Enforcement Actions

The latest FATF report indicates that P2P transfers of stablecoins have become a major source of money laundering risk in the crypto space, especially in unhosted wallet transactions where regulation is difficult. Approximately 84% of illegal crypto transactions involve stablecoins. FATF recommends strengthening regulation of stablecoin issuers and promoting anti-money laundering measures.

The Taipei District Prosecutors Office is investigating the Cambodia "Prince Group" money laundering case, involving illegal proceeds of up to 10.7 billion. Sixty-two people, including Chen Zhi, have been indicted. The group was found to be using USDT and their self-developed "OJBK Wallet" for cross-border money laundering. Chen Zhi directed the establishment of companies in multiple countries, disguising criminal proceeds through false transaction contracts, and purchasing luxury homes and high-end cars. The prosecution is seeking a maximum sentence of 13 years for him.

Google Threat Intelligence Team Report Reveals New iPhone Exploit Kit Coruna Used in Large-Scale Cryptocurrency Scams. The toolkit uses JavaScript fingerprinting technology to identify iOS devices and steal crypto seed phrases and financial account information. All iPhone users are advised to update their systems immediately to prevent infection. The origin of Coruna is controversial, suspected to be linked to the U.S. government, but no definitive evidence has been provided.

The Omsk City Court in Russia sentenced three young men to five years in prison for holding a knife and robbing cryptocurrency holders. They used violence and threats to force victims to hand over assets, but ultimately gained no profit and fled after neighbors noticed. This case reflects an increase in violent crimes targeting crypto assets worldwide, and Russia is strengthening its crackdown on such crimes.

U.S. Senator Chris Murphy expressed concern over prediction market trading ahead of military actions against Iran, accusing large bets of potentially involving insider information and leading to corruption that profits from war. He mentioned that certain accounts placed precise bets before the airstrikes and reaped huge profits, calling for legislation to restrict such transactions to protect national security. This has sparked widespread discussion in U.S. politics about war powers and transparency.

The FBI in the United States and Europol, along with multiple law enforcement agencies, shut down the cybercrime forum LeakBase, a platform used for trading stolen data, which had 142,000 registered members. During the operation, servers were seized, a large amount of evidence was collected, and the sensitive data trading channels of cybercriminals were cut off. The collaboration among law enforcement agencies demonstrates that the international response to cybercrime is strengthening.

Polymarket has sparked public controversy for listing nuclear explosion prediction contracts, being accused of exploiting human survival crises for speculation. The platform removed the contracts on March 4 and is facing regulatory pressure. Analysts point out that the platform may become a channel for insider trading, threatening the reputation of prediction markets. U.S. regulatory agencies plan to further regulate prediction markets, emphasizing the need to strike a balance between ethics and legality.

Taipei District Prosecutors Office has indicted 62 members of the Cambodian Prince Group, involving money laundering and organized crime totaling 10.7 billion yuan. After four months of investigation, prosecutors are seeking heavy sentences for core members and have seized assets such as luxury homes, supercars, and yachts. The group used "pig-butchering" scams to accumulate illegal proceeds and then concealed funds through a multi-layered money laundering system. This case has prompted judicial cooperation between Taiwan and the United States, demonstrating a close international law enforcement partnership.

The prediction market platform Kalshi refused to pay users' expected $54 million payout, citing that its contract "exit" definition does not include assassination scenarios. The incident has sparked insider trading allegations against competitor Polymarket. U.S. senators plan to introduce legislation to ban prediction contracts related to government actions, arguing that such markets distort public judgment.

Hong Kong police have uncovered a money laundering case involving the use of puppet accounts and virtual currencies. The two mainland Chinese suspects received funds through multiple bank accounts and purchased cryptocurrencies at virtual asset exchanges, laundering approximately HKD 17.3 million. The police ultimately prosecuted the two individuals, sentencing them to 28 months and 43 months in prison respectively.

Cryptocurrency exchange Kraken becomes the first company to hold a main account with the U.S. Federal Reserve, allowing direct settlement of USD transactions. However, this has sparked strong opposition from the banking industry, which is concerned about potential threats to financial stability. Stablecoins could lead to a $6.6 trillion outflow of deposits, affecting lending costs. Trump supports the crypto agenda, accusing banks of obstructing legislation, indicating his political stance and vested interests.

Catalonia police in Spain have seized an illegal Bitcoin mining operation suspected of stealing electricity worth €860,643. The mining farm operated 88 mining machines through illegal access to the high-voltage power grid, posing safety risks. One suspect has been detained, and the case is under investigation.

Taipei District Prosecutors Office concludes the Prince Group money laundering case, indicts 62 people, and seizes assets worth over 5.5 billion NT dollars, revealing a cross-border financial network. The group has established multiple companies in Taiwan since 2016 and has laundered 10.7 billion NT dollars through gambling platforms and overseas companies. The prosecution is seeking the maximum penalty for the mastermind, Chen Zhiqiu, and several other members also face severe charges. The case is still under investigation.

A rise in cybercrime is noted in South Korea as individuals seek revenge through crypto payments and apps like Telegram. Authorities investigate vandalism and threats linked to this trend, revealing a network facilitating these acts under the guise of “private revenge organizations.”

Wall Street regulators are advancing regulatory plans for the crypto industry. The U.S. Securities and Exchange Commission has submitted guidance to the White House to establish classification standards for crypto assets. The Commodity Futures Trading Commission is also considering new rules for prediction markets, both aiming to clarify the scope of regulation and protect investors.

Beast Industries fired video editor Artem Kaptur for insider trading, following a Kalshi enforcement action. CEO Jeff Housenbold emphasized the company's zero tolerance for unethical behavior, particularly in prediction markets.

Original Author: Xu Qian, Jin Weilin Recently, a typical enforcement case reported by the Beijing Higher People's Court has attracted widespread attention. The case clearly includes online virtual assets such as live streaming income and digital collectibles within the scope of enforceable property. This judicial practice provides an innovative approach to solving the "difficulty in enforcement" problem. Case Introduction: From "no property available for enforcement" to successfully deducting 200,000 yuan in live streaming income After a contract dispute case involving an industrial company and Wang entered enforcement proceedings, the court, through its inquiry and control system, found that Wang had no real estate, vehicles, bank deposits, or other traditional assets available for enforcement. The case was temporarily concluded at that point. Subsequently, the applicant for enforcement discovered a lead: Wang has been engaged in diamond sales and live streaming activities on a certain platform for a long time, with a fixed account and income. This lead was submitted to the Beijing Court's "Enforcement Property Clue Transfer Center" and quickly transferred to the Fengtai District People's Court of Beijing. After verifying the situation, the court

Catalonia police in Spain raided an illegal Bitcoin mining farm in Barcelona, resulting in electricity fraud totaling up to €860,643. Authorities found 88 ASIC miners without meters, posing safety risks. The suspects have been detained, and the investigation is ongoing.

The FATF warns that P2P stablecoin transactions using unhosted wallets are a significant blind spot in the crypto ecosystem, potentially evading AML oversight. They urge countries to assess risks and enhance monitoring of such transactions. In 2025, illegal addresses received $154 billion in crypto, with 84% involving stablecoins, although illegal transactions remain under 1% of on-chain volume.