Los Angeles protests heat up! 700 Marines participate in the crackdown, California sues Trump administration

As anti-immigrant clashes in California intensified, US President Donald Trump sent 700 Marines to Los Angeles on June 10 to suppress the protests. In response, California Governor Gavin Newsom and Los Angeles Mayor Karen Bass criticized Trump for abusing his power and sued the federal government. Even the United Nations issued a rare warning to the Trump administration not to let the situation deteriorate to the point where it could be resolved by military means.

Anti-immigration protests intensify, with violent clashes between police and civilians

Since Trump returned to the White House, he has actively promoted policies such as the forced deportation of illegal immigrants, and set a goal for the U.S. Immigration and Customs Enforcement (ICE) to arrest 3,000 illegal immigrants every day.

On the evening of June 9, a peaceful rally in downtown Los Angeles turned into a conflict between police and protesters, with police using rubber bullets and protesters fighting back with bottles and cans.

The conflict spread to Santa Ana and San Francisco, with more than 100 arrests

Clashes spread as far as Santa Ana and San Francisco, and 148 people have been arrested, including about 60 in connection with violent demonstrations at ICE's downtown Los Angeles office.

San Francisco Mayor Daniel Lurie said that many store windows were smashed and many vehicles were burned.

Trump sent 700 Marines to suppress protests, and the California government sued

In order to quell the conflict, Trump ordered 700 Marines to be stationed in Los Angeles to suppress the protests and assist ICE operations. In response, California Governor Gavin Newsom and Los Angeles Mayor Karen Bass believed that Trump "abused his power unconstitutionally" and filed a lawsuit against Trump in the San Francisco federal court.

The indictment pointed out that the two mayors believed that local law enforcement was not out of control, but the Trump administration deployed nearly 4,000 troops, which was unconstitutional.

Trump said the consequences of not sending troops would be disastrous, and hinted at arresting Newsom

Trump then said on Truth Social:

"If we hadn't done this, Los Angeles would have been destroyed! Looking at the devastation on the scene, you can tell that sending troops was the right decision."

He also publicly supported border consultant Tom Homan's statement:

"If local officials are obstructing ICE enforcement, they should be arrested."

When asked whether Newsom would be arrested, Trump laughed and said:

"If I could, I would catch him. Although I like him, he is too incompetent."

The local school district strengthened the surrounding police force, and Waymo driverless car was set on fire

It is reported that in order to prevent the conflict from expanding to the school district, more than 100 local schools jointly strengthened the surrounding police presence during the graduation season. Local school district police officer Alberto Carvalho said that he received threats from senior government officials and was worried that ICE law enforcement would disrupt school graduation ceremonies.

Not only are campuses worried about being affected, the technology industry is also the first to bear the brunt. Waymo, a self-driving car brand under Google's parent company Alphabet, urgently announced the suspension of services in downtown Los Angeles because one of its driverless cars was set on fire during the protests.

Rallies continue to emerge across California, and the United Nations calls for an end to military escalation

Three large rallies occurred in the Civic Center of Los Angeles on June 9, seriously affecting the surrounding traffic. When the Service Employees International Union (SEIU) was in the city center, the union leader David Huerta was accused of obstructing law enforcement officers and faced federal felony charges.

In addition, another rally organized by the Council on American-Islamic Relations (CAIR) was held at Los Angeles International Airport to express dissatisfaction with the Trump administration's travel ban. Due to its small scale, it did not interfere with airport operations.

Farhan Haq, spokesman for the UN Secretary-General, expressed concern at a press conference about Trump's decision to send troops to suppress the protests. He said:

"We do not want to see the situation deteriorate to the point where military suppression is required. We ask the local state government and the Trump administration to ease the situation as soon as possible."

The digital New Taiwan dollar is quietly taking shape. The Central Bank of Taiwan recently announced the latest design blueprint for retail CBDC (central bank digital currency) at a public hearing, which will "virtualize" traditional physical cash and introduce it into the digital payment ecosystem. The goal is to create a digital wallet that is supported by national credit and available to all people. This article will deeply analyze the application design of retail CBDC, from wallet functions, user experience to innovative scenarios, to get a glimpse of how this financial technology revolution has entered our daily lives.

What is retail CBDC? A type of “digital cash” issued by the central bank

The retail CBDC defined by the central bank has the same legal status as cash and is a "digital legal tender". It is directly issued by the central bank, has no credit risk and liquidity risk, and has legal effect. It can be used for daily transactions in the future, just like a digital substitute for banknotes and coins. This system operates on a "two-tier platform architecture", with the central bank providing the basic platform, issuance and clearing mechanisms, and private intermediaries (such as banks and payment providers) responsible for wallet opening, application development and service provision.

