violations

The U.S. Department of Justice announced that the cryptocurrency trading platform Paxful Holdings Inc. has been fined $4 million for failing to establish effective anti-money laundering controls.Prosecutors alleged that the platform has long allowed illegal funds related to fraud, prostitution, and human trafficking to flow through it, profiting from these activities. The Department of Justice stated that Paxful was aware that some customer funds were derived from criminal activities but continued to provide services, using lax anti-money laundering regulations as a selling point to attract users. The investigation also pointed out that the platform processed cryptocurrency transactions for websites including Backpage, which is believed to have been used to post advertisements related to prostitution, involving minors. Data shows that from 2015 to 2022, approximately $17 million worth of Bitcoin flowed through Paxful wallets to related websites, with the platform earning at least $2.7 million in profits from this. The Department of Justice stated that Paxful's founder even referred to the resulting business growth as the "Backpage Effect."

According to CoinDesk, India's federal budget for the fiscal year 2026-27 maintains the existing 30% cryptocurrency capital gains tax and 1% withholding tax, disappointing industry groups that had sought tax reductions. The government did not adjust the tax rates but proposed new penalties for entities that fail to properly report cryptocurrency transactions under Section 509 of the Income Tax Act starting from April 1, 2026.Failure to submit the required reports will incur a daily fine of 200 rupees (approximately $2.2) until the non-compliance ends. If the submitted information is incorrect, or if errors are not corrected after being discovered, a fixed penalty of 50,000 rupees (approximately $545) will be imposed. Officials stated that this move aims to strengthen compliance, but market participants warn that it will continue to create friction for traders.

The Federal Court of Australia ruled that BPS Financial was fined AUD 14 million (approximately USD 9.7 million) for operating the Qoin wallet project without obtaining the necessary licenses and for making misleading statements to consumers.

According to Cointelegraph, the Federal Court of Australia has ruled that financial services company BPS Financial must pay a fine of 14 million AUD (approximately 9.3 million USD) for violations in promoting and operating the Qoin Wallet product. Of this amount, about 1.3 million USD is for operating financial services without a license, and 8 million USD is for making misleading and deceptive statements.The Australian Securities and Investments Commission (ASIC) accused BPS of issuing the product and providing financial advice without holding an Australian financial services license between January 2020 and mid-2023, in violation of the Corporations Act. The court found that senior management of the company was involved and that there were deficiencies in the compliance system, constituting "serious and illegal conduct."In addition to the fine, BPS is also prohibited from operating financial services without a license for the next 10 years and must publish court-mandated announcements on the Qoin Wallet app and website, while also bearing most of ASIC's legal costs.

According to Cointelegraph, the UAE's newly implemented Federal Decree No. 6 brings decentralized finance (DeFi) and Web3 projects under regulatory oversight, requiring platforms that provide payment, trading, lending, custody, or investment services to obtain a license from the Central Bank of the UAE.The law will take effect on September 16, 2025, ending the "code-only" regulatory exemption defense, with violators facing fines of up to 1 billion dirhams (approximately $272 million) and potential criminal sanctions. Legal experts clarify that the regulation does not prohibit individuals from using self-custody wallets but expands the regulatory scope for businesses. Project teams must complete compliance adjustments before the transition period deadline in September 2026.

Regarding the community mention that "Binance has begun to recover improper profits from the Alpha airdrop due to violations. Several accounts of suspected studio Alpha airdrop hunters have been frozen with assets exceeding $10,000."He Yi responded to confirm this event and stated that ordinary users are not affected.

Regarding the community mention that "Binance has begun to recover improper profits from the Alpha airdrop due to violations, and several accounts of suspected studio Alpha airdrop hunters have been frozen with assets exceeding $10,000." He Yi responded to confirm this event and stated that ordinary users are not affected.

