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Gemini's $5 Million Settlement Rejection Overturned, Paid Fine and Permanent Injunction Upheld
Odaily reports: U.S. District Judge Alvin Hellerstein on October 15, 2026, declined to vacate the $5 million settlement agreement between crypto exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC), leaving the paid fine and permanent injunction in effect. Previously, the CFTC had stated that the original lawsuit should never have been brought.The dispute stemmed from Gemini's involvement in proposed Bitcoin futures contracts. The CFTC filed suit in June 2022, alleging that Gemini misled regulators regarding trading safeguards, customer financing, special fee arrangements, and activities that could potentially affect contract pricing; the two parties settled in January 2025, with Gemini neither admitting nor denying the allegations.In May 2026, following an internal review, the CFTC and Gemini jointly sought to vacate the settlement, citing issues with whistleblower credibility, evidence, and enforcement practices. The judge found that the relevant circumstances had existed prior to the settlement and that a change in enforcement priorities was insufficient to vacate a binding court order; the CFTC retains its enforcement discretion. (Bitcoin.com News)
First Digital to Go Public on Nasdaq via Reverse Merger at $250M Valuation, Expected to Close in H1 2027
Odaily News: First Digital is a Hong Kong-based digital asset company and the issuer of FDUSD. The company has entered into a definitive merger agreement with Nasdaq-listed CSLM Digital Asset Acquisition Corp III, with a pre-transaction valuation of $250 million. Upon completion of the transaction, the two parties are expected to form a new holding company and list on Nasdaq, with completion anticipated in the first half of 2027, subject to regulatory approvals and other closing conditions. As of June 30, 2026, FDUSD's cumulative trading volume has exceeded $4.7 trillion. For the fiscal year ended June 30, 2025, First Digital generated approximately $87 million in revenue. First Digital stated that FDUSD's reserve assets consist of cash and cash equivalents held in segregated accounts, with monthly attestations conducted by independent firms. The company's Finance District platform has launched 4 products to date but has not yet generated significant revenue.
$165 Million Crypto Ponzi Scheme Mastermind Deported Back to U.S., Facing Federal Fraud Charges
According to Cointelegraph, Edward Zimbardi, the alleged mastermind behind a $165 million cryptocurrency Ponzi scheme, was deported back to the United States by Fijian authorities recently after hiding in Fiji for over a year, following coordination between the FBI and the U.S. Department of State, and will appear for trial in the U.S. District Court for the Northern District of Georgia. Prosecutors allege that between June 2022 and August 2023, he illegally raised over $165 million in crypto assets by promising investors a fixed monthly return of 25% under the name "The Crypto Program". The raised funds were not used for the promised ad package business, but were misappropriated for over $34 million in high-risk forex trading, repaying early investors with new funds, and at least $10 million in personal expenses, including purchasing real estate, luxury vehicles, and paying alimony. Zimbardi currently faces 12 counts of wire fraud, 12 counts of money laundering, and 1 count of conspiracy to commit money laundering, totaling 25 federal charges.
U.S. Federal Judge Rules Kalshi Sports Contracts Are Not Swaps, CFTC Lacks Exclusive Jurisdiction
Odaily News: Connecticut Federal District Court Judge Vernon D. Oliver denied Kalshi's motion for a preliminary injunction, ruling that its sports event contracts do not constitute swaps under the Commodity Exchange Act. The CFTC therefore does not hold exclusive jurisdiction. The ruling noted that sports event contracts account for 80% to 90% of Kalshi's listed contracts and revenue, and the CFTC has never reviewed any of these contracts under relevant special rules. Oliver held that event outcomes fall under the category of event results, not separate events. Coinbase Financial Markets suffered a similar defeat on the same grounds, having offered Kalshi contracts through its platform since January as a futures commission merchant rather than a designated contract market, and Connecticut had not previously issued a cease-and-desist order against it. Kalshi was valued at approximately $11 billion at the time of its February hearing, with around 24,000 users in the state. (Bitcoin.com News)
Multiple law enforcement agencies jointly oppose key provisions of the Clarity Act; negotiations continue
According to Crypto in America, the National District Attorneys Association, the National Association of Assistant U.S. Attorneys, the International Association of Chiefs of Police, and the National Sheriffs’ Association jointly sent a letter to Acting Attorney General Todd Blanche and Patrick Witt, Executive Director of the White House Crypto Council, expressing strong opposition to Section 604 of the “Clarity Act”—the Blockchain Regulatory Certainty Act (BRCA). Law enforcement groups argue that this provision could create regulatory loopholes exploitable by criminals for illicit activities including drug trafficking, fraud, child exploitation, sanctions evasion, and terrorist financing. Meanwhile, cryptocurrency-backed candidates achieved sweeping victories in primary elections across Maryland, New York, and Utah. Fairshake—a pro-crypto super PAC—has collectively spent over $7.6 million supporting these candidates, including $5.5 million backing Adrian Boafo, the candidate for Maryland’s 5th congressional district. Miller Whitehouse-Levine, founder of the Solana Policy Institute, warned that August 7, 2026, may be the final window for Congress to pass cryptocurrency market structure legislation. He stated that the industry is willing to make limited revisions to the BRCA provisions to address law enforcement concerns—but firmly opposes any fundamental changes that would weaken the core protections enshrined in the provision. Additionally, the House Financial Services Committee held a hearing on “The Future of Payments” the same day.
