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CFTC Sues New York State to Seize Regulatory Dominance over Prediction Markets
According to The Wall Street Journal, on April 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against New York State in the U.S. District Court for the Southern District of New York, seeking a court ruling that the CFTC holds exclusive regulatory authority over prediction markets—aiming to halt New York State’s enforcement actions. Previously, New York State had filed lawsuits against cryptocurrency exchanges Coinbase and Gemini over their prediction market operations. Earlier this month, the CFTC also initiated similar lawsuits against Arizona, Illinois, and Connecticut, intensifying jurisdictional disputes between federal and state regulatory agencies.
US Department of Justice Sentences Member of $263 Million Crypto Fraud Scheme to 70 Months in Prison, Involving Social Engineering Fraud and Lavish Money Laundering
: The U.S. Department of Justice (DOJ) announced that a 22-year-old California man, Evan Tangeman, has been sentenced to 70 months (approximately 5 years and 10 months) in prison, followed by 3 years of supervised release, for his involvement in a criminal organization that stole approximately $263 million in crypto assets through social engineering fraud and home invasions.According to court documents, Tangeman pleaded guilty in December 2025, admitting to helping the criminal network launder at least $3.5 million in illicit funds.The criminal group allegedly used the stolen funds for lavish spending, including multi-million dollar nightclub bills, Lamborghini sports cars, and high-end assets like Rolex watches.U.S. District Attorney for the District of Columbia, Jeanine Pirro, stated in a release that the organization "built a criminal system based on nearly absurd greed," emphasizing that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating clear criminal intent.This sentencing comes as data shows that the crypto industry suffered $482 million in losses from scams and hacks in the first quarter of 2026, with social engineering fraud and physical violent robberies on the rise. (Cointelegraph)
CFTC sues New York state to prevent it from applying gambling laws to prediction market applications
the CFTC has filed a lawsuit in the U.S. District Court for the Southern District of New York, aiming to prevent New York state from enforcing its gambling laws on federally regulated prediction market platforms. The CFTC argues that federal law grants it exclusive regulatory authority over such markets and is seeking a permanent injunction against New York's enforcement actions. CFTC Chairman Michael Selig stated that registered exchanges face multiple state-level lawsuits, which undermine the CFTC's sole regulatory authority over prediction markets. Previously, New York state had sued Binance and Gemini, alleging their products violated state gambling rules, and had also requested Kalshi to cease certain sports-related contracts. Currently, 37 states and Washington D.C. have submitted amicus briefs supporting Massachusetts' enforcement against Kalshi, arguing that federal law has not legalized sports betting and has not abolished the states' historical regulatory powers.
California Money Launderer Sentenced to 70 Months in Prison for Role in $263 Million Cryptocurrency Theft
According to the U.S. Department of Justice, Evan Tangeman, a 22-year-old man from Newport Beach, California, was sentenced on April 24 to 70 months in federal prison followed by three years of supervised release by the U.S. District Court for the District of Columbia. Tangeman participated in an interstate social engineering crime ring that laundered at least $3.5 million. The criminal group operated since October 2023, stealing over $263 million in cryptocurrency through hacking and social engineering tactics. Its members were predominantly minors or unemployed youths under age 20, and the group originated on online gaming platforms. Tangeman was responsible for converting stolen cryptocurrency into fiat currency and leasing luxury mansions for group members in cities including Los Angeles and Miami; he personally received high-end vehicles—including a Bentley and a Lamborghini—as compensation. After the scheme unraveled, Tangeman instructed his co-conspirators to destroy digital devices to obstruct the investigation. The case was jointly investigated by the FBI’s Washington, Los Angeles, and Miami field offices, along with the IRS Criminal Investigation Division. To date, nine defendants have pleaded guilty.
Jane Street seeks dismissal of Terraform lawsuit, claiming attempt to shift blame
: Quantitative trading firm Jane Street has filed a motion with the court to dismiss the insider trading and market manipulation lawsuit filed by Terraform Labs, which accuses the firm of causing the collapse of the UST/LUNA algorithmic stablecoin.In its filing submitted to the U.S. District Court for the Southern District of New York, Jane Street stated that the lawsuit is "baseless" and represents an attempt by Terraform's bankruptcy estate to shift responsibility for the collapse of a multi-billion dollar ecosystem onto a third party.The firm has requested the court to dismiss the entire case "with prejudice," meaning the plaintiff cannot refile the same claims.Jane Street further pointed out that the fraudulent conduct associated with Terraform has already been prosecuted, adjudicated, and penalized, and that it was not involved. Do Kwon has previously pleaded guilty to conspiracy and wire fraud charges and is currently serving a 15-year sentence. A jury has also found Terraform and Kwon liable for securities fraud.
