development. Nuclear technology, whether for energy or weapons, remained politically toxic in much of Europe. But, as Denmark’s Mette Frederiksen said European deterrence “is necessary because the military threat from Russia is expected to increase,” and its reliance on U.S. military support can arguably no longer be taken for granted.

At the Paris summit, China, Brazil, Belgium and Italy all signed up to a pledge to triple global nuclear capacity by 2050. South Africa signed the pledge earlier this month. The war in Iran has once again made clear that the world must wean itself off fossil fuels. The U.S. — which imposed additional tariffs on India for buying Russian oil and thus helping to finance the continuation of the war in Ukraine — has, since the start of the attack on Iran, told India it can continue to buy Russian oil. Delhi promptly bought 30 million barrels of Russian crude oil. But this month India also signed a deal with Canada to receive uranium to expand its nuclear energy program. But in 1974, Canada provided India with nuclear technology for peaceful uses that were promptly put towards the building of nuclear weapons. Nuclear collaborations between the two countries were suspended for decades. It’s not a coincidence that those ties are once again being revived in the current geopolitical context. A growing clamor for nuclear energy has clear proliferation risks.

While France has been talking about greater nuclear deterrence, most European states are speaking about a revival of nuclear energy as an alternative to fossil fuels and as a means to achieve climate goals. The vast energy requirements of AI and data centres is also prompting nations to adopt an “atoms for algorithms” strategy, to be, as Macron said, “at the ​heart ​of ⁠the artificial intelligence challenge.” But to talk about energy alone is to ignore the appeal nuclear deterrence has for nation states trying to navigate dangerous geopolitical straits. Iran was attacked ostensibly because it was on the verge of having a bomb. Favored nations such as Saudi Arabia are able to sign nuclear pacts that remove non-proliferation guardrails, but the actions of the U.S. and Israel in Iran will make the bomb attractive to many more as a national security strategy.

A version of this story was published in this week’s Coda Currents newsletter. Sign up here.

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Julia E, an 18-year-old influencer from Germany, was hanging out with her family on the Palm Jumeirah beach when she heard a blast and saw a fireball erupt into the sky. She knew tension was mounting following the U.S.-Israeli attack on Iran the previous day, but she didn’t imagine Dubai would be on the frontline. “I was a little scared,” she says. “Usually you just read about it in the newspapers, you see it online, but when you see it in front of you, it’s a different feeling — like your heart just drops.”

The fear was not an emotion she expressed on Instagram. Julia’s family moved to Dubai from Germany in 2024, tempted by the business potential of an emirate that aggressively marketed itself as the influencer capital of the world — a digital utopia carved out of the desert, with its gleaming skyscrapers and Insta-ready waterfronts. Dubai’s state-backed Creator HQ offers content creators long-term residencies, legal support, networking opportunities, training and an environment geared towards digital entrepreneurship. Influencers need a permit to legally operate in Dubai but taxes are negligible — 5% VAT on taxable income from clients in the UAE over AED 375,000 (about $102,000), and a flat 9% corporate tax on income exceeding AED 1,000,000 (about $272,000). It has attracted over 50,000 content creators to Dubai, which has a population of about 4 million.

With 60,000 followers on TikTok and Instagram, Julia is looking to build her own marketing company in Dubai. In an effort, she says, to comfort her younger brother, she recorded a video shortly after witnessing the explosion. It showed Julia, a palm tree and the glittering night skyline behind her, with the caption: “You live in Dubai, aren’t you scared?” The video cuts to a montage of Mohamed bin Zayed Al Nahyan and other Emirati sheikhs: “No, because I know who protects us.” The short video is set to an AI-generated rendition of the Belgian singer Stromae’s ‘Papaoutai’, a song that laments the loss of a father.

According to Julia, she was the first content creator to post an ‘Are you safe?’-style video, a now viral trend across the Gulf as influencers counter the narrative of a region in turmoil. 

“I decided to make that video,” she says, “because I did feel safe. And I wanted to spread some positivity and my perspective that we are still being protected and we still have someone behind us here.” As Iranian drones hit the Gulf, including luxury tourist hotels destinations like Fairmont, The Palm hotel and the Burj Al Arab hotel, there was a wave of schadenfreude online. Some users outside Dubai could not contain their glee that the city’s glossy surface, its influencer-curated image of sunkissed luxury, had been ripped apart. The distress of those who spend their working hours flaunting luxury and throwing shade at the cities they come from, were, it has to be admitted, amusing to many.

But Dubai’s influencers doubled down, as the war spiralled and airports shut down, stressing the city’s safety, walking around in crowded public spaces, praising “the best air defense systems” and the men behind it: a reaction so seemingly choreographed that people questioned whether it was part of a government PR campaign. 

On March 3, the UAE’s president and crown prince were conspicuously filmed on a stroll through a Dubai mall, reassuring bewildered shoppers. It was eerily reminiscent of Volodymyr Zelensky’s “The President is here” video from four years ago, when Russia invaded Ukraine. Vogue Arabia, headquartered in the UAE, praised Gulf leaders and wrote about the influencer campaigns and the people’s “unwavering faith in their nation’s leadership and its steadfast commitment to protecting those who call it home.” 