OpenAI Lawsuit: Microsoft CEO Satya Nadella Testifies in Court as Altman-Musk Dispute Escalates to Core Partnership Relations in the AI Giant
Odaily Odaily News: In the OpenAI lawsuit, Satya Nadella testified in court as Microsoft's CEO at the U.S. District Court in Oakland, California. The case centers on the ongoing legal dispute over OpenAI's non-profit structure and its path to commercialization. The lawsuit, filed by Elon Musk in 2024, accuses Microsoft of "aiding and abetting the breach of charitable trust obligations" during OpenAI's transition from a non-profit organization to a commercial entity. Microsoft has been making strategic investments in OpenAI since 2019, with cumulative investments reaching approximately $13 billion by 2023, making it one of OpenAI's most important external supporters.During the trial, Satya Nadella reviewed the early partnership between Microsoft and OpenAI, mentioning that the two parties had established deep technological and computing power collaboration before the launch of ChatGPT. In his earlier testimony, Musk stated that Microsoft's additional investment of approximately $10 billion in OpenAI in 2023 was the key turning point that prompted him to file the lawsuit, adding that the scale of the investment altered OpenAI's original non-profit-oriented structure. During the trial, Musk stated: "We are concerned they are turning a charitable organization into a commercial tool." He also questioned Microsoft's potential dominant position in the development of Artificial General Intelligence (AGI) and pointed out that its deep integration with OpenAI could impact the competitive landscape of the industry.The case is currently still under trial, and the debate surrounding OpenAI's governance structure, non-profit status, and control over the AI industry is expected to continue. (CNBC)
Beijing Investigates First Blockchain Pyramid-Selling Assistance Case; Involved Company Fined and Confiscated Over 930,000 Yuan
According to the Beijing Daily app, the Haidian District Market Regulation Bureau in Beijing has investigated and penalized the city's first illegal case involving the use of blockchain and virtual currency technologies to assist in pyramid selling operations. The involved tech company was fined and had its illegal gains confiscated, totaling over 930,000 RMB. The company served as an outsourced service provider for a public chain, offering operational support, marketing services, promotional campaigns, exchange integration, and maintenance.
CFTC Sues Utah to Block Its Restrictions on Prediction Markets
Odaily reports: The Commodity Futures Trading Commission (CFTC) has filed a lawsuit in the U.S. District Court for the District of Utah seeking to block Utah from taking action against prediction markets. A week earlier, Utah officials sued prediction market platform Kalshi and its affiliates, seeking to recover up to $60 million in profits allegedly obtained illegally through event contracts.The CFTC stated that Utah is attempting to circumvent congressional intent and restrict the operations of exchanges registered by the agency. The complaint notes that the relevant event contracts qualify as swaps under the federal Commodity Exchange Act, and exchanges offering trading in such contracts are subject to CFTC regulation; Utah's actions infringe on federal regulatory authority over commodity derivatives markets.This lawsuit is yet another dispute between federal and state governments over jurisdiction concerning prediction markets. New Jersey officials in September of last year asked the U.S. Supreme Court to hear their case against Kalshi, and similar lawsuits have been filed in Michigan, Ohio, and other states; as of Tuesday, the Supreme Court had not announced whether it would accept the case. (Cointelegraph)
Colombian Police Dismantle $42M Cryptocurrency-Linked Drug Trafficking and Money Laundering Ring
According to Bitcoin.com, Colombia’s Attorney General’s Office announced Wednesday that eight individuals suspected of using cryptocurrency to launder money for drug trafficking organizations have been arrested in coordination with U.S. intelligence agencies. Police and military forces carried out synchronized operations across four locations: Cali, Medellín, Barranquilla, and Bogotá. Among those detained were seven members, including the gang’s leader, Guillermo Carpio Cardenas (alias “Gallo”). The U.S. District Court for the District of Puerto Rico alleged that the syndicate obscured the origins of drug proceeds and evaded financial intelligence oversight through deposit networks, encrypted tokens, and smurfing. Another suspect, Nassim Orfale Vasquez, was apprehended in Barranquilla and has been indicted by the U.S. District Court for the Southern District of New York. According to the Internal Revenue Service (IRS), he processed over $42 million in suspicious cryptocurrency transactions since 2018, and authorities are currently investigating whether a larger money-laundering network operates along Colombia’s coastline.
