New York Sues Zelle Over $1 Billion in Consumer Fraud Losses

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New York Attorney General Letitia James filed a lawsuit against Zelle, claiming the electronic payment platform’s failure to adopt key security measures allowed fraudsters to steal more than $1 billion from consumers. The case was filed in Manhattan state court following the U.S. Consumer Financial Protection Bureau’s decision in March to drop a similar case.

James alleged that Zelle’s parent, Early Warning Services, owned by seven major U.S. banks, knew about the platform’s vulnerabilities for years but resisted implementing safeguards. She said fraudsters exploited the platform through scams such as fake utility bills, nonexistent goods, and impersonating banks, leaving victims without support even after money was stolen.

Zelle responded that fraud occurs when users are tricked into sending money and that over 99.95% of transactions are completed without reported fraud. The company called the lawsuit a “political stunt” and warned that holding it liable could raise consumer fees.

The lawsuit seeks stronger anti-fraud protections and restitution for affected New Yorkers. Previous actions by James include suits against Capital One and settlements with MoneyGram over similar consumer protections issues.

Bullish Shares Surge on NYSE Debut, Valued at $13.2 Billion

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Cryptocurrency exchange Bullish, backed by Peter Thiel and parent of CoinDesk, saw its NYSE shares more than double in their debut, valuing the company at approximately $13.16 billion. The stock opened at $90 and traded as high as $118, far above its $37 IPO price, highlighting strong investor confidence in the crypto sector. Bullish raised $1.11 billion in the IPO, giving it an initial valuation of $5.4 billion.

The surge comes amid a series of regulatory wins for crypto in the U.S., increased corporate adoption, and growing ETF inflows. Bullish targets institutional clients, aiming for stable, recurring revenue, and is close to obtaining a New York BitLicense to operate under regulatory requirements including KYC, anti-money laundering, and capital standards.

Executives cited institutional demand and a favorable regulatory environment as key drivers, noting that other crypto exchanges such as Gemini and Grayscale have also filed to go public. Bullish CEO Tom Farley, former NYSE president, brings leadership experience that may help secure institutional mandates.

Manufacturers Turn to AI to Manage Supply Chains Amid Tariff Volatility

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U.S. manufacturers like The Toro Company are using artificial intelligence to maintain lean “just-in-time” inventories despite ongoing global trade uncertainties and fluctuating tariffs. Toro’s supply chain chief, Kevin Carpenter, says AI helps the company process daily news—from policy updates to commodity prices—into actionable insights, guiding purchasing and inventory decisions.

Generative AI is being increasingly adopted in supply chains, capable of analyzing massive datasets and suggesting optimal actions. Industry research firm Gartner predicts AI software spending for supply chains could rise from $2.7 billion today to $55 billion by 2029. Leading providers include SAP, Oracle, Coupa, Microsoft, and Blue Yonder.

While AI improves efficiency and helps manage cost pressures, experts caution it is not a “silver bullet.” Human oversight remains essential for strategic decisions, with AI handling routine tasks like scheduling and ordering. Companies using AI can better react to uncertainty, reduce excess inventory, and protect profit margins amid rising costs and global disruptions.