prison

According to The Block, Las Vegas businessman Brent Kovar was convicted by a jury for his involvement in a $24 million cryptocurrency Ponzi scheme and faces a maximum of 280 years in prison.The U.S. Department of Justice stated that Kovar used investor funds to operate Profit Connect and repaid old investors with new funds under the guise of mining profits.

According to Caixin, the Hong Kong Court of Appeal yesterday rejected the sentence reduction application of the mastermind behind the electric fraud and human trafficking, Ma Zhihao, and upheld the original sentence of 56 months in prison. During the investigation of the case, the Hong Kong police tracked the criminal funds through blockchain and cryptocurrency transaction records, identifying the key points where ransoms and criminal proceeds were received.It is reported that a victim's family paid approximately 9,527 Tether (USDT) to a cryptocurrency wallet designated by the criminals. The blockchain tracking records conclusively prove that 8,127 USDT flowed into an exchange account registered under Ma Zhihao's real name and Hong Kong ID, which was then exchanged for about 63,000 Hong Kong dollars and transferred to his personal HSBC bank account, becoming important evidence of his involvement in the crime and obtaining profits. The Court of Appeal pointed out that if it were not for the 7-year sentencing cap imposed by the District Court, the punishment faced by the defendant would be much heavier than this.

The Hungarian Parliament passed Bill XXXVIII of 2026, which abolishes legal provisions related to cryptocurrency asset conversion services, including the verification requirements that European exchanges must pass to operate legally in Hungary. The bill was voted on and passed on July 31 and came into effect on August 7.This abolition simultaneously cancels two charges related to cryptocurrency assets: unauthorized trading of high-value cryptocurrency assets can result in a maximum of 5 years in prison, and violating verification obligations when providing cryptocurrency exchange services can result in a maximum of 8 years in prison. The relevant provisions were criticized for overlapping with the EU MiCA framework.

On the morning of August 20, 2026, the Intermediate People's Court of Shenzhen City, Guangdong Province publicly announced the first-instance verdict in the case of Evergrande Group Co., Ltd., Evergrande Real Estate Group Co., Ltd., and defendant Xu Jiayin. The court imposed multiple penalties on Evergrande Group, sentencing it to a fine of 8.82 billion yuan; it fined Evergrande Real Estate 7 billion yuan; and sentenced Xu Jiayin to life imprisonment for multiple crimes, depriving him of political rights for life, and confiscating all personal property; it also ordered the continued recovery of illegal gains, with any shortfall to be compensated.The court found that Xu Jiayin is the actual controller of Evergrande Group. Between 2016 and 2021, Evergrande Group, Evergrande Real Estate, and Xu Jiayin inflated assets and concealed liabilities through financial fraud and other means, committing crimes such as illegally absorbing public deposits, fundraising fraud, fraudulent issuance of securities, and illegally disclosing important information; they also obtained control of financial institutions through bribery, illegally siphoning off credit and insurance funds. Xu Jiayin further exploited his position to organize financial fraud, misappropriating company property under the guise of dividends. The court deemed these actions to severely disrupt the market economic order, with particularly huge amounts involved and particularly heinous circumstances, and imposed severe penalties according to the law.On the same day, the two levels of courts in Shenzhen also ruled on the cases of individuals involved in Evergrande related to illegally absorbing public deposits and fundraising fraud, sentencing 56 individuals including Zhen Litiao, Ke Peng, Xu Tenghe, and Xu Zhijian to prison terms ranging from eighteen years to one year and ten months, along with fines or confiscation of property.

