Enforcement Actions

Gate News reported that on March 18, Canada's Financial Transactions and Reports Analysis Centre (FINTRAC, Canada's financial intelligence unit) took concentrated enforcement action against 23 Money Services Businesses (MSBs) providing cryptocurrency-related services, revoking all their registration status at once, marking a further escalation of Canada's anti-money laundering regulatory efforts. The reasons for revocation of registration status include: failure to respond to information requests in a timely manner, non-compliance with registration eligibility conditions, and failure to update relevant records promptly and other compliance violations.

Bitcoin Depot faces legal pressures as its stock plummets and revenue forecasts weaken. Connecticut regulators suspended its money transfer license for violations, while lawsuits in multiple states add to the challenges. Revenue increased to $19,283,746,565,748,392.01 million in 2025, but net profit declined, and a 30–40% drop is expected for 2026.

A Buenos Aires court has ordered internet providers to block the blockchain-based prediction market Polymarket nationwide, ruling it operated as an unlicensed online betting platform. The decision also directs Google and Apple to remove the app from local stores. Judicial Ruling and Government

US Commodity Futures Trading Commission Chair Selig responded to Arizona's criminal charges against Kalshi, characterizing the matter as a jurisdictional dispute and stating that the charges are improper. Attorney General Mayes accused Kalshi of offering illegal gambling services, emphasizing that the company must comply with the law. The CFTC will closely monitor developments in the case.

Three teenage girls filed a lawsuit against Elon Musk's xAI in California federal court, alleging that its chatbot Grok generated child sexual abuse material without consent. The plaintiffs are seeking damages and an injunction to prohibit the generation of such content. According to the complaint, the feature has generated over 20,000 related images, with victims including at least 18 minors.

Taipei has recently experienced three cryptocurrency robbery cases, where criminals lured victims into private transactions by claiming zero fees, then robbed them. Police are urging the public to conduct transactions exclusively through legitimate exchanges to protect their personal safety, and warning them to be cautious of illegal solicitation on social media platforms.

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.

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.

South Korea's National Police Agency is drafting guidelines to standardize the storage and management of seized cryptocurrencies, addressing gaps in custody processes and enhancing oversight for both mainstream and privacy-focused assets. This initiative aims to improve compliance and risk management in digital asset investigations.

Bitrefill experienced a cyberattack linked to North Korea's Lazarus Group, compromising employee credentials and accessing 18,500 purchase records. The company contained the breach, enhanced security, and restored services while remaining profitable despite losses.

Israeli *Times of Israel* military reporter Emanuel Fabian recently disclosed that after reporting on an Iranian ballistic missile that struck an empty field in Beit Shemesh, a suburb of Jerusalem, he faced sustained harassment from bettors associated with Polymarket, including receiving death threats. This incident is particularly striking not only because it involves frontline war reporting and a prediction market with a funding pool exceeding $14 million, but also because it reveals an increasingly acute question: when market participants' profits begin to depend on media narratives, public information, and even violent events themselves, is the prediction market truly "price discovery," or is it creating dangerous incentives for the real world? Why did a frontline report trigger a mob of bettors? "That day, I reported on the *Times of Israel*'s live blog that the missile struck an empty field, with no

A Buenos Aires court ordered telecom regulator ENACOM to block Polymarket nationwide. Apple and Google must remove the app from stores after authorities classified it as illegal gambling. The investigation cited inflation prediction activity and potential access by minors. Argentina

Hong Kong police launched the "Thunder Drum" operation on March 18, arresting 6 people involved in a loan fraud ring offering low-interest loans, with amounts involved totaling approximately 5 million Hong Kong dollars. The group impersonated fake bank employees to deceive victims and collected deposits through cryptocurrency. The victims included highly educated individuals. The operation is still ongoing.

SEC and CFTC introduced a framework classifying tokens into securities, commodities, and digital tools. Regulators said mining, staking, and airdrops do not qualify as securities under federal law. The guidance marks a shift toward clearer rules, with formal proposals expected in coming

FTX founder SBF requested a Trump pardon without success and faces 25 years in prison for misappropriating customer funds. Bipartisan lawmakers widely opposed his pardon, while SBF previously defended himself through social media. Trump has made clear he will not consider a pardon, demonstrating America's zero-tolerance stance on cryptocurrency financial crimes.

The UK Reform Party has not yet provided cryptocurrency donation wallet addresses to the Electoral Commission, raising concerns about financial transparency and foreign interference. Regulators have pointed out that crypto donations present challenges in identity verification, calling for strengthened legislation to prevent illicit funds from flowing into the political system. As crypto asset financing expands, regulatory and compliance issues are becoming increasingly prominent.

The U.S. SEC and CFTC jointly released a cryptocurrency asset regulatory framework proposing five categories of token classifications, clarifying regulatory responsibilities, and reducing market uncertainty. The framework highly overlaps with the CLARITY Act but still has issues with insufficient legal force and missing content in certain areas. The future legislative process remains to be observed.

A TikTok influencer with over 800,000 followers is suspected of manipulating a MEME coin through account renaming tactics, publicly promoting it before dumping at high prices, causing the token to spike sharply and then crash rapidly. This behavior triggered investor losses and prompted multiple user reports. The influencer attempted to delete evidence but faces high legal risks and potential violation of multiple criminal charges.

U.S. Congressional Democratic lawmakers have introduced the "BETS OFF Act," aimed at restricting predictive betting on wars and national security events to prevent speculation using sensitive information. The bill stems from unusual betting activities, with Senators Murphy and Representatives Casar emphasizing the ethical controversies and systemic loopholes in such conduct. If the bill advances, it will impact blockchain-based event trading models.

Bitcoin Depot's money transmitter license has been emergency suspended in Connecticut due to reasons including excessive fees, failure to fully refund fraudulent transactions, and non-compliance with regulatory requirements. The company's stock price has declined significantly, and internal control deficiencies are expected to be disclosed in the annual report.