As inviting as Dubai is to influencers, they must acquire advertiser permits that can cost up to $4,000 and are told to respect the state and avoid circulating rumors and unverified information or any content that can harm the UAE’s foreign relations or “offend or compromise national unity or social cohesion.” In the wake of Iran’s strikes, the UAE’s Public Prosecution announced that "anyone who shares or republishes content from unknown sources may face legal accountability under the country’s applicable laws, even if they are not the original creator of the content.”

There is a sense of vulnerability among Dubai’s influencers, says Zoe Hurley, associate professor of media at the American University of Sharjah and author of the 2023 book ‘Social Media Influencing in the City of Likes: Dubai and the Postdigital Condition’. “They haven't necessarily been trained professionally. They don't have institutional guardrails protecting them, or any formal buffer zones that might have protected people who are putting themselves out there.” she said. Hurley made a distinction between “influencers who are here on holiday who don't live here and who are followed by, say, people in the UK” and homegrown ones, representing diasporas in Dubai — from South Asia, the Levant and Europe — “who people are turning to because they're the thought leaders in their communities.”

None of the influencers we contacted in Dubai or across the Gulf confirmed ever being prompted or paid to post positive content. The German NTV network, however, reported concerns voiced by German influencers: "I don't know what I'm allowed to say and what I'm not allowed to say," one posted, "We're not allowed to post anything!” said another. These stories and reels have since been deleted.

Julia made another video, responding to the accusations that influencers were essentially providing a PR service for Dubai. “I will tell you exactly how much I got paid,” she says. “Dubai pays me in business… in safety… in connections… with weather.” She adds that, unlike in Dubai, she would never venture outside alone in her native Germany after 8 at night.

This point about Dubai’s safety — leaving things in the car without being scared to be robbed, or walking alone at night — is echoed widely among European expatriates in the Emirates and Saudi Arabia who compare it to the relative anxiety they feel in Europe. Telegram’s CEO, Pavel Durov recently made the same point: “Unfortunately, I had to leave Dubai for Europe a week ago — so I’m not only missing the free fireworks from Iran, but also exposing myself to greater risk. Given Europe’s crime rates, Dubai is statistically safer even with missiles flying.” Elon Musk shared the sentiment, writing that “No country is perfect, but Dubai and UAE broadly are objectively safer and better run than many areas of Europe.” Notorius influencer and ‘manosphere’ icon, Andrew Tate, still facing human trafficking and rape charges in Romania, posted a video of himself dancing on a yacht “as bombs fall.” His brother Tristan Tate chimed in, comparing air attacks in Dubai to stabbings in London. 

What these influencers don’t discuss is Dubai’s underbelly, an invisible city occupied by an underpaid migrant workforce, their treatment explained away on the grounds that they make more money in Dubai than they would in the poor countries in South Asia and Africa that they come from. While the influencers enjoy government-sponsored benefits and status, these other migrant workers remain bound under the kafala (sponsorship) system that binds their residency status to their employer. Despite reforms, under the system their status remains uncertain, their earnings precarious, and imprisonment or fines for relatively minor offences is common. There are no golden visas for laborers and maids, never mind darker reports about human trafficking and sexual and physical abuse. 

London-based barrister Caoilfhionn Gallagher described the UAE’s exploitation of migrant workers as a “grubby reality, with rampant human rights abuses.” She said she had “acted for people prosecuted and jailed in the UAE for daring to work with human rights organisations or criticise the authorities,” referring to the mass trial in 2024, when 43 people, among them human rights activists, had been “subjected to enforced disappearance, solitary confinement and incommunicado detention.” 

The contrast between the city that influencers show their followers and the city built on the abuse of migrant labor is one that governments across the Gulf want to bury. The UAE’s 2031 vision sees creative industries contributing up to 5% of the country’s GDP. 

For decades now, the UAE has been trying to diversify its economy, to pivot away from its reliance on hydrocarbons. It is betting on the digital economy and tourism to be the cornerstones of economic growth. 

But for all the bravado on display, rich people and Western influencers are fleeing the Gulf, as war with Iran continues. Influencers unable or unwilling to leave, must keep grinding. Narcissus could not stop staring at his reflection even as he was dying. Will Dubai’s influencers be allowed to look away from their reflections in the city’s famous mirrored skyscrapers?

The post The influencer bubble: Can content creators continue to airbrush the Gulf? appeared first on Coda Story.

Kleptocracy is a global system, which allows crooks, thieves, oligarchs, tycoons, and the like to enjoy their wealth while evading any responsibility to the society where they obtained that wealth. It infects different countries to different extents, and I’ve been very impressed by the Bloomberg investigations into how kleptocratic the Iranian elite has become. If you’d like a shortcut to those investigations, this new video is worth watching. Obviously, Iran’s regime has been vicious and aggressive from the start, but I do think there is a new kind of vicious aggression that develops when a country’s elite becomes kleptocratic, and thus is — in essence — colonising its own country. 

