enforcement

According to a report by Hong Kong media Orange News, the President of the Hong Kong Securities and Futures Professionals Association, Chen Zhi-hua, disclosed that the Hong Kong virtual asset industry is facing a sudden "compliance storm." Practitioners in related businesses have reported encountering bewildering regulatory requirements during the application process for virtual asset-related business qualifications. The existing written policy requires an additional 5 hours of Continuing Professional Training (CPT).However, the latest requirements were not issued through formal written documents or public guidelines, but were communicated "quietly" to license upgrade applicants in the form of verbal notifications or individual emails, stating that all responsible officers (RO) for relevant license upgrades, including those who have already obtained upgrade qualifications, must pass a virtual asset regulation exam conducted by a designated single institution. This nearly "invisible" directive undermines the transparency and fairness that regulatory agencies should uphold.Chen Zhi-hua suggested maintaining the original requirement of an additional 5 hours of Continuing Professional Training (CPT) and urged regulatory agencies to immediately suspend the enforcement of exam requirements through invisible policies.

Binance co-founder He Yi responded on platform X to the news that "Binance employees were fired for discovering transactions related to Iran," stating that compliance staff need to handle various types of cases in their actual work. In recent years, Binance has proactively initiated multiple investigations related to potential crimes and has handed over the results to law enforcement agencies, while also assisting users in avoiding potential fraud and financial losses through risk control and compliance measures.In the face of a constantly changing regulatory environment and new types of financial crime, the company's compliance system still needs to be continuously upgraded and optimized. He also expressed gratitude to former employees who participated in the company's compliance efforts and emphasized that as the company continues to promote higher standards of compliance, it may not be possible to satisfy everyone during the execution process. However, Binance will continue to invest resources and bring in more compliance professionals with specialized backgrounds and law enforcement collaboration experience to enhance overall risk identification, investigation, and resolution capabilities.

At a hearing of the House Financial Services Committee, several Democratic lawmakers questioned SEC Chairman Paul Atkins regarding the recent reduction in enforcement actions against the cryptocurrency industry by the U.S. Securities and Exchange Commission (SEC), expressing concerns about whether these decisions are linked to Trump and his connections to the crypto industry.Lawmakers specifically mentioned the SEC's suspension of the case against Tron founder Justin Sun and the withdrawal of the lawsuit against Binance. Democratic Congressman Stephen Lynch stated during the hearing that the decline in SEC enforcement has impacted the agency's reputation and demanded an explanation for why the related cases were not pursued further. The SEC had previously sued Justin Sun in 2023 for allegedly issuing unregistered securities and manipulating trading volumes, but later in 2025, it applied to pause the case to explore settlement possibilities; in May of the same year, the SEC withdrew its lawsuit against Binance under Atkins's leadership.Data shows that in 2025, the SEC's overall enforcement actions decreased by about 30% compared to the previous year, with crypto-related cases dropping by approximately 60%, which is viewed by outsiders as a signal of a shift in regulatory focus. In response, Atkins stated that the SEC still maintains a "strong enforcement presence" and noted that some changes are part of the normal adjustments following a change in regulatory leadership.

According to market news, the enforcement team at the Chicago office of the Commodity Futures Trading Commission (CFTC) has completely resigned. This office was once regarded as the agency's "top enforcement force," previously having 20 enforcement attorneys, and now none remain.This staff reduction comes as the CFTC seeks to significantly expand its regulatory scope into the cryptocurrency and prediction market sectors. Reports indicate that the same leadership responsible for the CFTC's staff cuts last year had actively advocated for the agency's jurisdiction to cover most of the cryptocurrency markets and sports prediction platforms. Caroline Pham, who served as the acting chair of the CFTC in 2025, pushed for a reduction of over 21% in the agency's workforce last year, and she is currently employed at the cryptocurrency company MoonPay.Former CFTC enforcement attorneys stated that this layoff is targeted, as the Chicago office has specialized experience and a key role in reaching multi-billion dollar settlements with cryptocurrency companies like FTX and Binance.