Coinbase CEO Brian Armstrong posted on the X platform that Coinbase is bringing token sales back to the platform. Currently, there are issues such as unfair access, excessive extraction, and misaligned incentives in the token sales market, which hinder industry development.The Coinbase token sale aims to reward truly loyal users through a distribution algorithm. Violations such as "flipping" tokens will be penalized, aiming to align the incentive mechanisms between projects and their communities.

ChainCatcher news reports that according to market data, the US stock BNB Treasury company Windtree Therapeutics (WINT) received a notification from Nasdaq in 2025 due to its stock price remaining below $1 for too long (Rule 5550(a)(2)). After multiple reverse splits and not meeting the usual grace period, its common stock will be delisted from the Nasdaq Capital Market and transferred to OTC market trading on August 21. This news caused its stock price to start declining early this morning, ultimately closing down 77.21%, with a market value of only $3.152 million.It is noteworthy that WINT's stock price has maintained a textbook-like "zeroing out" trend for nearly a year. On August 22 last year, the stock price was $517.5, and it has since accumulated a decline of 99.98%. The opening price on February 21 this year was $4.68, and it has since accumulated a decline of 97.8%. After announcing the BNB Treasury strategy a month ago, the stock experienced a significant increase in trading volume over several trading days (including a few days before the announcement), ultimately reaching a recent high of $1.28 on July 18, and then began a one-sided decline, accumulating a decline of 91.4% to date.It is reported that Windtree Therapeutics is a clinical-stage biopharmaceutical and medical device company, with several medical projects still in clinical stages far from commercialization. According to the latest data, the company's net income for the most recent quarter was -$10.64 million, compared to -$4.04 million in the previous quarter, representing a 163.04% increase in losses. The company initially announced on July 16 the launch of the BNB Treasury strategy, aiming to raise $60 million through a securities subscription. On July 25, it announced that it had signed a new financing agreement for $520 million to purchase BNB.

ChainCatcher news, according to Crypto Briefing, Algeria officially enacted Law No. 25-10 on July 24, completely banning all cryptocurrency-related activities. The law prohibits the issuance, buying, selling, holding, using, and promoting of crypto assets, while also classifying cryptocurrency mining, the use of digital wallets, and the operation of exchanges as illegal activities.Violators will face imprisonment of 2 months to 1 year, as well as fines ranging from 200,000 to 1,000,000 dinars (approximately $1,540 to $7,700). If organized crime networks or financial criminal activities are involved, the penalties will be further intensified.The law defines cryptocurrency as "property, income, funds, or financial assets," aiming to strengthen anti-money laundering and counter-terrorism financing regulations, and to align national standards with the Financial Action Task Force (FATF).

ChainCatcher message, the Australian Securities and Investments Commission (ASIC) recently issued an official investor warning, stating that the cryptocurrency trading platform Bitget and its associated entity BTG Technology Holdings Limited are suspected of violating local financial services regulations by offering cryptocurrency contract products to Australian investors without obtaining the necessary authorization.

ChainCatcher message, Binance announced that it has discovered some users participating in the Alpha activities through bots, undermining the fairness of the Alpha Points project. As a result, the platform has upgraded its risk control system to enhance the detection and handling of related behaviors.Binance clearly stated that any actions using scripts, automated tools, or other non-manual methods will be considered violations, and the Alpha Points eligibility of the relevant accounts will be revoked, with further restrictions potentially implemented if necessary. Binance urges all users to comply with the rules to jointly maintain the fairness and transparency of the project.

ChainCatcher news, the Indonesian Ministry of Communication and Information Technology (Komdigi) recently announced that it has temporarily revoked the electronic system operator registration certificates (TDPSE) related to Worldcoin and WorldID services.The official stated that this decision is based on preliminary investigations that found the relevant services suspected of violating Indonesian electronic system regulations. The investigation revealed that the company allegedly responsible for operations, PT. Terang Bulan Abadi, had not registered as an electronic system operator (PSE) as required and did not hold the necessary TDPSE certificate; it was also found that the Worldcoin-related services were actually operating under the registration certificate of another legal entity, PT. Sandina Abadi Nusantara.The Ministry of Communication and Information Technology stated that it plans to summon relevant personnel from both companies for further investigation and handling of this violation incident.

