fraud

The Hong Kong Securities and Futures Commission (SFC) issued a restriction notice to Futu Securities International (Hong Kong) Limited, prohibiting it from handling or disposing of assets in customer accounts held by a certain entity, limited to HKD 125,247,000. This entity is suspected of participating in a fraudulent scheme aimed at creating a false or misleading appearance of demand for initial public offering shares. Futu is not the subject of the SFC's investigation, and this restriction notice will not affect Futu or its other clients.According to the notice, Futu must not dispose of or handle the relevant account assets in any way without the SFC's written consent, and must immediately notify the SFC if it receives any instructions related to the restricted assets. The SFC believes that issuing this restriction notice is in the interest of investors and the public. The investigation is still ongoing.

The "China Business Journal" issued a statement saying: "Recently, our company discovered that illegal individuals are impersonating 'China Business Journal' and sending emails to some companies through non-official company email accounts, falsely claiming to have obtained significant negative information about the companies through so-called 'undercover investigations,' and threatening that if financial compensation (in Bitcoin) is not paid, the related 'undercover articles' will be published."The "China Business Journal" stated that all its news reports strictly comply with national laws and regulations, and interviews and communications are conducted through official channels. Such behavior is suspected of fraud and has been closely monitored, with evidence collected, and all rights to pursue legal responsibility are reserved. The statement reminds relevant companies to remain vigilant; if they receive such impersonated emails, they should not pay any financial compensation, and should immediately preserve all evidence and report to the local public security authorities.

According to Russian media bits.media, Igor Runets, the founder of Russia's largest mining company BitRiver, has been transferred from house arrest to detention pending trial by the Zamoskvoretsky Court in Moscow due to allegations of fraud amounting to 100 million rubles. He will be held in custody for at least two months. The charges are based on Part 4 of Article 159 of the Criminal Code of the Russian Federation—"particularly large-scale fraud committed by an organized group."The investigation claims the case involves the supply of mining equipment, causing nearly 100 million rubles in losses to the metallurgical and energy companies under the En+ Group. Investigators requested the detention of Runets on the grounds that he might influence witnesses, and the court approved this request. Representatives of BitRiver and Runets' lawyer have not yet commented on the court's ruling, and the progress of the case will depend on the equipment appraisal and witness testimonies from En+. In February of this year, Russian law enforcement suspected Runets of concealing assets to evade taxes, leading to his arrest and house arrest on charges of tax evasion. BitRiver is facing bankruptcy and ownership risks, with its owner Fox Group having debts of approximately 9.2 million dollars, and assets insufficient to repay the debts, prompting a bankruptcy application.

According to Decrypt, the Myanmar parliament passed a law on Tuesday that allows for the death penalty for those who coerce others into engaging in online fraud through violence or illegal detention.According to the draft bill released in May this year, if such abusive behavior results in the death of the victim, the death penalty should be imposed. The new law also stipulates that individuals operating online fraud parks or implementing "digital currency fraud (cryptocurrency fraud)" can be sentenced to life imprisonment; while criminals who commit violent coercion, illegal detention, and other acts can be sentenced to 10 years to life imprisonment.

According to Decrypt, the U.S. Department of Justice's District of Columbia Attorney's Office, in conjunction with the Secret Service, has filed five civil forfeiture lawsuits in court regarding investment fraud and "pig butchering" scams, seizing over $25 million in cryptocurrency assets, with victims spread across the U.S. and Canada.The largest case involves approximately $12.1 million, with over 200 victims; the amount marked by Canada is about $10.4 million, involving over 270 suspicious transactions; the remaining three cases range from $285,000 to $2.4 million, one of which involves scammers posing as "fund recovery intermediaries" to carry out secondary fraud. Investigations show that money launderers are primarily located in Southeast Asia, with involved IP addresses coming from China, Malaysia, and Cambodia. This operation is part of the "Fraud Center Task Force" established in November 2025, which has cumulatively recovered over $800 million, and the five cases are still under ongoing investigation.

