Enforcement Actions

7 police officers and 5 men stormed a residence in Kajang, Malaysia, extorting approximately 200,000 ringgit from 8 Chinese tourists. They used threats of reporting as leverage, and the police have arrested the officers involved. The case highlights serious issues of crime and impersonation of law enforcement.

On February 10th, Sam Bankman-Fried, who has been sentenced to 25 years in prison on multiple charges of fraud and conspiracy, spoke out again through his verified X account, claiming "FTX has never gone bankrupt," and accused the company's lawyers of submitting a "false bankruptcy petition." This statement starkly contrasts with the U.S. court rulings, regulatory documents, and financial audit results, and has quickly attracted attention within the crypto community. According to judicial records, SBF was involved in embezzling over $8 billion of customer assets, leading the platform to become insolvent by the end of 2022. The massive losses of his affiliated trading firm Alameda Research were the direct cause of the collapse. Although subsequent asset recoveries and market rebounds have improved creditor expectations in some cases, prosecutors and judges both emphasized that this does not change the established facts of fraud.

PANews February 10 News, FTX founder SBF's X account posted that FTX has never filed for bankruptcy, claiming that after lawyers took over the company, a false bankruptcy petition was filed just 4 hours later, with the intention of profiting from bankruptcy proceedings.

French police arrested six suspects linked to the kidnapping of a magistrate and her mother, who escaped without paying a ransom. The incident highlights a rising trend of crypto-related crimes in France, prompting law enforcement action.

Xinbi, a Chinese online escrow marketplace, continues to thrive despite law enforcement efforts, demonstrating resilience in informal financial networks. With a transaction volume of approximately $17.9 billion, it has effectively adapted by shifting operations to less monitored platforms and launching XinbiPay for payment solutions. This adaptability complicates regulatory oversight of financial risks and fraud. The platform's ability to persist highlights the challenges regulators face in controlling unregulated financial activities. As Xinbi expands its reach, authorities find it increasingly difficult to track and prevent illicit transactions, which may include money laundering and other illegal activities. The ongoing growth of Xinbi underscores the need for enhanced monitoring and international cooperation to address the evolving landscape of online escrow markets.

Turkish authorities have frozen assets worth over $500 million belonging to Veysel Sahin due to suspected involvement in illegal gambling operations and money laundering. The cryptocurrency company involved in the freezing operation is Tether Holdings. Tether actively assists in global efforts to combat crypto-related crime, having frozen $3.4 billion worth of USDT linked to illegal activities in recent years, demonstrating a strong partnership with law enforcement agencies.

Two teenagers aged 16 and 17 from California drove 600 miles to Arizona, disguised as delivery personnel to commit a violent home invasion robbery targeting $66 million worth of cryptocurrency. After the police arrest, they confiscated restraints and 3D-printed firearms. The investigation revealed that a mysterious individual planned the crime via Signal and provided $1,000 in funding.

Former CFTC Chairman Chris Giancarlo described XRP as a typical example of Washington regulatory suppression, but it has survived and remains standing. He emphasized the importance of regulatory clarity and warned that traditional American banks may fall behind. Ripple has received approval under Europe's MiCA regulation, allowing banks to hold and use it under regulation. Despite the advantages in Europe, the United States remains cautious due to uncertainty.

Ethereum network activity reaches 1.1 million, hitting a new high, but history warns of risks. After the 2018 ICO peak, it dropped from 1,400 to 100; after the 2021 DeFi boom, it fell from 4,000 to 2,000. Exchange inflow volume surged to 1.3 million on February 3, setting a new high, but two days later, it dropped from 2,230 to below 2,100. CryptoQuant states it is in a high-risk zone.

Gate Research Institute: By 2025–2026, PayFi is evolving from a crypto payment tool into a new generation of payment financial engine. Stablecoins are achieving large-scale application in high-frequency and cross-border payments, with settlement efficiency and cost structures significantly better than traditional systems. Web2 and Web3 continue to merge, with Visa, PayPal, and Neobanks becoming key connection nodes; at the same time, stablecoins, RWA, and AI are jointly shaping the fundamental form of PayFi, driving automation and 24/7 operation in settlement, asset flow, and risk management. Looking ahead to 2026, regulatory clarity, on-chain capabilities of real assets, and maturity of AI applications will determine the competitive landscape and long-term barriers for PayFi.

Tether acquires a 12% stake in Gold.com for \$150 million, strategically expanding the distribution of its gold-backed token XAUT and bridging physical bullion with digital finance. This partnership signals a major push into the booming \$5.5 billion tokenized gold market.

