Enforcement Actions

On-chain investigator ZachXBT announced that on February 26th, he will reveal an insider trading scandal involving one of the most profitable companies in the crypto industry, drawing significant market attention. If the investigation proves true, it will impact overall trust and industry governance and could trigger regulatory pressure. The community is widely speculating about the involved company, and the market is highly sensitive to this event.

Odaily Planet Daily reports that on the X platform, on February 26, ZachXBT, an on-chain detective, announced the release of a major investigative report targeting a highly profitable company in the crypto industry. The report reveals that several employees of the company have been abusing internal data for insider trading over an extended period.

A 42-year-old man from Sydney has been charged over his alleged involvement in a $3.5 million (A$5 million) crypto investment scam that reportedly targeted more than 190 elderly and vulnerable Australians. The case comes as authorities across the country intensify efforts to combat the growing

In brief NSW Police have charged a 42-year-old man over an alleged $3.3 million crypto investment scam targeting 190 elderly Australians. Victims were directed to a platform called “NEXOpayment,” where funds were allegedly funneled through multiple crypto wallets in suspected laundering

John Deaton, a prominent crypto lawyer and U.S. Senate candidate, strongly opposes any leniency for former FTX CEO Sam Bankman-Fried, dismissing claims that FTX could have a net worth of $78 billion by 2025. Deaton emphasizes that court rulings and real creditor losses outweigh speculative recovery scenarios.

JPMorgan Chase admits to terminating its banking relationship with Trump after the 2021 Capitol riot, prompting his family to enter the cryptocurrency space. The former CEO confirmed in court that the related accounts were frozen, and Trump filed a lawsuit for political reasons, claiming $5 billion in damages.

John Deaton, a crypto attorney and Senate candidate, strongly opposes any pardon for Sam Bankman-Fried, disputing his claims of future solvency for FTX and emphasizing the severity of legal consequences and creditor losses from the fraud.

Blockchain analytics company Elliptic has identified five cryptocurrency exchanges assisting Russia in evading sanctions, with ABCeX's total trading volume exceeding $11 billion. The report analyzes the operational models of these exchanges, including obfuscating transaction sources and dealings with sanctioned platforms. The European Union plans to impose a comprehensive ban on cryptocurrency transactions with Russia, but enforcement faces challenges. After each round of sanctions, new trading platforms quickly emerge, undermining the effectiveness of the sanctions.

Elliptic reports that after sanctions, the Russian crypto trading platform Garantex was seized, and at least five alternative platforms still provide funding channels for sanctioned entities, although most have not yet been sanctioned. Platforms like Bitpapa and ABCeX frequently change wallets to evade monitoring, and research shows that related sanctions evasion activities continue across multiple platforms.

Malaysian authorities arrested 12 police officers for allegedly extorting around 200,000 ringgit (51,000 USD) in crypto from Chinese citizens during a midnight raid. The investigation follows a victim's complaint, highlighting ongoing anti-corruption efforts in Malaysia.

The Dutch gambling authority Ksa has issued a cease and desist order and fined Polymarket for providing gambling services in the Netherlands without a license, facing a penalty of €420,000 per week, with a maximum of €840,000. This incident has sparked legal controversy over whether prediction markets are considered gambling. Ksa emphasizes that unlicensed platforms are not allowed to operate in the market and that prediction markets may pose social risks, which could influence future regulatory trends.

More than 40 Democratic members of the U.S. Congress have written to the Secretary of the Treasury, requesting an investigation into the Trump family-operated World Liberty Financial (WLFI) and its massive investments with members of the UAE royal family, expressing concerns that political and geopolitical pressures may influence financial regulation. They are calling for a suspension of WLFI's banking charter review to maintain public trust and ensure transparency and independence.

The Dutch gambling regulatory authority KSA has classified Polymarket as illegal gambling, requiring it to cease operations locally and imposing a fine of €420,000 per week. The article discusses the legal positioning and regulatory trends of prediction markets, showing that Europe is tightening its stance compared to the more lenient approach in the United States, and emphasizes the regulatory challenges faced by Polymarket and the double-edged sword effect of globalization.

The WLFI token dropped 8% amid U.S. Senators' concerns over the UAE's stake in World Liberty and potential national security risks. Despite scrutiny and calls for a CFIUS review, the company continues to grow, expanding into the forex market with a new platform.

XREX Chief Blockchain Financial Crime Investigator Chen Mei-Hui passed away last year in a car accident, which was confirmed to be a simple traffic accident after investigation. The male driver was sentenced to 2 years and 4 months for negligent homicide. Chen Mei-Hui demonstrated outstanding performance in money laundering and fraud cases, participating in several high-profile incidents. The accident occurred when the driver entered at high speed, did not decelerate, and the assist system was turned off, leading to the crash.

Washington State resident Geoffrey K. Auyeung admitted to involvement in money laundering in 2026, transferring approximately $97.1 million in fraudulent proceeds into multiple accounts, from which he profited $4.07 million. According to the plea agreement, he is required to pay $24.7 million in restitution and forfeit $10.1 million in assets. The prosecution recommended a 63-month prison sentence, with the final sentencing to be announced in May 2026.

The Netherlands Gambling Authority has ordered Polymarket to cease operations in the country, threatening fines of up to €840,000 for unauthorized gambling. This action reflects strict regulatory measures prioritizing consumer protection over innovation amidst a growing global prediction market.

Foresight News: The Dutch regulatory authority (Ksa) has fined Polymarket operator Adventure One QSS Inc. for illegal gambling activities. Ksa has ordered Polymarket to cease operations in the country or face a weekly fine of 420,000 euros ($462,000), with a maximum penalty of 840,000 euros (approximately $924,000).

FTX founder SBF published a lengthy article addressing ten "rumors" about him and FTX, including denials of insolvency, promiscuity, and being forced into bankruptcy, as well as explanations of the liquidity gap issue and political donation controversies.