If it is extracting wealth, hiding that wealth offshore and thus secure in its future, it is able to take risks and make decisions without concerning itself about their effect on ordinary people. “While ordinary Iranians contend with a collapsing currency, rising prices, fuel shortages and now war, elites like (Hossein) Shamkhani have translated political lineage into global capital — buying property abroad, securing foreign passports and moving freely through systems that everyday citizens cannot enter,” Bloomberg notes.

Much of the elite’s ability to enrich itself has come from its evasion of Western sanctions, which Iranians have had decades of practice in learning how to dodge. And the role of cryptocurrencies in enabling Iran’s kleptocrats is clearly significant, as demonstrated by this report from Chainalysis. But of course the backbone of the corruption has been the elite’s control over trade, and thus its ability to move value to safe havens like Dubai (that’s not looking as safe as it did of course but, don’t worry, the money can easily find a new home), which gives it the security to fire missiles without worrying too much about retaliation.

In this though, I’m not sure Iran is particularly unusual. A lot of the governments involved in the crisis in the Middle East are a bit like those F. Scott Fitzgerald characters who “smashed up things and creatures and then retreated back into their money or their vast carelessness”.

Israel’s Benjamin Netanyahu has been dancing on the edge of a corruption trial for the best part of a decade, ever since he was indicted in 2019 for, among other things, accepting “hundreds of thousands of pounds in luxury gifts from billionaire friends”. Donald Trump’s family has assets worth more than double what they were just two and a half years ago. The earnings from crypto alone are enough to guarantee the most comfortable of futures. These two are very definitely careless people, as is everyone around them.

If this ill-planned military adventure ends badly, then the elites of none of the combatant countries will end up suffering in the way that ordinary Iranians, Israelis or Americans will. This sense of impunity infects much of the discussion of the war: how, for example, could someone who feels any connection to other people be exulting in their death in the way that U.S. Secretary of War Pete Hegseth does? In this bloodthirstiness, as in so many other aspects of kleptocracy of course, Russia led the way, but the rest of the world is catching up and I don’t think we’re ready for what that will look like.

An important aspect of this, again long visible in Russia with its dreadful public services and military failure in Ukraine, is that corruption does not just enrich elites, it also degrades state capabilities. “Corruption at the top always rolls downhill. Once it becomes open and acknowledged, it leads to corrupt and slovenly acts throughout a system,” as Phillips Payson O’Brien argues, in a piece which builds on another article in which he lays out how the Russian model might be worth applying to much of what’s happening in the United States.

This of course adds fresh weight, not that it’s needed, to the urgency of shoring up defences not just against foreign interference in the democratic processes of those countries that still have them, but to getting big money out too. It’s great that a U.S. politician has, for the first time, taken the Political Integrity Pledge and won (though admittedly only a primary), but just to get to the stage of standing in the general election, he’s had to raise more than $20 million. Too much of that and pretty soon you’re talking about real money.

This week at Tether

Talking about real money, the latest episode of Tether watch is a weird one: our favourite crypto concern has just invested $50 million in a smart mattress company. Now admittedly, that isn’t even two days’ worth of last year’s profits, so it’s not exactly a big deal for CEO Paolo Ardoino but it’s still sufficiently sinister to be worthy of mention.

I find it disturbing enough that tech companies are harvesting our browsing history to make money from, but it’s a whole other level to have Tether — Tether!?! — monitoring what people get up to in bed. It’s all, apparently, about personal sovereignty, which is to say you should stop trusting big companies with your data and instead trust it to Tether, including with what’s happening in your head: “Paolo's $200 million acquisition of a majority stake in brain-computer interface company Blackrock Neurotech may not be because he is optimistic about the size of the brain-computer interface market, but because he does not want the brain-computer interface to be controlled by others”.

Historians are going to be so confused by this; assuming of course that there will still be historians, which may be an over-optimistic assumption about a future with brain-computer interfaces.

The need to know your enemy

I’ve been talking to quite a lot of people about money laundering of late, and one of the enduring problems is the lack of reliable ways to gauge the scale of the problem. We’ve been saying it’s between 2% to 5% of the world economy since the late 1990s, but beyond repeating that age-hallowed guesstimate, how do you measure it? 

Often we turn to other measures, such as how many suspicious activity reports get filed, or how many fines get imposed. So, on that note, is it good or bad that the UK’s Financial Conduct Authority imposed fines last year of just £124 million, a decline of 78% from half a decade earlier? Maybe this means there’s 78% less crime? Or maybe it means that the FCA has stopped investigating 78% of crime? Or maybe 2021 was just a really big year for fines (which it was)? Or maybe something else happened?

The answer to this is that we should properly investigate money laundering not just criminally but also academically, looking at gaps in statistics and devising new methods of measuring how large the criminal economy is, rather than rely on proxies for it. That would not only help us identify what to target, but also help us see what techniques are working as criminal wealth rises and falls. As it stands, it feels like we’re waging a war without a clear idea of where the enemy is, and what the final goal might be, and there’s quite enough of that going on elsewhere at the moment.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post Why Kleptocrats go to war without a care in the world appeared first on Coda Story.