Mark T. Uyeda, a commissioner of the U.S. Securities and Exchange Commission (SEC), delivered a speech at the 2026 Asset Management Derivatives Forum, highlighting the progress of the implementation of Treasury clearing rules and the development of tokenization in the securities market.The SEC has approved the registration of two new clearing agencies, CME Securities Clearing and ICE Clear Credit, providing market participants with more clearing options. Data from the Office of Financial Research indicates that if the rules are implemented in the first 8 months of 2025, U.S. global systemically important banks could free up an average of $34.5 billion in balance sheet space.Regarding tokenization, Uyeda stated that the SEC has ceased to use enforcement as the primary means of expressing its views, instead promoting limited scope pilots through regulatory guidance and exemptions. He emphasized that SEC rules should remain technology-neutral, focusing on outcomes rather than processes, while ensuring appropriate investor protection measures.

The founder of TX, Sam Bankman-Fried (SBF), posted on the X platform stating that there is a phenomenon of political lawfare in the United States, and that the relevant enforcement logic is "do not give the defendant a chance to present evidence."He claimed that the Biden administration's judicial system had launched baseless charges against him and former President Trump, and restricted their ability to respond publicly. SBF mentioned the case involving Trump's financial records, stating that the related expenses often have accounting classification disputes within companies, yet the prosecution still brought multiple charges based on this. He also noted that in his own case, he faced a gag order and pretrial detention measures, while FTX has always maintained its solvency. SBF further stated that he believes he has been targeted due to his opposition to U.S. cryptocurrency regulatory policies and changes in political donation positions. However, these statements are solely his personal views and have not been confirmed by judicial authorities, and he is currently lobbying for a pardon.

Six U.S. Senators, including Mazie K. Hirono, Elizabeth Warren, and Richard Durbin, sent a letter to Deputy Attorney General Todd Blanche on January 28, questioning his decision to dissolve the Department of Justice (DOJ) National Cryptocurrency Enforcement Team (NCET) in April 2025.The senators pointed out that although Todd Blanche claims the DOJ should not act as a regulator of digital assets, he himself held cryptocurrencies valued between $158,000 and $470,000 at the time of making that decision, which constitutes a clear conflict of interest and may violate federal laws regarding personal financial interests. The senators previously referred to the shutdown of the department as a "serious mistake," believing it would facilitate criminal activities such as sanctions evasion, drug trafficking, and fraud.The letter cited data showing that illegal cryptocurrency activities surged by 162% in 2025, primarily driven by a significant increase in cryptocurrencies received by sanctioned entities, and that money laundering networks have become a "dominant force" in the digital asset space. The senators believe that Todd Blanche's actions may violate the provisions of federal law 18 U.S.C. § 208(a) concerning the influence of personal financial interests on public decision-making. Currently, Todd Blanche has been named as a subject of a complaint by the DOJ Office of the Inspector General.

According to a report by Cryptonews, a Cornerstone Research report reveals that under Paul Atkins' chairmanship of the U.S. Securities and Exchange Commission (SEC), the number of cryptocurrency-related enforcement actions initiated by the SEC in 2025 significantly decreased. The report shows that in 2025, the SEC initiated only 13 cryptocurrency-related enforcement actions, a 60% decrease from 33 in 2024, marking the lowest level since 2017.Among these 13 cases, 5 were initiated before former chairman Gary Gensler's departure, while the 8 cases under Atkins' leadership primarily involved fraud allegations, indicating a shift in enforcement focus from broad registration theories to specific cases of investor harm.The total fines imposed on digital asset market participants in 2025 amounted to $142 million, less than 3% of the total fines in 2024. The head of Cornerstone Research stated that this reflects a shift in the SEC's approach to digital asset regulation under Atkins' leadership, with expectations that U.S. cryptocurrency regulation in 2026 will rely more on rule-making rather than ad-hoc litigation.

According to CoinDesk, PwC stated in its "Global Cryptocurrency Regulatory Report" that as legislation progresses from draft to law worldwide, cryptocurrency regulation will become clearer this year, and countries with more transparent cryptocurrency rules will lead the industry development.The report suggests that the environment will be less defined by regulatory debates and more shaped by jurisdictions competing to attract capital and establish legitimacy. The trend of cross-border collaboration is strengthening, aimed at enhancing market integrity, preventing financial crime, and protecting investors. For cryptocurrency companies, this means higher compliance costs, but it will also bring clearer rules, potentially fostering new products, banking channels, and deeper institutional participation.

