Enforcement Actions

SEC Chairman Paul Atkins testified before the Senate Banking Committee that prediction markets are a "significant issue," citing "potential overlaps in jurisdiction" currently primarily under CFTC jurisdiction, but with the two agencies working collaboratively. When asked whether clear rules will be established, he said "still to be seen," and stated that "securities are securities, and the definition of prediction markets and their products depends on specific interpretations."

The Federal Reserve released new analytical recommendations on Wednesday, suggesting that cryptocurrencies be classified as a unique asset class used in "non-cleared" derivative markets (including OTC and other transactions not cleared through centralized clearinghouses) for initial margin requirements. The working paper notes that this is because cryptocurrencies are more volatile than traditional asset classes and do not fit into the asset class risk categories outlined in the standardized initial margin model (SIMM).

The U.S. Department of Justice announced that Praetorian Group International CEO Ramil Ventula Parafox was sentenced to 20 years in prison for operating a $200 million Bitcoin Ponzi scheme, scamming over 90,000 investors and causing at least $62.69 million in losses.

Elmin Redzepagic from Connecticut faces 21 counts of crypto fraud, allegedly losing nearly $1 million dollars in online gambling. Charges include IRS fraud, money transfer fraud, and international money laundering, with potential prison sentences of up to 20 years for each count.

SEC Chairman Paul Atkins emphasized at the hearing that prediction markets face regulatory overlaps and need to coordinate with the CFTC to develop rules, preventing these markets from being pushed overseas. Currently, the regulatory authority is a point of contention between federal and state governments.

Two Israelis, including an IDF reservist, were arrested for allegedly using classified military information to place bets on Polymarket, leading to serious charges including bribery. The case raises significant security concerns for Israel's military operations.

Peer‑to‑peer cryptocurrency trading platform Paxful was sentenced to pay a $4 million criminal penalty after pleading guilty to conspiring in schemes that promoted illegal prostitution and violated the Bank Secrecy Act. Prioritizing Profit Over Compliance Paxful Holdings, a peer-to-peer cryptocur

The blockchain analysis platform Bubblemaps has detected that Trove Markets, after experiencing significant losses among presale participants, refunded KOLs and discovered that the project team transferred a large amount of funds after the token collapse. The organization has obtained evidence and accused the project team of misconduct.

Former FTX CEO SBF criticizes the Biden administration's cryptocurrency policies on Twitter, saying they "messed up cryptocurrencies." He questions the Department of Justice's allegations regarding Republican donations and states that world leaders are tired of Biden, while praising Trump's policies.

The Israeli prosecution has filed charges against a reserve soldier in the Israel Defense Forces and his civilian accomplice, accusing them of using military intelligence to place bets on the blockchain prediction market platform Polymarket. The case involves serious security crimes and obstruction of justice.

Recently, China has once again tightened cryptocurrency regulations, banning the issuance of RMB-pegged stablecoins by overseas entities and cracking down on the development of Hong Kong as a digital asset hub. The market response has been tepid, with funds accelerating their withdrawal, and the crypto industry returning to a pragmatic development approach. The contradiction between capital controls and crypto innovation is becoming increasingly apparent.

Former SafeMoon CEO Braden John Karony was sentenced to 100 months in prison and ordered to forfeit $7.5 million in illegal gains for embezzling over $9 million. He used the stolen funds for lavish spending, revealing the scam behind SafeMoon. Other key figures also face legal sanctions.

February 12 News, in 2026, the American Bankers Association (ABA) officially sent a letter to the Office of the Comptroller of the Currency (OCC), demanding an immediate halt to the review of national banking charters for multiple cryptocurrency companies, including Ripple, Circle, and other related applicants. This move is seen as a strong countermeasure by the traditional American banking system against the expansion of the digital asset sector. The ABA stated in the letter that, before Congress completes the cryptocurrency financial regulatory framework, the OCC should not continue processing these applications at the traditional banking approval pace. The association emphasized that regulatory agencies must thoroughly assess the applicants' compliance responsibilities, capital structure, and potential systemic risks before issuing any charters.

On February 12, it was reported that in 2026, the Chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, was fiercely questioned by Democratic lawmakers during a congressional hearing, focusing on the agency's suspension of enforcement actions against Tron founder Justin Sun. Lawmakers believe that this decision may not be purely a compliance consideration but involves more complex political and financial relationships. The core of the controversy lies in the fact that Justin Sun has invested over $75 million in crypto projects related to the Trump family, including World Liberty Financial, and has appeared publicly alongside Eric Trump. These backgrounds have led some legislators to worry that the SEC's enforcement neutrality is being challenged, and they have demanded that Atkins explain the true reasons for suspending the case.

February 12 News, the enforcement approach of the U.S. Securities and Exchange Commission (SEC) regarding cryptocurrencies is facing strong resistance from Congress. As Democratic members of the House openly criticize the regulatory strategy led by Chairman Paul Atkins, the tense atmosphere around digital asset regulation in Washington continues to escalate. Lawmakers believe that a recent series of enforcement actions have become noticeably more lenient, undermining the regulatory deterrence needed during high-risk phases of the market and shaking investor confidence. Several Democratic lawmakers pointed out that this shift appears to be selective and involves politically sensitive backgrounds, especially in cases related to Trump. They warn that any impression of "favoritism" could damage the SEC's authority as an independent regulator and weaken its credibility in the capital markets. For them, the issue is no longer just about compliance details but is fundamentally about investor protection and trust in the financial system.

The United States has ordered cryptocurrency exchange Paxful to pay $4 million in criminal penalties for knowingly facilitating funds transfers. Prosecutors said Paxful lacked adequate anti-money-laundering controls and even promoted weak compliance practices. A U.S. federal court ordered Paxful

8,300 Chinese victims applying for compensation in a 60,000 Bitcoin money laundering case with slow progress, law firms acting independently leading to repeated issues, and rising legal fees. In February 2026, a hearing will be held in the High Court of the United Kingdom, involving over 30 billion RMB and nearly 130,000 victims. Bitcoin market capitalization has significantly shrunk.

On February 12, the largest banking lobbying organization in the United States—the American Bankers Association (ABA)—submitted a comment letter to the Office of the Comptroller of the Currency (OCC), urging it to slow down the approval process for cryptocurrency-related licenses until Congress completes rules for stablecoins and digital assets. The association warned that prematurely approving new digital asset institutions into the national banking system could pose potential risks to financial stability and resolution mechanisms. Currently, institutions including Circle, Ripple, BitGo, Paxos, and Laser Digital (a subsidiary of Nomura Securities) are applying for or already hold OCC conditional trust bank licenses. World Liberty Financial, associated with Trump, also submitted an application covering its $1 stablecoin. The ABA believes that, in the absence of the implementation of the GENIUS Act and its supporting regulations, the OCC should not follow the traditional approval pace.

The European Union plans to implement the 20th round of sanctions against Russia, including a comprehensive ban on cryptocurrency transactions with Russia, aimed at blocking Russian channels to bypass sanctions. Additionally, the sanctions will be expanded to include more Russian banks and certain third-country banks, expected to be approved on February 24. Russia, on the other hand, is promoting digital asset legislation to respond to these regulatory measures.

Cryptocurrency hackers can now transfer stolen funds within 2 seconds of an attack starting, and in most cases, they move assets before victims disclose data breaches. Global Ledger's analysis of 255 crypto hacking incidents in 2025 draws the clearest conclusion: 76% of hacker attacks had funds transferred before public disclosure, and this percentage rose to 84.6% in the second half of the year.