criminal

According to a report by the International Consortium of Investigative Journalists (ICIJ), the stablecoin issuer Circle has been criminally charged by the Wisconsin state prosecutor for refusing to comply with a court order to assist in recovering funds for fraud victims.A victim in Wisconsin was defrauded of approximately 381,000 USDC, and the court issued a warrant last December requiring Circle to transfer frozen assets to law enforcement wallets, but Circle refused to comply, citing "technical inability to destroy and reissue tokens."The New York state prosecutor had previously sent a letter to the U.S. Senate, accusing Circle of repeatedly refusing asset freeze requests without a warrant and questioning its motives—Circle currently holds at least 119 million frozen USDC, which can continuously earn interest.In response, Circle denied the allegations, stating that the Wisconsin court lacks jurisdiction, and indicated that it has reached a preliminary agreement with federal prosecutors regarding a compensation mechanism for victims. Cryptocurrency tracking experts pointed out that Circle could fully implement token destruction and reissuance by updating its code, casting doubt on its claim of technical incapacity.

According to the official report, the Dutch Public Prosecution Service (OM) has applied to the Rotterdam court to declare the cryptocurrency trading platform Knaken Cryptohandel B.V. and its subsidiary Stichting Knaken Payments bankrupt.OM stated that the Dutch Authority for the Financial Markets (AFM) had previously warned that the platform was illegally providing exchange and custody services for crypto assets without the necessary licenses. Although the platform claims to have ceased operations and is undergoing liquidation, it has currently completely stopped making payments to customers. OM is concerned that its liquidation process lacks order and may harm investors' interests, thus applying for bankruptcy, aiming to appoint a liquidator to take over and safeguard creditors' funds.In addition, based on the report from AFM, the Dutch Financial Intelligence and Investigation Service (FIOD) has launched a parallel investigation into the alleged criminal activities of the platform. Law enforcement executed multiple searches on June 29, seizing relevant digital storage devices and freezing some of the company's assets, with no arrests made so far.

According to CriptoNoticias, Chilean judicial authorities have launched an investigation into the cryptocurrency platform Plusspay, accusing it of providing a money laundering channel for the multinational criminal organization Aragua Train.The investigation shows that the platform may have exchanged local fiat currency for Tether, USD stablecoins, and other stablecoins through multiple affiliated companies, and used the Chilean banking system to transfer funds, with the scale of related suspicious fund flows exceeding 84 million dollars.

According to Bloomberg, the Hungarian government will abolish criminal penalties for cryptocurrency transactions, revoking the regulations tightened during the tenure of former Prime Minister Viktor Orbán.Last year, Hungary tightened the rules for cryptocurrency asset exchanges, requiring that cryptocurrency-to-fiat and cryptocurrency-to-cryptocurrency transactions go through an approved verification process; otherwise, related violations could face imprisonment.

The Southern District Prosecutors' Office of Seoul, South Korea, has detained and prosecuted 2 individuals and prosecuted 3 individuals without detention in relation to the Rug Pull case of the Solana meme coin CATFI on decentralized exchanges (DEX). The prosecution stated that this is the first case applying the unfair trading provisions of the Virtual Asset User Protection Act and also the first case to detain and prosecute the main perpetrator of a DEX Rug Pull case.

The Criminal Investigation Bureau of the Ministry of Public Security published an article titled "Beware of Online Fraud Targeting Minors," which reveals a new type of online fraud chain characterized by "game diversion + impersonating public security and judicial authorities + virtual currency money laundering." Criminals post advertisements through games and social platforms to guide minors to add friends, and use intimidation and other means to extract funds from parents' accounts. The stolen money is split and withdrawn through black and gray industry platforms to purchase virtual currencies, which are not restricted by geography and can silently flow back to overseas fraud dens, completing the "physical isolation" of cross-border funds. The Criminal Investigation Bureau reminds that public security and judicial authorities will never handle cases online, will never intimidate for deductions, and will never ask for passwords or verification codes.

Caixin reported that a private banking client was sentenced to immediate imprisonment for 6 months and fined HKD 500,000 for deliberately providing false information in CRS declarations, becoming the first case in Hong Kong to be criminally convicted for violating CRS rules.CRS 2 is a revision of the OECD's Common Reporting Standard and the term for the Crypto-Asset Reporting Framework (CARF), which will take effect on January 1, 2026. On March 27, 2026, the Hong Kong government published the "2026 Taxation (Amendment) (Automatic Exchange of Financial Account Information) Bill" in the gazette, which was submitted for its first reading in the Legislative Council on April 1 and is expected to be implemented starting January 1, 2027, marking Hong Kong's entry into the fast track for local legislation of CRS 2.CRS 2 explicitly includes cryptocurrencies in the mandatory reporting scope, along with stablecoins, crypto derivatives, certain NFTs, central bank digital currencies, and specific electronic money products. Crypto trading platforms, custodians, and related funds are required to fulfill KYC obligations and report information to tax authorities, systematically blocking the pathways for concealing wealth through crypto assets.