Motivation for issuing digital cash: inclusive finance and payment upgrade

The central bank pointed out that the goals of promoting digital cash include:

• In response to the trend of financial digitalization : Strengthen national payment infrastructure.

• Deepen inclusive finance : Enable people without credit cards or bank accounts to easily participate in the digital economy.

• Improve the efficiency of cross-border payments and emergency subsidy distribution .

• Maintain cash co-existence flexibility : Even with the push for digitization, cash will continue to circulate.

Three design principles: do no harm, coexist, and promote innovation

The design of retail CBDC revolves around three principles:

1. Do No Harm : Do not interfere with the central bank’s monetary policy and financial stability, do not bear interest, and avoid attracting too much funds to move out of the banking system.

2. Coexistence : Coexist with cash and bank deposits to avoid forced switching of payment methods.

3. Innovation : Combining the power of the public and private sectors to promote payment efficiency and market competition.

Various wallet types to meet various identity needs

Digital wallets are divided into "named wallets" and "anonymous wallets", and different usage limits are set according to the degree of user identity verification:

Registered wallets support a recovery mechanism (such as if a mobile phone is lost), while anonymous wallets are closer to the concept of cash and cannot be recovered if lost.

Basic functions: Supports everything from transfers to offline payments

The digital cash wallet will provide the following features:

• Transfer and receive payments : Support aliases, cross-platform transfers and automatic deductions.

• Deposit and redemption : freely redeemable with cash or bank account.

• Offline payment (under planning) : Transactions can be conducted without the need for an Internet connection, increasing application flexibility.

Innovative application scenarios: Multiple digital NT dollars are more than just a payment tool

The application functions designed by the central bank are very creative, targeting three major scenarios: family, government and business:

Parent-child wallet control

Parents can set up regular pocket money distribution to their children's wallets and limit spending amounts and uses, thus establishing a financial education environment in the digital age.

Merchant feedback activities

The wallet can automatically identify rebate eligibility. If the number of store purchases reaches the required number, the rebate will be directly credited to the account, saving paper and labor costs.

Project payment is made according to progress

Through smart contracts, governments or businesses can automatically allocate funds based on project progress to avoid disputes and delays.

Government emergency assistance

People can register to receive subsidies directly through the App, without having to queue or go through any formalities, and the funds will be deposited into their accounts quickly.

Digital voucher integrated payment

Supporting the "cash + voucher" payment mode, in the future, when people use digital vouchers, they only need one screen to complete the payment, which is convenient and fast.

Personal data protection and information security design: balancing privacy and transaction security

The central bank emphasized that intermediaries must preserve and manage user data in accordance with the Personal Information Law, and the digital cash platform itself only retains de-identified information. If the judicial authorities need to access the data, they must do so in accordance with the law. The platform also introduces international ISO standards, public and private key encryption, and in-depth defense mechanisms to ensure transaction authenticity and anti-hacking capabilities. At present, the central bank has not yet decided on the official issuance schedule of CBDC, but it is expected to hold a number of public hearings and briefings between April and December 2025 to collect opinions from all walks of life. At the same time, the relevant legal basis is being studied, including privacy protection and issuance authorization, and special laws may be formulated in response.

South Korea is accelerating its efforts to build a more complete regulatory system for crypto assets. Min Byeong-deok, a member of the ruling party's National Assembly, held a press conference on Tuesday to announce a new proposal called the Digital Asset Basic Act, which aims to further regulate the cryptocurrency industry, including a new licensing system for stablecoin issuers.

South Korea builds a complete regulatory framework based on existing laws

The proposal is a further extension of the Virtual Asset Investor Protection Act, which came into effect in July 2024. Min Bingde pointed out that while the previous law focused on investor protection, the new Digital Asset Basic Law will establish a broader and more structured digital asset framework covering all aspects from issuance to trading.

Stablecoins must be licensed, with a capital threshold of 500 million won

One of the highlights of the new bill is the introduction of a licensing system for the issuance of stablecoins. According to the proposal, all stablecoin issuers must obtain official licenses and hold at least 500 million won (about 368,000 US dollars) of equity capital. This measure is seen as part of the implementation of President Lee Jae-myung's campaign promise to encourage the development of stablecoins based on the Korean won and avoid capital outflows to the stablecoin market based on the US dollar or other foreign currencies. Min Bingde served as the head of the digital asset policy group during Lee Jae-myung's campaign and has a high degree of dominance in the direction of this legislation.

