Enforcement Actions

Prediction market platform Kalshi has appealed a ruling by the state of Nevada banning its event contracts, and the U.S. Ninth Circuit Court of Appeals held oral arguments on April 17, but did not issue an immediate decision after the hearing. The core dispute in the case is whether Kalshi’s event contracts are “swap agreements” that fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), or whether they must be regulated by state-level activity under gambling licensing regimes. Multiple legal experts predict that the case may ultimately be appealed to the U.S. Supreme Court.

Representing more than 100 members, Joshua McCollum, a Drift Protocol investor, filed a lawsuit against Circle on Wednesday in the U.S. District Court for the District of Massachusetts. The lawsuit alleges that in the April 1 theft incident involving approximately $280 million worth of Drift Protocol, Circle allowed the attacker to transfer roughly $230 million USDC to Ethereum via a cross-chain transfer protocol.

Tether CEO Paolo Ardoino announced the freezing of 3.29 million USDT connected to a hacker linked to Rhea Finance's $7.6 million theft due to a fake token contract attack.

Circle faces a class action lawsuit for failing to freeze $230 million in stolen USDC after the Drift Protocol attack. Plaintiffs argue that Circle's protocols allowed attackers to move and convert the stolen funds without intervention, raising concerns about the company's responsibilities in monitoring cross-chain transfers.

In a House hearing, U.S. CFTC Chairman Selig emphasized a “zero-tolerance policy” toward market fraud and manipulation. He responded to questions regarding a $500 million oil futures transaction and said the CFTC is drafting rules to regulate prediction markets. Selig also mentioned a cooperation memorandum of understanding with the SEC to strengthen oversight of digital assets. Given that the CFTC currently has only one commissioner—himself—Selig emphasized operational efficiency and will hire new staff to enhance regulatory capacity.

Robert Dunlap has been sentenced to 23 years in federal prison for a $20 million cryptocurrency fraud scheme involving the sale of a fictitious coin, falsely backed by valuable assets. He was convicted of mail fraud and must pay restitution to nearly 1,000 victims.

The OneCoin Ponzi scheme was founded by Ruja Ignatova in 2014, attracting 3.5 million investors and scamming about $4 billion. The U.S. Department of Justice will provide $40 million in compensation for victims, the founder has gone missing, is listed as the FBI’s No. 1 most-wanted fugitive, and the case has prompted cooperation among law enforcement agencies worldwide, resulting in sanctions against several co-conspirators.

Bernstein Liebhard LLP has launched a securities fraud class action against Gemini Space Station, Inc. (GEMI), claiming misleading statements about its cryptocurrency platform. Investors can join the lawsuit by May 18, 2026, with no upfront costs.

A suspect connected to an international cybercriminal group was arrested in Ukraine for $100 million in fraud and money laundering. Police seized $11 million in assets and $3 million in cryptocurrency. The suspect faces charges for document forgery and money laundering.

Tensions escalated between Tron founder Justin Sun and Trump-backed WLFI over a controversial governance proposal that penalizes dissenting voters. Sun criticized the proposal as coercive and absurd, alleging WLFI attempted to monopolize power.

Senator Elizabeth Warren has asked Elon Musk for details on X Money, a payments feature for X, raising concerns about stablecoin risks, regulatory issues, financial stability, and data privacy, with a response due by April 21, 2026.

The Florida State Attorney’s Office and the Marion County Sheriff’s Office jointly recovered $5.4 million in cryptocurrency scam funds, involving an investment fraud scheme that used romance as a cover. Some of the funds have been returned to victims in Florida and Massachusetts. Since its inception, CFEU has recovered $7.2 million, and another $12.6 million in assets remains frozen. Massachusetts has also carried out multiple law-enforcement actions, shutting down scam websites and recovering funds.

Kalshi is introducing a parental portal for identity verification and selfie authentication to prevent minors from bypassing age restrictions. This follows scrutiny over its compliance with prediction market regulations amid ongoing lawsuits.

Authorities in Florida and Massachusetts recovered $5.4 million in cryptocurrency from romance scam-related investment fraud, with victims receiving partial refunds. Ongoing efforts continue against crypto fraud, with additional assets under litigation.

Circle CEO Jeremy Allaire said the company will not proactively freeze wallet addresses unless it receives a court order or law-enforcement requirement. Even amid allegations of hacker money laundering and community backlash, Circle continues to insist on operating under the rule of law. Jeremy Allaire sets Circle’s law-enforcement bottom line ----------------------------- As the global cryptocurrency market surges with uncertainty, Circle’s CEO Jeremy Allaire, at a press conference in Seoul, South Korea, made a clear stance on the market’s most sensitive issue of “asset freezes.” He noted that while Circle has technical means to freeze specific wallet addresses, unless it receives a court order or an official directive from law-enforcement agencies, the company will not

Circle CEO Jeremy Allaire said the company will not proactively freeze wallet addresses unless it receives a court order or a request from law enforcement. Even amid hacker money-laundering disputes and community backlash, Circle still insists on operating in accordance with the rule of law. Jeremy Allaire sets Circle’s law-enforcement bottom line ----------------------------- As the global cryptocurrency market roils, Circle’s CEO Jeremy Allaire, the stablecoin issuer, delivered a clear stance on the most sensitive issue in the market at a press conference in Seoul, South Korea. He pointed out that although Circle has the technical means to freeze specific wallet addresses, unless it receives a court order or a formal instruction from law-enforcement authorities, the company will not take such action on its own.

On April 15, Arkham reported that the attacker who exploited a Bridged Polkadot vulnerability transferred around $269,000 in stolen funds to Tornado Cash, complicating asset tracking.

The OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and partner with international payment giants to demonstrate its ambition to expand in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions to provide fast virtual-asset trading. Meanwhile, facing the newly promulgated Virtual Asset Services Act, it is expected in the future to become a reference template for other foreign-invested companies entering the Taiwan market.