Enforcement Actions

A dormant hacker wallet from the 2023 Mixin exploit transferred $3.85 million in Ethereum to Tornado Cash. The Mixin hack caused a $200 million loss. Mixin plans to repay affected users $23 million by September 2026, but continues operations with $1 billion in assets.

A Connecticut man, Elmin Redzepagic, faces up to 375 years in prison for allegedly defrauding crypto investors out of nearly $1 million. He misrepresented himself as a crypto expert and gambled the funds online, leading to multiple fraud charges.

Two individuals in Israel were indicted for allegedly using classified military information to profit from bets on the prediction market Polymarket, raising concerns about insider trading and security risks.

Odaily Planet Daily reports that Trump advisor Epshteyn and others have been sued collectively by investors for promoting the Meme coin “Let’s Go Brandon.” The lawsuit was filed in the U.S. District Court for the District of Columbia, accusing the individuals of knowingly engaging in false advertising while promoting the Meme coin, claiming it is decentralized. In reality, the operators can control the smart contract, governance, and transactions, including freezing accounts. (The Block)

_Praetorian CEO Ramil Palafox sentenced to 20 years for $200M Bitcoin Ponzi scheme that defrauded 90,000 investors of $62.7M._ $200M Bitcoin Fraud Lands Praetorian CEO 20-Year Sentence after a U.S. federal court handed down prison time to Ramil Ventura Palafox for operating a large-scale

Israeli Defense Forces reservists and civilians have been charged for placing bets on military secrets on Polymarket,涉嫌 insider trading. This incident highlights the risks of unfair competition and insider involvement in prediction markets, especially in sensitive areas like war. It calls for potential future regulation to prevent similar issues.

_Chainalysis reports an 85% rise in crypto flows tied to trafficking networks, with stablecoins widely used in illicit operations._ Crypto payments are playing a growing role in suspected human trafficking operations. New findings from Chainalysis show a sharp increase in digital asset flows

The prediction markets in the United States have rapidly emerged in recent years, attracting the attention of regulatory agencies. SEC Chairman Paul Atkins emphasized that the legal status of prediction markets as "gambling" or "financial instruments" remains controversial, especially for contracts involving events such as elections. The overlapping regulatory authority requires collaboration between federal and state governments, and whether clear rules will be established in the future remains to be seen.

Seoul Gangnam Police Station in South Korea has discovered that 22 Bitcoins stored since 2021 have been transferred under unknown circumstances, worth over $1.4 million, with the cold wallet still at the police station. Previously, the Gwangju Prosecutor's Office also lost approximately $47 million worth of Bitcoin due to a phishing attack. This has raised questions about internal personnel or cybersecurity vulnerabilities, leading to a crisis of trust in the management of encrypted assets by Korean law enforcement agencies.

U.S. authorities warn of an increase in romance-related crypto scams around Valentine's Day, where scammers build trust over time before disappearing with victims' funds. Known as "pig butchering," this method combines emotional manipulation with fake investments, leading to significant financial losses.

February 13 News, the U.S. Department of Justice issued a warning through the Northern District of Ohio Federal Prosecutor's Office, reminding the public to stay vigilant around Valentine's Day and to be aware of love scams centered on cryptocurrency transfers and fake investments. In the official statement, they straightforwardly said: “Cupid does not ask for cryptocurrency,” and pointed out that criminals are using dating platforms, social media, and chat apps to establish relationships, then inducing transfers by citing emergencies, travel expenses, or so-called high-return investments. U.S. Prosecutor David M. Topfer stated that these scams are not about romance but are solely aimed at money. He urged the public to verify identities before any transfers and to avoid sending money to people they have never met. Law enforcement officials disclosed that scammers often forge identities using stolen photos, claiming to be overseas service members or engaged in international business, quickly expressing “deep affection,” then shifting conversations to private messaging apps, and ultimately demanding payments via encrypted assets, gift cards, or wire transfers.

The Jing'an District Court in Shanghai tried a virtual currency investment dispute case. Ms. Wu sued after being induced by a host to invest 1.05 million yuan and was unable to withdraw funds later. The court held that her investment actions violated laws and public order and morality, ruling that Ms. Wu must bear the losses herself and dismissing her claims. This verdict serves as a significant warning to investors engaging in speculative virtual currency investments.

The Gangnam Police Station in South Korea discovered 22 Bitcoins (worth approximately $1.5 million) transferred from a USB cold wallet. The Bitcoins were not detected during the investigation pause. The Northern Gyeonggi Provincial Police Department has launched an investigation to determine the cause of the fund outflow and whether there are any internal personnel involved. This incident is related to the loss of 320 Bitcoins by the Gwangju Prosecutor's Office.

Seoul Gangnam Police Station in South Korea has discovered that 22 Bitcoins seized since November 2021 have been transferred out from a USB cold wallet, unnoticed due to a suspension of the investigation. The Northern Gyeonggi Provincial Police Department has launched an investigation to determine the cause of the fund loss and whether any internal personnel are involved. This discovery stems from a nationwide review of the Bitcoin loss incident at the Gwangju Prosecutor's Office.

February 13 News, South Korea's law enforcement system has exposed further vulnerabilities in digital asset management. The Seoul Gangnam Police Station confirmed that in an investigation, Bitcoin seized and stored in November 2021 was recently found to have been transferred from a USB cold wallet. Internal checks revealed that the involved amount was 22 Bitcoins, estimated at approximately $1.5 million at current prices. The police have confirmed this to the media. According to disclosures, the physical USB drive of the cold wallet was not lost, but on-chain assets were successfully transferred out. Due to the investigation being temporarily halted, this anomaly went unnoticed for a long time until a recent nationwide review of evidence and digital asset management uncovered it. After local media first reported the incident, it sparked public doubts about law enforcement agencies' digital asset custody mechanisms.

Praetorian Group International CEO Ramil Ventura Palafox was sentenced to 20 years in prison for operating a $200 million Bitcoin Ponzi scheme. The scheme resulted in over 90,000 investors losing more than $62.69 million. Palafox used new investor funds to pay returns and used part of the funds to purchase luxury goods.

Praetorian Group International CEO Ramil Ventura Palafox was sentenced to 20 years in prison for orchestrating a $200 million Bitcoin Ponzi scheme. He falsely promised high returns to 90,000 investors, resulting in a loss of $62 million.

Israeli authorities have charged a civilian and a reserve member of the defense forces with using military secrets to place bets on the prediction market Polymarket, earning over $150,000 through accurate predictions of six military operations. The incident has sparked controversy over insider trading and could impact future regulation of prediction markets.

A Connecticut man, Elmin Redzepagic, has been indicted on 21 counts for defrauding investors of $950,000 in a crypto scheme, which he disguised as trading but funneled to an offshore gambling site.

Several Taiwanese financial institutions, including private banks and pure online banks, have completed negotiations with partnered VASPs over the past year to submit applications to the Financial Supervisory Commission (FSC) for a trial virtual asset custody business. However, they have been repeatedly rejected. The FSC's reason is that "the number of warning accounts is too high," and they require banks to significantly reduce the number of warning accounts before their applications can have a chance of success.