Good morning. The detention of two South African oil workers has alarmed U.S. officials and placed a new spotlight on the family that has run the Central African country of Equatorial Guinea.

• Meet the Obiangs. Vice President Teodorin “Teddy” Nguema Obiang and his relatives have run the oil-rich Central African country of Equatorial Guinea like a family ATM since 1979, accumulating mansions in Paris and Malibu, Ferraris and Bugattis, and at least three superyachts, according to court documents.
   
• A history of corruption. The U.S. Department of Justice in 2014 accused Nguema Obiang of amassing $300 million on a $100,000-a-year ministerial salary “through relentless embezzlement and extortion.” In a settlement with the U.S. government, he surrendered a $30 million cliff-top Malibu mansion, a $530,000 Ferrari 599 GTO and several life-size Michael Jackson statues, part of his large collection of Jackson memorabilia.
   
• A spate of state-sponsored hostage-takings. Frederik Potgieter, 54, and Peter Huxham, 55, were arrested last year on cocaine trafficking charges. Their arrest came after a South African court seized Nguema Obiang's two high-end Cape Town villas and the Blue Shadow, the yacht that carries his jet-ski collection while he vacations on one of the other two.
   
• A geopolitical dilemma. For decades, U.S. oil companies have drilled in Equatorial Guinean waters, and diplomats now routinely point to the case of the two South Africans to warn American firms their employees aren’t safe there. Washington finds itself in a pinch, however. The Biden administration criticizes Equatorial Guinea’s human-rights record. But it is also worried the Obiangs, if at odds with the U.S., might allow China to build a naval base on the Atlantic Ocean.

SEC prepares to sue Robinhood over crypto unit.

The Securities and Exchange Commission is preparing to sue Robinhood Markets’ crypto unit, ramping up its crackdown on digital-currency trading to target one of the most popular U.S. brokerage firms, the company said Monday.

Robinhood disclosed that its crypto unit received a so-called “Wells Notice” from SEC staff over the weekend, which said the staff had made a “preliminary determination” to recommend an enforcement action against the unit, called Robinhood Crypto, over alleged violations of securities laws.

“That’s an issue that we have definitely heard, and it’s under consideration,” Public Company Accounting Oversight Board Chair Erica Williams told The Wall Street Journal, referring to investor feedback. “There have been previous boards that have focused on that issue, and so we’re looking at the work that they’ve done there.”

• Trump Media & Technology Group said it had appointed a new financial auditor days after its previous accounting firm was banned by regulators.
   
• Federal air-safety regulators have opened a new investigation into Boeing after the jet maker recently disclosed that its employees may have skipped some inspections on 787 Dreamliners and falsified records, the latest quality issue at the manufacturer.

Russia to carry out nuclear weapons exercises, while Israel attacks Rafah.

Russian President Vladimir Putin ordered his country’s military to test its readiness to use tactical nuclear weapons—a step the Kremlin said was a response to recent comments by Western officials, including warnings that European powers could do more to help Ukraine in its fight with Moscow.

Exercises involving Russia’s navy and air force, along with units in the country’s southern military district that oversees Crimea and other parts of Ukraine occupied by Russian forces, are to begin on an undisclosed date, the Russian Defense Ministry said.

Meanwhile, Israel sent tanks into Rafah and took control of a key crossing linking the Gaza Strip to Egypt, securing a strategic corridor as it ramps up preparations for a military offensive in the border city..

• The race to power new artificial-intelligence models and keep internet and mobile services humming around the clock is creating a windfall for the makers of the generators and battery systems that are crucial to keeping power flowing through thunderstorms and grid failures.
   
• Hospitals in eight states are at risk of running out of cash after their owner filed for bankruptcy, potentially pitting the chain’s creditors against regulators, who raced to address concerns about safety.

Tech giants agree to build security into software products.

A swath of technology companies is expected to sign an agreement Tuesday to build stronger security into their software from the start of development, in a notable step forward for the Biden administration’s national cybersecurity strategy.

Microsoft, Alphabet’s Google, Amazon’s AWS, International Business Machines, Palo Alto Networks and Cisco are among the 63 companies to sign the pledge, drafted by the U.S. Cybersecurity and Infrastructure Security Agency to be unveiled at the RSA Conference here this week.

• The third week of Donald Trump’s hush-money trial started with a bang when the judge threatened to jail the former president.
   
• Columbia University canceled its main commencement ceremony but said it will go ahead with smaller-scale graduations, after weeks of pro-Palestinian demonstrations disrupted the campus.
   
• U.S. jobs growth could stall in the second half of 2024, with signs of a slowing labor market, according to monthly gauge of employment trends.
   
• Paul, Weiss, Rifkind, Wharton & Garrison is hiring a top deal lawyer from a rival shop as a race for talent among Wall Street’s elite law firms heats up.

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