UK Data Protection Regulator Launches Inquiry into xAI
On February 3, the UK’s data protection regulator launched an investigation into Elon Musk’s xAI, ramping up scrutiny over the AI chatbot Grok’s use to generate and share personalized images of individuals.
The UK Information Commissioner’s Office (ICO) said in a Tuesday statement that the formal probe will focus on whether xAI improperly processed personal data when creating these images. Last month, Grok sparked strong public and political backlash after X users coerced the chatbot into generating AI images of real people without their consent. Earlier Tuesday, French law enforcement raided X’s office in Paris.
The ICO noted it has the power to impose a maximum fine of £17.5 million (around $24 million) on xAI, or 4% of the company’s global annual revenue—whichever is higher.
(Source: Golden Finance)
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Yi Lihua: Currently in the best spot buying period, with expectations for the upcoming bull market remaining unchanged
On February 3, Yi Lihua, founder of Liquid Capital (formerly LD Capital), took to social media to share:
"As a participant in this bull run, we still hold high hopes for the new bull market’s performance—ETH hitting over $10,000 and BTC surpassing $200,000. Liquid Capital has only made partial portfolio adjustments to manage risk, and our outlook on the future bull market remains unchanged.
I understand the frustration many feel toward the industry and key players, especially after the 1011 incident, which triggered liquidity crunches and alleged platform manipulation. But I believe the crypto industry’s long-term trend is intact. When calculating investment returns over the next three years, now is the best time to buy spot assets. Volatility is a defining feature of crypto; throughout history, countless investors have been shaken out by this volatility, yet rebounds that doubled in value often followed."
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Bloomberg: Galaxy Digital Records Larger-Than-Expected Loss Amid Crypto Market Plunge
Bloomberg — Galaxy Digital, the cryptocurrency financial services firm founded and led by billionaire Michael Novogratz, reported a wider-than-expected loss in the fourth quarter of 2025 amid a downturn in the crypto market.
In a Tuesday statement, the company said its net loss for Q4 2025 totaled $482 million, or $1.08 per share—driven primarily by falling digital asset prices during the period. Bloomberg-surveyed analysts had forecast a loss of $282 million, or $0.99 per share.
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Fed's Bullard: Rate Cut Supports Labor Market, Inflation Task Still Awaits Final Step
February 3 (Tuesday) — Richmond Federal Reserve President Tom Barkin said Tuesday the Fed’s rate cuts so far have helped "insure" the labor market’s health, as policymakers work to finish the "last mile" of getting inflation back to the 2% target.
Barkin noted the Fed has cut rates by 1.75 percentage points since fall 2024 — a move that "provides some insurance to support the labor market as we work through the final stages of hitting our inflation goal." The unemployment rate remains historically low, he added, while inflation is still about 1 percentage point above the 2% target but expected to ease in coming months.
"Inflation has been above our target since 2021, and I take this persistent deviation very seriously," he said. "No matter the reasons, today’s inflation data will impact tomorrow’s inflation."
Barkin projected the economy will stay resilient in 2026, with regulatory easing and tax cuts delivering "significant stimulus" and businesses retaining confidence in sus
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