Enforcement Actions

The U.S. Securities and Exchange Commission withdraws its charges against Justin Sun, sparking congressional concerns about regulatory transparency and independence. Senators are asking for an explanation of the reasons behind this decision, questioning whether enforcement is influenced by external factors. The incident could change the U.S. crypto regulatory landscape and affect market confidence.

A Chainalysis report says that organizations such as Russia and Iran use cryptocurrencies to buy low-cost drones and parts, and use blockchain transparency to trace the flow of funds. The Russian side raised $8.3 million for drone procurement, while Iran found transaction records between its Revolutionary Guards and a Hong Kong supplier. The report emphasizes that blockchain can reveal evidence of sanctions violations and promote compliant oversight of cryptocurrencies.

A Maryland man, Jonathan Spalletta, has been charged with hacking decentralized exchange Uranium Finance in 2021, stealing over $50 million. He faces counts of computer fraud and money laundering, allegedly using proceeds for high-end collectibles.

Maryland resident Jonathan Spaletta was arrested for two hacking incidents against Uranium Finance in 2021, with losses exceeding $54 million. Spaletta faces charges of computer fraud and money laundering, with a maximum sentence of 30 years. The stolen funds were converted into collectibles such as Pokémon cards and Ancient Roman coins, showing his money-laundering method. Victims have not been compensated to date, and the case is still ongoing.

The US has charged a hacker behind the Uranium Finance breach, which caused $53 million in damages. The defendant faces up to 30 years in prison for fraud and money laundering charges.

SBF alleges that U.S. District Judge Lewis Kaplan of the Southern District of New York has a bias, and asks that he recuse himself from presiding over the case, saying Kaplan’s conduct and comments were improper and citing Delaware judges’ recusal precedents.

The US District Court approved a $500,000 consent order against Peken Global Limited, operator of KuCoin, for trading violations without proper registration. This marks a shift toward a more measured regulatory approach in the cryptocurrency sector.

A U.S. senator is putting pressure on the SEC over Justin Sun and the departure of the head of enforcement The matter, which centers on the departure of the former head of enforcement at the U.S. Securities and Exchange Commission (SEC), continues to heat up Washington, as a group of U.S. senators asks the agency to clarify those

More than 40 U.S. Democratic lawmakers have urged strengthening insider-trading oversight for government employees engaged in trading on prediction markets, pointing to multiple suspicious cases showing abnormal betting behavior. In the letter, they call on the CFTC and OGE to issue guidance to ensure compliance with existing laws. This move is also linked to efforts to advance legislation related to digital-asset regulation, emphasizing synchronized progress between regulatory oversight and judicial review.

The identity of FTX founder Sam Bankman-Fried’s bail guarantors has been made public. It includes former dean of Stanford Law School Larry Kramer and research scientist Andreas Paepcke, and the total bail amount is $250 million. SBF faces multiple fraud charges, and the case is still pending.

Peken Global has agreed to pay $500,000 to the CFTC to resolve a civil lawsuit, because as an unregistered platform it illegally allowed U.S. residents to trade. The company did not admit the allegations, but agreed to avoid providing services to U.S. customers. The CFTC said that U.S. customers generated approximately $110 million in trading fees for it.

The U.S. National Football League (NFL) requires prediction market platforms to stop offering contracts that are susceptible to manipulation, and emphasizes that the relevant contracts lack randomness, which could constitute insider trading. The chairman of the CFTC said he will respect the views of each league and that the regulatory landscape may change. In addition, the NFL and MLB have taken different strategies—one confrontational and the other cooperative—when facing prediction markets, reflecting different ways professional sports organizations think about regulation.

A short-seller report by Muddy Waters accuses SoFi’s management of inflating profits, taking bonuses, and claims that its $312 million borrowing was incorrectly recorded as loan sales, potentially leading to a restatement of financial data and shareholders facing a 15% dilution risk. The report says the accounting treatment does not align with the role described by JPMorgan.

Chainalysis reports that low-cost commercial drones have become a core tool in modern conflicts, and that Russian and Iranian organizations use cryptocurrency to fund drone procurement. Since 2022, pro-Russia groups have raised more than $8.3 million in donations, most of which were used in stablecoins. Iran’s Ministry of Defense has also accepted cryptocurrency payments for weapons.

Gibson Dunn law firm noted that although the joint guidance published by the SEC and CFTC has improved, it still does not fully address industry needs, especially regarding ambiguity in the Howey test and secondary market trading. The authors call on the crypto industry to provide feedback, urging the SEC to clearly define regulatory boundaries and avoid enforcement replacing regulation.

U.S. Senator Richard Blumenthal questioned SEC Chair Paul Atkins, focusing on the brief tenure and the reasons for the departure of former law-enforcement agency head Margaret Ryan—especially in the context of the SEC dropping its allegations against Tron founder Justin Sun. Ryan’s term lasted only six months; she had tried to push forward investigations into fraud cases, but faced obstacles. The SEC’s regulatory direction under the current administration has drawn market attention.

March 30, U.S. prosecutors charged Jonathan Spalletta of Maryland, accusing him of repeatedly attacking the decentralized exchange Uranium Finance since 2021, involving $54 million. Spalletta faces computer fraud and money laundering charges, with a maximum total sentence of up to 30 years in prison. He allegedly profited illegally by manipulating transaction processes and used the proceeds to buy collectible items. Prosecutors emphasized that crypto assets are also protected by law.

The U.S. Commodity Futures Trading Commission will consider the views of the sports leagues to assess the risks of predictive market contracts. The National Football League (NFL) requires the platform to tighten trading rules to prevent contracts that could be manipulated from being listed, in order to protect the fairness of the games. The CFTC Chair said the league has unique expertise in identifying manipulation risks.

Over 40 Democrats urged the CFTC and ethics officials to clarify that insider trading laws apply to prediction markets, following suspicions of government officials profiting from leaked information. They seek guidance to prevent such trades amid ongoing regulatory scrutiny.

In brief ICE has invested another $600 million into Polymarket, fulfilling its commitment made in October. Rival Kalshi recently raised $1 billion at a $22 billion valuation, outpacing Polymarket's current valuation. Prediction markets face mounting regulatory pressure, with lawmakers