A man in Anshun, Guizhou, used the name of a virtual currency airdrop project as a pretext to lure friends into investing with the bait of guaranteed high returns, ultimately crossing the legal red line. The People's Procuratorate of Pingba District, Anshun City, Guizhou Province, filed a public prosecution, and the court sentenced Zhao to seven months in prison for fraud, along with a fine of 5,000 yuan.Zhao had been paying attention to the field of virtual currency investment for many years and had long been posting investment insights and financial management tips on social media platforms. Zhang was also a virtual currency enthusiast, and the two met on a social platform due to their common interests, gradually becoming friends and frequently discussing investment strategies online. Through long-term communication, Zhao gained Zhang's trust with seemingly professional investment analysis. Subsequently, Zhao proposed a joint investment, to which Zhang agreed. However, after a period of investment, Zhang experienced significant losses and expressed his intention to stop further investments.On August 23, 2025, Zhao claimed that a certain app had launched an airdrop project (to promote a new project, encourage user participation, or reward loyal users, distributing native tokens of the project for free to eligible users), persuading Zhang to invest the remaining funds in his account into this project, promising a return of 100 to 200 U coins (virtual currency) within two days. Zhao also guaranteed that if there were any losses during this period, he would bear the responsibility. To further alleviate Zhang's concerns, Zhao claimed that all investment funds would be transferred to a public chain (the public address of the virtual currency). Believing Zhao, Zhang exchanged 1,757 dollars in his account for Ethereum and completed the transfer according to the wallet link provided by Zhao. In reality, the wallet corresponding to that link was a personal account registered using his girlfriend's identity information, not a public chain. The agreed time for the return of funds had passed, but Zhao had not fulfilled his promise. Zhang urged for repayment multiple times, but Zhao evaded responsibility with excuses such as sending the wrong link and needing time to track it down. On September 7 of the same year, Zhang reported the situation to the police after noticing something was wrong.On April 2 of this year, the Pingba District Procuratorate filed a public prosecution against Zhao for suspected fraud. The procuratorial agency believed that Zhao deceived others out of property by concealing the truth, with a significant amount involved, constituting the crime of fraud. Given that Zhao truthfully confessed to the criminal facts after being apprehended, showed signs of remorse, and had fully compensated the victim for their losses while voluntarily admitting guilt, he could be punished leniently according to the law.

According to Digital Asset, a South Korean court has made a first-instance ruling regarding Delio CEO Jeong Sang-ho involved in a cryptocurrency fraud case amounting to approximately 250 billion won (about 180 million USD), sentencing him to 15 years in prison.The 11th Criminal Division of the Southern District Court of Seoul stated that Jeong's criminal conduct was serious, and he continued to shift responsibility to other companies while attempting to evade accountability. This ruling comes about three years and two months after Delio suspended withdrawals in June 2023.

The U.S. Attorney's Office for Connecticut stated that three men from St. Louis, Sedric Louis, John Davis, and Martel Williams, have been charged with conspiracy to interfere with commerce by robbery, allegedly planning to break into a residence and force the victims to transfer cryptocurrency related to a theft of hundreds of millions of dollars in Bitcoin. Each faces a maximum of 20 years in prison.Prosecutors allege that the three traveled to Connecticut from August 21 to 24, 2024, rented a car, and prepared items such as air guns and walkie-talkies, monitoring their target and the target's parents for two consecutive days before abandoning the plan due to concerns that residential cameras would record their movements. Subsequently, another group from Florida executed the same plan and six individuals were arrested on August 25 in connection with a carjacking involving a Lamborghini Urus. Louis and Davis have been held since their arrest on June 25 and pleaded not guilty to the charges on July 30 in federal court in Bridgeport; Williams was released on bail after making the same plea on July 17. Prosecutors stated that the kidnapping target was the parent of an individual involved in the theft of hundreds of millions of dollars in Bitcoin, and the indictment does not constitute evidence of guilt.

According to The Block, former Los Angeles police officer Eric Halem was sentenced to life in prison plus 15 years for his involvement in a cryptocurrency-related robbery case.

Justin Ryan Schmidt, the founder of the cryptocurrency investment fund Translunar Crypto LP, has been sentenced to 37 months in prison by a U.S. court for tax evasion. The U.S. Department of Justice stated that the 46-year-old Schmidt pleaded guilty this year in federal court in Austin, Texas, where he was accused of underreporting income, declaring less than $5,000 in income from 2020 to 2022, while prosecutors claimed he actually earned over $7 million through fund operations from 2019 to 2022.It is reported that Schmidt founded Translunar in 2017, primarily investing in blockchain startups, with funding mainly coming from investors in the Austin area of Texas and Aspen, Colorado. He was arrested by the IRS Criminal Investigation Division on February 23, 2026, and has been in custody since then.