Utah Attorney General Sues Kalshi, Alleging Online Gambling Constitutes a Public Nuisance, Seeks Up to $60 Million in Damages
According to KUTV, Utah Attorney General Derek Brown announced on Tuesday that he has filed a civil lawsuit against prediction market platform Kalshi and several of its affiliates, alleging its online services constitute a public nuisance. The complaint was filed in Utah’s Third Judicial District Court. Brown alleges that Kalshi provided services to more than 32,000 verified Utah residents, violating the state’s anti-gambling laws and causing “significant and continuing harm” to a large number of citizens. The state is seeking a court order to block Kalshi from offering online bets on sports, elections, politics, culture, and “mention”-related events, while permitting the use of geolocation service providers to enforce the injunction. The suit also seeks up to $60 million in damages.
Survey Shows Most Americans Oppose Betting on Election Outcomes
Odaily reports: A survey covering 4,506 adults across the United States shows that most respondents oppose betting on U.S. elections and other government actions through prediction markets. 69% of Democratic respondents and 61% of Republican respondents opposed betting on election results. The survey was conducted from September 30 to October 5.The prediction market industry, driven by platforms such as Polymarket and Kalshi, allows users to bet on U.S. elections, changes in government policy, and sporting events. The related business has triggered multiple regulatory lawsuits between state governments and federal agencies.The survey shows that 43% of respondents oppose betting on professional sports events, while 29% expressed support. The administration of U.S. President Donald Trump is pushing for the industry to be regulated by the U.S. Commodity Futures Trading Commission (CFTC). 39 states and the District of Columbia have submitted amicus briefs, stating that the dispute between federal and state regulators has evolved into a nationwide jurisdictional conflict. (Cointelegraph)
Gemini's $5 Million Settlement Rejection Overturned, Paid Fine and Permanent Injunction Upheld
Odaily reports: U.S. District Judge Alvin Hellerstein on October 15, 2026, declined to vacate the $5 million settlement agreement between crypto exchange Gemini and the U.S. Commodity Futures Trading Commission (CFTC), leaving the paid fine and permanent injunction in effect. Previously, the CFTC had stated that the original lawsuit should never have been brought.The dispute stemmed from Gemini's involvement in proposed Bitcoin futures contracts. The CFTC filed suit in June 2022, alleging that Gemini misled regulators regarding trading safeguards, customer financing, special fee arrangements, and activities that could potentially affect contract pricing; the two parties settled in January 2025, with Gemini neither admitting nor denying the allegations.In May 2026, following an internal review, the CFTC and Gemini jointly sought to vacate the settlement, citing issues with whistleblower credibility, evidence, and enforcement practices. The judge found that the relevant circumstances had existed prior to the settlement and that a change in enforcement priorities was insufficient to vacate a binding court order; the CFTC retains its enforcement discretion. (Bitcoin.com News)
Two brothers in the U.S. sentenced to 15 years and 15 years and 6 months respectively for armed kidnapping of a family and robbery of over $8 million in cryptocurrency
Odaily reports: U.S. Attorney Daniel N. Rosen for the District of Minnesota announced that Raymond Christian Garcia and Isiah Angelo Garcia, from Waller, Texas, have each been sentenced to 180 months and 186 months in prison respectively for their involvement in a September 2025 armed kidnapping of a family in Grant, Minnesota, and cryptocurrency extortion scheme.Court documents show that on September 19, 2025, the two traveled from Texas to Minnesota, broke into the victims' home armed with firearms, bound the family with zip ties and held them at gunpoint for over 9 hours, forcing the victims to hand over access to their cryptocurrency accounts. After failing to obtain the expected amount, the two forced the victims to drive to the family's vacation home in northern Minnesota to retrieve additional cryptocurrency storage devices and transfer funds, ultimately forcing the victims to transfer over $8 million in cryptocurrency. After the victims' son called the police, the two fled the scene and were later identified and arrested by law enforcement near Houston, Texas. Both pleaded guilty in June 2026 and were sentenced on October 29.
