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A man was sentenced to 40 months in prison in the U.S. for participating in a cryptocurrency scam, involving amounts of several million dollars

According to the official website of the U.S. Department of Justice, the United States Attorney's Office for the Eastern District of Texas announced that a Chinese national, Fei Liao, has been sentenced to federal prison for participating in the laundering of funds obtained from a cryptocurrency investment scam. He pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in prison by U.S. District Judge J. Campbell Barker in 2026.Liao was also ordered to forfeit over $2.3 million in seized funds and to pay more than $2.8 million in restitution to victims. The case was announced by U.S. Attorney Jay R. Combs for the Eastern District of Texas and was investigated by the Tyler branch of the United States Secret Service, with federal prosecutor Robert Austin Wells handling the prosecution. Court documents show that Liao assisted in laundering funds from "Pig Butchering" and other cryptocurrency investment scams by setting up shell companies and bank accounts with others.Such scams typically contact victims through social media, dating platforms, or unsolicited phone calls, establishing a trust relationship before inducing them to invest in cryptocurrency. After victims transfer funds to accounts controlled by the scammers, the fraudulent platform displays high returns, encouraging further investment, ultimately leading to victims being unable to withdraw funds and suffering significant losses.Law enforcement agencies remind individuals that if they encounter similar scams, they can report them to the Internet Crime Complaint Center (IC3) and provide as much information as possible, including the name of the investment platform, cryptocurrency addresses, transaction hashes, bank account information, and contact details of the suspects, while also retaining communications and transfer records with the scammers.

Senator Warren writes to Becerra and Powell, opposing the use of taxpayer funds to "bail out" the cryptocurrency industry

According to Cointelegraph, Senate Banking Committee senior member Elizabeth Warren has written to Treasury Secretary Scott Basset and Federal Reserve Chairman Jerome Powell, urging the government not to use taxpayer funds to bail out the cryptocurrency industry.In her letter, Warren warned that any form of bailout would mean "transferring wealth from American taxpayers to cryptocurrency billionaires," which is not only "extremely unpopular" but could also directly benefit President Trump and his family's cryptocurrency project, World Liberty Financial.The letter comes at a time when the price of Bitcoin has fallen over 50% from its historical highs, reaching a local low of $60,000. On the same day, World Liberty Financial held its first "World Liberty Forum" at Mar-a-Lago, inviting several executives from the cryptocurrency industry and policymakers who support cryptocurrencies to attend.Warren also referenced the Financial Stability Oversight Council hearing on the 4th of this month, pointing out that Secretary Basset had "avoided core concerns" when responding to questions about a bailout for Bitcoin.She emphasized that the government should not intervene in the Bitcoin market through direct purchases, guarantees, or liquidity tools, to avoid "making cryptocurrency billionaires the biggest beneficiaries of a bailout."
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