Arizona, USA, halts the scheduled arraignment of Kalshi on April 13
According to U.S. News, U.S. District Judge Michael Liburdi for the District of Arizona ruled to temporarily bar the state from taking criminal or civil enforcement actions against prediction market platform Kalshi under state law. Additionally, Kalshi’s scheduled arraignment on April 13 has been halted. This ruling responds to a motion previously filed by the U.S. Commodity Futures Trading Commission (CFTC). In the temporary restraining order, Judge Liburdi stated that the State of Arizona may not enforce its state gambling laws against contracts listed on markets regulated by the CFTC.
A South Korean finance employee was sentenced to three years’ imprisonment for embezzling 570 million KRW of company funds to invest in crypto assets.
According to South Korean media outlet Newsis, a man in his twenties, who worked as a company finance staff member in South Korea, was sentenced to three years’ imprisonment by the Busan District Court for embezzling corporate funds to invest in cryptocurrencies. The court determined that between 2021 and 2025, he transferred company funds into his personal account approximately 680 times, embezzling a total of roughly 570 million KRW, which he used for cryptocurrency trading, overseas travel, and daily expenses. He also forged certificates of corporate deposit trust balances to conceal his crimes.
Family of American Gangster John Gotti Sentenced for Involvement in Cryptocurrency-Related Fraud
Odaily News: The U.S. Department of Justice disclosed that Carmine Agnello, the grandson of gangster John Gotti, was sentenced to 15 months in prison for fraudulently obtaining approximately $1.1 million in COVID-19 relief funds and investing part of the money into cryptocurrency businesses.Prosecutors stated that between April 2020 and November 2021, Agnello obtained multiple relief loans from the U.S. Small Business Administration (SBA) through false applications, claiming they were for the operation of his auto parts and recycling business. In reality, he diverted the funds for personal use, with about $420,000 invested in cryptocurrency-related investments.The U.S. Attorney's Office for the Eastern District of New York said this conduct occurred during the peak of the pandemic and constituted a serious misuse of government aid funds. Agnello is expected to begin serving his prison sentence on July 1.Furthermore, official data shows that fraud related to U.S. pandemic relief funds is severe. The U.S. Government Accountability Office (GAO) estimates that approximately $135 billion (about 15% of the total) flowed into fraudulent activities. (CoinDesk)
AI16Z and ELIZAOS Creator Face Class-Action Lawsuit Over Alleged False Advertising and Unjust Enrichment
Cryptocurrency law firm Burwick Law has filed a federal class-action lawsuit in the U.S. District Court for the Southern District of New York (SDNY) against defendants including Walters—the creator of AI16Z and ELIZAOS—alleging violations of consumer protection laws, false advertising, and unjust enrichment. Court documents indicate that the defendants allegedly leveraged the brand reputation of Andreessen Horowitz (“a16z”) to market the project, launching the AI16Z token on Solana on October 24, 2024, later rebranding it as ELIZAOS. The complaint alleges that the project claimed to deploy autonomous AI agents capable of making investment decisions, whereas operations were in fact manually conducted—and no revenue was generated during the litigation period. On January 2, 2025, the token reached an all-time high price of approximately $2.47, with a market capitalization exceeding $2.6 billion; it subsequently collapsed amid large-scale sell-offs by major holders. On-chain data shows that the most profitable trader realized gains of roughly $39 million.