Chinese National Extradited to U.S. in $36.9 Million Crypto Fraud Case
Chinese national Zheng Zhao has been extradited from the Netherlands to the United States and appeared before a court in the Central District of California on October 23. He is alleged to have participated in an investment fraud and money laundering scheme involving 174 U.S. victims and more than $36.9 million in illicit funds. The U.S. Department of Justice (DOJ) said the fraudulent operations were run by scam centers in Cambodia.Prosecutors allege that more than $36.9 million was transferred through accounts controlled by accomplices into an account at Bahamas-based Deltec Bank, then converted into the stablecoin USDT and sent to digital asset wallets in Cambodia. Eight other co-defendants have already pleaded guilty; Zheng Zhao faces a money laundering conspiracy charge and, if convicted, could be sentenced to up to 20 years in prison. (Bitcoin.com News)
$900,000 Bitcoin Theft Case: US Seeks Forfeiture of 110,300 USDT
Odaily News: The U.S. Attorney's Office for the District of Massachusetts filed a civil forfeiture lawsuit on September 28, seeking the forfeiture of 110,300 USDT seized from a Binance account. The case involves phishing text messages impersonating Coinbase, which led to the theft of 33.7 bitcoins, worth approximately $900,000 at the time, from a beneficiary and their family trust held in the same Coinbase account.Investigators said that between June 5 and June 15, 2023, 11.2 of the stolen bitcoins were traced to the Binance account and were quickly converted into Monero. When the FBI requested the account be frozen, it held approximately 758.55 Monero; Binance transferred 110,300 USDT to a government-controlled wallet on August 3, 2026. (Bitcoin.com News)
3 Insider Trading Investigations Approved, CFTC Involves Polymarket Biden Pardon, Iran War, and Google Contracts
Odaily News: The U.S. Commodity Futures Trading Commission (CFTC) has previously secretly approved 3 insider trading investigations into Polymarket trading, involving Biden pardon, Iran war, and Google-related event contracts. CFTC Chairman Michael Selig approved an investigation in May into contracts related to the Biden pardon, after a trader had profited over $300,000 from the related market; in the same month, the CFTC also approved an investigation into Iran war contracts, after a group of suspicious accounts was exposed for profiting $2.4 million with a win rate of approximately 98%. In July, the CFTC further launched an investigation into Google-related Polymarket contracts, focusing on individuals who may have used non-public information about Google's 2025 search rankings to trade. The U.S. Attorney's Office for the Southern District of New York is also conducting a parallel investigation, and Polymarket stated that it has referred the relevant matters to law enforcement and is cooperating with the investigation.
Hong Kong Court Sentences Telecom Fraud "Middleman" to 56 Months in Prison: Police Track Cryptocurrency to Trace Ransom Flow
According to a report by Caixin, the Hong Kong High Court of Appeal rejected the sentence reduction application of Ma Zhihao, the ringleader of an online fraud and human trafficking syndicate, yesterday, upholding the original 56-month imprisonment term. During the investigation, Hong Kong police traced the criminal funds through blockchain and cryptocurrency transaction records, pinpointing key transactions involving his receipt of ransoms and illicit proceeds. It is reported that the family members of a victim paid approximately 9,527 Tether (USDT) to a cryptocurrency wallet designated by the perpetrators. Blockchain tracking records conclusively proved that 8,127 USDT flowed into an exchange account registered under Ma Zhihao’s real name and Hong Kong identity card. The assets were subsequently converted into approximately HK$63,000 and transferred to his personal HSBC bank account, serving as crucial evidence of his participation in the crimes and his financial gains. The Court of Appeal noted that, were it not constrained by the seven-year maximum sentencing limit prescribed for the District Court, the penalties faced by the defendant would have been significantly more severe.
Korea Sentences Fraud Case Under the Virtual Asset User Protection Act: Mastermind of Meme Coin "Rug Pull" Gets 4 Years in Prison
: South Korea today sentenced a fraud case involving unfair trading terms under the Virtual Asset User Protection Act in its first-instance trial. The Seoul Southern District Court sentenced Park, a cryptocurrency influencer who planned a Meme coin "Rug Pull" scam, to four years in prison. Two accomplices received sentences of two years and six months, and three years in prison with five years of probation, respectively.Prosecutors stated that the defendant issued a Meme coin through Pump.fun and used social media to spread false bullish information, such as "token lock-ups," inflating the coin's price approximately 1,001 times within 26 hours. This attracted about 6,000 investors to buy in, after which the group dumped their holdings to cash out. The gang spent only about 10 million Korean won on the scheme and illegally profited around 400 million Korean won. (Edaily)
Israel extradites to the U.S. the suspect accused of stealing $2.8 million in Nomad crypto assets.