When the United States and Israel started blitzing Iran last weekend, eyes turned to the Chagos Islands in the Indian Ocean. The British-administered archipelago is home to a strategically vital US air base on the island of Diego Garcia. Would US President Donald Trump be using it in his “Operation Epic Fury”?

It's fair to say Trump probably didn't give a damn about Misley Mandarin’s opinion. But the self-styled “interim first minister” of Chagos, who recently upped sticks from Britain in a “super, super secret” mission to take up residence on the long-deserted Peros Banhos atoll, gave Washington his official “blessing” anyway.

I spoke via WhatsApp to the 47-year-old Chagossian in his base camp: basically a few tents, with a solar generator and a Starlink satellite connection enabling him to beam reels to his 10,000 Facebook followers. He quit his job as a bus driver in London to come here, determined to halt Britain’s plan to hand over what he considers to be his land to Mauritius after a long-running decolonization battle.

“We’re British citizens here. We’re not moving,” he said.

Mandarin wants the land of his forebears to remain under the rule of Britain, the former colonial ruler that booted out about 1,500 native Chagossians, including his own father, to make room for the U.S. military base in the late 1960s. The removal consigned Chagossians to a miserable fate in newly independent Mauritius.

Now on home turf, Mandarin, his 72-year-old dad, and two other Chagossians have dodged immediate deportation: they’ve obtained an injunction from a British court allowing them to stay until a hearing on March 13. Since their arrival, two more Chagossians have joined them. “We can do self-determination right now. We don't want to cut any links with Britain. We're not looking for independence,” Mandarin says.

“The next generation will decide on independence.”

Marriage of convenience

Life on Île du Coin, the largest island on Peros Banhos, is simple. The daily routine revolves around catching fish and finding a supply of fresh water. The new residents collect overnight rainfall in tarpaulin sheets to drink. Bathing involves a dip in the sea to wash off dirt, followed by a splash of precious rainwater to rinse. 

Mandarin appears to be relishing the experience. Soon after his arrival, the former army cook, who has bags of swagger, posted a video of himself cooking up “naan fromaaz”, or cheese naan, in a skillet on a makeshift stove. “Pa bizin madam isi mwa!” he jokes. I don't need a wife here!

The Chagossians arrived on the island on 16 February, accompanied by former army officer Adam Holloway, a former Conservative MP who recently defected to the radical right Reform UK party.

Reform, which is surging in the polls, is leading opposition to a bilateral treaty that would see Britain cede sovereignty of Chagos to Mauritius, while paying an average of £101-million ($135-million) per year to maintain a lease on Diego Garcia over the coming century. Negotiations began after the International Court of Justice ruled in 2019 that Britain should transfer sovereignty of Chagos to Mauritius “as rapidly as possible.”

The sleek yacht that brought the group on the five-day journey from Sri Lanka and travels back and forth with supplies was paid for by British-Thai businessman Christopher Harborne, a mega-donor to Reform. Its name is No Excuse – as in, “no excuse for us not to stay on Chagos,” says Mandarin.

Reform UK and the Chagossians make for curious bedfellows. On the one hand, there's a political party that has floated plans to create a Trump-inspired, ICE-style agency to carry out mass deportations in Britain. 

On the other, there’s Mandarin’s dad, finally back home after being brutally evicted from his atoll at the age of 14. “I will not go back to England. I want to die here,” said Michel Mandarin, as he set foot on his cherished Chagossian soil.

The unlikely pairing has had cause for joint celebration. Two days after they arrived, Trump withdrew his approval for the UK-Mauritius transfer treaty, which was supposed to provide legal certainty for the base in a hypothetical world governed by the rules-based international order. 

It turned out the president was annoyed at British Prime Minister Keir Starmer’s refusal to sanction the use of Diego Garcia for the Iran offensive. “DO NOT GIVE AWAY DIEGO GARCIA!” he told the British prime minister. The treaty was paused. Then war broke out and a beleaguered Starmer agreed to “defensive” strikes from Diego Garcia.

On Île du Coin, war seems like a distant prospect, even if it is potentially less than 200km (about 125 miles) away in Diego Garcia. As Tuesday drew to a close, there had so far been neither sight nor sound of the US’s deadly B-52, B-1, and B-2 bombers in the slightly overcast skies.

Kicking the can

Mandarin left Mauritius at age 22. He joined the British army in a bid to improve his lot and later became a bus driver in south London. He says he always felt like a second-class citizen in Mauritius, with “no opportunity to progress”.

Rights groups have charted how evictees from Chagos struggled to cope in Mauritius, many of them ending up trapped in an urban nightmare of poverty, mental illness, and addiction — with little sympathy from their hosts. Many Chagossians left for Britain after securing citizenship rights.

Now the fate of their homeland is being decided by a treaty negotiated over their heads. Last year, a UN committee on racial discrimination warned that the treaty could perpetuate “long-standing violations” of Chagossian rights.

The treaty says Mauritius is “free” to resettle islanders on any of the Chagos islands — except Diego Garcia. But there is no binding obligation for it to do so and the exclusion of Diego Garcia rankles. The deal also includes a £40-million trust fund to be managed by Mauritius, which has been criticised as a ruse by Britain to avoid paying proper compensation. 