US Department of Justice Sentences Member of $263 Million Crypto Fraud Scheme to 70 Months in Prison, Involving Social Engineering Fraud and Lavish Money Laundering
: The U.S. Department of Justice (DOJ) announced that a 22-year-old California man, Evan Tangeman, has been sentenced to 70 months (approximately 5 years and 10 months) in prison, followed by 3 years of supervised release, for his involvement in a criminal organization that stole approximately $263 million in crypto assets through social engineering fraud and home invasions.According to court documents, Tangeman pleaded guilty in December 2025, admitting to helping the criminal network launder at least $3.5 million in illicit funds.The criminal group allegedly used the stolen funds for lavish spending, including multi-million dollar nightclub bills, Lamborghini sports cars, and high-end assets like Rolex watches.U.S. District Attorney for the District of Columbia, Jeanine Pirro, stated in a release that the organization "built a criminal system based on nearly absurd greed," emphasizing that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating clear criminal intent.This sentencing comes as data shows that the crypto industry suffered $482 million in losses from scams and hacks in the first quarter of 2026, with social engineering fraud and physical violent robberies on the rise. (Cointelegraph)
California Money Launderer Sentenced to 70 Months in Prison for Role in $263 Million Cryptocurrency Theft
According to the U.S. Department of Justice, Evan Tangeman, a 22-year-old man from Newport Beach, California, was sentenced on April 24 to 70 months in federal prison followed by three years of supervised release by the U.S. District Court for the District of Columbia. Tangeman participated in an interstate social engineering crime ring that laundered at least $3.5 million. The criminal group operated since October 2023, stealing over $263 million in cryptocurrency through hacking and social engineering tactics. Its members were predominantly minors or unemployed youths under age 20, and the group originated on online gaming platforms. Tangeman was responsible for converting stolen cryptocurrency into fiat currency and leasing luxury mansions for group members in cities including Los Angeles and Miami; he personally received high-end vehicles—including a Bentley and a Lamborghini—as compensation. After the scheme unraveled, Tangeman instructed his co-conspirators to destroy digital devices to obstruct the investigation. The case was jointly investigated by the FBI’s Washington, Los Angeles, and Miami field offices, along with the IRS Criminal Investigation Division. To date, nine defendants have pleaded guilty.
Circle Faces Class-Action Lawsuit for Failing to Freeze Stolen Funds from Drift Protocol
According to Cointelegraph, stablecoin issuer Circle faces a class-action lawsuit in the U.S. District Court for the District of Massachusetts for failing to freeze stolen funds during the Drift Protocol hack on April 1. Plaintiffs allege that attackers transferred approximately $230 million worth of USDC from Solana to Ethereum via Circle’s cross-chain transfer protocol (CCTP) within hours—and that Circle failed to intervene. The lawsuit accuses Circle of aiding and abetting conversion and of negligence. Cryptocurrency analytics firm Elliptic previously suspected the attack may be linked to North Korea–backed hackers; the stolen funds were subsequently converted into ETH and laundered through Tornado Cash.
Polymarket new "Elon Musk Wins at Least $10 Billion Settlement from Altman/OpenAI"
Odaily Seer Prophet Channel monitoring shows that Polymarket has a new event "Elon Musk wins at least $10 billion settlement from Altman/OpenAI". Currently, the probability of "Yes" is 14%.The rules for this event contract are: As of 23:59 EST on December 31, 2026, if Elon Musk's lawsuit against Altman (Case No.: 4:24-cv-04722-YGR, U.S. District Court for the Northern District of California) results in a jury verdict, court judgment, or settlement of no less than $10 billion in cash or equivalent compensation at the initial trial stage, the market will settle as "Yes"; otherwise, it will settle as "No". If the case is mistried, the initial trial compensation does not meet the threshold, or the compensation is solely non-monetary relief, the judgment will be "No". Results from retrials or appeals will not be considered in this market. The primary basis for judgment will be official information from the U.S. court system, supplemented by consensus reports from credible media outlets.The trial of Elon Musk's lawsuit against OpenAI commenced on April 27 local time with jury selection. The two sides escalated their public confrontation on the X platform before the trial. OpenAI called the lawsuit baseless, while Elon Musk repeatedly posted attacking Sam Altman as "Scam Altman." The core of the case revolves around the controversy over OpenAI's transition to a for-profit entity. Elon Musk accuses OpenAI of betraying its original non-profit founding pledge, seeks up to $134 billion in damages, demands the reversal of the for-profit restructuring, and the removal of relevant executives. The liability determination phase is expected to last until mid-May.Odaily Seer Prophet Channel continues to monitor prediction markets. See the changes before the pricing.
CFTC sues New York state to prevent it from applying gambling laws to prediction market applications
the CFTC has filed a lawsuit in the U.S. District Court for the Southern District of New York, aiming to prevent New York state from enforcing its gambling laws on federally regulated prediction market platforms. The CFTC argues that federal law grants it exclusive regulatory authority over such markets and is seeking a permanent injunction against New York's enforcement actions. CFTC Chairman Michael Selig stated that registered exchanges face multiple state-level lawsuits, which undermine the CFTC's sole regulatory authority over prediction markets. Previously, New York state had sued Binance and Gemini, alleging their products violated state gambling rules, and had also requested Kalshi to cease certain sports-related contracts. Currently, 37 states and Washington D.C. have submitted amicus briefs supporting Massachusetts' enforcement against Kalshi, arguing that federal law has not legalized sports betting and has not abolished the states' historical regulatory powers.
