News linked to both this project and an event.
: The U.S. CFTC has filed a lawsuit in the U.S. District Court for the District of New Mexico against Governor Michelle Lujan Grisham, Attorney General Raúl Torrez, and other officials, aiming to prevent the state from applying gambling regulations to prediction market platforms.Previously, New Mexico sued Kalshi, accusing it of offering unauthorized sports betting to state residents and allowing users below the state's legal gambling age of 21 to participate. The New Mexico Attorney General stated that legal gambling in the state can only operate under tribal-state gaming compacts or a strict state regulatory framework.The CFTC argues that platforms like Kalshi offer federally regulated derivative contracts, not gambling products under state law. CFTC Chairman Michael Selig stated that New Mexico is attempting to impose state gambling laws on a federal derivatives exchange that falls under the CFTC's exclusive jurisdiction.Over the past few months, the CFTC has filed lawsuits against several states, including Wisconsin, Illinois, Arizona, Connecticut, and New York, to establish its regulatory authority over sports prediction markets. This week, the agency also proposed broader rules for prediction markets that still generally permit sports-related contracts, indicating an escalating conflict between federal and state governments over the boundaries of prediction markets and sports betting.
The U.S. Attorney's Office for the Eastern District of Pennsylvania announced that Ruslan Igorevich Tkachuk and Alexander Vladimirovich Ledenev have been arrested for allegedly operating the cryptocurrency money laundering service AudiA6. Since its launch in 2021, the service has received approximately 10,333 bitcoins, valued at over $389 million at the time of the transactions. Of this amount, at least $19.234 million worth of bitcoin came directly from illegal sources such as darknet markets and ransomware groups. A joint international law enforcement operation has seized and frozen the servers, domain names, and Telegram accounts associated with AudiA6.
Odaily Odaily News Recently, the Haidian District Court ruled on a fraud case. Retiree Meng, addicted to virtual currency trading and unwilling to use her own pension, pretended to be a young woman named Xiaohong, claiming to work for a central ministry in her 20s, on a short video platform. She established an online romantic relationship with a young man. Under the pretext of needing urgent surgery fees for a family member and preparing for overseas study exams, Meng defrauded the man of more than 200,000 yuan.Meng invested all of the defrauded 200,000 yuan into virtual currency trading, opening a ten-times leverage position. Subsequently, due to a market downturn, her position was liquidated, resulting in a total loss of all funds. The Haidian District Procuratorate previously indicted Meng for fraud. Ultimately, the Haidian District Court sentenced Meng to four years in prison and imposed a fine, while also ordering her to compensate the victim for his economic losses. (Beijing Evening News)
the Qingdao Licang District Procuratorate issued an announcement stating that the defendant, surnamed Zhang, took advantage of an opportunity to register a virtual currency wallet on behalf of the victim to obtain the seed phrase, and subsequently transferred 107 Bitcoins from the victim, surnamed Feng, in multiple batches during the early morning hours. Zhang then layered the transfers through various virtual currency trading platforms, converting the Bitcoin into over 660,000 RMB. The Qingdao Licang District People's Court sentenced Zhang to 10 years and 9 months in prison and imposed a fine of 100,000 RMB for the crime of theft in the first instance.After the defendant appealed, the Qingdao Intermediate People's Court ruled to dismiss the appeal and uphold the original verdict. The case determined the theft amount based on the actual illegal proceeds from the sale, totaling over 660,000 RMB. (Shandong Legal Daily)
: Bitcoin financial services company Swan Bitcoin (along with its operating entity Electric Solidus Inc. named as defendants) is facing a lawsuit filed in the U.S. Bankruptcy Court for the District of Delaware, with claims approaching $1 billion.The lawsuit was filed by PCT Litigation Trust, aiming to recover crypto assets related to the 2023 collapse of Prime Trust. The plaintiff accuses Swan of using "material non-public information" to transfer funds out of Prime Trust before its failure, thereby avoiding significant losses.According to the court filing, Swan had transferred assets including approximately 11,992 Bitcoin (currently valued at around $917 million) out of Prime Trust before it filed for bankruptcy, along with roughly $22.4 million in fiat currency, $5 million in stablecoins, and 91,444 XRP tokens.The plaintiff also alleges that Swan had ties to a senior executive at Prime Trust, who also served as an external consultant for Swan. This individual is suspected of providing Swan with information prior to regulatory meetings, thereby helping the company withdraw its assets early.Swan Bitcoin responded, stating that the relevant assets belong to client trust property and should not be used for bankruptcy liquidation, expressing confidence that the court will ultimately support its position. (Decrypt)
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)
The WeChat official account of the Haidian District People’s Court of Beijing Municipality disclosed a case involving “doxxing” using virtual currencies. Between 2023 and 2025, the defendant illegally obtained personal information of Chinese citizens via encrypted communication tools and other channels—acquiring over 900 million pieces of personal data in total—and built a “social engineering database” website storing over 170 million pieces of citizens’ personal information. The defendant also profited by selling such information, receiving payments exclusively in virtual currencies. Additionally, the defendant used encrypted communication tools to establish “doxxing” and “outing” chat groups for disseminating illegal content, including privacy violations. The court convicted the principal offender, Lin某某, of the crimes of infringing upon citizens’ personal information and illegally utilizing information networks, sentencing him to seven years’ imprisonment and imposing a fine of RMB 70,000.