U.S. prosecutors allege that on August 1, 2022, Brock exploited a vulnerability in the Nomad verification mechanism to withdraw approximately $2.8 million worth of tokens without locking corresponding assets. He subsequently exchanged them for other cryptocurrencies and transferred them across multiple wallets to obscure the source of funds. The U.S. District Court for the Northern District of California indicted him on eight counts in August 2023, involving computer fraud, conversion of stolen property, and money laundering, and filed an extradition request in December 2024. Brock was arrested in May 2025 at Ben Gurion Airport while preparing to travel to Russia. Shortly before his arrest, he had changed his surname to Block and obtained a new passport.
Brooklyn prosecutors bust transnational crypto scam network, shut down 241 fraud websites
According to Bloomberg, the Brooklyn District Attorney's Office has successfully dismantled a transnational cryptocurrency fraud network centered in Eastern Europe that has long targeted U.S. users, stealing tens of millions of dollars in total. The operation shut down 241 websites associated with crypto scams and seized 112 servers hosted by companies in Eastern Europe and the United States.
$900,000 Bitcoin Theft Case: US Seeks Forfeiture of 110,300 USDT
Odaily News: The U.S. Attorney's Office for the District of Massachusetts filed a civil forfeiture lawsuit on September 28, seeking the forfeiture of 110,300 USDT seized from a Binance account. The case involves phishing text messages impersonating Coinbase, which led to the theft of 33.7 bitcoins, worth approximately $900,000 at the time, from a beneficiary and their family trust held in the same Coinbase account.Investigators said that between June 5 and June 15, 2023, 11.2 of the stolen bitcoins were traced to the Binance account and were quickly converted into Monero. When the FBI requested the account be frozen, it held approximately 758.55 Monero; Binance transferred 110,300 USDT to a government-controlled wallet on August 3, 2026. (Bitcoin.com News)
Bybit officially sues North Korea and hacker group Lazarus Group, successfully obtains preliminary injunction to freeze stolen assets
Odaily News, Bybit announced today that it has officially filed a civil lawsuit in the U.S. District Court for the District of Columbia against North Korea (DPRK), its Reconnaissance General Bureau (RGB), and the Lazarus Group, holding the organization legally accountable for the大规模 cyberattack launched against Bybit in February 2025.It is reported that Bybit has successfully obtained a preliminary injunction from the court, freezing identified stolen digital assets held or transferred by unidentified individuals and entities (i.e., "John Doe" defendants). In approving the preliminary temporary restraining order, the court described the incident as "one of the largest cryptocurrency thefts in history" and determined that Bybit has a "likelihood of success on the merits" of the case. This civil lawsuit is independent of criminal investigations by U.S. law enforcement and aims to provide an additional legal avenue for asset recovery.In terms of asset recovery and global collaboration, Bybit has achieved notable results in partnership with blockchain analytics firms, multiple exchanges, custodial institutions, and international law enforcement agencies. To date:Approximately $48.4 million in stolen assets have been successfully recovered;Approximately $30.5 million in involved assets have been successfully frozen (distributed across more than 28 exchanges and custodial institutions).These efforts have also supported broader law enforcement actions targeting key infrastructure allegedly used to launder stolen funds: German authorities have dismantled cryptocurrency exchange eXch; German and Swiss authorities subsequently jointly shut down mixing platform Cryptomixer.io, cutting off critical channels for transferring illicit proceeds. These actions collectively demonstrate the effectiveness of collaboration between the private sector and law enforcement agencies in combating transnational cybercrime.Ben Zhou, co-founder and CEO of Bybit, stated: "Our core goal has never changed: prioritizing user protection, making every effort to recover assets, and ensuring those behind this are held accountable under the law. The Lazarus attack was not only directed at Bybit, but also a challenge to the trust foundation of the entire crypto industry. We will continue to deepen cooperation with law enforcement agencies, regulatory authorities, and courts to make the crypto world a place where criminals find it difficult to hide."Bybit emphasized that it will continue to invest in advanced blockchain tracking technology, utilize all available legal means to combat state-sponsored hacker groups, and drive the establishment of a more resilient digital asset ecosystem. The civil lawsuit is currently ongoing.