Sun Yuchen Sues World Liberty Financial, Alleging Token Freezing and Voting Rights Deprivation
Sun Yuchen has recently filed a lawsuit against World Liberty Financial in the U.S. District Court for the Central District of California to protect his legitimate rights and interests as a $WLFI token holder. Sun stated that the World Liberty project team unilaterally froze all his tokens, stripped him of his voting rights on governance proposals, and threatened to permanently “burn” his tokens—without providing any reasonable explanation. He emphasized that he had repeatedly attempted to resolve the dispute through non-litigious means, but the project team refused to unfreeze his tokens or restore his rights as a token holder, leaving him with no choice but to pursue legal action. Additionally, Sun explicitly opposes World Liberty’s new governance proposal released on April 15. Under this proposal, token holders who do not actively accept its terms will have their tokens locked indefinitely; early purchasers’ tokens are subject to a two-year lock-up period followed by a two-year vesting schedule. As Sun’s tokens remain frozen, he is currently unable to vote on this proposal.
Circle Faces Class-Action Lawsuit for Failing to Freeze Stolen Funds from Drift Protocol
According to Cointelegraph, stablecoin issuer Circle faces a class-action lawsuit in the U.S. District Court for the District of Massachusetts for failing to freeze stolen funds during the Drift Protocol hack on April 1. Plaintiffs allege that attackers transferred approximately $230 million worth of USDC from Solana to Ethereum via Circle’s cross-chain transfer protocol (CCTP) within hours—and that Circle failed to intervene. The lawsuit accuses Circle of aiding and abetting conversion and of negligence. Cryptocurrency analytics firm Elliptic previously suspected the attack may be linked to North Korea–backed hackers; the stolen funds were subsequently converted into ETH and laundered through Tornado Cash.
U.S. Senate Divided Over DeFi Developer Exemption Clause, Delaying Progress of Crypto Bill
According to Politico, the U.S. Senate Banking Committee’s cryptocurrency bill—led by Chairman Tim Scott—has become mired in controversy over a provision designed to protect DeFi developers, making bipartisan consensus difficult to achieve. The contested provision would exempt non-custodial software developers who do not control users’ funds from registering as money transmitters or complying with anti-money laundering (AML) requirements. Law enforcement organizations—including the National Sheriffs’ Association and the National District Attorneys Association—have separately written to Congress warning that the provision would undermine efforts to combat financial crime; Senator Chuck Grassley, Chairman of the Senate Judiciary Committee, has likewise expressed similar concerns. The crypto industry, however, views the provision as central to the bill: Amanda Tuminelli, Executive Director of the DeFi Education Fund, has explicitly stated that no textual modifications to the provision will be accepted. Democratic Senators Catherine Cortez Masto and Mark Warner are now pushing for revisions to the provision. If bipartisan agreement cannot be reached, the bill may advance without Democratic support—a scenario that could jeopardize its ability to secure the bipartisan majority required for passage on the Senate floor.
Related news
French National Sentenced to 8 Years for Laundering Over $470 Million via Shell Companies and Cryptocurrency Accounts
According to disclosures by the U.S. Department of Justice, French national Maximilien de Hoop Cartier was sentenced to eight years’ imprisonment by the U.S. District Court for the Southern District of New York for operating an unlicensed over-the-counter (OTC) cryptocurrency exchange business, facilitating the transfer—via the U.S. financial system—of over $470 million in proceeds from drug trafficking and other criminal activities to Colombia and elsewhere. He was also ordered to forfeit approximately $2.362 million in commissions and related shell-company accounts. Starting in 2018, Cartier converted cryptocurrency into fiat currency through more than ten U.S.-based shell companies, falsely representing to banks that his operations involved software development and fabricating contracts and invoices to conceal the illicit origin of funds. After law enforcement authorities seized his accounts in 2021, he continued submitting forged documents, resulting in the partial return of some funds. In October 2025, Cartier pleaded guilty to charges of operating an unlicensed money-transmitting business and conspiring to commit bank fraud.
Judge Rejects SBF’s Motion for Retrial, Dismissing His Claims as “Highly Conspiracy-Theorist in Nature”
According to The Block, U.S. District Judge Kaplan of the Southern District of New York issued an order on Tuesday formally denying Sam Bankman-Fried’s motion for a new trial and sharply criticizing the new evidence he submitted, describing his claims as “highly conspiratorial.” Notably, Bankman-Fried had previously moved to recuse Judge Kaplan from the case. In November 2023, Bankman-Fried was found guilty by a New York jury on all seven criminal charges, which involved defrauding FTX customers, lenders, and investors.
