Good morning. The estate of tech entrepreneur Mike Lynch, who died last summer when his superyacht sank off the coast of Italy, may be wiped out after a U.K. court ruled it owed Hewlett Packard Enterprise hundreds of millions of dollars.

• The judgment: In a judgment Tuesday, the High Court in London said Lynch’s estate and his former business partner Sushovan Hussain owed HPE more than 700 million pounds, equivalent to about $945 million, related to the U.S. tech company’s ill-fated takeover of Autonomy, the British software company the pair ran. A representative for Lynch’s estate said they would consider an appeal.
   
• Bigger than the estate itself: If the ruling is upheld, the amount owed would likely exceed the value of the Lynch family’s assets, which are estimated to be valued at about £473 million, according to Britain’s Sunday Times Rich List.
   
• Background: Tuesday’s judgment comes after the High Court found in 2022 that Autonomy’s “true financial position and performance had not been properly and accurately disclosed” when it was bought by Hewlett Packard for more than $11 billion in 2011. HP wrote down much of the value of Autonomy in 2012 and said it was duped into overpaying.

Protests break out as Ukraine defangs anticorruption agency.

Ukrainian President Volodymyr Zelensky signed a law gutting the country’s anticorruption agency, despite protests urging him not to do so and criticism that it would silence dissent and concentrate power.

The response: The law effectively strips independence from Ukraine’s National Anticorruption Bureau, known as NABU, which was established in 2015 under pressure from the U.S. and other Western countries. Protests erupted after the law was pushed through parliament on Tuesday, as more than 1,000 people gathered near the president’s office, shouting “shame” and “veto the law.” 

• The U.S. plans to seize $2 million in digital currency held by cryptocurrency companies Tether and Binance, alleging the funds are connected to a sanctioned Gaza-based money-transfer business involved in providing financial support to Hamas, a U.S.-designated terrorist group.
   
• New Jersey’s federal judges on Tuesday appointed a new U.S. attorney, pushing out temporary top prosecutor Alina Habba after a tumultuous four months on the job.
   
• The Federal Reserve wants to do things differently this time around. At least when it comes to banking regulation.
   
• The U.S. announced a package of sanctions targeting a network responsible for allegedly importing petroleum into Houthi-controlled parts of Yemen.
   
• Chinese underground banking and Russian sanctions evasion networks continue targeting U.K. systems to move billions in illicit funds, the government’s latest risk assessment found.
   
• The world’s leading corporate climate standard setter outlined a new methodology for financial institutions to align their activities to net zero, despite multiple banks and asset managers leaving green alliances and rolling back climate targets.
   
• President Trump’s pick to lead the nation’s derivatives regulator is facing a delay in his confirmation process after the committee considering his nomination pushed back a vote.
   
• The European Commission opened an in-depth investigation into Universal Music Group’s $775 million takeover of label Downtown Music, citing competition concerns.

OpenAI CEO Sam Altman warns bankers, regulators of coming fraud ‘crisis.’

OpenAI Chief Executive Sam Altman said he is concerned that financial firms aren’t adequately dealing with a rise in artificial intelligence-enabled scams against bank customers, highlighting a chief concern of lenders as the emerging technology grows more sophisticated.

“I am very nervous about this,” Altman told a packed room of bank executives and regulators on Tuesday during a conference held by the Federal Reserve in Washington, D.C., according to Barron’s.

• At the Fed’s Banking Conference, Sam Altman, Capital Rules and Avoiding the Powell Drama

• Microsoft says Chinese hackers exploited security vulnerabilities in the company’s SharePoint platform, which it first reported over the weekend.
   
• The tariff rate for imports from Indonesia will remain at the 19% rate announced last week, but the Southeast Asia nation has now agreed to sell critical minerals and purchase Boeing planes, farm products, and energy from the U.S., President Donald Trump announced in a post on social media Tuesday afternoon.
   
• Control over food has moved to the center of the fight between Israel and Hamas, with cease-fire negotiations now stuck over who distributes humanitarian aid in the Gaza Strip once a deal goes into effect, Arab mediators said.
   
• The surprising success story of Sunday’s election in Japan was a political party born online during the pandemic that tapped into a wellspring of discontent over issues galvanizing voters worldwide: inflation, immigration and a political class dismissed as elitist and out of touch.
   
• Manufacturing activity in the mid-Atlantic region this month deteriorated unexpectedly, driven by lower readings for shipments and new orders as trade uncertainty persisted.
   
• A fresh wave of growth forecasts for Asia highlights the threat posed by tariffs to the region, even as trade deals gather pace.

• Elon Musk’s xAI is seeking up to $12 billion to buy Nvidia chips for a new data center to train Grok, its artificial intelligence chatbot.
   
• Furor over disclosures from the Jeffrey Epstein investigation brought the House of Representatives to a standstill.
   
• General Motors said Tuesday that new tariffs on imported cars and auto parts took a $1.1 billion bite out of its bottom line.
   
• President Trump on Tuesday lashed out at his perceived political enemies and rivals and called on the Justice Department to investigate former President Barack Obama.
   
• The FBI believes thousands of North Koreans have infiltrated the U.S. workforce by assuming the identities of Americans to secure remote jobs. Many of them, investigators have found, are bound by a few defining characteristics: total devotion to Dear Leader Kim Jong Un, a penchant for stealing cryptocurrency and an obsession with Minions, the cuddly agents of evil from “Despicable Me.”

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