According to CoinDesk, Payward—the parent company of Kraken—filed a second amended complaint in the U.S. District Court for the District of Colorado against its former custody partner Etana Custody and its CEO, Dion Brandon Russell, alleging misappropriation of over $25 million in customer funds and operation of a “Ponzi scheme.” Payward claims that Etana commingled custodial assets with its own funds to cover operating expenses and make high-risk investments, while using false account statements to conceal the resulting funding shortfall. In April 2025, when Kraken attempted to withdraw approximately $25 million in reserve funds, Etana delayed the withdrawal, citing fabricated reconciliation issues, and instead relied on new deposits to fill the gap. At least $16 million of the misappropriated funds was invested in promissory notes issued by Seabury Trade Capital, which later defaulted. Subsequently, Colorado state regulators issued a cease-and-desist order against Etana, which entered liquidation proceedings in November 2025 and is now under the management of a court-appointed receiver. Kraken is seeking at least $25 million in damages, plus treble civil theft penalties.
According to Cointelegraph, U.S. law firm Gerstein Harrow LLP has filed an application with the U.S. District Court for the Southern District of New York seeking a temporary restraining order and three writs of execution to prevent the Arbitrum DAO from transferring 30,766 ETH (valued at approximately $73 million) frozen following the Kelp vulnerability. The firm argues that its clients obtained default judgments against North Korea in U.S. courts in 2010, 2015, and 2016, entitling them to roughly $877 million in compensation—and contends that the stolen ETH constitutes North Korean-linked assets that should be used to satisfy those judgments. Kelp DAO suffered a $292 million hack on April 18; the attacker was identified as TraderTraitor, a subgroup of the North Korean state-sponsored hacking group Lazarus Group. Aave Labs previously proposed unfreezing the seized funds and transferring them into the “DeFi United” fund to compensate rsETH holders—but this legal action by Gerstein Harrow may significantly delay compensation for victims. Members of the Arbitrum DAO community have criticized the move, arguing it shifts the burden of North Korea’s debts onto another set of victims, thereby exacerbating the original harm. Gerstein Harrow had previously pursued litigation related to the 2023 Heco Bridge hack involving Teth
Odaily Odaily PaperImperium, the head of MegaETH, disclosed on X platform that documents from the U.S. District Court for the Southern District of New York show that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million in ETH assets that were previously frozen during the KelpDAO hacking incident. In response, on-chain detective ZachXBT posted on X platform, stating that certain U.S. law firms are using his investigative work and on-chain forensics to help victims of some hacking incidents file legal claims. However, this practice may actually slow down or hinder victims from receiving compensation or recovering funds.ZachXBT added that in previous hacking incidents involving the Lazarus Group, such law firms often stepped in after on-chain fund tracking or freezing was completed, proposing subsequent legal actions that were weakly related to the crypto incidents themselves. Similar "free-riding claims" strategies were used in events like Harmony and Bybit. He called on the crypto community to establish a DAO to resist such practices.
: MegaETH lead PaperImperium disclosed on X platform a court document from the U.S. District Court for the Southern District of New York, showing that a U.S. court has issued an injunction against the Arbitrum DAO, prohibiting it from transferring approximately $71 million worth of ETH assets that were previously frozen in the KelpDAO hacking incident. The plaintiffs are attempting to use these funds to enforce outstanding judgment compensation in cases related to North Korea's involvement in terrorism, kidnapping, and other matters spanning several years. They have also filed a motion to serve legal notice to the Arbitrum DAO via alternative means, treating it as an accountable "partnership." The court document further notes that the Arbitrum DAO has a Security Council governed by ARB holders, which has the authority to take action in emergencies. As a result, relevant members who refuse to comply may face legal consequences such as contempt of court. Market observers believe that this case could set an important precedent for the U.S. judicial system to directly constrain DAO governance structures, further highlighting the compliance pressure faced by DeFi protocols under real-world legal frameworks.
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.
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 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.
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.
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.