Crypto Regulation and Compliance Updates

South Korean prosecutors have charged a 39-year-old man with attempting to poison his business partner by lacing coffee with banned pesticide methamidophos after losing money on cryptocurrency investments. The suspect allegedly sought to gain sole control of the company following the failed crypto investment. The victim regained consciousness after being in a coma for three days. The case is scheduled for trial on March 10.

Odaily Planet Daily reports that Bitcoin Depot, a NASDAQ-listed Bitcoin ATM operator, announced the launch of a phased new compliance policy requiring users to provide identification information for every transaction at their Bitcoin ATMs (BTMs). The policy aims to further prevent crypto ATM scams and illegal activities. It is reported to be an upgraded version of the previous "First Transaction Identity Verification" rule and will be gradually implemented across the US terminal network starting February 2026. (Globenewswire)

Six Democratic U.S. Senators have written to the CFTC Chairman, urging a ban on prediction market contracts related to individual deaths, citing concerns that these contracts could lead to physical harm and national security risks. They referenced multiple cases, to which the CFTC has not yet publicly responded.

The lawsuit against Jane Street Group alleges insider trading and front-running contributed to the collapse of TerraUSD and LUNA, erasing $40 billion in market value. Terraform Labs seeks damages for creditors and hopes to address misconduct in the crypto market.

The administrator for Terraform Labs, Todd Snyder, has filed a federal lawsuit against Wall Street firm Jane Street, alleging it used insider information to profit from the $40 billion collapse of Terrausd and Luna in May 2022. Alleged Insider Pipeline The administrator overseeing the wind-down o

ChainCatcher News: A cryptocurrency exchange platform in Tsim Sha Tsui, Hong Kong, has experienced a theft. A 34-year-old network engineer is suspected of stealing approximately 20 customers' USDT (Tether), totaling about 2.67 million USDT, equivalent to approximately 20.87 million HKD. The police have detained him.

Odaily Planet Daily reports that IoTeX announced on the X platform that after a suspected private key leak led to a hacking attack, the L1 has been restored and upgraded to operate normally. The new version v2.3.4 includes a default blacklist that automatically filters malicious EOA addresses to enhance network security. A comprehensive compensation plan for affected bridging users will be announced within 24 hours.

Kalshi has removed all badges associated with its accounts in response to new X platform regulations, aiming to strengthen oversight of gambling content. The X product manager warned that failure to disclose partnerships could result in account bans to maintain user trust.

The Arizona State Senate advances SB 1649, proposing the establishment of a "Digital Asset Strategic Reserve Fund" managed by the State Treasurer's Office, allowing the state treasurer to invest and lend seized digital assets. The bill has passed multiple committees, explicitly listing Bitcoin and other digital assets as qualified assets and setting a benchmark threshold. The bill emphasizes that it will not increase the state's fiscal risk.

February 24 News, the Federal Reserve announced the launch of a 60-day public consultation, planning to remove the key assessment indicator of "reputational risk" from the banking regulatory framework. This move is seen by the market as an important signal to improve the banking service environment for cryptocurrency companies. If the proposal is approved, banks will no longer face additional regulatory pressure due to subjective reputational concerns when providing accounts and settlement services to digital asset companies, thereby alleviating the long-standing "debanking" issue from an institutional level.

February 24 News, the U.S. Securities and Exchange Commission (SEC) Cryptocurrency Working Group announced an important personnel change. Chainlink Deputy General Counsel Taylor Lindman officially joined the working group as Chief Legal Officer, succeeding Michael Selig. This appointment is seen by the market as a significant signal of further professionalization of the U.S. digital asset regulatory system. On February 23, Chainlink confirmed Lindman's departure on its official X platform and expressed gratitude for his legal and compliance contributions over the past five years. Public information shows that during his tenure, Lindman was mainly responsible for regulatory compliance in the U.S. and international jurisdictions, and he has long been involved in key issues such as token classification, legal frameworks for smart contracts, and standards for digital asset record keeping. He has also frequently communicated and coordinated with policymakers.

Terraform Labs bankruptcy trustee sues Wall Street quantitative trading firm Jane Street, accusing it of using insider information to sell 85 million UST before the UST depeg, becoming a key player in the incident. Jane Street responded to the allegations as "baseless" and blamed Terraform's management failures. This case reflects that the aftermath of the Terra collapse is still ongoing and will further trigger legal battles.

White House Digital Asset Advisor Patrick Vitter outlined a compromise draft of the bill to representatives from the cryptocurrency industry and banking sector. The core provision bans companies from earning yields on idle stablecoin balances, shifting the discussion toward activity-based reward mechanisms linked to transactions or network participation. Data from the Polymarket prediction platform shows that the probability of the bill passing this year has dropped to 44% at one point.

The USD stablecoin USD1 of the cryptocurrency project World Liberty Financial supported by the Trump family was subjected to an organized attack on . The price once dropped to $0.9942. The attackers hacked into multiple founders' accounts and spread rumors, attempting to profit from it. However, officials emphasized that the stability mechanism and asset reserves of USD1 remain intact, and the coin price has stabilized back to the $1 level. This incident highlights the security and market trustworthiness of the currency.

The article discusses the significant upgrades in Digital RMB 2.0, transforming it into a deposit currency with interest accrual, while also granting commercial banks operating rights. Policy developments leave room for the tokenization of real-world assets, promoting the application of Digital RMB in both domestic and international circulation. The domestic cycle emphasizes on-chain trading of financial assets, while the international cycle focuses on Hong Kong becoming a core market for Digital RMB, fostering the internationalization of the RMB and the development of stablecoins, laying the foundation for future circulation of Digital RMB.

February 24 News, the U.S. Federal Reserve has officially advanced a regulatory proposal to end the "debanking" of the crypto industry and has opened a 60-day public comment period on related banking regulatory rules. This move is seen as an important signal of a shift in U.S. financial regulatory policy, and the crypto industry generally believes it could weaken the long-standing banking service restrictions that have troubled digital asset companies. According to official statements, the proposed rules aim to remove "reputational risk" as a core basis for banks to review clients from the regulatory framework, instead focusing on "material financial risk." Regulators have previously instructed banking authorities not to require financial institutions to close customer accounts solely based on reputational concerns, which means that legitimate crypto businesses may receive clearer institutional protections when opening bank accounts and accessing financial services.

Onchain investigator ZachXBT announced a major investigation regarding insider trading within a crypto company, set to be revealed on February 26. Market speculation centers around the Meteora protocol on Solana, currently deemed the highest suspect.

The U.S. Securities and Exchange Commission (SEC) recently announced that broker-dealers holding USD stablecoins can apply a 2% capital discount. This policy will reduce the capital pressure on broker-dealers and promote the integration of stablecoins into the mainstream financial system. The market capitalization of stablecoins is currently about $296.1 billion, gradually becoming an important extension of the US dollar in the digital asset market. However, some Federal Reserve officials remain skeptical about the actual value of stablecoins.

A 38-year-old Chinese businessman surnamed Wang was kidnapped and killed in Turkey, with the suspects having a debt dispute with him. Wang was kidnapped by 4 suspects while dining with a female friend, who pretended to be uninvolved. Police discovered his body, and the suspects have been arrested, including the woman who was in collusion with them.