According to The Block, U.S. Congress members Maxine Waters, Sean Casten, and Brad Sherman sent a letter on Thursday to Securities and Exchange Commission Chairman Paul Atkins, requesting an explanation for why the agency has paused multiple cryptocurrency enforcement cases, including the lawsuit against Tron founder Justin Sun.The lawmakers pointed out in the letter that since early 2025, the SEC has dismissed over a dozen crypto-related cases, including those against Binance, Coinbase, and Kraken, coinciding with a surge in political donations from the industry, raising concerns about a "pay-to-play" scheme. The letter mentioned that crypto companies donated at least $85 million to President Trump's re-election campaign, and the companies whose cases were dismissed had each contributed at least $1 million to Trump's inauguration.They specifically highlighted the Justin Sun case, noting that it has been on hold for 11 months, signaling that enforcement may be selective and that political influence could affect accountability. The legislators also issued a separate document preservation request, asking the SEC to provide all communications related to the decision to pause the Justin Sun case.

The Zcash Foundation stated this Wednesday that the U.S. SEC has officially concluded its years-long investigation into the organization and has made it clear that it does not plan to take any enforcement action or require remediation.The foundation disclosed that it received a subpoena from the SEC in August 2023, related to "In the Matter of Certain Crypto Asset Offerings." Currently, the SEC has completed its review and closed the case. An SEC spokesperson responded that the agency "does not comment on whether an investigation exists."This case closure occurs against the backdrop of a shift in the SEC's stance on crypto regulation. During the Trump administration, the SEC withdrew or terminated enforcement actions or investigations against several crypto entities, including Coinbase and multiple DeFi projects, which is markedly different from the Biden administration's hardline approach characterized by "enforcement-style regulation."Current SEC Chairman Paul Atkins is pushing for updates to crypto regulatory rules through "Project Crypto," focusing on on-chain activities and technological realities.It is worth noting that the Zcash ecosystem has recently experienced fluctuations. On January 8, all employees of the core developer Electric Coin Company collectively resigned due to structural disagreements with the board of its parent organization. In response, the Zcash Foundation emphasized that its commitment to the protocol remains unchanged and pointed out that the Zcash network is independent of any single organization or entity, and that organizational adjustments within the ecosystem do not equate to a deterioration in the health of the network itself.

According to Cointelegraph, the Indian enforcement agency has frozen assets worth $1.3 million, including cryptocurrency assets, related to a fraud case valued at $3.2 million.

The blockchain computing scalability protocol Truebit Protocol announced on platform X that a security incident involving one (or possibly multiple) malicious actors has been discovered. The affected smart contract code is "0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2". The public is strongly advised not to interact with this contract until further notice. They have contacted law enforcement and are taking all feasible measures to address the situation. Updates on the handling of this matter will be released through official channels.According to previous news from ChainCatcher, TrueBit is suspected to have been attacked, resulting in a loss of approximately 26.4 million dollars.

According to Fox Business, U.S. Treasury Secretary Scott Bessent stated that the government has begun to incorporate Bitcoin seized through law enforcement into its "strategic reserves," no longer routinely auctioning them off. Bessent indicated that the government will not purchase Bitcoin on the open market but will hold the seized assets for the long term.

The Enforcement Directorate (ED) of India raided a total of 21 residential and office locations in Karnataka, Maharashtra, and New Delhi as part of a money laundering investigation, uncovering a network of a fraudulent cryptocurrency investment platform.The gang has been operating since 2015, using celebrity images and fake trading websites to promise high returns, attracting investors from India and abroad, and laundering funds through cryptocurrency wallets, P2P transfers, shell companies, and underground money exchanges. Currently involved websites include goldbooker.com, cryptobrite.com, among others, and official investment risk warnings have been issued.