U.S. Department of Justice Seizes Over $25 Million in Cryptocurrency Linked to International Investment Fraud Network
the U.S. Attorney's Office for the District of Columbia, in coordination with the U.S. Secret Service's Washington Field Office, announced that investigations into multiple international cyber fraud cases have led to the seizure of over $25 million in cryptocurrency. The funds were allegedly linked to crypto investment scams targeting residents of the United States and Canada.This action is part of the "Scam Center Strike Force," an initiative launched in 2025 by District of Columbia Attorney Jeanine Ferris Pirro. To date, the task force has recovered assets totaling over $800 million. U.S. prosecutors stated that on July 21, 2026, the U.S. Attorney's Office for the District of Columbia filed five civil forfeiture complaints in the U.S. District Court, seeking the forfeiture of over $25 million in crypto assets recovered from various fraud investigations.Investigators indicated that these cases involve multiple money laundering networks with victims worldwide. Criminal groups lured victims into investing through fake crypto investment platforms and online romance scams, then laundered the funds through multi-layered wallet addresses and mixing operations to conceal the source of funds. The seized funds are associated with five major investigations:In one case, Canadian law enforcement provided the U.S. Secret Service with wallet addresses suspected of being used to transfer illicit proceeds. Investigators froze the relevant addresses and traced over 270 suspected victim transactions, involving approximately $10.4 million;The second case involved an online romance scam that defrauded over 200 victims. Illicit funds were transferred through hundreds of intermediate wallet addresses and commingled with funds from other victims, involving approximately $12.08 million;The third case involved a victim from the U.S. capital region who participated in a fraudulent crypto investment project. After failing to withdraw funds, the victim lost contact with the scammers, with the involved amount being approximately $1.23 million;In the fourth case, a victim transferred millions of dollars in cryptocurrency to a fake investment account. Investigators traced some of the funds to six wallet addresses and froze approximately $2.39 million;In the fifth case, scammers impersonated an agency that "recovers stolen funds" to trick victims into paying fees, with the involved amount being approximately $285,000.The U.S. Secret Service stated that these cases remain under active investigation. Law enforcement officials are tracking down the suspects behind the fraud network and will cooperate with international law enforcement agencies to hold them accountable.
US Department of Justice indicts two Chinese citizens suspected of laundering over $43 million for "pig butchering" scams
According to an announcement from the U.S. Department of Justice, Eastern District of New York Office of the United States Attorney, two Chinese citizens, Zhuoying Chen (aka "Jolene", 27, Brooklyn) and Haojie Zhang (aka "Kevin", 38, Queens), were formally indicted on July 16 at the Brooklyn Federal Court on charges of conspiracy to launder money. According to the allegations, between 2020 and 2022, the two managed a money laundering network of more than ten people in Queens and Brooklyn, New York, using approximately 45 shell companies and 140 corporate bank accounts to transfer at least $43 million in proceeds from "pig butchering" investment fraud to accounts within China. "Pig butchering" scams contact victims through social media or instant messaging software, gaining trust with false high-return investment opportunities before absconding with the funds. This case was jointly investigated by Homeland Security Investigations (HSI), the FBI, IRS-CI, and the United States Postal Inspection Service. If convicted, the two defendants each face up to 20 years in prison.
Survey Shows Most Americans Oppose Betting on Election Outcomes
Odaily reports: A survey covering 4,506 adults across the United States shows that most respondents oppose betting on U.S. elections and other government actions through prediction markets. 69% of Democratic respondents and 61% of Republican respondents opposed betting on election results. The survey was conducted from September 30 to October 5.The prediction market industry, driven by platforms such as Polymarket and Kalshi, allows users to bet on U.S. elections, changes in government policy, and sporting events. The related business has triggered multiple regulatory lawsuits between state governments and federal agencies.The survey shows that 43% of respondents oppose betting on professional sports events, while 29% expressed support. The administration of U.S. President Donald Trump is pushing for the industry to be regulated by the U.S. Commodity Futures Trading Commission (CFTC). 39 states and the District of Columbia have submitted amicus briefs, stating that the dispute between federal and state regulators has evolved into a nationwide jurisdictional conflict. (Cointelegraph)
US DOJ Cites Bitcoin Fog Precedent to Oppose Roman Storm's Acquittal Motion
Odaily reports: The U.S. Department of Justice (DOJ), in a filing submitted on Monday, cited the appellate ruling in the case of Roman Sterlingov, the operator of cryptocurrency mixer Bitcoin Fog, as supplementary grounds for opposing Tornado Cash developer Roman Storm's acquittal motion.U.S. prosecutors stated that the ruling supports their position that the Southern District of New York is the proper venue for the trial. Prosecutors argued that Shakeeb Ahmed used Tornado Cash in a Manhattan apartment, and that this activity is sufficient to establish venue for the money laundering and unlicensed money transmission conspiracy charges against Roman Storm.Judge Katherine Polk Failla heard arguments on Roman Storm's acquittal motion in April 2026 but has not yet issued a ruling. A jury in August 2025 convicted him of conspiracy to operate an unlicensed money transmitting business, but failed to reach a unanimous verdict on the money laundering and sanctions conspiracy charges, with a retrial tentatively scheduled for April 26, 2027. (Cointelegraph)
American Community Bankers Association sues OCC, alleging it exceeded statutory authority by issuing national trust bank charters to crypto companies.
