fraud

The convicted former FTX CEO Sam Bankman-Fried (SBF) is seeking a retrial. According to reports, his mother recently filed a motion in a New York federal court, claiming that new evidence has emerged and that the related fraud charges should be re-examined. Currently, SBF is pursuing this motion pro se.Under legal procedures, he must demonstrate the existence of significant new evidence that could affect the original verdict in order to have a chance at a retrial. SBF was previously sentenced to 25 years in prison due to the FTX collapse and continues to challenge the verdict through appeals. His past defense has emphasized that FTX was not entirely insolvent at the time of its collapse, but appellate court judges have pointed out that the core of the case revolves around whether customer funds were misappropriated and whether investors were misled, rather than the company's solvency. Additionally, former President Trump has recently stated that he will not consider granting clemency to SBF.

According to reports from Zhong'an Online, the Hefei Xinzhan Public Security Bureau discovered that a virtual currency exchanger was providing money laundering services for a fraud gang while handling a telecom network fraud case involving 260,000 yuan. On January 15, 2026, the police arrested the suspect Liu in Sichuan.Investigation revealed that Liu had been engaged in virtual currency trading since 2020, contacting upstream buyers through overseas chat software and conducting transactions with fraudsters on illegal trading platforms. In June 2025, after selling virtual currency on an illegal platform, Liu withdrew the illicit funds that were transferred to his account to his personal WeChat account, which is suspected of concealing and disguising criminal proceeds. The case is currently under further investigation.

According to the disclosure by the WeChat public account of the Internet Information Office of Jiangmen, the Kaiping City Procuratorate is handling a "money laundering" case involving virtual currency. The criminal gang received funds from telecom network fraud and other criminal proceeds, which were then arranged to be withdrawn from the bank and exchanged for virtual currency to be transferred to upstream fraudsters. In just two months, the amount of fraud-related funds transferred exceeded 2 million yuan.Currently, 19 individuals involved in the case have been sentenced by the Kaiping City Court for the crime of concealing and disguising criminal proceeds.

The U.S. Department of Justice announced that a man named Daren Li, who holds dual citizenship in China and Saint Kitts and Nevis, was sentenced in absentia to the maximum statutory sentence of 20 years in prison, along with 3 years of supervised release, by the U.S. District Court for the Central District of California on February 9 local time, for his involvement in a global cryptocurrency investment fraud scheme involving over $73 million.The Department of Justice stated that the 42-year-old Li pleaded guilty in November 2024, admitting to participating in a transnational cryptocurrency investment fraud and money laundering conspiracy operating from a scam hub in Cambodia. However, he fled after cutting off his electronic ankle monitor in December 2025 and is currently still at large.Prosecutors revealed that the fraud ring actively contacted victims through social media, phone calls, text messages, and online dating platforms to establish "professional or romantic relationships" to gain trust, and used fake cryptocurrency trading platforms and phishing websites to lure victims into investing in false projects. In some cases, they also impersonated customer service or technical support personnel, deceiving victims into transferring funds or moving cryptocurrency assets under the pretext of "fixing viruses."According to the plea agreement, Li and his accomplices caused at least $73.6 million in victim fund losses, of which $59.8 million was laundered through U.S. shell company accounts and further converted into cryptocurrency to conceal the sources and flows of the funds. Li was found to have directly participated in the final receipt and control of the victim funds.So far, 8 accomplices have pleaded guilty, and Li is the first defendant to be sentenced for directly receiving the illicit funds. The case is being investigated by the U.S. Secret Service with assistance from law enforcement agencies in multiple countries. The U.S. Department of Justice stated that it will continue to promote international cooperation in an effort to extradite Li back to the U.S. to serve his sentence.

The Polymarket team member shampoo accused competitor Kalshi on social media of inflating its esports trading volume through data manipulation. shampoo stated that the platform artificially increased its trading volume by approximately $1.7 billion by adding a generalized "esports" category, while actual data shows its esports trading volume is only about $63 million, less than 10% of Polymarket's esports trading volume.Additionally, Kalshi also referred to the CS market as both CS:GO and CS2 for double counting.shampoo mentioned on social media that users can verify this situation themselves by checking the API data in the network requests.

The police remind that as the year-end approaches, a new type of scam involving "offline cash withdrawal + online fraud" has emerged during the peak period of gold consumption. After the victims purchase gold at a jewelry store and have it mailed to a designated location, the scammers will send disguised "runners" to collect the package from the courier. Multiple "runners" relay the package, with the last one taking the gold to a recycling shop to sell it and then delivering the cash to a location specified by the scammers.Some scammers will also instruct the "runners" to find currency dealers to exchange the gold for virtual currency, which is then deposited into a designated account. This virtual currency can be circulated globally using blockchain technology. Once successful, the scammers achieve their goal of stealing gold and laundering money.