Telegram founder Durov warns that Spain's online age verification law will eliminate anonymity and turn the country into a surveillance state. Spanish Prime Minister Sánchez announced at the Dubai summit to restrict social media use for those under 16, stating "Social media has become a failed state, take back control to protect children." Critics believe this is control rather than protection. Concordium CEO suggests using blockchain zero-knowledge proofs to verify age without revealing identity.

Manhattan court sentences NTU Department of Information Management graduate and Saint Lucia diplomatic service member Lin Ruixiang to 30 years without parole. In 2020, he established the dark web Incognito Market under the alias "Pharaoh," charging a 5% transaction fee, handling NT$3.3 billion worth of drug transactions over three years. He laundered money by jumping from Bitcoin to Monero. The FBI used Chainalysis to track transactions through exchanges and KYC, ultimately arresting him at the airport in May 2024.

The U.S. Treasury is investigating Iran's use of crypto exchanges to evade sanctions. A notable exchange, Zedcex, reportedly processed $1 billion linked to the IRGC, indicating a shift toward financial infrastructure instead of individual wallets. Despite the legality of most crypto activity, sanctioned entities may exploit specialized infrastructure for financial access.  *Cryptocurrency trading platforms are increasingly being scrutinized.* Recent reports suggest that Iran is leveraging digital currency exchanges to bypass international sanctions, potentially enabling the IRGC and other sanctioned groups to access funds without detection. This shift toward using infrastructure rather than personal wallets complicates enforcement efforts. ### Key Points: - The investigation focuses on the use of crypto exchanges for sanctions evasion. - Zedcex processed a significant amount linked to the IRGC. - There is a move from individual wallets to broader financial infrastructure. - Sanctioned entities might exploit these systems for illicit financial activities.

The U.S. Treasury's designation of UK-registered exchanges Zedcex and Zedxion marks a paradigm shift in crypto sanctions enforcement, moving beyond tracking transactions to dismantling the financial infrastructure controlled by Iran's Islamic Revolutionary Guard Corps (IRGC). This action, which exposed a network processing approximately \$1 billion in IRGC-linked stablecoin flows, signals an end to the era where offshore exchanges could operate in regulatory gray zones with impunity. For

The U.S. Treasury's OFAC has sanctioned UK crypto exchanges Zedcex and Zedxion for allegedly aiding transactions related to Iran's Islamic Revolutionary Guard Corps (IRGC), marking a first for such punitive action against an entire exchange in connection to Iran's economy.

The United States tightened its Iran sanctions regime by targeting digital asset platforms for the first time, signaling a new phase in how financial enforcement leverages crypto infrastructure. In a Friday statement, the Treasury Department’s Office of Foreign Assets Control (OFAC) announced the

The U.S. Department of Justice (DOJ) has officially completed a large-scale cryptocurrency seizure operation. Regarding the mixing service Helix, which played a key role in money laundering on the dark web, the U.S. government has lawfully obtained the final ownership of assets exceeding $400 million. The DOJ issued a statement on Thursday stating that a final forfeiture order was issued by the court last week, confirming that the government can legally receive and dispose of previously seized cryptocurrencies, real estate, and financial account assets. These assets are closely related to Helix's operations and money laundering activities. Investigations show that between 2014 and 2017, Helix handled at least 354,468 bitcoins. The platform's main users were individuals attempting to conceal the origins of illegal funds, including proceeds from dark web black markets. A so-called "cryptocurrency mixer" or "mixing service" refers to the process of blending multiple cryptocurrency transactions to deliberately obscure the flow of funds.

In a landmark enforcement action, the U.S. Department of Justice (DOJ) has finalized the forfeiture of over \$400 million in assets linked to Helix, a notorious darknet cryptocurrency mixer. This concludes a multi-year investigation into the service, which laundered more than \$311 million in Bitcoin between 2014 and 2017 for illicit darknet markets. The final order, entered by a federal judge in late January 2025, transfers legal title of the seized crypto and real estate to the U.S. go

Former Olympic athlete Ryan Wedding was arrested in Mexico on suspicion of being a transnational drug lord. His organization used stablecoins and multiple blockchains for money laundering. The U.S. Department of Justice stated that crypto-related criminal activities pose regulatory challenges and has imposed sanctions and seizures on him and related individuals. This case highlights the risks of crypto assets in transnational crime and has spurred discussions on their regulation.