According to Crowdfund Insider, the Independent Community Bankers of America (ICBA) filed a lawsuit on October 2 in the U.S. District Court for the District of Columbia, accusing the Office of the Comptroller of the Currency (OCC) of relaxing national bank charter rules, thereby allowing cryptocurrency companies to enter the banking system without assuming the same regulatory obligations as traditional banks. The ICBA is seeking a court order to vacate the OCC's National Bank Charter Rules issued in March 2026 and related prior interpretive documents, and to invalidate the conditional national trust bank charter granted to digital asset custody firm Protego Holdings. The complaint states that the current U.S. administration has approved or conditionally approved 21 national trust banks, with at least 13 being cryptocurrency enterprises. ICBA argues that these institutions do not need to comply with certain regulatory requirements applicable to traditional banks, such as capital, liquidity, and deposit insurance mandates, yet are permitted to operate nationwide using a federal charter, creating unfair competition. The ICBA also warned that some crypto trust banks lack adequate risk management and independent oversight mechanisms, potentially posing risks to the financial system. The OCC has currently declined to comment on the lawsuit.
U.S. Judge Issues Preliminary Injunction to Temporarily Block Illinois from Classifying Kalshi Sports Contracts as Gambling
According to Ariel Givner, Judge Pacold of the U.S. District Court for the Northern District of Illinois issued a ruling supporting a partial preliminary injunction in a lawsuit involving Coinbase, Kalshi, and the U.S. federal government/U.S. Commodity Futures Trading Commission (CFTC) against Illinois Attorney General Kwame Raoul, thwarting Illinois' attempt to classify sports event contracts on the prediction market platform Kalshi under the state's gambling regulations in its initial legal push.
Two Robinhood engineers charged with allegedly using confidential listing information to trade perpetual contracts
The U.S. Attorney's Office for the Southern District of New York has charged Robinhood engineers Hefu Chai and Huaisong Xiang with exploiting their positions to obtain cryptocurrency listing plans, purchasing perpetual contracts for the related tokens on the decentralized derivatives trading platform Hyperliquid prior to public announcement, each profiting over $50,000. Both currently face charges of commodity fraud and wire fraud, carrying maximum sentences of 10 and 20 years, respectively. The charges have not yet been adjudicated by a court.
Hyperliquid Policy Center filed documents with the court seeking to dismiss CME Group's lawsuit against the CFTC.
According to Hyperliquid News, the Hyperliquid Policy Center has filed an amicus brief with the U.S. District Court for the District of Columbia, seeking to dismiss the lawsuit brought by the Chicago Mercantile Exchange (CME) against the Commodity Futures Trading Commission (CFTC). The lawsuit concerns the CFTC's prior approval of regulated cryptocurrency perpetual contracts through Kalshi in the United States. CME had previously challenged that regulatory decision in court, and the Hyperliquid Policy Center now supports the CFTC, arguing that the court should dismiss CME's lawsuit.
Related news
Two brothers in the U.S. sentenced to 15 years and 15 years and 6 months respectively for armed kidnapping of a family and robbery of over $8 million in cryptocurrency
Odaily reports: U.S. Attorney Daniel N. Rosen for the District of Minnesota announced that Raymond Christian Garcia and Isiah Angelo Garcia, from Waller, Texas, have each been sentenced to 180 months and 186 months in prison respectively for their involvement in a September 2025 armed kidnapping of a family in Grant, Minnesota, and cryptocurrency extortion scheme.Court documents show that on September 19, 2025, the two traveled from Texas to Minnesota, broke into the victims' home armed with firearms, bound the family with zip ties and held them at gunpoint for over 9 hours, forcing the victims to hand over access to their cryptocurrency accounts. After failing to obtain the expected amount, the two forced the victims to drive to the family's vacation home in northern Minnesota to retrieve additional cryptocurrency storage devices and transfer funds, ultimately forcing the victims to transfer over $8 million in cryptocurrency. After the victims' son called the police, the two fled the scene and were later identified and arrested by law enforcement near Houston, Texas. Both pleaded guilty in June 2026 and were sentenced on October 29.