“People talk about decolonisation, but if Britain did the wrongs, Britain should have to repair the wrongs — not kick the can to Mauritius,” says Mandarin. “Or they will get away with it.”

One of the reels he has filmed on Île du Coin features an industrial oven that was used by colonial officials to burn the islanders’ dogs before they were evicted. Officials threatened the islanders with the same fate if they refused to leave. Britain must pay compensation, he says.

'Belongers'

Mandarin’s joint odyssey with Reform UK has provoked mixed feelings among the Chagossian diaspora in Britain, Seychelles, and Mauritius. 

“He’s put us back in the centre of the story, but will we be overshadowed by Reform’s agenda?” asked one Chagossian in the English town of Crawley – home to a 3,500-strong Chagossian community — who is also opposed to the deal.

As the treaty was being negotiated, Chagossians’ concerns were largely swept under the carpet as a complicating factor in a pragmatic decolonization drive.

The hard right has capitalized on the deal’s major flaw, positioning itself as the main champion of Chagossians, just as their ancestral land finds itself embroiled in a conflict that could upend the global order.

One video recently posted by Reform leader Nigel Farage saw him express outrage after being “denied access” to Île du Coin for the delivery of “humanitarian” supplies to Mandarin and his men, racking up a cool 4.7 million views on X. 

Asked whether he is being used by Reform and its supporters, Mandarin is sanguine. He says he also contacted the left-wing Green Party for support, but it never replied. “Only Reform responded. At the end of the day, it’s politics. You have to make your own judgements for the sake of your people,” he says. 

He views the upcoming hearing as a potential “turning point in our fight”. The injunction barring their removal was granted on the basis that their location was too far from the base to pose a security threat. “If the court says they can’t remove us, then maybe more people will come,” he says. “This is our people. This is our time. We’re not visitors — we’re belongers.”

The post The Belongers: What the Chagos Islands tells us about the new world order appeared first on Coda Story.

Between them, the United States and Israel struck more than 2,000 targets within the first 24 hours of their war with Iran.

For even the largest militaries, it is an almost impossible task to identify, select and then precisely locate such a high volume of targets. But the U.S. military had some help. Claude, the “next generation AI assistant” built by Anthropic, was used in the planning of ‘Operation Epic Fury’. This, even though the Department of War recently labeled Anthropic a “supply chain risk”.

Anthropic is one of the world’s leading AI companies. Together with Palantir, another Big Tech company, it has been working since 2024 with the Pentagon to embed its systems in military decision-making – creating what is arguably the operating platform of present-day U.S. warfare and intelligence. Even though secretary of defense Pete Hegseth said the company “delivered a master class in arrogance and betrayal” and that the government would “cease all use of Anthropic's technology,” the company is too integrated into modern U.S. warfare for it not to be essential to the U.S. attack on Iran. The question might be not whether companies like Anthropic can ringfence their tech but whether the Pentagon might just commandeer it. 

Craig Jones, an academic who studies automated kill chains at the University of Newcastle, has told reporters that “the AI machine is making recommendations for what to target, which is actually much quicker in some ways than the speed of thought.” Similar AI systems have been used by Israel to coordinate its bombing campaign in Gaza, which is among the most destructive in human history. 

Among the first hits in the United States and Israel’s aerial bombardment of Iran was the Shajarah Tayyebeh primary school for girls, in the southern town of Minab. It was a Saturday morning, and school was in session. According to Iranian state media, at least 165 people were killed, mostly young girls between the ages of seven and 12. Another 96 were severely injured. Eyewitness and open source intelligence reports corroborate the claims of mass civilian casualties. Both Iran and Israel have denied responsibility. The United States has said it is “looking into” allegations that the school was destroyed by one of its missiles. Maybe, given the volume of the bombardment, they’ve lost track. 

It is too soon to know why the school was targeted – or whether it was an error. Either way, the U.S. military’s reliance on AI raises difficult questions.

AIs get things wrong all the time. Maybe it’s an extra finger in an AI-generated image, or a ‘hallucinated’ reference in a research report. Or, maybe, an algorithm sends a missile to the wrong address. That’s why Anthropic CEO Dario Amodei has said that weapons “that take humans out of the loop entirely and automate selecting and engaging targets” are simply not reliable enough. That position — along with Anthropic’s refusal to allow Claude to be used for mass domestic surveillance (although they are just fine with foreign surveillance) — led to the Pentagon cancelling a $200-million contract with the company on Friday, the day before the attacks on Iran began. The Department of War immediately signed a new deal, minus any ethical guardrails, with OpenAI.

Anthropic’s confrontation with the Pentagon has burnished its reputation as an “ethical” AI company. But it may have found its ethical backbone too late. Critics argue that even within Anthropic’s “red lines”, there is enormous potential for abuse, while a “human in the loop” does not necessarily prevent mistakes — raising questions about who, exactly, is responsible when these mistakes result in fatalities. Francesca Albanese, the United Nations special rapporteur for Palestine, accused Amazon, Google and Microsoft in a 2025 of being “complicit in genocide” for providing cloud storage systems to the Israeli military. Anthropic’s integration into the U.S. military has been much deeper.

