US Lawmakers Urge Tighter Curbs on China Chip Tools

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U.S. lawmakers are pressing for stricter export controls to limit China’s access to advanced semiconductor manufacturing equipment, warning that existing gaps pose risks to national security. In a bipartisan letter, senior members of the House called on the State and Commerce Departments to pursue broader, countrywide restrictions in coordination with allied nations.

House Select Committee on China Chairman John Moolenaar and House Foreign Affairs Committee Chairman Brian Mast urged tighter controls on key chipmaking tools and subcomponents that China cannot produce domestically. The letter was addressed to Secretary of State Marco Rubio and Commerce Secretary Howard Lutnick, and called for restrictions not only on new equipment sales but also on servicing existing tools operating in Chinese facilities.

Lawmakers argue that maintenance and software updates are critical for advanced chipmaking systems to remain operational, and limiting such support could slow China’s semiconductor progress. The request comes amid concerns that Beijing is accelerating imports of foreign-made equipment essential for producing high-end chips.

The debate has intensified following reports that Chinese researchers have developed a prototype lithography machine modeled on extreme ultraviolet systems produced by ASML. EUV lithography tools are considered crucial for manufacturing the most advanced chips used in artificial intelligence, smartphones, and defense systems.

Congressional leaders have asked the administration to provide a strategy briefing within a month outlining how it plans to secure allied cooperation on expanded export controls. The move reflects growing bipartisan consensus in Washington that semiconductor supply chains remain a central front in U.S.–China technological competition.

Musk Says xAI Reorganized, Resulting in Layoffs

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Elon Musk said xAI has undergone a reorganization that resulted in layoffs, as the artificial intelligence company moves to streamline operations during a period of rapid expansion. In a post on X, Musk said the restructuring was aimed at improving execution speed but required “parting ways with some people.”

The changes come shortly after SpaceX announced plans to acquire xAI in a deal that would create a combined entity valued at approximately $1.25 trillion, with ambitions to pursue a public listing later this year. The merger is expected to support Musk’s broader strategy, including plans to deploy large-scale data centers in space.

Leadership shifts have also followed the restructuring. xAI co-founders Tony Wu and Jimmy Ba confirmed their resignations this week, bringing the number of original founders who have left the company to half of its initial twelve.

The reorganization signals a pivotal moment for xAI, which has been scaling its AI models and infrastructure amid intense global competition. The company’s next phase will likely focus on integrating operations with SpaceX while maintaining momentum in the fast-moving AI sector.

Bithumb Blames System Flaws for $40 Billion Bitcoin Error

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South Korea’s crypto exchange Bithumb said serious internal system flaws allowed an erroneous transfer of more than $40 billion in bitcoin during a promotional event last week, prompting regulatory scrutiny and market volatility. The exchange accidentally distributed about 620,000 bitcoins to customers instead of 620,000 won ($426), triggering a sharp 17% drop in bitcoin prices on its platform.

Chief Executive Lee Jae-won told lawmakers the error was exacerbated by a roughly 24-hour processing lag that delayed balance updates. The mistaken transfer amounted to roughly 15 times the exchange’s bitcoin holdings. Internal safeguards—including checks comparing transfer volumes with actual reserves—failed, and the assets were not earmarked in a separate account to ensure transaction safety.

Most of the bitcoins have since been recovered, though regulators said 1,786 coins were sold before accounts were frozen. Authorities stated that customers who sold the mistakenly credited assets are legally required to return them. The incident has sparked criticism in parliament over oversight failures in one of the world’s most active crypto markets.

The head of the Financial Supervisory Service said the episode underscores the need for stronger regulatory frameworks, adding that virtual asset platforms should ideally face oversight similar to banks, though current laws do not yet provide that authority.