Good morning. Anthropic is investigating potential unauthorized access to its new Mythos artificial-intelligence model, complicating efforts to keep a tight lid on a tool that has spooked the White House and businesses because of its ability to facilitate cyberattacks.

• Under probe: The San Francisco-based company said that it is investigating “a report claiming unauthorized access” to Mythos through a third-party contractor. It added that it had no evidence that the reported access extended beyond that third-party vendor.
   
• Possible shockwaves: The possibility of unregulated access to Mythos could send a tremor through the cybersecurity world. Researchers worry that it and other advanced AI tools could allow hackers to unleash widespread disruption via an avalanche of software bugs. But some have also taken hope from the idea that limited releases could help them patch vulnerabilities first.
   
• Regulatory race: The White House has been racing to address new cybersecurity threats posed by AI models like Mythos and others from competing labs like OpenAI. Last week, Anthropic Chief Executive Dario Amodei met with top Trump administration officials about how to prepare for the model. Anthropic is in talks to give government agencies early access to Mythos, The Wall Street Journal reported.

Crypto billionaire accuses Trump family’s World Liberty of ‘criminal extortion.’

Crypto tycoon Justin Sun sued the Trump family’s crypto venture, accusing World Liberty Financial of “criminal extortion” for freezing valuable digital tokens over his refusal to invest more money with the company.

The lawsuit, filed late Tuesday in a California federal court, said Sun remains “an ardent supporter of President Trump and the Trump family,” but that World Liberty’s managers “see the project as a golden opportunity to leverage the Trump brand to profit through fraud.”

U.S., Russia, Iran oil-sanctions waivers not ‘windfalls,’ official says.

U.S. moves to temporarily waive sanctions on Russian and Iranian oil at sea weren’t windfalls for those countries, a senior Treasury Department official said, defending the widely criticized policies as a benefit to energy markets.

The sanctions waivers were intended to help ease energy prices in response to concerns from allies, Jonathan Burke, the assistant secretary of the Treasury for terrorist financing, said Wednesday at a hearing of a subcommittee of the House Financial Services Committee.

• Wall Street’s watchdogs are ramping up their inquiries into how much risk has built up in the $3 trillion private-credit industry, just as investor angst has sparked some backers to head to the exits.
   
• Predictions marketplace Kalshi said it had fined and suspended three congressional candidates for betting on their own races.
   
• Switzerland watered down its proposed capital rules aimed at making UBS safer, but said the bank would still have to add around $20 billion in additional buffers to prevent a repeat of the problems that brought down Credit Suisse.
   
• The European Union adopted its first comprehensive anticorruption directive.

U.S. blocks Iraq’s dollar shipments to squeeze its Iran-backed militias.

The Trump administration has suspended U.S. dollar shipments to Iraq and frozen security cooperation programs with its military, escalating the pressure on Baghdad to dismantle powerful Iranian-backed militias, said Iraqi and U.S. officials.

A cargo-plane delivery of nearly $500 million in U.S. banknotes, the proceeds from Iraqi oil sales from Federal Reserve Bank of New York accounts, was blocked recently by Treasury Department officials because of U.S. concerns about the militias, some of the officials said.

EU floats plan to mitigate energy crisis.

The European Union has floated ideas from shoring up grids to encouraging member states to coordinate on fuel storage in a bid to mitigate volatile energy prices brought on by the conflict in the Middle East.

The plan—called AccelerateEU—includes encouraging the bloc’s 27 member states to coordinate in areas like refilling of underground gas storage and exceptional releases of oil stocks.

• The conflict with Iran has entered a damaging new phase—a crippling limbo between war and peace that leaves the Strait of Hormuz closed and the prospect of escalation looming.
   
• The Trump administration is exploring ways to reset ties with Eritrea, a reclusive and autocratic state controlling prime geopolitical real estate along the Red Sea, as Iran threatens to choke off a second vital maritime corridor against the backdrop of war with the U.S.
   
• Ukraine is poised to receive a European Union lifeline of more than $100 billion after Hungary dropped its veto on financing vital for Kyiv to sustain its fight against Russia’s invasion.
   
• Canada’s U.S.-Canada trade minister, Dominic LeBlanc, stated that U.S. relief on sectoral tariffs is essential for any new trade deal.
   
• Deportations haven’t meaningfully lifted wages for Americans, but they also haven't caused widespread disruptions to the labor market.

Pete Hegseth fires Navy Secretary John Phelan.

John Phelan has been fired as Navy secretary after months of simmering tension with Defense Secretary Pete Hegseth, according to U.S. officials.

His departure was revealed in a social-media post by Pentagon spokesman Sean Parnell. In the post, Parnell said Hegseth and Deputy Defense Secretary Steve Feinberg were “grateful to Secretary Phelan for his service to the Department and the United States Navy.”

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.

• The Trump administration is nearing a rescue deal for Spirit Airlines, which is struggling to survive during a run-up in jet fuel prices.
   
• Lululemon Athletica selected former Nike executive Heidi O’Neill as its next chief executive.
   
• Google has raised the stakes in the contest to develop the world’s fastest and most efficient artificial-intelligence chips.
   
• A recruiter found you! Or is it a scam?

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

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