The U.S. Attorney's Office for the District of Columbia, in conjunction with the U.S. Secret Service Washington Field Office, announced that an investigation into multiple international cyber fraud cases has led to the seizure of over $25 million in cryptocurrency, with the funds suspected to be linked to cryptocurrency investment scams targeting residents of the United States and Canada. This operation is part of the U.S. "Scam Center Strike Force," initiated in 2025 by D.C. Attorney Jeanine Ferris Pirro, which has so far recovered assets totaling over $800 million.U.S. prosecutors stated that on July 21, 2026, the D.C. Attorney's Office submitted five civil forfeiture complaints to the U.S. District Court, seeking to confiscate over $25 million in crypto assets recovered from various fraud investigations. Investigators indicated that these cases involve multiple money laundering networks, with victims spread across the globe. Criminal groups lure victims into investing through fake cryptocurrency investment platforms, online romance scams, and other methods, and conceal the source of funds through multi-layered wallet addresses and coin mixing operations.The seized funds are related to five major investigations: in one case, Canadian law enforcement provided the U.S. Secret Service with wallet addresses suspected of transferring illegal proceeds. Investigators froze the relevant addresses and tracked over 270 suspected victim transactions, involving approximately $10.4 million; the second case involves an online romance scam where over 200 victims were defrauded, with illegal funds transferred through hundreds of intermediary wallet addresses, mixing with other victims' funds, totaling about $12.08 million; the third case involves a victim in the Washington D.C. area who participated in a fake cryptocurrency investment project and lost contact with the scammers after a failed withdrawal, with related funds amounting to about $1.23 million; in the fourth case, a victim transferred millions of dollars in cryptocurrency to a fake investment account, and investigators traced part of the funds to six wallet addresses, freezing approximately $2.39 million; in the fifth case, scammers impersonated a "fund recovery" agency, tricking victims into paying fees, with the amount involved being about $285,000. The U.S. Secret Service stated that these cases are still under ongoing investigation, and law enforcement is tracking the suspects behind the fraud networks and will collaborate with international law enforcement agencies to hold them accountable.

The U.S. Securities and Exchange Commission (SEC) announced that it has filed a lawsuit against Florida resident Zan Shaikh and his company Bright Vision Distribution LLC (operating under the name Mining Automatic), accusing them of defrauding investors through a fraudulent cryptocurrency mining investment scheme, with approximately $22 million raised.The SEC stated that from June 2023 to May 2025, Shaikh and Mining Automatic promised investors fixed monthly returns by participating in cryptocurrency mining operations, but the related mining operations were actually unable to generate the promised returns. According to the SEC's complaint, Shaikh and Mining Automatic are accused of making false statements regarding their cryptocurrency mining experience, operational capabilities, the use of investment funds, and the status of the mining business, and explained payment delays by claiming they were unable to pay investor returns.

According to Protos, a gang in the UK disguised as police officers and created a fake police website, convincing cryptocurrency holders over the phone to transfer funds into so-called "safe accounts," stealing $5.4 million worth of cryptocurrency, and were sentenced this week. 23-year-old Hamza Bashir, 25-year-old Kevin Nwamma, and 29-year-old Anthony Ikenwe were sentenced to six years and nine months, eleven years, and eleven years in prison, respectively.The stolen funds were used to purchase luxury items, including a £60,000 car, vacation trips to Thailand and Japan, and products from brands such as Harrods, Hermès, Louis Vuitton, and Rolex. The police also discovered £500,000 in cash in a safe and determined that most of the stolen cryptocurrency had been converted into payment cards. Gang members also falsely reported their annual income, with one declaring only £444. The Metropolitan Police began investigating the gang after receiving reports from victims in January 2025.

According to The Block, a federal grand jury in the United States has indicted South Dakota cryptocurrency investor Benjamin Paul Wiener on 29 counts, including telecommunications fraud, money laundering, bank fraud, and aggravated identity theft.

According to Etoday, the Financial Services Commission of South Korea has announced a draft amendment to the "Special Law on Preventing Telecom Financial Fraud and Returning Victim Funds," planning to include funds from phone scams that are transferred to crypto assets within the scope of victim compensation, and to clarify the standards for the return and valuation of crypto assets. The relevant regulations are expected to officially take effect on October 1.According to the new regulations, if the frozen assets are cryptocurrencies, victims will generally be compensated based on the type and quantity of assets; if the defrauded assets differ in form from the frozen assets, compensation will be made in the form of assets that existed at the time the account was frozen. In cases where cash and crypto assets are mixed, the regulatory authorities will value the crypto assets based on the market price at the time of freezing to determine the final compensation amount.The Financial Services Commission of South Korea stated that clarifying the form of returned assets and the timing of valuation will help achieve faster and fairer compensation in complex cases involving mixed funds from multiple victims. It is reported that the public consultation for the draft amendment will continue until August 24.

