Enforcement Actions

ZachXBT exposed a scam network operating on the X platform that used fake news and meme coin manipulation to make six-figure profits in a short period, while creating market panic. The investigation revealed that these accounts systematically posted exaggerated or false war-related news to attract user attention before promoting fraudulent tokens. ZachXBT called on users to remain vigilant, recommending they check account history before engaging to avoid becoming scam victims.

A 26-year-old Israeli reservist soldier, Raz Cohen, has been indicted on suspicion of passing classified information to Iranian intelligence personnel and receiving cryptocurrency payments in return. He previously worked on the "Iron Dome" air defense system and transmitted sensitive information. He faces charges carrying a maximum sentence of life imprisonment.

The Legislative Yuan is reviewing a draft Virtual Asset Service Law that requires offshore virtual currency service providers (VASPs) to establish operations in Taiwan and strengthen regulatory oversight to close regulatory gaps and protect investors. Currently, only 8 legal VASPs operate in Taiwan, while approximately 30 unregistered offshore operators remain active, notably global giants like Binance that do not operate legally in Taiwan. The draft mandates offshore VASPs to establish branch offices or subsidiary institutions to comply with regulations, and proposes specific measures for operator oversight, fraud and theft prevention, and risk disclosure. The plan includes formulating virtual asset custody guidelines within six months.

YZi Labs, in responding to allegations from CEA Industries, has pointed out systematic governance failures and deficiencies in financial reporting controls at BNC, particularly issues stemming from the consolidation of CEO and chief financial officer positions. The transition agreement for the company's departing CEO is valued at approximately $1.98 million, involving multiple expenses that did not receive shareholder approval. YZi Labs is demanding that the BNC board of directors explain the rationale for the severance compensation and publicly disclose a remediation plan.

Prediction market platform Kalshi has implemented measures prohibiting political candidates and known sports participants from placing bets on related markets. This move reflects regulatory concerns about insider trading and comes alongside bills proposed by both Democratic and Republican parties attempting to ban event contracts similar to sports betting. Kalshi's CEO has voiced strong opposition to the legislation, characterizing it as an action to protect casino interests. If passed, the bill would impact multiple prediction market platforms, with the core dispute centering on the allocation of regulatory authority.

The development company behind DeFi protocol Balancer, Balancer Labs, has announced its closure due to reasons including imbalanced financial structure and legal risks. Despite the shutdown, the protocol will continue to be operated by the Balancer Foundation and DAO. Recent security vulnerability attacks have caused its TVL to drop from a peak of $3.3 billion to approximately $158 million, a decline of over 95%. The future will involve redesigning the token economic model and operational architecture to promote sustainable development of the protocol.

Balancer Labs, the team behind the decentralized finance protocol Balancer, is shutting down after mounting financial pressure and a $116 million hack in November, with executives proposing continuation of the protocol under a leaner, more cost-effective structure. “After careful consideration, I h

Kalshi and Polymarket announced user restriction measures against insider trading on March 24. Bipartisan lawmakers also proposed legislative drafts prohibiting event contracts related to sports events and implementing trading restrictions on groups such as political candidates and athletes.

Prediction platform Polymarket has updated its market integrity rules to align more closely with regulatory standards and expand its presence as a regulated trading platform amid growing scrutiny of manipulation and insider trading risks. In a Monday announcement, the company outlined updated rules

Bitcoin has recently rebounded to approximately $70,600, while MicroStrategy has expanded its ATM financing scale and increased its bitcoin holdings. The U.S. SEC has submitted a new proposal involving digital asset regulation and disclosure rules. Stock indices in the U.S. market have generally risen, with oil prices affected by the U.S.-Iran situation. Overall market sentiment appears to be cautiously observant.

Bitcoin privacy wallet Samourai Wallet's official domain was seized by the FBI and subsequently taken over by scammers, who are now using it to set up phishing websites to lure users into downloading malware. The domain registrar is NameCheap, and users have complained without receiving a response. Samourai Wallet launched in 2015 and was prosecuted by the U.S. Department of Justice for alleged money laundering.

Spanish authorities have arrested a suspect in the 2025 kidnapping of Ledger co-founder David Balland, marking a cross-border breakthrough in one of Europe’s most high-profile crypto-linked abduction cases. Spain’s Civil Guard said the suspect was detained in Benalmádena, in the southern province o

Prediction trading platform Polymarket announced updates to its market integrity rules to enhance market design standards, settlement clarity, and suspicious trading monitoring, in response to regulatory criticism. In a recent incident, six new accounts made accurate bets on a U.S.-Iran war event, raising insider trading concerns. This update aims to strengthen compliance and advance the legalization process for prediction markets.

FTX founder Sam Bankman-Fried's retrial request has faced a new obstacle, particularly due to a suspicious letter that has raised prosecutors' questions about its authenticity. The judge has required him to submit an affidavit by April 15 clarifying the document's source and whether any attorneys were involved. This incident has intensified scrutiny of the legal proceedings and could delay the retrial process.

The U.S. District Court for the Southern District of New York rejected the defendants' motion to dismiss in the TradeAI/Stakx case, and the case will proceed. The case was brought by Burwick Law, alleging that multiple defendants operated a Ponzi scheme causing losses exceeding $20 million, with a total scheme value of approximately $440 million. The judge ordered the defendants to disclose their addresses, or they will face a default judgment.

U.S. Senator Elizabeth Warren sent a letter to prominent YouTuber MrBeast and his company, inquiring about their future plans in adolescent financial services and the cryptocurrency sector, emphasizing the need to comply with laws and address financial risks and consumer protection issues.

In brief Sen. Elizabeth Warren urged Beast Industries to move cautiously as the firm created by MrBeast considers crypto for Step, a teen-focused mobile banking app. Before the company was acquired by Beast Industries, the senator argued that it pressured kids into asking their parents for p

Sam Bankman-Fried's parents claim that FTX customers have not lost money, asserting full repayments based on pre-collapse prices. However, many creditors contest this narrative, highlighting discrepancies in repayment values and usage of customer funds. Sam is serving a 25-year sentence, and while appeals are ongoing, opinions on actual loss recovery remain divided.