Sep 26, 2026
Orionx, one of Chile's largest cryptocurrency exchanges, has permanently halted operations and suspended customer withdrawals after a forensic audit uncovered over $7 million in customer assets that were transferred to external wallets. The exchange has accused individuals of unauthorized transfers, while Chile's financial regulator states it lacks authority to oversee the closure or order customer repayments.
Distressed-asset firm Echo Base has organized an ad hoc committee of BitMart claimholders to pursue recovery after the crypto exchange failed to respond to a $10 million offer to fund a court-supervised bankruptcy. BitMart announced it would cease operations on July 26, 2026.
Thailand's Securities and Exchange Commission has proposed new rules that would permit licensed intermediaries to facilitate retail investor access to certain digital asset derivatives traded on overseas platforms. The proposal was announced on August 31, 2026.
An arbitrator ruled that crypto exchange Gemini was not at fault for the collapse of its Earn lending program, finding that the company did not mislead users or neglect due diligence in its partnership with Genesis Global Capital. The ruling covers one claim by one user, though Earn customers lost promised interest despite recovering principal.
A federal jury convicted Japheth Dillman, founder of Block Bits Capital, of wire fraud and conspiracy after he raised nearly $1 million from over 20 investors by falsely claiming his crypto fund used a complete, working proprietary automated trading system. The 48-year-old San Francisco resident faces sentencing for operating the fraudulent crypto trading fund.
People claiming to be BitMart employees took control of the exchange's Chinese X account, demanding the CEO provide answers by August 19 about frozen user funds and unpaid wages after the exchange shut down.
A South Korean court sentenced Delio CEO Jeong Sang-ho to 15 years in prison after finding him guilty of defrauding customers of approximately $50 million in cryptocurrency assets. The Seoul Southern District Court also convicted him of using false documents to register as a virtual asset provider.
Rep. Jung Sung-kook of the People Power Party has submitted a bill to postpone the taxation of virtual asset investment income from January 1, 2027 to January 1, 2030, citing insufficient investor protection measures and tax framework preparation with less than five months until the current implementation date.
European financial watchdogs have issued warnings about fraudsters impersonating regulators and licensed crypto firms to exploit confusion following the Markets in Crypto-Assets (MiCA) regulation deadline, which forced over 1,700 unlicensed crypto service providers to cease EU operations.
Authorities in Hong Kong and Macau conducted a joint operation arresting eight people connected to the 'Fun Coffee' cryptocurrency investment fraud scheme disguised as a Vietnam-based coffee business. The scam affected over 200 victims with losses totaling approximately HK$94-100 million, with the largest single case involving HK$9.63 million.
A trader in Nagpur, India has been defrauded of Rs 27 lakh (approximately $32,000 USD) in a fake cryptocurrency investment scheme. The city's Cyber Cell has registered a case against two suspects in connection with the fraud.
Industry experts and auditors are analyzing the effectiveness of Proof of Reserves mechanisms in the cryptocurrency sector, highlighting what these transparency measures reveal and what critical information they omit about exchange solvency.
Russia's State Duma approved landmark cryptocurrency legislation on July 21, 2026, establishing the country's first comprehensive legal framework for digital assets. The law, effective September 1, legalizes regulated crypto trading and cross-border settlements while maintaining a ban on domestic crypto payments and capping retail investors at $3,800 annually.
Former Celsius CEO Alexander Mashinsky and business partners Shlomi Daniel Leon and Hanoch “Nuke” Goldstein were ordered to pay $10 million, $4.1 million, and $2.014 million, respectively, to resolve Federal Trade Commission charges related to the collapsed cryptocurrency lending platform. Mashinsky and Leon are permanently barred from marketing or selling certain asset-related products or services, while Goldstein is permanently barred from marketing or selling specified retail cryptocurrency products or services.
South Korean financial authorities investigated more than 40 cases of unfair crypto trading including market manipulation and fraud since the country's user-protection law took effect in 2024, referring over 30 cases to investigative agencies.
Canada has introduced updated cryptocurrency regulations that establish new compliance requirements for crypto exchanges and modify rules affecting individual investors. The changes represent a significant shift in how digital assets are regulated in the country.
An appeals court rejected Sam Bankman-Fried's attempt to overturn his conviction for fraud related to the collapse of cryptocurrency exchange FTX and his 25-year prison sentence. The former billionaire founder of FTX had appealed both the conviction and the lengthy sentence handed down for his role in the exchange's failure.
FTX founder Sam Bankman-Fried's appeal to overturn his fraud conviction and 25-year prison sentence was denied by an appeals court on Friday. Around the same time, his X account posted market commentary via a prison-approved proxy, marking his continued social media presence despite incarceration.
Missouri's Attorney General filed a lawsuit against CoinFlip, accusing the crypto ATM operator of knowingly facilitating fraudulent transactions and charging fees up to 22% without proper disclosure. The lawsuit seeks $1.8 million in penalties.
The Federal Trade Commission secured a $4.72 billion judgment against former Celsius Network CEO Alex Mashinsky, who agreed to pay $10 million and accept a permanent ban from the cryptocurrency and financial services industries following the collapse of the crypto lending platform.
South Korean prosecutors are seeking a 20-year prison term for Delio CEO Jeong Sang-ho over allegations of embezzling $168.8 million from nearly 2,800 crypto deposit users through what they describe as 'active deceptive acts.'
The DOJ announced a compensation process for victims of the $4 billion OneCoin fraud scheme, offering more than $40 million in seized assets. OneCoin was launched by Ruja Ignatova, who has been missing since 2017, and Karl Sebastian Greenwood, who was sentenced to 20 years in prison.
Reuters reported that White House staff received warnings against using confidential information for trading after suspicious Iran-linked oil futures bets raised insider trading concerns, with fresh scrutiny on prediction markets.
A joint U.S., UK, and Canadian operation called Operation Atlantic froze over $12 million tied to cryptocurrency approval phishing scams, disrupted more than 120 fraud domains, and identified over 20,000 victims. Crypto firms including Coinbase and Kraken participated in the effort.
The FBI's Internet Crime Report reveals Americans lost over $11 billion to cryptocurrency fraud schemes in 2025, with older Americans bearing nearly 40% of losses. Fraud schemes grew more sophisticated and targeted larger sums than in 2024.
Cambodia's parliament passed the Law on Anti-Technology Fraud introducing five new offenses aimed at rooting out online and crypto scam operations, with penalties up to life in prison for those running scam compounds behind billions in crypto fraud.
Australia's Federal Court fined Binance Australia Derivatives $6.9 million after the exchange misclassified 524 retail clients as wholesale investors, exposing them to high-risk crypto derivatives without required protections. The penalty follows Binance's admission that the clients lost $6 million trading these products.