A fraud review commissioned by the UK government suggests that the Judicial College should provide training for all judges and magistrates in England and Wales to address the increasing cases involving AI fraud and the use of cryptocurrency for money laundering. The report states that the overall Fraud Act 2006 can be used to handle AI fraud, but the issue lies in the courts' lack of preparedness to hear related cases.The report recommends evaluating whether the existing "long and complex trials" course should be updated or replaced with specialized modules on fraud and related crimes, and considers mandatory training for judges who may hear complex fraud cases. The report claims that fraud could soon account for half of all crime in England and Wales, with an estimated 4.1 million cases occurring within a year by June 2025, affecting 1 in every 14 adults and 1 in every 4 businesses. The Financial Ombudsman Service estimates that currently over half of investment scams involve crypto assets.The report also mentions the case of Qian Zhimin, who operated a Ponzi scheme in China, defrauding over 128,000 victims of approximately £5 billion and laundering the proceeds into Bitcoin. This case resulted in the largest confirmed Bitcoin seizure in UK history, exceeding 61,000 BTC, and Qian Zhimin was sentenced to 11 years and 8 months in prison at Southwark Crown Court in November.

The Hong Kong Interbank Clearing Limited (Hong Kong Clearing) announced that it has recently discovered multiple counterfeit websites that lure users into submitting personal information such as ID card numbers, ID card photos, and phone numbers under the guise of "Buyer Online Security Assurance" for so-called "real-name authentication," and use cash rewards as an incentive, allowing users to recharge and withdraw funds through virtual wallets.The Hong Kong Interbank Clearing Limited urges the public to be cautious of suspicious calls, websites, or other communications, and to report to the police as soon as possible if they suspect they have been scammed.

On-chain analyst Specter issued a community alert on the X platform, indicating that the BNB Chain ecosystem project CodexField may have fraud and Rug Pull risks. The project has raised over $85 million with official support from BNB Chain.Specter tracked and found that the project wallet began transferring 17.3 million USDT from Tron to Ethereum, then exchanged it for DAI through Bitget Swap and transferred it to Polygon. Currently, $6.5 million has been transferred, while $10.8 million is still pending. The project operates two domain names and four subdomains for user deposits, and Blocksec MetaSuites has labeled the deposit contract as "Fake CodexField," but on-chain evidence shows that the contract is controlled by the project team. The flow of project funds is abnormal, as they are deposited into centralized exchanges through multiple chains and intermediary wallets, with just two Tron wallets having deposited over $3.4 million into exchanges. Specter calls on Binance founder Zhao Changpeng and BNB Chain to pay attention to this matter and possibly initiate an investigation.

According to a report by the International Consortium of Investigative Journalists (ICIJ), the stablecoin issuer Circle has been criminally charged by the Wisconsin state prosecutor for refusing to comply with a court order to assist in recovering funds for fraud victims.A victim in Wisconsin was defrauded of approximately 381,000 USDC, and the court issued a warrant last December requiring Circle to transfer frozen assets to law enforcement wallets, but Circle refused to comply, citing "technical inability to destroy and reissue tokens."The New York state prosecutor had previously sent a letter to the U.S. Senate, accusing Circle of repeatedly refusing asset freeze requests without a warrant and questioning its motives—Circle currently holds at least 119 million frozen USDC, which can continuously earn interest.In response, Circle denied the allegations, stating that the Wisconsin court lacks jurisdiction, and indicated that it has reached a preliminary agreement with federal prosecutors regarding a compensation mechanism for victims. Cryptocurrency tracking experts pointed out that Circle could fully implement token destruction and reissuance by updating its code, casting doubt on its claim of technical incapacity.

According to The Block, a global anti-fraud operation led by INTERPOL has arrested over 5,800 suspects and successfully uncovered a cryptocurrency money laundering network that used cross-chain token exchange methods to conceal illegal fund flows.One suspect's digital wallet processed over $122.5 million in funds in just 10 months. On-chain analysts pointed out that while cross-chain operations increase tracking difficulty, it does not mean that fund flows cannot be traced. Such cases indicate that financial crimes continue to evolve alongside the advancement of blockchain technology.

