Enforcement Actions

The Algorand Foundation has reduced its workforce by 25% amid market uncertainty, even as the SEC clarified ALGO’s status as a digital commodity. The move reflects a strategic reset rather than a retreat from long-term growth. Layoffs Hit Algorand as Market Pressures Collide With Regulatory

Los Angeles rideshare driver Bruce Choi has been arrested on suspicion of defrauding $2 million in pandemic relief loans and using the funds to purchase cryptocurrency. Choi fabricated companies to apply for loans, and prosecutors have charged him with wire fraud and money laundering. If convicted, he faces serious penalties.

Kalshi Faces Arizona Criminal Gambling Charges, Monthly Revenue Exceeds $110 Million. Despite the company arguing that its contracts are federally regulated, the state contends that these contracts resemble traditional gambling. Legal battles are unfolding in multiple states, regulatory uncertainty is intensifying, while the CFTC is considering new regulations.

On March 19, Paraguay's National Drug Secretariat held a workshop with the American Bar Association to discuss technical capabilities to combat crimes utilizing Bitcoin and other cryptocurrencies, analyze the digitalization trends of transnational criminal networks, and disclose cases of Uruguayan drug traffickers conducting transactions through cryptocurrencies. Paraguay's Tax Administration has already required cryptocurrency trading platforms to report transaction information.

The UK High Court is hearing a Bitcoin theft case in which the plaintiff accuses his wife of stealing 2,323 bitcoins and covertly recording the seed phrase through surveillance equipment. The court found the evidence disadvantageous to the defendant, including recordings and seized devices. While some claims were dismissed, the plaintiff has a very high probability of success, and the court will maintain the asset freeze order.

Gate News reported that on March 19, a man accused his ex-wife of stealing over 2323 bitcoins from his wallet after their divorce and transferring them to a place he cannot access, with the assets involved valued at up to 180 million pounds (approximately 238 million US dollars). Plaintiff Ping Fai Yuen has filed a lawsuit against his ex-wife Fun Yung Li at the London court over this matter. According to London court ruling documents published on March 10, since the litigation was initiated, the bitcoins involved in the case have been valued at up to 180 million pounds.

The Korean National Police Agency is developing new virtual asset seizure management guidelines, incorporating handling of privacy coins for the first time. The new regulations will clarify software wallet management, address virtual asset custody gaps, and improve law enforcement efficiency. Police plan to designate private custodian institutions, while experts recommend establishing a centralized public custody mechanism to reduce risks. This reform has been prompted by recent Bitcoin theft incidents, driving the management system's transition toward the digital asset era.

Polymarket will open a themed bar called The Situation Room in Washington, D.C., offering real-time situation monitoring experiences where customers can track global political, military, and market dynamics. This move has prompted Democrats to introduce the Financial Prediction Market Public Integrity Act of 2026, which aims to regulate insider trading risks. As markets and policy intersect, the neutrality of prediction markets has come under scrutiny.

Canada has increased its action against crypto firms. Reports say dozens of companies linked to crypto are now under pressure. Recent updates claim that up to 50 money services businesses (MSBs) lost their registrations this year. Out of these, many were tied to crypto operations. However,

Gate News reports that on March 19, the Federal Bureau of Investigation (FBI) issued a warning stating that criminal networks are exploiting cryptocurrency ATMs to conduct fraud schemes. Scammers impersonate law enforcement personnel and use false legal threats to lure victims into transferring funds through cryptocurrency ATMs. The FBI reminds the public to remain vigilant, noting that law enforcement will never request citizens to use cryptocurrency ATMs for transfers or to pay fines via phone or other means.

France has recently experienced a rise in cryptocurrency-related violent crime, with kidnapping cases involving crypto influencer families raising security concerns. Police have detained multiple suspects, and the cases indicate organized cross-border crime trends. Analysis suggests that the traceability of digital assets makes them attractive targets for criminals, and users need to prioritize asset security.

Former Los Angeles County Sheriff's Deputy Coberg was sentenced to 63 months in prison and ordered to pay $127,000 in restitution for assisting cryptocurrency fraud perpetrator Iza in extortion and false arrest schemes. Coberg allegedly participated in extorting victims and orchestrated a setup to lure him to Los Angeles for arrest, abusing his authority and public power in the process. The case was investigated by the FBI and the Internal Revenue Service.

Canada's cryptocurrency industry faces tightening regulations, with approximately 50 money services business registrations revoked since 2026, of which 47 involved crypto operations. FINTRAC has cancelled credentials for 23 enterprises, while the Finance Minister emphasized combating money laundering and financial crime, with plans to enhance regulatory transparency in the future. Despite crypto-related illegal transactions accounting for less than 1% of illicit flows, traditional finance remains the primary money laundering channel. Non-compliant enterprises face severe penalties, requiring companies to strengthen compliance systems to reduce operational risks.

Argentine President Javier Milei has come under public scrutiny due to the Libra cryptocurrency scandal. An investigation reveals that he had prolonged financial dealings with lobbyist Novelli, with transaction amounts increasing after he took office. Milei had previously promoted Libra and related projects, and both Congress and the judiciary have now launched investigations into the matter.

The Northern District of California Federal Court rejected a motion by user Roger Metz to quash an IRS summons, ruling that the proper notice to the Attorney General was not provided. The summons requires the CEX to produce its 2022 tax records. The court stated that the dismissal does not affect substantive rights, and Metz may resubmit the application at a later date.

Taipei has experienced three cryptocurrency robbery cases in a short period of time, with criminal gangs using social media with various tactics to lure victims into meeting to exchange USDT, followed by robbery. Police remind the public that they must conduct transactions through legitimate exchanges to avoid risks. Some criminal organizations have even used AI to create fake accounts to spread false information and mislead the public into participating in illegal transactions.

Canada's Finance Minister announced that FINTRAC has revoked the registration of 23 cryptocurrency service providers, marking a crackdown on cryptocurrency compliance. The government will continue to take measures to address related risks.

The FBI warns of rising impersonation scams involving cryptocurrency payments, as fraudsters use urgency and evolving tactics to pressure victims into quick financial decisions and drive increasing financial losses. FBI Warns of Rising Law Enforcement Impersonation Scams A new warning from the FB

Tarek Mansour, CEO of Kalshi, dismissed criminal allegations from Arizona as overreach, asserting the company's operations are not gambling. He emphasized that the legal dispute remains unresolved and that the CFTC has authority, not state regulators.

The FTX Bankruptcy Estate will distribute $2.2 billion to creditors on March 31st, marking the fourth distribution since 2025, with cumulative payouts reaching $10 billion. Compensation is calculated based on cryptocurrency asset values at the time of claim filing in 2022, which has sparked creditor dissatisfaction as actual asset values have risen significantly. Additionally, FTX founder Sam Bankman-Fried faces imprisonment, with speculation about potential pardons. A fifth distribution is planned for 2026.