Enforcement Actions

A U.S. law firm Gibbs Mura is launching an investigation into a class-action lawsuit regarding the April 1 Drift Protocol hack, alleging that stablecoin issuer USDC’s issuer Circle failed to freeze $230 million of the stolen funds. The firm will investigate Circle’s alleged double standards in the incident and its monitoring vulnerabilities. This case is expected to have a major impact on the legal liability of stablecoin issuers.

The U.S. federal government argues that sports event wagering should be treated as a financial derivative rather than gambling, and it seeks to bar Arizona from enforcing against Kalshi, the prediction market platform. If the court backs the federal position, prediction markets will operate under uniform nationwide regulation, weakening each state’s ability to regulate. This legal dispute concerns the legitimacy of prediction markets and the allocation of regulatory authority, affecting the future development of the industry.

Gate News message, April 10, the Jiangsu Securities Regulatory Bureau issued a risk warning. Recently, some illegal intermediaries have used the gimmick of “getting listed on the Hong Kong Stock Exchange by knocking the gong” for a fee, offering services such as fake equity code and website public announcements. The relevant platforms are mostly “fake exchanges,” and they package the fake listing through forged ceremonies. Some companies take advantage of this to sell equity and pre-IPO shares to the public, which may involve illegal fundraising. Regulatory authorities remind investors: verify the qualifications of institutions through the official website of the Hong Kong Securities and Futures Commission, be wary of guaranteed-principal and high-yield promotions, do not transfer funds to individuals’ accounts or non-official platforms, and if you discover any leads, report and file a case promptly.

The article discusses legal disputes involving Polymarket prediction markets, especially the unclear boundary between insider trading and gambling. It emphasizes that using USDC for settlement exposes Chinese participants to legal risk, and it mentions the “End Prediction Market Corruption Act” proposed by a U.S. senator, which prohibits certain government officials and their family members from participating in prediction market trading.

A cryptocurrency exchange became the first CEX to be approved for a Federal Reserve master account, but the account is restricted—access is limited to the Fedwire payment system, and it cannot earn interest. This move has sparked concerns about financial risk and transparency in the U.S., and regulatory experts warn it could affect financial stability. The exchange said it is complying with anti–money laundering requirements.

Bitcoin Depot reported a security breach where hackers stole 50.9 BTC, worth approximately $3.6 million, by compromising internal settlement account credentials. This incident highlights vulnerabilities in crypto companies' operational infrastructure, emphasizing the need for enhanced security measures.

Security research reveals that in the LLM agent ecosystem, over 20% of free API routers actively inject malicious code, leading to asset theft and credential crises. In addition, the Claude code-leak incident has enabled attackers to spread malware by exploiting developers’ curiosity. The research team proposes a three-layer defense mechanism to address supply-chain security risks.

Three Democratic senators are asking for documents related to the \$TRUMP Meme coin activity, accusing the organizers of encouraging token purchases by dangling access to President Trump. The event may allow Trump and his family to benefit and raises concerns about a conflict of interest. The senators emphasized that the organizers’ promotion is misleading and urged the addition of moral provisions in the crypto market bill to limit current officials from profiting. This incident could affect confidence in the crypto market and the legislative process.

Three U.S. senators questioned whether former President Trump is promoting the purchase of TRUMP Coin through a luncheon event, and asked the organizers to provide relevant documents. The event is limited to the first 297 token holders, and whether Trump can attend is also in doubt. The senators accuse the effort of encouraging people to buy the coin in order to profit.

An FBI report shows that in 2025, the United States lost $11.4 billion due to cryptocurrency scams, up 22% from the previous year. Many of the scams are controlled by criminal groups in Southeast Asia. Victims lose an average of more than $60k each, and many even lose their life savings.

The White House Office of Management issued a warning on March 23, banning employees from using nonpublic information to participate in prediction markets, saying this constitutes a criminal offense. The report said that 15 minutes before Trump announced a pause in airstrikes against Iran, oil futures saw unusual trading, and three Polymarket accounts earned more than 600k yuan by accurately predicting outcomes, raising concerns about insider trading. The White House emphasized that this behavior violates ethical standards and said there is no specific evidence yet pointing to any individuals who broke the rules.

The White House warns staff not to use their positions to bet in prediction markets, especially by engaging in unusual trading activity before policies suddenly change. Accounts that have already profited more than $600k through prediction have drawn criticism, and critics suspect that someone used insider information to profit. The White House confirmed the authenticity of the warning.

The “Atlantic Initiative” carried out jointly by the United States, the United Kingdom, and Canada has ended, successfully freezing more than $12 million in scam assets, identifying more than 20k victims, with scam proceeds totaling over $45 million, focusing on cracking down on authorized phishing attacks. A certain CEX participated in the operation but did not freeze funds.

A certain CEX participated in an "Operation Atlantic" operation led by the U.K. National Crime Agency to crack down on crypto and investment scams, with a particular focus on authorized phishing schemes. The CEX provided on-site support, helped identify victims and malicious websites, and shared intelligence with law enforcement agencies, protecting thousands of potential victims.

On-chain sleuth ZachXBT accuses Gurhan Kiziloz, the suspected co-founder of the casino platform Spartans, of spearheading the Blockdag Network project, allegedly luring retail investors into fundraising with false promotion of $300 million, and withdrawing the funds to the Middle East within two years. Gurhan is also suspected of lavish spending and using public relations to maintain his image.

U.S. law firm Gibbs Mura initiates a class-action investigation into the Drift Protocol theft incident, involving an amount of approximately $280 million to $285 million. The law firm said that Circle did not freeze the stolen funds in a timely manner, and urged affected users to join the lawsuit to recover their losses.

On-chain sleuth ZachXBT said the Bitcoin Depot hack resulted in an actual loss of 54 bitcoins, which is more than its official reported figure of 50.9 bitcoins. The hacker stole the funds on March 20 after compromising credentials, and Bitcoin Depot only discovered the loss three days later.

A CEX co-founder, Ben Delo, donated $5.4 million to the Reform UK party, and the donation took place before new UK regulations came into effect. Delo was previously fined $10 million for violating anti–money laundering compliance and received a pardon from Donald Trump. Reform UK positions itself as a pro-cryptocurrency political party and is currently facing a pause order on crypto donations. After relocating to the UK, Delo plans to be exempt from donation limits.

The U.S. CFTC and the Department of Justice are asking a federal court to stop Arizona from enforcing its state gambling laws against prediction market operator Kalshi, arguing that its contracts should be regulated by federal oversight rather than state statutes. Related criminal charges have been filed, and the hearing is scheduled for April 13.

Odin Fun co-founder Bob Bodily said that in response to recent attack incidents, the platform is carrying out multiple recovery efforts, including rolling back state, tracking funds, patching vulnerabilities, auditing contracts, and communicating with the community. This incident resulted in large-scale sell-offs and abnormal account withdrawals.