Israel extradites to the U.S. the suspect accused of stealing $2.8 million in Nomad crypto assets.
U.S. prosecutors allege that on August 1, 2022, Brock exploited a vulnerability in the Nomad verification mechanism to withdraw approximately $2.8 million worth of tokens without locking corresponding assets. He subsequently exchanged them for other cryptocurrencies and transferred them across multiple wallets to obscure the source of funds. The U.S. District Court for the Northern District of California indicted him on eight counts in August 2023, involving computer fraud, conversion of stolen property, and money laundering, and filed an extradition request in December 2024. Brock was arrested in May 2025 at Ben Gurion Airport while preparing to travel to Russia. Shortly before his arrest, he had changed his surname to Block and obtained a new passport.
Beijing Investigates First Blockchain Pyramid-Selling Assistance Case; Involved Company Fined and Confiscated Over 930,000 Yuan
According to the Beijing Daily app, the Haidian District Market Regulation Bureau in Beijing has investigated and penalized the city's first illegal case involving the use of blockchain and virtual currency technologies to assist in pyramid selling operations. The involved tech company was fined and had its illegal gains confiscated, totaling over 930,000 RMB. The company served as an outsourced service provider for a public chain, offering operational support, marketing services, promotional campaigns, exchange integration, and maintenance.
CFTC Sues Utah to Block Its Restrictions on Prediction Markets
Odaily reports: The Commodity Futures Trading Commission (CFTC) has filed a lawsuit in the U.S. District Court for the District of Utah seeking to block Utah from taking action against prediction markets. A week earlier, Utah officials sued prediction market platform Kalshi and its affiliates, seeking to recover up to $60 million in profits allegedly obtained illegally through event contracts.The CFTC stated that Utah is attempting to circumvent congressional intent and restrict the operations of exchanges registered by the agency. The complaint notes that the relevant event contracts qualify as swaps under the federal Commodity Exchange Act, and exchanges offering trading in such contracts are subject to CFTC regulation; Utah's actions infringe on federal regulatory authority over commodity derivatives markets.This lawsuit is yet another dispute between federal and state governments over jurisdiction concerning prediction markets. New Jersey officials in September of last year asked the U.S. Supreme Court to hear their case against Kalshi, and similar lawsuits have been filed in Michigan, Ohio, and other states; as of Tuesday, the Supreme Court had not announced whether it would accept the case. (Cointelegraph)
Asset Sale Approved: Poolin-Affiliated Debtor's Texas Mining Farm Deal Valued at Up to $180 Million
Odaily reports: According to disclosures from Yingke Law Firm, the sale of Texas mining farm assets belonging to a Poolin-affiliated debtor has been approved by the U.S. Bankruptcy Court for the District of New Jersey, with a transaction consideration of up to approximately $180 million, of which $100 million is the closing payment, and up to $80 million is tied to subsequent milestones. The general claims filing deadline is proposed as 4:00 PM Eastern Time on December 31, 2026, which is 5:00 AM Beijing Time on January 1, 2027; the court is scheduled to hold a hearing on November 10. Claims that are required by law to submit proof of claim, if not filed before the deadline ultimately determined by the court, may affect claim confirmation, plan voting, and subsequent distributions. Yingke lawyer Wang Yufeng stated that the Poolin case involves a large number of Chinese users, with claims including platform balances, IOUs, and mining pool earnings; having submitted materials does not equate to completing a valid filing.
Chinese National Extradited to U.S. in $36.9 Million Crypto Fraud Case
Chinese national Zheng Zhao has been extradited from the Netherlands to the United States and appeared before a court in the Central District of California on October 23. He is alleged to have participated in an investment fraud and money laundering scheme involving 174 U.S. victims and more than $36.9 million in illicit funds. The U.S. Department of Justice (DOJ) said the fraudulent operations were run by scam centers in Cambodia.Prosecutors allege that more than $36.9 million was transferred through accounts controlled by accomplices into an account at Bahamas-based Deltec Bank, then converted into the stablecoin USDT and sent to digital asset wallets in Cambodia. Eight other co-defendants have already pleaded guilty; Zheng Zhao faces a money laundering conspiracy charge and, if convicted, could be sentenced to up to 20 years in prison. (Bitcoin.com News)