The United States Commodity Futures Trading Commission (CFTC) revealed on July 17, during a discussion at the Georgetown Psaros Center for Financial Markets and Policy, that it is closely monitoring Polymarket and similar offshore cryptocurrency betting platforms.
CFTC Chair Rostin Behnam noted that the commission is “observing any activity” taking place outside the U.S. that might affect American customers. He emphasized the importance of ensuring that Polymarket and other entities operate “legally and within the bounds of the law.” Behnam further mentioned that if an entity establishes a significant presence in the U.S. without registering the derivatives contracts it offers, enforcement actions will follow.
In a related development, on September 17, the U.S. Securities and Exchange Commission (SEC) announced its first-ever legal action against crypto “pig butchering” scams. The agency filed lawsuits against five entities and three individuals linked to the alleged fraudulent exchanges CoinW6 and NanoBit, accusing them of misappropriating nearly $3.2 million. The SEC contended that these exchanges deceived investors by building trust and rapport through social media platforms. The complaint stated that CoinW6 and NanoBit had “created fake crypto ecosystems that displayed false information to investors.”
Meanwhile, on September 19, the German government took significant steps by shutting down 47 cryptocurrency exchanges suspected of supporting an “underground economy” that enabled cybercriminals to thrive. Officials claimed that these exchanges had “deliberately” obscured the origins of “criminally obtained funds on a large scale.” The German authorities alleged that the seized exchanges failed to properly implement legal measures aimed at combating money laundering. Users of these platforms reportedly included botnet operators, ransomware perpetrators, and black market traders who utilized the services to convert illicit funds into a “regular currency cycle.”
In another notable incident on September 19, U.S. federal agents arrested and indicted two men involved in a $230 million Bitcoin scam targeting a resident of Washington, D.C., believed to be the creator of Genesis. The U.S. Attorney’s Office for the District of Columbia stated that the accused, Jeandiel Serrano and Malone Lam, face charges of conspiracy to steal and execute the theft of over 4,100 BTC. Utilizing various online aliases and sophisticated techniques, Serrano and Lam gained access to the victim’s accounts, transferred the funds, and laundered the proceeds since at least August. Reports indicate that the stolen assets funded extravagant lifestyles, including lavish nightlife, international trips, luxury jewelry, and upscale vehicles.