According to ChainCatcher news, the U.S. Securities and Exchange Commission (SEC) announced that the Massachusetts District Court has made a final ruling against CLS Global FZC LLC, a UAE company claiming to be a cryptocurrency market maker, finding it in violation of securities laws.The SEC accused CLS Global of participating in a scheme to manipulate the "NexFundAI" market, issuing and selling the cryptocurrency as a security to retail investors, and inducing investors to purchase by creating the illusion of active trading. CLS Global agreed to the judgment and is required to pay a civil penalty of $425,000, a disgorgement of $3,000, and pre-judgment interest of $80.39.

ChainCatcher news, according to The Block, Jack Dorsey's payment company Block, Inc. has reached a $40 million settlement with New York state financial regulators due to anti-money laundering violations.The consent order released by the New York State Department of Financial Services on Thursday stated that the investigation found that the fintech company, formerly known as Square, "failed to adequately consider the significant risks posed by the scale and complexity of its business" in its anti-money laundering program when providing Bitcoin services through Cash App.Regulators specifically pointed out three major vulnerabilities at Block: a lack of risk-based anti-money laundering controls, insufficient customer due diligence, and lax handling of high-risk Bitcoin transactions that led to a large number of anonymous transactions going unchecked. This is the second time this year that Block has paid a settlement due to anti-money laundering issues. In January, the company paid $80 million to financial regulators in 48 states.A Block spokesperson stated that this settlement marks the resolution of all state-level remittance license matters and emphasized that while the company did not admit to the findings of the investigation, it has invested significant resources to improve the compliance framework of Cash App. Under the agreement, Block must hire an independent monitor to implement corrective actions.

ChainCatcher news, according to Wall Street Journal reports, the EU plans to impose a hefty fine of over $1 billion on Musk's social platform X, due to X's alleged violations of the Digital Services Act, failing to effectively regulate false information and illegal content on the platform. Regulatory authorities are also advancing a second investigation against X, and may include the revenues of Musk's other private companies in the penalty base, potentially leading to a final fine that far exceeds expectations. Analysts believe that the EU's recent regulation of tech companies may be one of the reasons for Trump's announcement this week of imposing high tariffs on the EU.The New York Times cited four informed sources revealing that EU regulators are preparing to impose heavy penalties on Musk's social platform X, as the platform is suspected of violating the Digital Services Act (DSA) regarding the fight against illegal content and false information. This penalty is expected to be officially announced this summer and may become the EU's first formal penalty under this law.

ChainCatcher news, according to VentureBeat, Immutable announced that the U.S. Securities and Exchange Commission (SEC) has officially terminated its investigation into it and related parties, finding no violations and taking no further action. This marks the formal closure of last year's Wells notice (a warning of a potential lawsuit).Immutable President Robbie Ferguson stated that this move brings regulatory clarity to the Web3 gaming industry and is expected to drive more institutional investment, especially unlocking significant opportunities in the in-game purchase market valued at over $200 billion.

ChainCatcher news, according to insider @jason_chen998, it can be basically confirmed through various information that the market makers Goplus, Myshell, and Movement recently investigated by Binance are all the same Web3port.

ChainCatcher message, there have been multiple cases of fake Binance SMS scams appearing in Hong Kong. The Hong Kong Securities and Futures Commission (SFC) responded by stating that under the Securities and Futures Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, conducting regulated activities and providing virtual asset services in Hong Kong without a license, and/or actively promoting such services to Hong Kong investors from outside Hong Kong, constitutes a crime. The SFC will not hesitate to take appropriate action against any violations, but will not comment on individual cases. Investors are reminded to only trade virtual assets on virtual asset trading platforms licensed by the SFC.