While Israel and the U.S. are waging an AI-powered war, Iran is responding with a technological revolution of its own. The Islamic Republic has pioneered the production of low-cost one-way attack drones, most notably the Shahed-136, which costs just $34,000 to produce and as much as $4 million to shoot down. These are battle-tested: Russia has launched an estimated 57,000 Shahed-type drones in its war against Ukraine. Despite U.S. reliance on its own high-tech AI-powered systems, an American version of the Shahed also made its debut, alongside Claude, in the attack on Iran. 

In response, Iran has aimed more than 1000 drones at neighboring Gulf states since the war broke out on Saturday. Hundreds have been shot down, but even the most sophisticated air defences struggle with this sheer volume, and dozens have struck their targets, threatening to prolong this war and cause more damage to U.S. allies than anticipated. It is significant that these targets included at least three Amazon data centers in Dubai and Bahrain. Just last month, Amazon announced that it was making Anthropic’s Claude available to its Middle Eastern customers. Claude experienced two global outages this week — it is not clear if these were related to the data center attacks. 

Tech evangelists promise that artificial intelligence will, one day, cure cancer, end poverty and greatly increase our quality of life. But the new technology’s most obvious impact has been on warfare. For those with access to them, AI systems like Claude make it dramatically easier to bomb hundreds of targets at the same time — and much harder to figure out who is accountable when something goes wrong. On Truth Social, Donald Trump — who has promised to stop wars, not start them — posted approvingly that technology and munitions now mean Wars “can be fought ‘forever,’ and very successfully.” 

As the bombing of Iran continues, we are not far from a time when AI not only parses data to select targets, it actually chooses when to pull the trigger. And advanced AI models have far fewer qualms, for instance, about deploying nuclear weapons than humans faced with similar scenarios. One day, when — if — war crimes investigators are able to pin down exactly who is responsible for killing dozens of young girls in Minab, tech bosses may find themselves implicated alongside military and political leaders. “The AI did it” can’t be their defense.

A version of this story was published in this week’s Coda Currents newsletter. Sign up here.

The post The AI-powered ‘forever wars’ start now appeared first on Coda Story.

This is going to be a big year for the Financial Action Task Force, the world’s standard-setter on money laundering regulations, under its new president Giles Thomson. Quite apart from the standard folderol of plenary meetings, reports and publications, it is due to send a mission to assess the United States.

This whole process will not be quick, and there will be the usual abundant opportunity for acronyms, circumlocution and horse-trading. But eventually the hooves are going to have to hit the road. There is simply no way of hiding the fact that, under Donald Trump, the United States has broken its promise to bring greater transparency to shell companies; nor that it has scaled back prosecution of financial crimes, pardoned convicted financial criminals, and unleashed a crypto frenzy.

Throughout its history the FATF, set up by the G7, has been able and willing to overlook transgressions from big countries that it wouldn’t tolerate from smaller ones. It punished the remote island states of Niue and the Marshall Islands in its first ever blacklist for their lack of transparency around shell companies, for example, while merrily tolerating the fact that not even the Federal Bureau of Investigation could figure out who owned a corporation in Nevada. Nauru got punished for moving dirty Russian wealth while the UK and Switzerland didn’t.

The FATF’s structure, which ensures it is dominated by large economies, is a classic example of how, if you’re not at the table, you’re on the menu. But, in the past, those large economies have at least pretended to go along with its recommendations. They’ve made promises, passed legislation, convened working groups, said the right things: all of which has given everyone the diplomatic cover they need to keep each other off the naughty step.

Trump’s not doing any of that, and it’s hard to believe that he’s going to change that habit. If the FATF criticizes his administration, I think we can safely assume Trump won’t take that well, and could — if past behavior is any guide — pull the United States out. But if the FATF doesn’t criticize what he’s been up to, it will lose all credibility. 

Speaking for myself, I think the FATF’s conception, structure and techniques are all flawed, perhaps irreparably, and that it has been part of the problem, rather than part of the solution, for most if not all of its 37-year history. Perhaps, therefore, Giles Thomson should get ahead of the looming fiasco by declaring a complete overhaul of the whole organization, re-examining its recommendations, its memberships, its strategy, and more.

What are the chances of that happening? Well, here’s some news from the Pacific: “Papua New Guinea one step away from being blacklisted, global money laundering watchdog warns”. Is Papua New Guinea the problem? No. Do we get anywhere by pretending that it is? Also no. Will the FATF carry on regardless anyway? I would love to be surprised by the answer to that question.

The need to clean house 

I’m a big fan of this video from Transparency International’s UK chapter, which lays out the inglorious history of corruption in British politics, and urges the government to be more ambitious in its new piece of legislation. TI has pointed out three areas where it thinks the government should go further, and I agree with all of them, but I would also like to see a complete ban on crypto donations, which would help prevent compliance departments being overwhelmed by automated efforts to circumvent donation limits.

