Enforcement Actions

The SEC has reached a $10 million settlement with Justin Sun, resolving allegations of securities fraud linked to TRX and BTT tokens. The agreement dismisses personal claims against Sun and highlights the SEC's ongoing regulatory efforts in the crypto industry.

Curve Finance recently stated that a certain decentralized trading platform used its code without permission, violating open-source licenses, and emphasized that this action is illegal and unwise. Curve Finance proposed that legitimate use of its Stableswap functionality can be achieved through licensing or collaboration to ensure the safety of user funds.

A certain CEX recently responded to a U.S. senator's inquiry about anti-money laundering, stating that the allegations are false. The platform emphasized that it has established strict compliance and sanctions controls, prohibiting Iranian users. It also launched an internal investigation, delisted related entities, and helped law enforcement recover over $752 million in the past three years. Moving forward, it will continue to strengthen its compliance system.

According to the latest FATF report, stablecoins have become a primary funding tool for illegal transactions, especially in countries like North Korea and Iran. The report indicates that by 2025, stablecoins will account for 84% of illegal virtual asset trading volume, and calls for increased regulation of stablecoin issuers to prevent money laundering and other criminal activities. The global stablecoin market value has exceeded $300 billion, and regulators need to act quickly to close regulatory gaps.

As the US-Israel coalition's military actions against Iran escalate, Iran's "shadow economy" becomes a focal point. Iran has legalized Bitcoin mining and is utilizing cheap electricity for mining to bypass US dollar sanctions, with the mining scale potentially reaching $7.8 billion and being heavily relied upon by the military. The rial has depreciated by over 96%, and the stablecoin USDT has become a new tool for trade, while the public is turning to Bitcoin to protect their assets.

U.S. Senator Elizabeth Warren criticizes the SEC for reaching a $10 million settlement with Justin Sun, claiming that regulatory agencies favor crypto allies. The settlement involves SEC charges against Sun and his company. Warren emphasizes the need to ensure crypto legislation prevents the president from profiting through the crypto industry. Justin Sun calls the settlement a conclusion to the case and commits to promoting crypto innovation.

Taipei District Prosecutors Office is investigating the Cambodia "Prince Group" money laundering case, indicting 62 individuals and 13 companies. The involved amount of money laundering is 10.7 billion, and assets worth 5.5 billion have been seized. The group used USDT and their self-developed "OJBK Wallet" to conduct cross-border money laundering, conceal criminal proceeds, and withdraw cash in multiple countries.

The Goyang Branch of the District Court of the Government sentenced former police officer A to 6 years in prison and a fine of 10 billion Korean won for accepting a bribe of 120 million Korean won during a cryptocurrency scam investigation and for embezzling 7.88 million Korean won in false overtime allowances. Legal service personnel B involved in the case was sentenced to 2 years and 6 months in prison, with a 4-year probation.

PEI Licensing has sued Pudgy Penguins for trademark infringement, alleging consumer confusion due to branding overlap as Pudgy expands from NFTs to physical merchandise. The case highlights tensions between traditional IP law and the growing digital asset sector.

A South Korean cryptocurrency scammer reappeared after being declared dead and has repaid approximately $60,000 to the victims. The man fled to Cambodia and was deported back to his home country. Prosecutors canceled his missing person declaration, restored his legal status, and handled his frozen assets, actively investigating the case and protecting human rights.

Chainalysis report shows that in 2025, crypto-related illegal activities linked to sanctions increased significantly, with sanctioned entities receiving $104 billion in cryptocurrency, driving the total illegal on-chain transaction volume for the year to $154 billion. Sanctioned countries such as Russia, Iran, and North Korea are using cryptocurrencies to evade financial sanctions, with stablecoins accounting for as much as 84% of illegal transactions.

A U.S. federal judge has issued a temporary restraining order against the crypto lending platform BlockFills, freezing its disputed assets in response to a lawsuit from Dominion Capital, which accuses it of misappropriating customer assets and concealing losses. BlockFills has incurred a $75 million loss due to poor management and has suspended withdrawals.

Anthropic CEO Dario Amodei stated that the company has received a formal letter from the U.S. Department of Defense regarding its national security supply chain risks and will challenge it through legal channels, emphasizing that this designation only affects specific use cases, and reaffirming its opposition to domestic surveillance and autonomous weapons. At the same time, Anthropic will continue to provide services to the Department of Defense for a symbolic fee.

PEI Licensing officially files a lawsuit against Pudgy Penguins, accusing it of trademark infringement and dilution of the Original Penguin brand value. PEI states that Pudgy's use of related names and logos has caused consumer confusion, and despite a cease and desist letter, the other party continues to sell. PEI seeks compensation, and Pudgy has not responded yet.

A shareholder of a certain CEX, Kevin Meehan, filed a derivative lawsuit, accusing CEO Brian Armstrong and executives of making misleading statements, failing to disclose customer asset risks and compliance deficiencies. The complaint involves multiple executives and points out that the user agreement does not clearly disclose the risk of asset bankruptcy, raising questions about the token listing review process.

Senator Chris Murphy plans to introduce legislation to restrict public betting on prediction markets related to government military actions to address insider trading risks. Recently, traders profited before the airstrike on Iran, raising concerns. The bill will prohibit market trading related to war or political speeches, aiming to maintain market integrity, prevent the misuse of sensitive information, while preserving exceptions for financial contracts.

The U.S. Securities and Exchange Commission (SEC) has reached a settlement with TRON founder Justin Sun. Rainberry Inc. will pay a $10 million fine and withdraw charges against Justin Sun and related entities. This settlement ends litigation since 2023 involving whether TRX and BTT are unregistered securities and market manipulation issues, reflecting changes in U.S. cryptocurrency regulatory policies. Justin Sun stated that he will continue to promote crypto innovation.

A cryptocurrency scam suspect declared dead has regained legal status after being deported back to South Korea, and is compensating victims by selling frozen assets. The incident has sparked discussions on cross-border law enforcement and crypto scam recovery mechanisms. It also highlights the legal complexities and regulatory challenges South Korea faces in digital asset cases.

U.S. law enforcement agencies arrested contractor John Dajita in the Caribbean for allegedly stealing $46 million in cryptocurrency assets. The operation was carried out jointly by the FBI and French law enforcement agencies, highlighting the importance of international cooperation in combating financial crime. The case is still under investigation, and specific details of the crime have not been disclosed.

PEI Licensing files charges against Pudgy Penguins, accusing trademark infringement, requesting the rejection of their trademark application, the prohibition of the alleged trademark, destruction of related goods, and the return of profits. Pudgy Penguins countered by stating that the trademarks are visually different and that future destruction could benefit NFT expansion by reducing legal risks, emphasizing the need for trademark compliance review to avoid legal challenges.