The New York Attorney General's office has updated its lawsuit against prominent blockchain companies Gemini, Genesis, and Digital Currency Group (DCG), following a recent settlement with Genesis. The lawsuit expansion comes after allegations of fraud, with investor losses now totaling over $3 billion, highlighting the widespread impact of deceptive practices within the crypto industry.
A recent investigative report by Joseph Cox of 404 Media underscores the ease with which synthetic identities can circumvent verification on major crypto exchanges like OKX, raising concerns about susceptibility to fraud. Urgent regulatory action is needed to bolster KYC and AML protocols, ensuring the integrity of the financial system.
In a significant enforcement move, the U.S. SEC has charged Brian Sewell, founder of the American Bitcoin Academy, for orchestrating a fraudulent scheme that targeted students. The alleged scam involved enticing investors to participate in the Rockwell Fund, leveraging artificial intelligence and crypto trading strategies, but instead, Sewell retained the funds in Bitcoin, resulting in a $1.2 million loss when his digital wallet was hacked.
In a decisive move, FTX, the troubled cryptocurrency exchange, officially scraps plans for a revival, choosing liquidation instead. Full repayment to users is promised amidst controversy over valuation methods, marking the end of an era for FTX in the blockchain space.
The U.S. Securities and Exchange Commission (SEC) filed charges against the founders of HyperFund, accusing them of orchestrating a $1.7 billion cryptocurrency pyramid scheme. Sam Lee and Brenda Chunga, also known as "Bitcoin Beautee," allegedly misled investors by promising high returns from crypto mining operations, leading to the collapse of the scheme in 2022.