I would also urge you to read this comment piece from RUSI about the threat to democracy posed by big funders from the American right, which has significance far beyond British politics. The world’s remaining democracies have been slow to recognize how radically the values of many U.S. billionaires have diverged from what we traditionally associate with conservatism, and to shore up their defences against them. “The task now is to strengthen our democratic guardrails — calmly, transparently and proportionately — before those boundaries are redrawn by others,” the writers Neil Barnett and Eliza Lockhart conclude.

Transparency International’s Russian chapter has been in exile since 2022 for obvious reasons (last year, for example, it had to issue a statement to argue that “fighting corruption is not terrorism”) but it has continued to conduct really valuable investigations into how illicit wealth flows in and out of its home country, including a recent one detailing the use of shell companies in the UK’s tax havens to trade with Russia, and identifying $8 billion worth of transactions.

The worst offender as a source of opaque companies was the British Virgin Islands, though Bermuda was also a problem, moving sanctioned products — including lead and zinc — as well as oil and other fossil fuels, a surprisingly large number of yachts, and a jet that ended up belonging to Chechen strongman Ramzan Kadyrov (whose ill-health is, apparently, once more the subject of speculation, poor chap).

“For many years now, we have observed a dysfunctional equilibrium in which illicit financial flows, tax evasion, sanctions circumvention, and other forms of misconduct are channelled through firms and intermediaries registered in unaccountable jurisdictions,” TI-Russia notes. Fortunately, however, the British government is hosting an illicit finance summit this June and so has the perfect opportunity to set an example by making sure this kind of thing stops happening on the territory it’s responsible for if nowhere else.

Here’s an interesting story from the Netherlands, where luxury firm Louis Vuitton was fined half a million euros for failing to identify customers spending large amounts of cash. This case was part of an investigation into the Chinese money laundering technique known as ‘daigou’, in which value is transferred internationally not via the financial system but by buying expensive objects and then reselling them in China. High-end fashion is often used in the system, and it will be intriguing to see if other countries follow the Dutch lead and investigate unusual cash purchases.

And here’s a piece on our favorite crypto company Tether, which is apparently valued by market participants at between $200 and $350 billion. That is less than estimates made in the summer, but still an awful lot of money. Fun fact: finance firm Cantor Fitzgerald has a five percent stake in Tether, which is thus worth $10 to $17.5 billion, via a convertible bond. Another fun fact: Cantor Fitzgerald is owned by Commerce Secretary Howard Lutnick’s children. 

Interesting question, would the prospect of your family earning a windfall of that size affect how stringently you would approach the regulation of a financial institution accused of involvement in industrial-scale money laundering? Lutnick, who led Cantor Fitzgerald for over 30 years, is of course not the kind of man who would let petty cash cloud his judgement, so this question is of academic interest only, but still, worth thinking about.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

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That Iran's Supreme Leader, Ayatollah Ali Khamenei, should disappear, or be disappeared, from the scene was not a novel notion. 

Throughout my nearly five years in Tehran at the turn of this century, speculation about his health and longevity was a near-constant background hum. He was reported, or rumoured, to be mortally stricken by prostate cancer, his constitution already weakened by an assassination attempt in 1981 that left his right arm largely useless. Who would succeed him was far from clear, and the object of further speculation. 

As he lived on into more recent times, reaching the same age of 86 attained by his predecessor – the Islamic Republic's founding father Ayatollah Ruhollah Khomeini – the prospect of his demise became a more immediate issue, though the question of succession remained equally shrouded in uncertainty. As Supreme Leader, Ayatollah Khamenei was the commanding voice behind the ruthless crackdown that took the lives of tens of thousands of citizens early this year in the latest and greatest of many escalating protests, at which the slogan "Marg Bar Diktator!" — Death to the Dictator! — became an increasingly prominent slogan. 

Their wish was confirmed to be true at 5 a.m. local time on Sunday morning by Iranian broadcasters. The previous morning, Khamenei’s compound in Tehran was demolished as the Israeli-American onslaught got under way while the Ayatollah was heading a meeting of the Defence Council. That ensured that top military figures were also killed, including the commander of the Revolutionary Guards, Mohammad Pakpour, the Army Chief of Staff Abdolrahim Musavi, and Khamenei's top military adviser, Ali Shamkhani, who had been wounded but survived the attack in June last year. 

The Iranian leadership appears to have been caught by surprise, as it was last year when the opening Israeli strike, which culled many top military leaders as well as nuclear scientists, was launched between two rounds of indirect negotiations between Iran and the U.S. Oman, which was mediating the talks, was furious then, denouncing Israel as the real destabilising factor in the region. 

Perhaps the Iranian leaders — and the Omani mediators — thought that such a dirty trick could only be pulled once. But it has happened again, with no evidence that the talks in Geneva had broken down. The chief Omani negotiator, Badr Albusaidi, was livid. Only hours before the strike, he was in Washington for meetings “to explain that a peace agreement between the U.S. and Iran is now within reach. No nuclear weapons. Not ever. Zero stockpiling. Comprehensive verification. Peacefully and permanently. Let’s support the negotiators in closing the deal.”