According to The Block, the prediction market platform Kalshi has received permission from Connecticut regulators to temporarily halt enforcement actions. Previously, the Connecticut Department of Consumer Protection issued a cease-and-desist order to Kalshi, Robinhood, and Crypto.com on December 2, accusing these companies of providing unlicensed sports-related betting services.Subsequently, Kalshi filed a lawsuit against Connecticut authorities a day later, claiming that its market (which allows users to trade on the outcomes of future events) is a derivative regulated by the Commodity Futures Trading Commission. The company also sought a temporary restraining order to prevent Connecticut from taking any actions that could interfere with its operations.Judge Oliver's order provides Kalshi with temporary protection while the case continues to be heard. According to the schedule set on Monday, Connecticut regulators must respond to Kalshi's complaint by January 9, 2026, and the company must submit supplemental supporting arguments by January 30. Oral arguments are expected to be held in mid-February.

According to Financefeeds, the Indian government is significantly strengthening cryptocurrency enforcement training to address the increasingly complex financial crimes related to cryptocurrencies.This training involves multiple agencies, including the Financial Intelligence Unit of India (FIU-IND), the Enforcement Directorate (ED), and the Narcotics Control Bureau (NCB), focusing on techniques such as blockchain forensics, on-chain analysis, cryptocurrency asset seizure, and wallet address identification.This initiative is a direct response to the mandatory registration requirement for Virtual Digital Asset Service Providers (VDASP) with FIU-IND, as well as India's shift from regulatory ambiguity to structured oversight. The training aims to equip law enforcement personnel with the ability to trace, seize, and prosecute crimes involving Virtual Digital Assets (VDA).

The Indian Ministry of Finance stated in a written response to Parliament that the Enforcement Directorate (ED) of India has seized, frozen, or confiscated assets totaling approximately ₹41,898.9 crore in multiple crypto-related cases under the Anti-Money Laundering Act, and has arrested 29 individuals and filed 22 charges, with one suspect officially designated as an "economic fugitive."At the same time, the Central Board of Direct Taxes (CBDT) of India has uncovered approximately ₹8,888.2 crore in undisclosed income during its search and seizure operations related to Virtual Digital Assets (VDA), and has issued notices to 40,057 taxpayers who did not provide VDA information in their income tax returns. The Ministry of Finance stated that crypto assets in India are currently unregulated, and the government is advancing capacity building to strengthen the monitoring and investigation of VDA transactions, emphasizing that crypto assets have cross-border attributes, and any effective regulatory framework will require extensive international cooperation in areas such as risk assessment and classification standards.

According to market news, Danny / Meech, also known as Danish Zulfiqar (Khan), is suspected to have been arrested by law enforcement and had cryptocurrency assets seized. Currently, assets worth $18.58 million are stored at address 0xb37d617716e46511E56FE07b885fBdD70119f768.This threat actor was involved in the $243 million Genesis creditor theft case carried out in August 2024 alongside Malone, Veer, Chen, and Jeandiel, as well as the Kroll SIM Swap incident in August 2023, which led to the leakage of PII of BlockFi, Genesis, and FTX creditors, resulting in over $300 million in losses. Multiple addresses associated with this actor, tracked by zachxbt, have pooled funds to the 0xb37d address a few hours ago, with a pattern similar to other law enforcement seizure actions.

According to Bloomberg, the EU's executive body has announced plans to transfer more regulatory and enforcement powers to its market supervisory agencies, sparking a debate among national regulators about ceding authority to Brussels. The proposal released on Thursday indicates that the Paris-based European Securities and Markets Authority will have new powers over significant clearinghouses, central securities depositories, and trading venues. Less than a year ago, the EU introduced a national regulatory framework for cryptocurrency companies, and now these companies and pan-European market operators fall under the authority of this agency. The centralization of most market regulatory powers in the EU requires the approval of the European Parliament and the Council of Member States, with some member countries firmly opposed.The core of the proposal is to strengthen the powers and resources of the European Securities and Markets Authority, which will be governed by a board composed of five independent members with a maximum term of five years. The preparatory costs will be borne by the EU budget, while trading venues, central securities depositories, and crypto asset service providers will cover ongoing expenses. To simplify the operation of European markets, the European Commission will also revise legislation to limit additional requirements imposed by member states on securities issuers, streamline the licensing process to improve cross-border central securities depository services, and hopes to incorporate distributed ledger technology into the rulebook. Negotiations on this package of plans will begin in January next year, when Cyprus will hold the rotating presidency of the EU Council.