According to Protos, Myanmar has proposed introducing the death penalty for criminals who use violent means to coerce victims into participating in cryptocurrency scam centers. According to the draft of the country's Anti-Cyber Fraud Bill, criminals who use violence, torture, illegal arrest and detention, or cruel treatment against others to force them to commit cyber fraud will be sentenced to death.The bill will be submitted to parliament for review in June. In addition, operators of scam centers or perpetrators of cryptocurrency scams will face life imprisonment. Last month, the President of Myanmar reduced all death sentences to life imprisonment.

According to Bits.media, the State Duma's Committee on National Construction and Legislation in Russia has suggested passing the government's proposed criminal liability bill for illegal cryptocurrency mining in the first reading.The bill will add Article 171.6 "Illegal Mining of Digital Assets and Activities of Mining Infrastructure Operators" to the Criminal Code, applicable to mining activities not registered in the national registry and unlicensed provision of mining infrastructure services. The severity of penalties will depend on the seriousness of the crime: for income or losses exceeding 3.5 million rubles, fines can reach up to 1.5 million rubles or two years' income, or compulsory labor for up to two years; for crimes committed by organized groups or income exceeding 13 million rubles, fines can reach up to 2.5 million rubles or three years' income, compulsory labor or imprisonment for up to five years, and may also include additional fines of up to 400,000 rubles or six months' income. In all cases, confiscation of the mined cryptocurrency is stipulated. The government states that currently about 50,000 entities in Russia are engaged in mining, but only 1,489 (609 legal entities and 880 individual entrepreneurs) are registered in the national registry.

According to ABC News, multiple sources have revealed that the U.S. Department of Justice is expected to terminate the criminal investigation into Federal Reserve Chairman Powell as early as Friday.

According to DL News, the Russian government has published a draft bill on the State Duma website, proposing to hold criminal liability for organizing the circulation of digital currencies without registration or permission from the Central Bank of Russia, with a maximum penalty of 7 years of forced labor.The draft states that ordinary violators could face fines of up to approximately $4,000 and a maximum sentence of 4 years; operators of large cryptocurrency trading platforms could face fines of up to approximately $13,000, and responsible individuals could be sentenced to 5 to 7 years. The bill also proposes that most cryptocurrency transactions be completed through commercial bank apps and imposes penalties on industrial cryptocurrency miners for unreported activities. If approved by the State Duma and the president, the new regulations are set to take effect on July 1, 2027.

According to Cryptopolitan, the Russian government has submitted a bill to the State Duma to hold illegal cryptocurrency mining activities criminally liable, with a maximum penalty of five years in prison and a fine of up to 2.5 million rubles (approximately $25,000). Currently, about 50,000 individuals and entities in Russia are engaged in mining activities, but fewer than 1,500 have completed registration.Meanwhile, Russia has extended the mining ban to the Republic of Buryatia and the Transbaikal Territory, lasting five years until March 15, 2031. The mining ban currently covers 13 regions, including Irkutsk, Donetsk, Luhansk, Zaporizhzhia, Kherson, and several republics in the North Caucasus. The Energy Minister of Moscow Oblast has proposed banning mining in Moscow and the region to alleviate the load on the power grid. Russia is one of the top three destinations for Bitcoin mining globally, but the government is prioritizing the use of computing power for artificial intelligence applications.

According to the People's Daily, with strong support from relevant departments in Cambodia, a working group from the Ministry of Public Security of China successfully escorted Li Xiong, a core member of the Chen Zhi criminal group, back to China from Phnom Penh, Cambodia.Investigations revealed that Li Xiong previously served as the chairman of Huiwang Group under the Prince Group and is suspected of multiple crimes including operating a casino, fraud, illegal business operations, and concealing criminal proceeds. Currently, Li Xiong has been subjected to compulsory measures in accordance with the law, and the related case is under further investigation. A relevant person in charge from the Ministry of Public Security of China stated that several core members of the Chen Zhi criminal group have been successively brought to justice, and public security agencies will continue to intensify efforts to capture and bring fugitives to justice.Previously, U.S. federal prosecutors accused Chen Zhi of money laundering and telecommunications fraud, and in October 2025 revealed that the U.S. had seized 127,271 bitcoins that he once controlled, valued at $15 billion at the time.