According to Decrypt, the Myanmar parliament passed a law on Tuesday that allows for the death penalty for those who coerce others into engaging in online fraud through violence or illegal detention.According to the draft bill released in May this year, if such abusive behavior results in the death of the victim, the death penalty should be imposed. The new law also stipulates that individuals operating online fraud parks or implementing "digital currency fraud (cryptocurrency fraud)" can be sentenced to life imprisonment; while criminals who commit violent coercion, illegal detention, and other acts can be sentenced to 10 years to life imprisonment.

According to Bits.media, Anatoly Aksakov, chairman of the Financial Market Committee of the State Duma of Russia, stated that the second and third readings of the criminal liability bill for illegal cryptocurrency transactions will be postponed until the new State Duma is reviewed. The reason is that the Duma's spring session will end on July 27, and there will be an election recess from August to September, with the Duma election voting ending on September 20. Therefore, the review will not resume until the autumn session at the earliest.The bill completed its first reading in early July, with a maximum penalty of 7 years in prison for organizing illegal cryptocurrency circulation. The relevant penalty provisions are proposed to officially take effect on July 1, 2027. Under the current regulatory framework, Russian citizens can only buy and sell cryptocurrencies through institutions holding a license from the Central Bank of Russia, and P2P and over-the-counter transactions may face criminal liability. Aksakov denied concerns that the bill would affect cryptocurrency exchanges and P2P users, stating that the related worries are "unfounded." Meanwhile, another Russian government initiative to strengthen state control over cryptocurrencies, the "Digital Currency and Digital Rights Law," has also been postponed, with the original timelines for implementation in July and September now missed.

According to Decrypt, the U.S. Department of Justice announced that Rossen Iossifov, the founder of the Bulgarian cryptocurrency exchange RG Coins, has been indicted for allegedly transferring approximately $290,000 in cryptocurrency assets that had been ordered to be forfeited by the court during his imprisonment.Prosecutors stated that in January 2024, while serving his sentence in federal prison, he conspired to transfer the assets involved through multiple cryptocurrency exchanges and mixing services to evade government seizure.Iossifov was previously sentenced to 111 months in prison in 2021 for participating in money laundering of nearly $5 million and assisting a Romanian cyber fraud gang in handling the proceeds, and he was ordered to pay restitution of over $2.6 million and forfeit related cryptocurrency assets. If the new charges are upheld, he could face an additional 25 years in prison.

A New York man was sentenced to 15 months in prison and 3 years of supervised release by a U.S. court for impersonating a cryptocurrency influencer on Telegram and using false staking returns as bait to defraud investors. 39-year-old Noman Saleem pleaded guilty to wire fraud in September 2025.Prosecutors stated that he created multiple fake Telegram accounts impersonating well-known crypto KOLs and attracted thousands of people to join his channels, even setting up paid "VIP sub-channels." Saleem claimed to victims that he could provide "guaranteed returns" through crypto staking or investment opportunities, inducing many to transfer their crypto assets into wallets under his control. However, prosecutors indicated that he did not actually engage in any staking operations and ceased communication after obtaining the funds, taking the victims' assets with him.The case resulted in losses exceeding $1.4 million, and the U.S. government has recovered and seized most of the funds.

According to HK01, the Hong Kong police have cracked a cross-border money laundering case. The involved group used 43 Hong Kong bank accounts to process funds from 34 fraud cases between June and September 2024, amounting to approximately HKD 18 million, and is suspected of laundering up to HKD 230 million in criminal proceeds through cryptocurrency transactions via bank accounts.The police investigation found that a 34-year-old woman from mainland China is suspected of coming to Hong Kong to set up multiple puppet bank accounts, assisting the criminal group in laundering approximately HKD 9.29 million in criminal proceeds, and purchasing cryptocurrency through virtual asset exchange shops to disguise the source and flow of funds. The woman was sentenced to 47.5 months in prison.The Hong Kong police remind that assisting a criminal group in handling funds could face up to 10 years in prison, and those involved in money laundering could face fines of up to HKD 5 million and imprisonment for up to 14 years.

Binance founder CZ disclosed on social media that over the past two years, he has donated $500,000 every six months to the nonprofit organization Prison Professors, totaling four donations and reaching $2 million. It is reported that this funding is primarily used to support free educational programs in U.S. prisons. CZ stated that he had not publicly disclosed this donation matter before.

