Enforcement Actions

The “Atlantic Initiative” carried out jointly by the United States, the United Kingdom, and Canada has ended, successfully freezing more than $12 million in scam assets, identifying more than 20k victims, with scam proceeds totaling over $45 million, focusing on cracking down on authorized phishing attacks. A certain CEX participated in the operation but did not freeze funds.

A certain CEX participated in an "Operation Atlantic" operation led by the U.K. National Crime Agency to crack down on crypto and investment scams, with a particular focus on authorized phishing schemes. The CEX provided on-site support, helped identify victims and malicious websites, and shared intelligence with law enforcement agencies, protecting thousands of potential victims.

On-chain sleuth ZachXBT accuses Gurhan Kiziloz, the suspected co-founder of the casino platform Spartans, of spearheading the Blockdag Network project, allegedly luring retail investors into fundraising with false promotion of $300 million, and withdrawing the funds to the Middle East within two years. Gurhan is also suspected of lavish spending and using public relations to maintain his image.

U.S. law firm Gibbs Mura initiates a class-action investigation into the Drift Protocol theft incident, involving an amount of approximately $280 million to $285 million. The law firm said that Circle did not freeze the stolen funds in a timely manner, and urged affected users to join the lawsuit to recover their losses.

On-chain sleuth ZachXBT said the Bitcoin Depot hack resulted in an actual loss of 54 bitcoins, which is more than its official reported figure of 50.9 bitcoins. The hacker stole the funds on March 20 after compromising credentials, and Bitcoin Depot only discovered the loss three days later.

A CEX co-founder, Ben Delo, donated $5.4 million to the Reform UK party, and the donation took place before new UK regulations came into effect. Delo was previously fined $10 million for violating anti–money laundering compliance and received a pardon from Donald Trump. Reform UK positions itself as a pro-cryptocurrency political party and is currently facing a pause order on crypto donations. After relocating to the UK, Delo plans to be exempt from donation limits.

The U.S. CFTC and the Department of Justice are asking a federal court to stop Arizona from enforcing its state gambling laws against prediction market operator Kalshi, arguing that its contracts should be regulated by federal oversight rather than state statutes. Related criminal charges have been filed, and the hearing is scheduled for April 13.

Odin Fun co-founder Bob Bodily said that in response to recent attack incidents, the platform is carrying out multiple recovery efforts, including rolling back state, tracking funds, patching vulnerabilities, auditing contracts, and communicating with the community. This incident resulted in large-scale sell-offs and abnormal account withdrawals.

Gate News update, April 9, a South Korean court issued a ruling in an administrative lawsuit filed by a certain CEX operator against the Financial Intelligence Unit (FIU), deciding to overturn the prior three-month partial business suspension order. The court said that, in the absence of clear implementation guidance from the regulator, the operator had taken measures including customer undertakings and internal monitoring and had met its reasonable obligations. Although there is still debate over whether the measures are sufficient to fully prevent transactions with unreported counterparties, they do not support the earlier penalty decision.

The U.S. Securities and Exchange Commission (SEC) released its 2025 fiscal year enforcement report, disclosing 456 actions and $17.9 billion in penalties, and emphasizing a return to the core of preventing fraud. The newly appointed chair, Atkins, harshly criticized the prior administration’s aggressive regulation and adjusted its enforcement approach toward cryptocurrencies, established a new division to combat technology-based scams, and is committed to protecting investors.

The trademark dispute between BAYC developer Yuga Labs and artist Ryder Ripps was finally settled in 2026, with Ripps being barred from using Yuga’s images and trademarks. The case involved trademark infringement and artistic freedom; the court held that even with a satirical intent, it could still cause consumer confusion, so Ripps was not exempted from liability. This case established an important legal precedent for NFT trademark protection.

Bitcoin (BTC) gives back the overnight gains, temporarily trading at around $70,650 on April 9. The U.S. SEC appointed David Woodcock as its new Enforcement Director, after concerns were raised about how crypto cases would be handled following the departure of the prior official. The U.S. Treasury is planning to require stablecoin issuers to take on anti-money-laundering and sanctions compliance obligations.

The U.S. federal appeals court ruled that the state of New Jersey lacks authority to block the sports contract offerings of the prediction market platform Kalshi, which are regulated by the CFTC, stating that federal law takes precedence over state law. Although Kalshi prevailed, experts said this is only a temporary victory and that the Supreme Court will ultimately have to decide the jurisdiction issue.

In 2025, Americans lost $11.36 billion to cryptocurrency fraud, a 22% increase from 2024, with investment scams accounting for the majority. Despite increased enforcement, scams continue to thrive, particularly affecting older victims, prompting authorities to enhance anti-fraud measures.

The U.S. Securities and Exchange Commission (SEC) appointed David Woodcock as the new head of its enforcement division on April 8, replacing the departing official. Woodcock does not have a background in the crypto industry, and the appointment comes amid controversy over the SEC’s actions in crypto enforcement. The SEC chair said the move will strengthen efforts to crack down on misconduct by investors.

Timor-Leste’s “crypto cryptocurrency resort” plan is reportedly related to a scam network run by the Cambodian royal family group that has been sanctioned by the United States; on-the-ground investigations found the site to be empty land. The royal family group is accused of carrying out large-scale online fraud, with victims worldwide. The investigation has raised concerns within the Timor-Leste government, which said the country faces the risk of transnational crime.

A U.S. FBI report shows that in 2025, losses from cryptocurrency scams reached $11.4 billion, up 22% from the previous year. The scams are sophisticated, mainly controlled by criminal groups in Southeast Asia, and they use human trafficking to force victims into labor. The number of victims increased to 181,565 cases, with an average loss of more than $62,000; many people lost their lifetime savings.

On-chain detective ZachXBT revealed that an anonymous source shared stolen data from North Korea’s internal payment servers, involving 390 accounts and encrypted transaction information. More than $3.5 million in funds vanished, and it is connected to a sanctioned company. ZachXBT has compiled a detailed organizational chart.

Timor-Leste’s “cryptocurrency resort” project is believed to be connected to a Cambodian prince group scam network that is subject to U.S. sanctions. On-site investigation found the location to be an empty lot. The prince group has been accused of carrying out large-scale online fraud, with victims worldwide. The investigation prompted concern from the Timor-Leste government, which said the country faces the risk of transnational crime.

Newly surfaced phone records and messages are adding to evidence that could deepen legal scrutiny of Argentine President Javier Milei’s role in the failed Libra cryptocurrency project, The New York Times reported Monday. Court documents from an ongoing federal investigation show Milei exchanged