Good morning. Crypto entrepreneur Justin Sun once championed the Trump family’s flagship venture into digital assets. Now he’s accusing the outfit of treating him and other backers as its “personal ATM.”

• Why Sun was upset: Sun accused World Liberty Financial of blocking him from selling a stake he first amassed in the company in late 2024, just after President Trump was elected to a second term. At the time, the Chinese-born billionaire was facing Securities and Exchange Commission charges of fraud and market manipulation. Last month, Sun settled his case with the SEC without admitting wrongdoing.
   
• Background: Sun’s beef began in September, when World Liberty unlocked 20% of its digital tokens. The move notched $5 billion in paper gains for the Trump family, but Sun took to the social-media platform X to argue his WLFI tokens had been “unreasonably frozen.”
   
• More accusations: Sun, a vocal figure within the crypto industry, stepped up his accusations against World Liberty earlier this month, after the crypto company pledged its own WLFI tokens as collateral to borrow more than $75 million in stablecoins from Dolomite, a lending platform founded by World Liberty’s chief technology officer. The move left some users who had deposited stablecoins in Dolomite unable to fully withdraw their funds. Sun seized on the Dolomite outrage to voice his own frustrations with World Liberty, accusing it of using a secret “backdoor blacklisting function” to freeze his tokens.
   
• World Liberty raises the heat: The company fired back from its official X account on April 12: “Justin’s favorite move is playing the victim while making baseless allegations to cover up his own misconduct.”
   
• No meeting of minds yet: Sun and World Liberty had held talks to resolve their dispute but haven’t reached an agreement, according to people familiar with the matter. “See you in court pal,” World Liberty said in its X post.

U.S. warns of ‘economic fury’ with tough Iran sanctions enforcement.

The U.S. will apply maximum pressure as it enforces sanctions against Iran, Risk Journal's Richard Vanderford reports (free link). The Treasury Department warned Tuesday it could take action against foreign banks that continue to work with Tehran.

Treasury will move aggressively with what it calls “Economic Fury” and has the power to impose secondary sanctions on banks that facilitate transactions for Iran’s regime, the department said in a social-media post.

• Treasury Won’t Renew Authorization Permitting Sale of Some Iranian Oil

How companies are touting their climate investments to shareholders.

Companies preparing to deliver annual updates to investors are highlighting, and at times defending, their latest sustainability strategies, Clara Hudson reports for Risk Journal (free link). 

Although companies have been wrestling with how to talk about their environmental efforts amid the Trump administration’s skepticism of climate change and sustainability efforts, this year’s proxy statements, securities filings issued ahead of annual investor meetings in the spring and summer, demonstrate they are still making promises to invest in a lower carbon future.

• The U.S. Treasury Department announced new sanctions on a pair of casinos in Mexico, a lawyer and a man allegedly claiming to be a human-rights activist for supporting a Mexican criminal group known as the Cártel del Noreste (free link). 
   
• Hui Ka Yan, the disgraced Chinese real-estate tycoon who once ranked among the world’s richest men, has pleaded guilty to charges of financial misconduct and bribery, bringing the collapse of a celebrated property empire nearer to its conclusion.
   
• The suspect in a Molotov cocktail-style attack at OpenAI Chief Executive Sam Altman’s California home last week faces attempted murder and arson charges, according to officials and court documents.
   
• China’s Ministry of Commerce accused the United Kingdom on Tuesday of using national security as a pretext for protectionism after London said it would not support the use of turbines from Chinese manufacturer Ming Yang Smart Energy in British offshore wind projects.
   
• China issued a new regulation empowering Beijing to identify, block and retaliate against foreign laws and measures it says are unlawful extraterritorial jurisdiction, giving the government a comprehensive legal framework to respond to U.S.-style sanctions and export controls with targeted countermeasures (free link).

Europe drafts postwar plan to free up Hormuz without U.S.

European countries are putting together a plan for a broad coalition of countries to help free up shipping through the Strait of Hormuz, including sending mine-clearing and other military vessels. But the plan would only come after the war and may exclude one country in particular: the U.S.

What’s the plan? French President Emmanuel Macron said Tuesday the plan is for an international defensive mission that doesn’t include the “belligerent” parties, meaning the U.S., Israel and Iran. European diplomats familiar with the plan say European ships wouldn’t be under American command. The goal of the European plan is to give shipping companies confidence to use the strait after the fighting has ended, which officials say could be some time away.

• Legal Power to Seize Ships Is Murky
• Europe Is Accelerating a NATO Fallback Plan in Case Trump Pulls Out

U.S. economy remains resilient in face of Iran war, banks say.

American households and businesses are holding up despite a turbulent start to the year that has threatened to roil the U.S. economy.

JPMorgan Chase, Citigroup and Wells Fargo said customers continued to spend, borrow and invest in the first quarter, even as a war erupted in the Middle East and worries mounted about risks from artificial intelligence, inflation and private credit. 

• IMF Warns of Deep Global Downturn If War Is Prolonged
• China’s Export Momentum Slows Amid Iran War
• China Sharpens Retaliatory Tools Against U.S. Ahead of Trump Summit

• The U.S.-Israeli attack on Iran has fast-tracked the ascent of hard-liners and apocalyptic religious followers, raising doubts about a lasting peace.
   
• The European Union approved a plan to double tariffs on steel imports above a certain quota in a bid to shield the bloc’s struggling sector from a glut of foreign imports.
   
• An NBCUniversal executive is calling out Nielsen in a rare public critique by a major client after the media measurement company put off an update that would have led to higher reported viewership numbers for broadcast and cable television, at least in the short term.
   
• Despite improvements, AI models still vary in hallucination frequency, leading to misinformation and user “cognitive surrender.”

The Dow Jones Risk Journal Summit London on May 7 will convene senior business professionals for discussions on a range of corporate risks including supply chains, artificial intelligence, geopolitics and financial crime. Speakers include: Kathy Wengel, EVP, Chief Technical Operations and Risk Officer, Johnson & Johnson; Nish Imthiyaz, Global Privacy and Responsible AI Counsel, Vodafone; and Will Mayes, Chief Executive, Cyber Monitoring Centre.

Request a complimentary invitation here using the code COMPLIMENTARY. Attendance is limited, and all requests are subject to approval.

AI is finding bugs that hackers can exploit. Get ready for bugmageddon.

The software bug was capable of crashing an operating system used by firewalls, servers and network appliances. It went undetected for over 27 years.

Last month, it was caught by Mythos, the latest AI model from Anthropic that has spooked the White House, banking executives and cybersecurity professionals around the world.

Welcome to the bug armageddon. AI models like Mythos and others are finding bugs in older software at a rate never seen before.

• Kevin Warsh, President Trump’s choice to lead the Federal Reserve, disclosed a sprawling set of financial interests worth more than $100 million, including stakes in Elon Musk’s SpaceX and prediction-market firm Polymarket.
   
• Mark Carney’s Liberal government formally clinched a majority mandate on Monday night, a year after his minority-government election victory.
   
• Amazon.com is buying satellite operator Globalstar in a deal the companies estimated at about $10.8 billion, seeking to build a business connecting consumer smartphones with satellite internet connections.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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