Enforcement Actions

Gate News: On March 9, American law firm Burwick Law filed a lawsuit on behalf of a client against the co-founders of ZEREBRO, Jeffy Yu and Agustin Cortes, regarding losses related to ZEREBRO. The lawsuit states that the client suffered financial losses due to ZEREBRO.

At the Fourth Session of the National People's Congress, Chief Justice Zhang Jun reported that over the past five years, there has been a significant increase in the number of cyber security crime cases, including online rumors and money laundering. He emphasized strict punishment for related crimes and also pointed out that drivers who use assisted driving after drinking alcohol still bear criminal responsibility.

The U.S. Department of the Treasury in its report acknowledged that cryptocurrency mixers can be used for legitimate financial privacy and recommended legislation to establish a freezing law that allows financial institutions to temporarily freeze suspicious digital assets. At the same time, the report disclosed data on North Korea using mixers for money laundering and proposed compliance recommendations for decentralized finance. This shift in stance stems from federal court rulings and assessments of the impact of mixers.

Gate News Announcement: On March 9, the Flow Foundation announced that it and Dapper Labs have filed an application with the Seoul Central District Court in South Korea to suspend the decision by the country's three major Korean exchanges to terminate FLOW trading support on March 16. The Flow Foundation stated in the announcement that all major global exchanges have resumed full FLOW services. This week, some

The latest report from the U.S. Department of the Treasury acknowledges that cryptocurrency mixers can be used for legitimate financial privacy purposes and distinguishes between custodial and non-custodial mixers. While requiring registration for custodial mixers, no new restrictions are imposed on non-custodial ones. Additionally, the report mentions that North Korean cybercrime activities involve money laundering through mixers and recommends establishing a safe harbor mechanism for digital assets to clarify anti-money laundering responsibilities.

Nevin Shetty, a Washington man, was sentenced to two years in prison for diverting $35 million from his employer to a DeFi platform, leading to significant company losses and layoffs. After investments collapsed, he confessed and was subsequently fired.

U.S. Department of the Treasury recommended AML and counter-terror financing rules for DeFi platforms. The report proposes a digital asset “hold law” allowing institutions to freeze suspicious crypto funds during

Gate News Report, March 8 — A 25-year-old mainland businessman reported being illegally confined and extorted by four mainland men at a hotel in Hung Hom, Hong Kong. The suspects assaulted the victim and forced him to provide his cryptocurrency password, then transferred approximately $680,000 worth of cryptocurrency. The suspects then went to the victim's company to take about 42 kilograms of silver goods, with total losses exceeding HKD 6 million. The victim was released in the early hours and reported the case, suffering injuries to the face, arms, and calves. The case is currently classified as illegal confinement and extortion, and is under investigation by the Kowloon City Criminal Investigation Division.

Nevin Shetty, the former senior executive of startup Fabric, has been sentenced to two years in prison for a $35 million wire fraud scheme involving a high-risk cryptocurrency gamble. A Secret Side-Business A former chief financial officer’s (CFO) attempt to turn his employer’s treasury into a

People's Bank of China Governor Pan Gongsheng stated at the National People's Congress that over the past year, China's financial risks have been effectively controlled, and the financial market has operated stably. In the future, efforts will continue to crack down on illegal financial activities, maintain financial stability, assess the impact of external shocks, and implement policy measures to manage risks.

BlockFills seeks restructuring advice from consulting firm BRG and appoints Mark Renzi as Chief Transformation Officer, aiming to complete the restructuring, inject new capital, and implement governance controls. The company recently paused deposits and withdrawals due to market volatility and is facing legal proceedings.

A Manhattan judge in the United States dismissed a civil lawsuit against a certain CEX and its founders due to the plaintiff's failure to provide sufficient evidence linking trading activities directly to terrorist attacks. The judge allowed the plaintiff to submit a revised complaint within 60 days.

Gate News Report, March 8, - Prediction market platform Kalshi was sued collectively. The platform failed to pay appropriate winnings to users of prediction event contracts related to the Iran war. Kalshi CEO Tarek Mansour previously stated opposition to profiting from individual deaths and claimed he would refund fees for the "Will Khamenei step down" event contract market.

Gate News: On March 8, the U.S. Department of the Treasury submitted a report to Congress under the GENIUS Act, recommending that DeFi be explicitly required to undertake anti-money laundering and counter-terrorism financing (AML/CFT) obligations, and considering the establishment of a "hold law" mechanism for digital assets, allowing institutions to temporarily freeze assets during investigations of suspicious transactions without a court order. The report also revealed that the scale of crypto crimes continues to grow, with FBI records showing $9 billion in crypto scam losses in 2024.

Nevin Shetty, a Washington man, was sentenced to two years in prison for diverting $35 million from his employer to a DeFi platform, leading to significant company losses and layoffs. After investments collapsed, he confessed and was subsequently fired.

Justin Sun and the U.S. SEC have settled a $10M lawsuit that began in March 2023, resolving claims of market manipulation in the Tron ecosystem. This settlement closes a lengthy legal battle, providing relief to the crypto sector and fostering improved relations between blockchain projects and regulators.

U.S. President Trump signed an executive order on March 6th to combat cybercrime and fraud, requiring relevant ministers to review frameworks and develop action plans. The order establishes an action team to coordinate the fight against transnational cybercrime and proposes a victim recovery plan to compensate victims of online fraud. At the same time, it calls for negotiations with countries that tolerate such crimes and measures to restrict them.

Recently, a knife robbery occurred in Sheung Wan, Hong Kong. Two victims were robbed after exchanging approximately 10 million HKD at a currency exchange shop. The police successfully apprehended the suspect, and the victims did not suffer any property loss. This is the third major cash robbery in the area within three months. The police have begun investigating the connection between the cases and the background of the criminal group.

People's Bank of China Governor Pan Gongsheng stated at the National People's Congress that over the past year, financial risks have been orderly resolved, and the financial system has operated stably. In the future, efforts will continue to combat illegal financial activities, prevent financial risks, and closely monitor the impact of external shocks.

A U.S. judge dismissed a civil lawsuit accusing a certain exchange and its founders of colluding with a terrorist organization to carry out an attack. The plaintiff failed to prove that the defendants intentionally collaborated with terrorists. The judge criticized the complaint for being lengthy but allowed for amendments, and the exchange firmly denied the allegations.