According to a report by the Korea Unified News Agency, the Jongno Police Station in Seoul announced the dismantling of a money laundering crime group primarily composed of family members and relatives.The group operated an unregistered virtual asset exchange in Myeongdong, Seoul, converting cash obtained from telephone scams into Tether (USDT) and then transferring it overseas, with the money laundering scale reaching hundreds of billions of Korean won.In addition, the group also took advantage of rising precious metal prices to purchase gold through virtual assets across borders and then exported it for profit. The police have arrested 19 suspects, including the main money laundering perpetrator A (46 years old) and three others who have been detained. The overall leader of the scam organization, B (44 years old), has fled overseas, and the police are in pursuit. Currently, cash, silver balls, and gold bars totaling approximately 6 billion Korean won have been seized as criminal proceeds.

Arizona Attorney General Kris Mayes has filed a criminal lawsuit against Kalshi, stating, "Kalshi may pride itself on being a 'prediction market,' but in reality, it operates illegal gambling activities and accepts bets on Arizona elections, both of which violate Arizona law. No company has the right to unilaterally decide which laws to follow."Kalshi is currently facing other legal lawsuits in states such as Ohio and Tennessee.

According to Hong Kong media Hong Kong 01, the Hong Kong police have cracked a money laundering case involving the use of puppet accounts and virtual currency exchange shops. It is reported that two mainland Chinese individuals opened puppet accounts in Hong Kong, using 43 local bank accounts to receive 34 sums of money from different fraud cases, and purchased cryptocurrency at virtual asset exchange shops, laundering approximately HKD 17.3 million in criminal proceeds.Analysis of the fund flow shows that the criminal group conducted cryptocurrency transactions through local bank accounts, laundering as much as HKD 230 million. The Hong Kong police charged the two individuals with 3 and 10 counts of money laundering respectively. After reviewing the case, the court approved heavier sentences of 28 months and 43 months in prison for the two.

According to a report by The Wall Street Journal citing informed sources, the Federal Reserve is secretly initiating a legal challenge in response to two subpoenas issued by U.S. prosecutor Jeanine Pirro in the criminal investigation against Powell.Pirro, a longtime ally of President Trump, launched the investigation to examine whether Powell made false statements to Congress last summer regarding the Federal Reserve building renovation project. This action prompted Powell to respond publicly in an unprecedented manner, stating in a video statement on January 11 that the investigation is a guise for Trump's ongoing pressure on the Federal Reserve to cut interest rates and undermine the central bank's independence.In the secret proceedings, the Federal Reserve is requesting the judge to quash the subpoenas to reduce or eliminate its obligation to respond. The specific legal arguments have not been disclosed. In high-profile investigations, it is not uncommon for recipients of subpoenas to challenge prosecutors on the grounds that the requests are overly broad or involve information protected by legal privilege.Due to the confidentiality rules applicable to criminal investigations before grand juries, this legal battle is quietly ongoing and not open to the public.

According to Eleanor Terrett, U.S. Republican lawmakers Fitzgerald (Wisconsin), Cline (Virginia), and Democratic lawmaker Lofgren (California) jointly proposed the "Blockchain Innovation Development Act," aimed at clarifying the applicability of Section 1960 of the Criminal Code.The bill explicitly states that Section 1960 applies only to entities that control customer funds, rather than developers who merely write code. Previously, in cases like TornadoCash and SamouraiWallet, regulators had applied this provision to non-custodial software developers, leading to a strong backlash from the crypto industry. This bill will provide legal protection for blockchain developers and address the long-standing conflict between crypto innovation and regulation.

According to Kommersant, Russian President Vladimir Putin has signed a new law that grants Russian courts new powers to confiscate cryptocurrencies in criminal investigations.The law will amend the Russian Criminal Code to classify cryptocurrencies as a form of intangible property. Elena Ardabyeva, Deputy Minister of Justice of Russia, stated that the law formally incorporates existing digital asset confiscation protocols into the legal framework and provides a legal avenue for cooperation with foreign cryptocurrency exchanges.The law stipulates that requests for the confiscation of cryptocurrencies made by police or prosecutors must include detailed information such as the type of tokens, quantity, and wallet addresses. Experts suggest that the Kremlin may begin to block citizens' access to foreign cryptocurrency exchanges this year.

The U.S. Department of Justice announced that the cryptocurrency trading platform Paxful Holdings Inc. has been fined $4 million for failing to establish effective anti-money laundering controls.Prosecutors alleged that the platform has long allowed illegal funds related to fraud, prostitution, and human trafficking to flow through it, profiting from these activities. The Department of Justice stated that Paxful was aware that some customer funds were derived from criminal activities but continued to provide services, using lax anti-money laundering regulations as a selling point to attract users. The investigation also pointed out that the platform processed cryptocurrency transactions for websites including Backpage, which is believed to have been used to post advertisements related to prostitution, involving minors. Data shows that from 2015 to 2022, approximately $17 million worth of Bitcoin flowed through Paxful wallets to related websites, with the platform earning at least $2.7 million in profits from this. The Department of Justice stated that Paxful's founder even referred to the resulting business growth as the "Backpage Effect."