Enforcement Actions

On March 10th, crypto journalist Eleanor Terrett pointed out that U.S. Judge Failla showed a different attitude when presiding over cases involving Tornado Cash and Uniswap developers, considering Uniswap as neutral infrastructure, while viewing Tornado Cash as involved in illegal financial activities, which could influence the future liability determination for DeFi project developers.

Manhattan prosecutors in the United States have requested a re-examination of the money laundering and sanctions violation charges against Tornado Cash founder Roman Storm, despite the jury failing to reach a consensus. Storm responded by stating he faces the risk of 40 years in prison and criticized the Department of Justice for double standards. The crypto community also expressed disappointment with the prosecutors' approach.

Roman Storm faces a retrial, with a maximum possible sentence of 40 years for conspiracy charges related to Tornado Cash. The jury was divided on the core charges, and a retrial requires resolving a motion for acquittal first. This case has sparked conflicting reactions from the U.S. government regarding cryptocurrency privacy policies, with the Treasury Department acknowledging the legal use of mixers, while the Department of Justice continues to pursue criminal prosecution, highlighting policy confusion. The industry has expressed strong concern over this.

China issues a ban on unauthorized Renminbi-pegged stablecoins and considers RWA tokenization activities illegal, aiming to prevent industry expansion. Analysts believe that this ban cannot stop the global demand for USD stablecoins, and Hong Kong's stablecoin licensing may also present opportunities for Chinese-funded banks, indicating a subtle regulatory adjustment. Overall, China's measures are targeted at the domestic market rather than an obstacle to global RWA development.

South Korea's National Tax Service accidentally leaked cryptocurrency seed phrases, leading to assets worth approximately $4.8 million being stolen. The first thief surrendered and returned the assets, but they were stolen again by others. Experts criticized the National Tax Service for not taking necessary protective measures, and authorities admitted the mistake and promised to strengthen security systems.

The U.S. Department of Justice has requested a retrial for Tornado Cash co-founder Roman Storm on charges of money laundering and violating sanctions. The initial trial ended in a hung jury, and the case remains unresolved. This case will have a profound impact on crypto privacy tools and blockchain regulation.

According to Amanda Tuminelli, Chief Legal Officer of the DeFi Education Fund, the U.S. Department of Justice will re-examine Tornado Cash co-founder Roman Storm in the fall. In the first trial, the jury did not reach a consensus on money laundering and sanctions charges, only ruling that he operated an unlicensed remittance business. Despite errors by the prosecution in the first trial, they still decided to re-try some of the charges.

CFTC Chairman Mike Selig stated at the conference that the United States is experiencing a technological revolution driven by AI and blockchain, emphasizing the need to adjust the regulatory framework to adapt to changes. Key areas include derivatives market regulation, addressing legacy issues in legislation, clarifying the classification of crypto contracts, and prioritizing agricultural and energy needs.

Gate News Announcement, March 10th, Prosecutor General Yin Yong of the Supreme People's Procuratorate delivered the work report of the Supreme People's Procuratorate to the Fourth Session of the 14th National People's Congress. The report states that by 2025, efforts to combat money laundering will be intensified, with 3,259 people prosecuted for crimes involving virtual currencies, underground banks, and other methods of money laundering. Additionally, law enforcement will crack down on telecom and online fraud crimes, with 69,000 people prosecuted.

The US banking industry is considering filing a lawsuit against the Office of the Comptroller of the Currency (OCC) because the OCC has granted national trust bank charters to cryptocurrency and fintech companies. BPI believes this move is illegal and has led to regulatory unfairness. Opposing voices include the Banking Association and state regulators, who argue that this measure could bypass traditional regulation. The OCC has approved licenses for multiple crypto companies, but this has sparked controversy, especially with applications from companies related to the Trump family drawing congressional scrutiny. If the lawsuit succeeds, it could impact the compliance status of crypto companies and the regulatory framework.

Moldova's National Anti-Corruption Center has disclosed a plan to influence the 2025 parliamentary elections using cryptocurrency, involving a total amount of $107 million. The funds are transferred through non-custodial crypto wallets to intermediaries, who then exchange them for cash to bribe voters and promote candidates. The source of the funds is mainly from crypto platforms in Russia and Kyrgyzstan.

The trademark licensing company PEI Licensing, which represents the American apparel brand Original Penguin, has filed a lawsuit against the NFT project Pudgy Penguins, accusing it of unauthorized use of the "Penguin" trademark, causing market confusion. PEI believes this has damaged the brand's reputation and is demanding an end to the infringement. Pudgy Penguins stated that their market positioning differs from that of Original Penguin and rebutted the allegations. This case highlights the intellectual property challenges faced by NFT brands in expanding into physical merchandise.

U.S. Department of the Treasury proposed a law allowing exchanges to freeze suspicious crypto funds during probes. The report says a “hold law” would let platforms pause transfers without a court order while law enforcement investigates. Treasury also urged clearer AML rules for DeFi

TRON founder Justin Sun says his companies maintains zero tolerance against illegal activities like embezzlement, unauthorised computer access and bribery. He threatened legal action against those who spread false rumors online and ‘smear judicial organs’ just days after two of his companies

Gate News Report, March 9 — Litigation documents show that Anthropic has requested the court to issue an order to revoke the U.S. Department of Defense's blacklisting of the company and to restore federal contracts. Previously, Anthropic was listed as a "supply chain risk" company for refusing to remove safety barriers. In the lawsuit, Anthropic argues that the First Amendment of the U.S. Constitution protects its right to set ethical boundaries for its technology without retaliation.

The United States Treasury plans to utilize artificial intelligence technology. Blockchain analytics in the fight against cryptocurrency-related fraud after the total loss exceeded $9 billion. The officials are of the opinion that the technology can help identify fraud patterns at an early

Gate News Announcement: On March 9, the Financial Intelligence Unit (FIU) of South Korea issued a preliminary notice to a certain CEX for suspected violations of the "Specific Financial Transaction Information Act," engaging in transactions with unreported overseas virtual asset service providers, and inadequate KYC procedures. The exchange has been temporarily suspended for "6 months with partial operation." Responsible personnel will be held accountable. This restriction mainly affects the virtual asset withdrawal function for new users. Existing users' KRW and crypto asset deposits, withdrawals, and trading are temporarily unaffected.

Cryptocurrency company BlockFills has suspended customer deposits and withdrawals due to worsening market conditions and legal disputes. They are currently evaluating a debt restructuring plan and have hired consultants to assist. Facing allegations from Dominion Capital and a temporary court injunction, BlockFills is seeking restructuring and improvements to its financial and governance mechanisms.

The Bank Policy Research Institute is considering suing the Office of the Comptroller of the Currency for relaxing federal licensing rules, making it easier for crypto companies to obtain nationwide banking trust licenses. The policy has raised concerns about consumer protection and the stability of the financial system, with multiple regulatory agencies and small banks voicing strong opposition.

Gate News Announcement, March 9 — TRON founder Justin Sun tweeted that his company, in light of recent internal cases related to integrity and digital security, reaffirms a zero-tolerance policy towards illegal activities. The company focuses on cracking down on illegal intrusion, unauthorized control of computer systems, embezzlement, bribery of non-governmental personnel, and scams. Such activities have jeopardized the security of company and user assets and information. Justin Sun emphasized that for those who profit through improper means and spread rumors or discredit judicial authorities online to confuse the public, the company will cooperate with judicial authorities to pursue accountability according to the law.