After learning of the attack, he expressed his outrage in another tweet: “I am dismayed. Active and serious negotiations have yet again been undermined. Neither the interests of the United States nor the cause of global peace are well served by this. And I pray for the innocents who will suffer. I urge the United States not to get sucked in further. This is not your war.”

But Donald Trump and the U.S. were already thoroughly sucked in, and it was indeed their war, or at least his. According to the Israelis, the date had been decided jointly weeks before, after months of planning. Which meant that the Geneva negotiations, focused on the nuclear issue, were simply deceptive camouflage designed to give time for the U.S. to complete the marshalling of its biggest naval and air buildup in the region since the 2003 invasion of Iraq. 

Trump and the Israeli prime minister Benjamin Netanyahu soon made it clear that the campaign now had little to do with the niceties of Iran's nuclear programme: the agenda was regime change in Tehran, and a surprise attack to decapitate the regime was an essential element. 

With Iran's air defences largely taken out in last year's 12 days of war, it was like shooting fish in a barrel. Hundreds of air, missile and drone strikes were carried out on missile launchers, military bases and other targets around the country, with inevitable "collateral damage", including a girl's primary school in the southern town of Minab where scores of children were reported killed.

The Iranians did their best to live up to their dire warnings of deadly reprisals against Israel, and against American bases and allies on the Arab side of the Gulf and elsewhere. Missiles hailed down on airports and other installations in Kuwait, Bahrain, the UAE, Saudi Arabia and even Oman, despite its active mediation. While some U.S. bases may have been hit, so too were many civilian sites such as Dubai's iconic Burj al Arab hotel. Explosions too are being heard in Beirut, after Hezbollah fired rockets and drones at northern Israel to "avenge" Khamenei's death and the Israel Defense Forces struck back.

Air traffic was halted throughout a region rich in international hubs, sowing chaos worldwide. Iran's declaration that the strategic Strait of Hormuz was closed to shipping forced cargo shippers to suspend the voyages that transport some 20% of the world's oil and a lot of liquid gas, causing tremors through international markets. Once again, a decision taken by a tiny circle of men in Washington, Jerusalem and Tehran instantly rewired daily life, reminding us who actually gets to pull the global emergency brake.

What all this would do to Iran's relations with the Arab side of the Gulf was one of many open questions. While Oman was actively mediating, the other Arab oil states had been pressing the Americans not to allow a campaign that would predictably destabilise the region, and declaring their airspace not available for any hostilities. But any sympathy for Tehran quickly evaporated when the missiles started flying in: the Gulf Arab states closed ranks.

Trump and the Israelis made it clear that this was not one quick spectacular strike, but an ongoing campaign that would last days, perhaps even weeks. Presumably at the end, Iran would find its missile capabilities "obliterated," in Trump's favourite term, along with any nuclear activities. 

Once the bombs stop falling, Trump and Netanyahu urged, the Iranians should come out of their basements and take over a government that would be theirs for the taking. A historic opportunity that would likely not recur for generations, Iranians were told. 

But it is hard to imagine such regime change being wrought remotely from the skies. The regime lost little time in filling the leadership vacuum, setting up a three-man ruling council in line with the constitution, composed of the President, Masood Pezeshkian, the head of the Judiciary, Gholamhossein Mohseni-Ejei, and Ayatollah Alireza Arafi from the Council of Guardians. All regime loyalists, and the latter two noted hard-liners. So business as usual as far as they are concerned. But the fact is that the assassination of the Supreme Leader and the attendant bludgeoning of the regime's capabilities will inevitably usher in a new and unpredictable phase in Iran's turbulent history.

On the streets, reactions were fractured: jubilation in areas that had long chanted “Death to the dictator”, state-promote mourning in others, but also fear and a grim resignation, an understanding that power vacuums are often filled with fresh repression or civil war.

A smooth transition to a peaceful democracy is about the least likely scenario among the many possibilities. So too is an imminent return of the monarchy, with a comeback by Israeli-backed Reza Pahlavi, son of the Shah ousted by the 1979 revolution. So far there has been no sign visible to the outside world of a split in the ranks of the defenses built up by the Islamic Republic, which still has regular military forces numbering around 400,000, Revolutionary Guards of up to 190,000, and its auxiliary militia enforcers, the Basij, who may be able to mobilise around a million at street level. 

There must be much anger among regime loyalists, which may fall on the heads of any opposition protestors who imagine they can move in and take over the reins of government from the bombed-out wreckage of the Islamic Republic. The U.S. military is not likely to be able to remain engaged in the detail of defanging the regime once the main thrust of the campaign is done. But Israel likely will. Its equivalent of the CIA, the Mossad, has spent years building up formidable intelligence at street level, and will be doing its utmost to continue hamstringing the regime from within and fomenting opposition.Among the many unanswerable questions is whether all this will lead simply to chaos and fragmentation, which is probably Israel's preferred outcome, or to a more compliant regime willing to compromise with the U.S. in order to get crippling economic sanctions lifted. As Trump concedes the war might last weeks, who knows what Iran will eventually emerge from the smoke and the rubble?

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