Polymarket new "Elon Musk Wins at Least $10 Billion Settlement from Altman/OpenAI"
Odaily Seer Prophet Channel monitoring shows that Polymarket has a new event "Elon Musk wins at least $10 billion settlement from Altman/OpenAI". Currently, the probability of "Yes" is 14%.The rules for this event contract are: As of 23:59 EST on December 31, 2026, if Elon Musk's lawsuit against Altman (Case No.: 4:24-cv-04722-YGR, U.S. District Court for the Northern District of California) results in a jury verdict, court judgment, or settlement of no less than $10 billion in cash or equivalent compensation at the initial trial stage, the market will settle as "Yes"; otherwise, it will settle as "No". If the case is mistried, the initial trial compensation does not meet the threshold, or the compensation is solely non-monetary relief, the judgment will be "No". Results from retrials or appeals will not be considered in this market. The primary basis for judgment will be official information from the U.S. court system, supplemented by consensus reports from credible media outlets.The trial of Elon Musk's lawsuit against OpenAI commenced on April 27 local time with jury selection. The two sides escalated their public confrontation on the X platform before the trial. OpenAI called the lawsuit baseless, while Elon Musk repeatedly posted attacking Sam Altman as "Scam Altman." The core of the case revolves around the controversy over OpenAI's transition to a for-profit entity. Elon Musk accuses OpenAI of betraying its original non-profit founding pledge, seeks up to $134 billion in damages, demands the reversal of the for-profit restructuring, and the removal of relevant executives. The liability determination phase is expected to last until mid-May.Odaily Seer Prophet Channel continues to monitor prediction markets. See the changes before the pricing.
CFTC Sues New York State to Seize Regulatory Dominance over Prediction Markets
According to The Wall Street Journal, on April 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against New York State in the U.S. District Court for the Southern District of New York, seeking a court ruling that the CFTC holds exclusive regulatory authority over prediction markets—aiming to halt New York State’s enforcement actions. Previously, New York State had filed lawsuits against cryptocurrency exchanges Coinbase and Gemini over their prediction market operations. Earlier this month, the CFTC also initiated similar lawsuits against Arizona, Illinois, and Connecticut, intensifying jurisdictional disputes between federal and state regulatory agencies.
US Department of Justice Sentences Member of $263 Million Crypto Fraud Scheme to 70 Months in Prison, Involving Social Engineering Fraud and Lavish Money Laundering
: The U.S. Department of Justice (DOJ) announced that a 22-year-old California man, Evan Tangeman, has been sentenced to 70 months (approximately 5 years and 10 months) in prison, followed by 3 years of supervised release, for his involvement in a criminal organization that stole approximately $263 million in crypto assets through social engineering fraud and home invasions.According to court documents, Tangeman pleaded guilty in December 2025, admitting to helping the criminal network launder at least $3.5 million in illicit funds.The criminal group allegedly used the stolen funds for lavish spending, including multi-million dollar nightclub bills, Lamborghini sports cars, and high-end assets like Rolex watches.U.S. District Attorney for the District of Columbia, Jeanine Pirro, stated in a release that the organization "built a criminal system based on nearly absurd greed," emphasizing that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating clear criminal intent.This sentencing comes as data shows that the crypto industry suffered $482 million in losses from scams and hacks in the first quarter of 2026, with social engineering fraud and physical violent robberies on the rise. (Cointelegraph)
CFTC sues New York state to prevent it from applying gambling laws to prediction market applications
the CFTC has filed a lawsuit in the U.S. District Court for the Southern District of New York, aiming to prevent New York state from enforcing its gambling laws on federally regulated prediction market platforms. The CFTC argues that federal law grants it exclusive regulatory authority over such markets and is seeking a permanent injunction against New York's enforcement actions. CFTC Chairman Michael Selig stated that registered exchanges face multiple state-level lawsuits, which undermine the CFTC's sole regulatory authority over prediction markets. Previously, New York state had sued Binance and Gemini, alleging their products violated state gambling rules, and had also requested Kalshi to cease certain sports-related contracts. Currently, 37 states and Washington D.C. have submitted amicus briefs supporting Massachusetts' enforcement against Kalshi, arguing that federal law has not legalized sports betting and has not abolished the states' historical regulatory powers.