Enforcement Actions

Senator Chris Murphy plans to introduce legislation to restrict public betting on prediction markets related to government military actions to address insider trading risks. Recently, traders profited before the airstrike on Iran, raising concerns. The bill will prohibit market trading related to war or political speeches, aiming to maintain market integrity, prevent the misuse of sensitive information, while preserving exceptions for financial contracts.

The U.S. Securities and Exchange Commission (SEC) has reached a settlement with TRON founder Justin Sun. Rainberry Inc. will pay a $10 million fine and withdraw charges against Justin Sun and related entities. This settlement ends litigation since 2023 involving whether TRX and BTT are unregistered securities and market manipulation issues, reflecting changes in U.S. cryptocurrency regulatory policies. Justin Sun stated that he will continue to promote crypto innovation.

A cryptocurrency scam suspect declared dead has regained legal status after being deported back to South Korea, and is compensating victims by selling frozen assets. The incident has sparked discussions on cross-border law enforcement and crypto scam recovery mechanisms. It also highlights the legal complexities and regulatory challenges South Korea faces in digital asset cases.

U.S. law enforcement agencies arrested contractor John Dajita in the Caribbean for allegedly stealing $46 million in cryptocurrency assets. The operation was carried out jointly by the FBI and French law enforcement agencies, highlighting the importance of international cooperation in combating financial crime. The case is still under investigation, and specific details of the crime have not been disclosed.

PEI Licensing files charges against Pudgy Penguins, accusing trademark infringement, requesting the rejection of their trademark application, the prohibition of the alleged trademark, destruction of related goods, and the return of profits. Pudgy Penguins countered by stating that the trademarks are visually different and that future destruction could benefit NFT expansion by reducing legal risks, emphasizing the need for trademark compliance review to avoid legal challenges.

Pudgy Penguins is facing a trademark infringement lawsuit filed by the parent company of Original Penguin, accusing it of using a similar penguin logo that could lead to brand confusion. PEI is requesting the court to dismiss Pudgy's trademark application and prohibit its use of the related logo. Pudgy has stated that it is surprised by the lawsuit and emphasized the obvious design differences and different market positioning. This case could become a key example of trademark protection for Web3 brands versus traditional brands.

John Daghita, a U.S. contractor and son of CMDSS CEO Dean Daghita, was arrested for allegedly stealing over $46 million in cryptocurrency from the U.S. Marshals Service. International law enforcement collaboration led to his capture in Saint Martin. The case highlights the need for improved cybersecurity in managing digital assets.

Democratic senators accuse Iran of profiting from predictive markets before airstrikes, suspecting ties to Trump's circle, and have proposed legislation to strengthen regulation of such markets. Current laws are somewhat vague regarding bets on military actions, which could lead to moral hazard and incentivize profit-driven political behavior. The bill aims to explicitly prohibit the use of insider information for military market trading.

Chainalysis reports show that in 2025, addresses related to Iran and its Revolutionary Guard received over $3 billion in illegal crypto assets, aiding in funding terrorist organizations and illegal transactions. After the US-Israel coalition airstrikes, approximately $10.3 million quickly flowed out of Iran, indicating capital flight. The report points out that multiple countries such as Russia, North Korea, and Venezuela are also using cryptocurrencies to evade sanctions, demonstrating the challenges faced by traditional sanctions.

U.S. Senator Chris Murphy pointed out in a video that someone is betting on "the United States going to war with Iran," suspecting that some individuals have insider information. He and Representative Mike Levin are drafting legislation to strengthen regulation of prediction markets like Polymarket to prevent profiting from military actions.

A South Korean fraudster was finally deported after being declared dead seven years ago. The court revoked his missing person declaration, and his frozen assets of approximately $60,000 were used to compensate the victims. This incident exposed numerous flaws in the South Korean judicial system and sparked widespread criticism of digital asset management, prompting the government to undertake comprehensive reforms.

U.S. Democratic lawmakers plan to push for new regulations to strengthen oversight of prediction markets in response to insider trading risks stemming from bets on military actions against Iran. Senator Murphy warned that such bets could lead to moral hazard, encouraging insiders to profit from them. The proposed legislation aims to prevent the use of sensitive information for unfair trading and has also sparked further discussions on the regulation of prediction markets.

The FBI in the United States arrested John Daghita on Saint Martin Island for allegedly illegally accessing $46 million in cryptocurrency managed by a sheriff's office. The case originated from on-chain detective ZachXBT's tracking, revealing vulnerabilities in government digital asset custody and raising questions about third-party custody security. It has not yet been confirmed whether the stolen assets have been recovered.

A South Korean cryptocurrency fraudster, who was previously declared dead, was recently arrested and has repaid victims approximately $60,000. After committing the scam in 2019, this individual fled to Cambodia, but returned to South Korea and cooperated with prosecutors to resolve legal issues.

The U.S. Securities and Exchange Commission (SEC) has dropped all charges against Tron founder Justin Sun and his affiliated entities, and reached a settlement with his subsidiary Rainberry, which agreed to pay a $10 million fine. The charges included unregistered token sales, market manipulation, and undisclosed celebrity endorsements. This settlement reflects a shift in the SEC's enforcement approach toward the cryptocurrency industry and does not constitute a definitive ruling on the legal status of TRX and BTT.

Bitcoin failed to continue its rebound, with the price around $70,810. Negotiations on the U.S. Digital Asset Market Structure Act have stalled, with banks opposing the approval of stablecoin yield products. Russia plans to introduce an independent stablecoin bill to legalize the related industry. Market conditions are affected by geopolitical tensions, with rising oil prices raising concerns and further impacting inflation and trade.

PEI Licensing has sued the NFT project Pudgy Penguins in U.S. federal court for trademark infringement due to retail products like plush toys and clothing. Despite a cease and desist letter, Pudgy Penguins continued sales, potentially misleading consumers about its connection to the established Penguin brand. PEI seeks restitution for profits made from alleged infringement.

The SEC's proposed settlement requires Rainberry Inc. to pay a $10 million fine and bans it from deceptive practices. In return, the SEC will dismiss its claims against Justin Sun and affiliates, marking a shift in crypto regulation.

Gate News bot message: According to X platform, the son of a U.S. government contractor, John Daghita, has been arrested by the Federal Bureau of Investigation (FBI) for allegedly stealing $46 million worth of cryptocurrency from the U.S. Marshals Service.

Author: Lawyer Shao Shiwei Profiting from buying and selling virtual currencies through price differences, but being prosecuted for receiving foreign exchange transfer funds—this article is based on a real case handled by Lawyer Shao, involving an OTC merchant accused of illegal business operations and concealing criminal proceeds through off-market USDT transactions. In this case, the involved party has long been engaged in buying and selling USDT to earn price differences. During a normal transaction, he unfortunately received RMB funds transferred by an underground bank upstream, illegally exchanging currency for others. Big data analysis confirmed that this fund was identified as foreign exchange transfer funds. The question then arises: Is simply earning from virtual currency price differences enough to be criminally liable for receiving foreign exchange transfer funds from illegal foreign exchange transactions upstream? More notably, there are differing opinions within the case-handling agency regarding whether to apply the crime of illegal business operations or the crime of concealing and disguising criminal proceeds. Lawyer Shao’s view is that such cases cannot be simply classified; the behavior must be assessed based on the individual's role in a layered manner.