The Hebei High Court released typical cases of cracking down on illegal fundraising. A certain man packaged an investment project with the concept of "metaverse" to promote the virtual goods investment project of the "Newmateworks" platform under the "Yishang United Community" to the public, inducing the masses to participate in the investment. He directly introduced 19 investors who invested a total of 15.3936 million yuan in the platform, of which 1.1014 million yuan has been returned, while 14.2922 million yuan has not been returned. The court found that this case used emerging technology concepts such as "metaverse" as a cover to implement fraudulent marketing, violating national financial management laws and regulations, with a huge amount involved. The behavior constituted the crime of illegally absorbing public deposits, and Chen was sentenced to five years and four months in prison and fined.

According to a lengthy report by New York Magazine, FTX founder Sam Bankman-Fried (34 years old) is currently serving his sentence in a federal prison in Lompoc, California, taking Adderall and Emsam daily for clinical depression and ADHD. SBF continues to write a serialized memoir titled "Manfred," which he sends to a few close friends and family through the prison mail system. He does not eat in the cafeteria due to his commitment to vegetarianism and instead purchases ingredients from the commissary to prepare his meals, compiling a "Vegetarian Prison Cookbook."SBF spent about $135 to buy a prison tablet and has played the same game approximately 6,000 times. According to fellow inmate David Bunevacz, SBF has expressed that he will need $50 million to $100 million in startup capital to establish a business after his release, stating that he will "issue his own new token, and everyone will flock to it," but Bunevacz added that "he might be joking." SBF officially submitted a presidential pardon application on June 8, and his appeal was rejected on June 12, with his chances of receiving a pardon on Polymarket at about 14%.

According to Livecoins, the Brazilian House of Representatives' Finance and Taxation Committee (CFT) has approved a bill to penalize cyber fraud, authorizing the freezing of cryptocurrency balances of individuals under police investigation, and also proposing amendments to relevant provisions of the Penal Code to increase penalties for cybercriminals.Crimes committed through social media or phone will face harsher penalties, with those convicted of cyber attacks facing imprisonment of 6 to 10 years, up from the previous 4 to 8 years. Additionally, judges will have the authority to freeze suspects' assets in Bitcoin exchanges and bank accounts. Some preventive measures include freezing physical assets and prohibiting the use of payment systems. The bill will next be submitted to the Constitution and Justice Committee (CCJ) for review, which is expected to be completed in the coming days.

Recently, the Haidian Court in Beijing, China, made a ruling on a fraud case. Retired elderly man Meng, due to his obsession with virtual currency trading and unwillingness to use his pension, disguised himself as a "Central Ministry" staff member in his 20s named Xiao Hong on a short video platform and established an online romantic relationship with a young man. Meng deceived the young man out of over 200,000 yuan by claiming that his family member was ill and urgently needed surgery, and for other reasons such as preparing for an overseas exam.Meng invested all the over 200,000 yuan he defrauded into virtual currency trading and opened a tenfold leverage account. Subsequently, due to a market downturn, he faced liquidation, resulting in a total loss of funds. The Haidian Procuratorate previously prosecuted Meng for fraud, and the Haidian Court ultimately sentenced Meng to 4 years in prison and imposed a fine, while also ordering him to compensate the victim for their economic losses.

According to Decrypt, Geoffrey K. Auyeung, a resident of the Seattle area in Washington State, was sentenced to 5 years in prison for his involvement in a cryptocurrency money laundering scam. Prosecutors stated that he assisted a criminal gang in defrauding victims under the guise of oil and gas investments from 2022 to 2024, with a total amount involved of approximately $97.1 million.Auyeung was responsible for receiving the proceeds of the scam and transferring them to his accomplices by purchasing cryptocurrencies such as BTC, ETH, USDT, and USDC to obscure the flow of funds. Prosecutors pointed out that he continued to contact his accomplices even after being charged and arrested, and received illegal proceeds through his wife's bank account. Investigations revealed that Auyeung earned at least approximately $4 million in commissions, and over $2.3 million in bank deposits, approximately $7.1 million in cryptocurrency, and a car have been seized. Most of the funds were ultimately converted into cryptocurrency through platforms such as Gemini, Bitstamp, and Coinbase before being transferred to Binance.