Enforcement Actions

Market Prediction Kalshi publicly announces the enforcement results of two insider trading cases for the first time, involving a clipper from the MrBeast team who was fined $20,000 and banned for two years for profiting from non-public information, and another California candidate who was fined $1,000 and banned for five years for betting on their own election prospects. This move demonstrates Kalshi's commitment to market integrity and strengthens regulation to prevent similar incidents.

_Court says private crypto exchanges fall outside writ powers, pushing investors to civil and criminal legal routes._ India’s crypto dispute over Bitbns has taken a decisive legal turn. Delhi High Court declined to intervene in investor complaints seeking a CBI probe and fund recovery. Judges

Terraform Labs’ administrator has sued Jane Street, accusing it of insider trading that accelerated the collapse of LUNA and UST coins. He claims that Jane Street received non-public information from a former employee to front-run retail traders; Jane Street has dismissed the claims. Terrafo

SBF called on Trump to support the "Cryptocurrency Market Structure Act" on Twitter and mentioned his confrontation with the former SEC chairman. SBF is seeking a pardon, but the White House has stated that Trump has no intention of pardoning him. This message was reposted by his friend.

The police in Gyeonggi Province, South Korea, have arrested two suspects for allegedly stealing 22 Bitcoins. These Bitcoins were seized during an investigation into a 2021 hacking case and were illegally transferred due to improper storage by the police. They have not yet been recovered, with an estimated loss of approximately $1.5 million.

The case of 60,000 Bitcoin money laundering will hold a hearing in July, and applicants are required to provide financial details before 2026. The hearing will determine whether Chinese law or UK law applies, affecting victims' rights to compensation.

February 25 News, the Delhi High Court recently dismissed a lawsuit filed by a group of cryptocurrency investors against a certain crypto platform. Judge Prushaindra Kumar Kaurav pointed out that the platform is a private company and does not meet the definition of a "state" entity under Article 12 of the Constitution, therefore it cannot be subject to judicial intervention under Article 226. The petition lacks a legally admissible basis. The lawsuit was initiated by investors such as Rana Handa and Aditya Malhotra, requesting the court to strengthen regulation of the crypto platform, and to direct the CBI or a special investigation team to intervene, as well as to unfreeze the user funds that are reportedly restricted. However, the court explicitly stated that ordering a criminal investigation is an extremely exceptional circumstance, and some complaints have not even completed the FIR process, which is insufficient to trigger a mandatory investigation mechanism.

Bitcoin Depot has implemented a new policy mandating identification for every transaction at its ATMs to enhance compliance and reduce fraud. This change extends previous ID checks and responds to increased regulatory scrutiny and fraud concerns, notably following lawsuits from various states.

Jane Street faces allegations from Terraform Labs, claiming it profited by using non-public information to close positions early before the 2022 UST collapse. Jane Street denies the allegations, asserting that the trades were part of normal market-making activities. This case could impact the legal definition of insider trading within the cryptocurrency market. As a major crypto market maker, Jane Street's trading activities are often scrutinized during significant market events, but it has not yet been found legally liable by regulatory authorities.

Jane Street faces allegations from Terraform Labs, claiming it profited by using non-public information to close positions early before the 2022 UST collapse. Jane Street denies the allegations, asserting that the trades were part of normal market-making activities. This case could impact the legal definition of insider trading within the cryptocurrency market. As a major crypto market maker, Jane Street's trading activities are often scrutinized during significant market events, but it has not yet been found legally liable by regulatory authorities.

On February 25, the U.S. federal prosecutors announced the successful seizure of over $61 million in USDT. This funds are believed to be related to large-scale cryptocurrency "pig butchering" investment scams. According to a statement released by the U.S. Attorney's Office for the Eastern District of North Carolina, law enforcement officials tracked blockchain fund flows to identify a series of suspected money laundering crypto wallets. These wallets hold assets derived from victims of crypto romance scams who were deceived. The investigation was led by Homeland Security Investigations. Agents traced the victims' transfer paths to identify wallet accounts still holding substantial balances and initiated seizure and forfeiture procedures in accordance with the law. U.S. Attorney Ellis Boyle stated that this seizure demonstrates law enforcement's increased efforts to crack down on the crypto scam money chain, especially targeting cross-border fund transfers and multi-layer address obfuscation used in money laundering.

The bankruptcy liquidator of Terraform Labs has sued Wall Street trading giant Jane Street for insider trading, accelerating the collapse of Terra-Luna. The complaint alleges that Jane Street used confidential information obtained privately by former employees to conduct insider trading before the market crash. Jane Street denies the allegations and blames the collapse on mismanagement by Terraform Labs.

February 25 News, a criminal case in South Korea related to losses from cryptocurrency investments has sparked widespread social discussion. A man in his 30s was indicted by prosecutors for allegedly adding insecticide to coffee to kill a spider after a fierce dispute with a business partner over more than $816,000 in crypto investment losses. The victim was poisoned and fell into a coma. He is currently facing charges of attempted murder and violations of the Agricultural Chemicals Control Act. According to South Korean media reports, the incident occurred in November 2025 at a coffee shop. The victim suddenly lost consciousness and collapsed after drinking the beverage, and was rushed to the hospital. He regained consciousness three days later. The victim stated that this incident has caused serious impact on his family. Although his physical condition is gradually recovering, he still needs ongoing medical examinations.