Enforcement Actions

LayerZero reported that the Kelp DAO exploit, attributed to North Korea's Lazarus Group, led to a loss of $292 million in rsETH tokens due to vulnerabilities in its decentralized verifier network. Additionally, eth.limo faced a domain hijacking from a social engineering attack, but DNSSEC mitigated severe damage.

LayerZero issued a statement regarding the $292 million hack suffered by Kelp DAO, accusing Kelp’s self-selected 1-of-1 DVN configuration of making the incident possible. The attacker was the North Korean Lazarus Group. LayerZero emphasized that this incident stems from configuration choices and that it will no longer support this kind of vulnerable setup. In addition, responsibility is still disputed, and no compensation plan has been provided.

Charles Schwab is considering introducing prediction markets for financial events amid growing Wall Street interest, while maintaining a focus on wealth management. Regulatory scrutiny is increasing, especially regarding sports and entertainment wagers, highlighted by recent legislation and concerns over insider trading and market manipulation.

Senator Elizabeth Warren accused SEC Chair Paul Atkins of misleading Congress over a decline in enforcement actions, which hit a decade low in fiscal 2025. Warren sought clarification on the regulatory shift, while Atkins defended the changes as a strategic realignment of priorities.

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, a draft to repeal all online gambling has been introduced in Brazil, a proposal to include stablecoins to help curb currency restrictions rises in Venezuela, and Latam

The U.S. District Court for the Central District of California ruled that the $JENNER meme coin issued by socialite Jenna, of the Kardashian family, does not meet the definition of a security, dismissing investors’ lawsuit. The judge said the plaintiffs failed to prove the features of a common enterprise and can bring other claims in state court.

A Korean counterfeit gang is selling forged documents via Telegram, accepting cryptocurrency and digital gift cards. They offer fake diplomas, licenses, and other legal documents, highlighting the role of cryptocurrency in facilitating anonymous transactions for illicit services. Arrests for forgery have nearly doubled in South Korea from 2021 to 2023.

Hong Kong police revealed a cryptocurrency fraud where a woman lost HK$7.7 million to scammers posing as investment experts via Telegram, promising high returns through AI trading. The police warned the public of the risks associated with cryptocurrency investments.

The U.S. Treasury's OFAC sanctions list includes 518 Bitcoin addresses that have significantly engaged in crypto transactions, currently holding about 9,306 BTC valued at $707 million, highlighting the relationship between cryptocurrency and financial regulation.

Grinex’s shutdown is intensifying scrutiny of crypto laundering tactics, as fund movements suggest behavior inconsistent with typical enforcement actions. Chainalysis analysis highlights patterns that raise questions about whether the activity aligns with a conventional external hack or

The SEC has adopted a more lenient stance on crypto regulation, allowing some interfaces to operate without broker-dealer registration, but has not given blanket approval for the industry. Recent guidance clarifies how crypto assets are categorized, emphasizing that federal securities laws apply mainly to digital securities. Enforcement activity has decreased as the agency focuses on fraud and market integrity.

Polish lawmakers failed to override President Nawrocki's veto on a cryptocurrency regulation bill aimed at aligning with EU standards. Tensions rise as accusations emerge of Russian influence in a major crypto exchange amid liquidity issues and lack of regulation.

The Hong Kong SFC warns that prediction markets are speculative and not investment products, lacking regulatory protection. They involve gambling elements, potentially making them illegal. The committee urges the public to differentiate between investment and gambling.

Senator Elizabeth Warren accused SEC Chair Paul Atkins of misleading Congress about enforcement actions' decline. With only 456 new cases in 2025, concerns arise regarding the SEC's effectiveness and the regulatory landscape for cryptocurrency and market oversight.

Grinex, a sanctioned crypto-ruble exchange, has halted operations due to a cyberattack that stole over $13.74 million in USDT. The attack is believed to involve state-level actors aiming to destabilize Russia's financial system. Grinex is cooperating with law enforcement but has no timeline for resuming services.

Democratic senators are scrutinizing the Trump administration's oversight of a cryptocurrency exchange linked to $1.7 billion in Iranian transactions, questioning its AML controls and a lenient bank settlement on sanctions evasion.

Figure Technology Solutions faced allegations from Morpheus Research of overstating its blockchain technology use, resulting in a significant drop in share prices. Figure defended its operations, highlighting its digital asset features and strong performance metrics.

Robert Dunlap, a Houston entrepreneur, was sentenced to 23 years in prison for a $20 million cryptocurrency fraud involving fake assets and deceptive practices, impacting over 1,000 victims. His case reflects a broader rise in crypto-related cybercrimes.

U.S. Senator Richard Blumenthal has requested clarification from the DOJ and FinCEN regarding compliance monitors for a major cryptocurrency exchange, amid concerns over compliance failures linked to substantial funds associated with Iran.

Tether froze $3.29 million in USDT linked to Rhea Finance exploit, ensuring user protection and ecosystem trust. Blockchain tracking enabled this action against suspicious wallets after attackers moved funds to evade detection.