A five-day public debate between ether.fi CEO Mike Silagadze and KAST CEO Raagulan Pathy has brought KAST's user deposit terms into the spotlight. Silagadze publicly shared screenshots showing that KAST's terms treat users' deposited stablecoins as sold to KAST, with ownership immediately transferred to the company, and the original terms did not mention that users could request redemption.According to The Defiant, verified through the Wayback Machine, these terms have been in place at least since June 25. As of July 7, KAST updated its terms to include users' right to redeem unspent balances, but the legal structure remains unchanged—deposits are still defined as sales, with the company's total liability capped at $500, registered in Comoros, Anjouan Island, and governed by Seychelles law.Additionally, KAST previously promised that points would be exchanged for tokens on a one-to-one basis, but on July 2, this was changed to conversion into tokenized equity, causing dissatisfaction among users. Research account Decentralisedco pointed out that KAST can earn about 4-5% annualized returns from idle balances by counting users' stablecoins as company assets, a structure that differs from competitors like ether.fi, which settle through user-controlled smart contracts.

According to The Block, Cash App's parent company Block has agreed to pay $45 million to settle with regulatory agencies in nearly 50 states in the U.S. over allegations of misleading security promotions and insufficient anti-fraud measures. Regulators accused Block of marketing Cash App as having security protections comparable to traditional banks, but failing to establish a comprehensive fraud detection system and not providing an effective fraud reporting hotline, resulting in users suffering losses from scams.Additionally, regulators accused Block of continuing marketing activities despite being aware of the increase in scams and amplifying scam risks in promotional activities. Under the settlement agreement, Block must improve customer support services, provide 24-hour live customer service, and cease related promotions regarding Cash App's security. Block denies any wrongdoing, stating that the settlement involves previously disclosed legacy issues.

According to Cryptopolitan, data released by law enforcement in Texas shows that residents of the state suffered financial losses totaling up to $56.8 million from cryptocurrency ATM scams in the past year. An estimated 1,200 Texas residents have fallen victim to such scams.The typical method of operation for cryptocurrency ATM scams involves scammers impersonating government agencies or company staff over the phone, falsely claiming that the victims are involved in legal issues or owe money, and demanding that victims go to a cryptocurrency ATM to convert cash into cryptocurrency and transfer it to a designated address. Due to the irreversibility of cryptocurrency transactions and a certain degree of anonymity, once the funds are transferred, it is extremely difficult to recover them. Texas has become one of the hardest-hit areas for cryptocurrency ATM scams in the United States, and state regulators are strengthening public education and prevention measures to remind residents to be vigilant against such new types of scams.

The U.S. CFTC has sued North Carolina man Trevor Vernon and his company Argent Capital Management LLC, accusing them of defrauding approximately 60 investors out of a total of $14 million through a fraudulent commodity pool.According to the complaint filed by the CFTC in the U.S. District Court for the Western District of North Carolina, the commodity pool operated by Vernon and his company involved trading in multiple asset classes, including stock index futures options, stock index futures contracts, and crypto assets. The CFTC stated that Vernon falsely claimed to investors that he was a "successful trader" through quarterly financial updates and monthly performance review emails, while in reality, he was incurring significant losses when trading with investor funds. The regulatory agency indicated that Vernon had accumulated losses of at least $8.6 million in futures, options, and crypto trading. The CFTC stated that the actual trading results were "persistent and catastrophic losses," which were severely inconsistent with the profitability presented to investors.

A federal judge in Connecticut has reinstated the common law fraud claims by investors in the Genesis Yield lawsuit against Digital Currency Group founder Barry Silbert, DCG, and other defendants, while allowing the federal securities law-related claims in the case to proceed. This ruling revises an earlier decision made by the court in February of this year.The plaintiffs previously argued that the court had the authority to hear their state law claims under the Class Action Fairness Act. Judge Stefan Underhill accepted this view and reconsidered the relevant state law claims. The case revolves around the failed Genesis Yield lending program, which allowed users to deposit cryptocurrency assets and earn interest. Investors allege that Silbert, DCG, and other defendants misled customers about the company's financial health and risk management, despite knowing there were issues, before Genesis suspended withdrawals and filed for bankruptcy in early 2023.However, not all state law claims were reinstated. The court dismissed four state consumer protection-related claims and paused three other related claims. Overall, this ruling has brought the fraud liability dispute against DCG and Silbert back into focus in the case.