Binance founder CZ revealed that he discovered users on the social media platform X using AI-generated images to impersonate supporters who are closely associated with him.CZ pointed out that the account has 863,000 followers, used a photo from a BNB Chain event in Korea that he attended as a banner, and posted several AI-generated photos of him with CZ. By analyzing the details of the photos, such as the fact that he never wears blue or purple clothing, and the inconsistent resolution of the characters in the images, CZ identified these as forged images. The original photo was actually a picture with Aster CEO Leonard.CZ reminded the community to be vigilant against such potential scams, while also stating that the Binance team welcomes sincere constructive feedback.

According to Hong Kong 01, the Hong Kong police disclosed that over the past three weeks, they have launched a citywide law enforcement operation against fraud, cybercrime, and money laundering, codenamed "Operation Conquer," resulting in the arrest of 682 individuals for conspiracy to commit fraud, obtaining property by deception, and money laundering. This operation involved 580 fraud and technology crime cases, with a total amount of up to HKD 620 million.Among them, in the law enforcement action codenamed "Cyber Web" by the Hong Kong Police Cyber Security and Technology Crime Bureau, a local online romance scam group was dismantled, along with a gang that used virtual currency for money laundering. This gang defrauded 314 victims of a total of HKD 44 million over the past 16 months, with an average amount of about HKD 150,000 per case.

According to Decrypt, due to a surge in cryptocurrency ATM scams targeting the elderly, Arizona Attorney General Kris Mayes issued an emergency warning this Monday and launched a new fraud complaint form for victims, advising them to report losses within 30 days to increase the chances of recovering funds.Data shows that in 2024 alone, Arizona residents lost over $177 million due to cryptocurrency ATM scams. Nationwide, losses related to cryptocurrency ATM scams reached $246 million in 2024, with approximately 43% of victims aged 60 and older. Mayes warned that anyone instructing consumers to use cryptocurrency ATMs is "very likely" committing fraud.Scammers often impersonate law enforcement, utility companies, or distressed relatives, pressuring victims through urgent phone calls or text messages to withdraw cash and deposit it into cryptocurrency ATMs. In response to this issue, Arizona enacted a law in 2025 to regulate approximately 600 cryptocurrency ATMs in the state, requiring operators to display multilingual fraud warnings, provide 24/7 real-time customer support, and set transaction limits (new customers $2,000 per day, existing users $10,500 per day). Mayes emphasized that no legitimate company or government agency would ask for deposits through cryptocurrency ATMs.

According to CNN, New York Attorney General Letitia James and several prosecutors, including Manhattan District Attorney Alvin Bragg, recently sent a joint letter to federal senators criticizing the U.S. stablecoin regulation bill, the "GENIUS Act," for serious flaws. They stated that it fails to effectively protect victims of fraud and may provide legal cover for stablecoin issuers to "profit from fraud."In the letter, the prosecutors accused that while the bill establishes bank-like reserve requirements for stablecoins, it lacks a mandatory provision requiring companies to return stolen funds to victims. This omission would "embolden stablecoin issuers and even provide them with legal cover when they actively decide to continue controlling stolen funds instead of returning them to victims."The letter further accused two major issuers of specific behaviors: Tether, while capable of freezing suspicious USDT transactions, only handles cases on an individual basis in cooperation with federal law enforcement; while Circle is accused of being inclined to hold rather than return funds to victims even after agreeing to freeze them, earning interest by investing these underlying assets, which constitutes a "clear" economic incentive to refuse law enforcement requests.

According to market news, a 45-year-old Chinese man, Jingliang Su, has been sentenced to nearly four years in prison by a U.S. federal court for his involvement in a cryptocurrency money laundering case involving $37 million, and has been ordered to pay over $26 million in restitution.According to a statement from the U.S. Attorney's Office for the Central District of California, Su is a member of a global criminal network. This network contacted U.S. victims through text messages, phone calls, and online dating, using fake websites that impersonated legitimate cryptocurrency trading platforms to lure them into fraudulent cryptocurrency investments. The victims' funds were then laundered through U.S. shell companies, digital asset wallets, and international bank accounts. Prosecutors stated that over $36.9 million was ultimately transferred to an account at Deltec Bank in the Bahamas and converted to USDT, which was then transferred by co-conspirators in Cambodia to the heads of scam centers in the region. The government has confirmed 174 U.S. victims. Including Su, a total of 8 individuals involved have pleaded guilty.

The U.S. Department of Justice reported that a 45-year-old Chinese national, Su Jingliang, was sentenced to nearly 4 years of federal prison for participating in a scheme that laundered nearly $37 million in proceeds from a cryptocurrency fraud, and was ordered to pay over $26 million in restitution.Prosecutors stated that the transnational criminal network he was part of lured American victims into fake cryptocurrency investments through text messages, phone calls, and online dating platforms, and implemented fraud using counterfeit trading websites. The related funds were circulated through U.S. shell companies, cryptocurrency wallets, and international bank accounts, ultimately resulting in approximately $36.9 million being transferred to Deltec Bank in the Bahamas and converted to USDT, which was then moved by accomplices in Cambodia. A total of 174 American victims were confirmed in the case.