International trends: The United States, Hong Kong and other countries also strengthen stablecoin supervision

This stablecoin regulation is in line with global trends. With the support of US President Donald Trump, the Genius Act is being promoted to establish a regulatory system for the stablecoin market. Hong Kong has also recently passed a related bill requiring stablecoin issuers to obtain a license to operate. South Korea's proposal is consistent with the positions of the above countries, showing its intention to participate in the global crypto regulatory arena. Min Bingde added that the crypto policies of the United States, the European Union and Japan have covered the entire process of asset issuance, circulation and trading, and South Korea also needs to complete the regulatory puzzle.

Beyond stablecoins: defining digital assets and establishing a regulatory committee

The Basic Law on Digital Assets is not limited to the field of stablecoins. The bill also clearly regulates the legal definition of "digital assets" and proposes management standards for relevant service providers. In addition, the bill proposes the establishment of a "Digital Asset Committee" and will be directly supervised by the President's Office to ensure that the government has a more timely and accurate grasp of market dynamics.

In addition to institutional construction and industry promotion, this bill will also establish legal mechanisms to punish improper behavior in the crypto market, such as insider trading, price manipulation and fraud, in an effort to create a more transparent and trustworthy trading environment.

The U.S. Department of Justice recently announced that 38-year-old Russian citizen and New York resident Iurii Gugnin (also known as Iurii Mashukov or George Goognin) was indicted by a federal grand jury on 22 counts for allegedly using his cryptocurrency company "Evita" to assist sanctioned Russian banks in transferring funds, involving an amount of more than $530 million.

Using virtual currency platforms to launder money: From Russia to the U.S. financial system

According to prosecutors’ documents, Gugnin received cryptocurrencies (mainly stablecoin USDT) from foreign clients through his two companies in the United States, Evita Investments Inc. and Evita Pay Inc., and laundered them in the U.S. financial system and eventually converted them into U.S. dollars or other legal currencies. These funds were paid through bank accounts in Manhattan, and the sources were deliberately obscured to conceal the actual counterparties and the purpose of the funds.

The bank and virtual currency exchange involved in the case were defrauded

In order to facilitate the flow of funds, Gugnin provided false information to multiple banks and cryptocurrency exchanges, claiming that Evita had no dealings with Russian companies or sanctioned institutions. However, in fact, many of Gugnin’s clients were from Russia, and the funds came from sanctioned banks, including:

• PJSC Sberbank

• PJSC Sovcombank

• PJSC VTB Bank

• Tinkoff Bank (JSC Tinkoff Bank)

In addition, he also had accounts at JSC Alfa-Bank and Sberbank, and had financial transactions with these accounts while in the United States.

Assisting in the procurement of sensitive technology: Export-controlled technology flows to Russian nuclear companies

Gugnin not only laundered money, but also helped foreign clients purchase sensitive technology and electronic equipment subject to U.S. export controls. Prosecutors said he helped suppliers of Rosatom, the Russian state-owned nuclear energy company, purchase restricted server components with funds from a supplier in Moscow. To conceal the identities of Russian customers, he often altered invoices by digitally blacking out the names and addresses of customers.

Suspicious points: knowingly breaking the law, and searching "whether it is under investigation"

Gugnin was fully aware of the illegality of his actions. He conducted numerous Internet searches, such as:

• “how to know if there is an investigation against you”

• “money laundering penalties US”

• “penalties for sanctions violations EU luxury goods”

He also visited several web pages, including "Am I Under Investigation?" and "What Are Signs You Are Under Criminal Investigation?"

Refusing to comply with anti-money laundering regulations and suspected of falsifying license applications

Gugnin claimed that Evita had strict anti-money laundering (AML) and know your customer (KYC) mechanisms, but in fact, he did not submit suspicious activity reports (SARs) in accordance with the Bank Secrecy Act, nor did he implement any compliance plans. He even submitted false application documents to the State of Florida and successfully obtained a financial flow license, which he used to induce cryptocurrency exchanges to cooperate with him.

Facing felony charges, he could face hundreds of years in prison

Gugnin currently faces 22 criminal charges, including:

• Bank fraud (up to 30 years for each count)

• Wire fraud, violations of the International Emergency Economic Powers Act (IEEPA), money laundering, and conspiracy (up to 20 years each)

• Failure to implement an effective anti-money laundering system and failure to file suspicious activity reports (up to 10 years each)

• Operating a money transfer business without a license and conspiring to defraud the U.S. government (up to 5 years each)

The United States continues to escalate its crackdown on "sensitive technology outflow"

The operation was investigated by the Disruptive Technology Strike Force, a joint strike team led by the U.S. Department of Justice and the Department of Commerce. The joint strike team aims to prevent key U.S. technologies from falling into the hands of hostile countries and protect the security of the supply chain. The U.S. Department of Justice emphasized: "Anyone who attempts to circumvent sanctions and assist hostile countries in obtaining sensitive technology will eventually be brought to justice."