The Hong Kong police received a report from a victim who claimed to have been invited to invest in virtual currency through a trading platform. During this period, the victim invested approximately HKD 21.4 million in virtual currency but was unable to withdraw the funds, suspecting fraud. It is reported that the Hong Kong police have initiated an investigation by the Fifth Team of the Criminal Investigation Department of the Tseung Kwan O Police District and have classified the case as "obtaining property by deception." No arrests have been made so far. They also remind the public to be cautious of any investment projects that claim high returns and not to trust insider information disseminated on social media platforms. Before investing in virtual products, one should fully understand the characteristics of the relevant products and the associated information security risks.

Community users are calling on X product lead and Solana advisor Nikita Bier to focus more on cleaning up fraudulent accounts on the platform, rather than concentrating on niche communities like crypto or InfoFi. It is reported that there are currently about 22,600 newly registered fake X accounts, frequently pulling users in through Space real-time voice tags and accompanying phishing links for fraudulent pre-sales. The scale has become difficult to resolve through manual reporting or blocking. They also suggested introducing a facial recognition login mechanism, which could significantly reduce the number of malicious actors. In response, Nikita Bier stated that he is aware of the issue and that the team is already working on addressing it.

According to the Jingmen Intermediate Court, the police in Luotian, Huanggang, Hubei recently dismantled a telecom network fraud gang that used offline cash withdrawals and virtual currency for money laundering, arresting 6 criminal suspects. The gang collected scam funds through a "cash withdrawal team," which were then exchanged into USDT by "U currency exchangers" and handed over to foreign fraudsters, forming a complete money laundering chain.Investigations revealed that the gang conducted cash withdrawals for telecom fraud 28 times in the areas surrounding Wuhan, with a total amount involved exceeding 1 million yuan. Currently, the core member Liu is criminally detained for suspected illegal use of information networks, while other members are criminally detained for suspected concealment and disguise of criminal proceeds.

According to Decrypt, the authorities of the British Crown Dependency of Guernsey have approved the confiscation of $11.4 million (£9 million) in assets related to the OneCoin fraud case, at the request of the German authorities in Bielefeld, under its Proceeds of Crime Law.The funds are held in an account at RBS International Bank in Guernsey. The confiscated assets represent only about 0.2% of the total losses from OneCoin, reflecting the ongoing difficulty of fully recovering assets in cryptocurrency fraud cases.

According to the U.S. Department of Justice, a man from Utah has been sentenced to three years in federal prison for involvement in cryptocurrency-related fraud. 54-year-old Brian Garry Sewell (from Washington County, Utah) was sentenced to 36 months in prison after pleading guilty to operating an illegal cash-for-cryptocurrency business and defrauding investors of approximately $2.9 million. He will also face three years of supervised release after completing his sentence.The court also ordered him to pay over $3.8 million in restitution to compensate the victimized investors and the U.S. Department of Homeland Security. Prosecutors revealed that from December 2017 to April 2024, Sewell deceived at least 17 investors by fabricating his experience, educational background, and high return capabilities.The head of the FBI's Salt Lake City field office stated that Sewell profited from false promises, causing significant financial losses to multiple individuals and families. The investigation into the case began in 2020 and took nearly five years to conclude. Prosecutors noted that Sewell's illegal cash-for-cryptocurrency operations transferred over $5.4 million through his controlled Rockwell Capital Management, forming a crucial basis for subsequent criminal charges.

According to CCTV News, recently, the head of a major cross-border gambling and fraud crime group, Chen Zhi, was legally escorted back to the country from Cambodia. Chen Zhi's criminal group is suspected of multiple crimes including fraud, operating casinos, illegal business operations, and concealing criminal proceeds. The case is currently under investigation. In order to implement a criminal policy that balances leniency and severity, and to legally punish gambling and fraud crimes while providing an opportunity for fugitives to reform and seek leniency, the following announcement is made in accordance with relevant legal provisions:From the date of this announcement until February 15, 2026, if criminal suspects voluntarily surrender to the public security organs and truthfully confess their crimes, they may receive a lighter or reduced punishment according to the law. Those who threaten, retaliate against, or obstruct suspects intending to surrender will be held criminally responsible according to the law. The public security organs urge relevant criminal suspects to recognize the situation, cherish the opportunity, and promptly surrender to the public security organs at their place of household registration to seek leniency. Those who refuse to surrender will be publicly wanted, and efforts will be made to capture them and punish them according to the law.

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.