On July 17, during a session at the Georgetown Psaros Center for Financial Markets and Policy, the United States Commodity Futures Trading Commission (CFTC) highlighted its vigilant scrutiny of Polymarket and various offshore cryptocurrency betting platforms. CFTC Chair Rostin Behnam emphasized that the commission is monitoring any offshore activities that provide “exposure to US customers.”
Behnam articulated the commission’s primary concern: ensuring that platforms like Polymarket operate “legally and within the bounds of the law.” He warned that enforcement actions could be taken if an entity has a substantial “footprint” in the United States and fails to register the derivatives contracts it offers.
In a separate development, on September 17, the US Securities and Exchange Commission (SEC) announced its inaugural action against crypto scams known as “pig butchering.” The regulator filed lawsuits against five entities and three individuals linked to the fraudulent exchanges CoinW6 and NanoBit, alleging they swindled nearly $3.2 million. The SEC claims these exchanges built trust with investors and cultivated relationships through social media, ultimately creating deceptive crypto environments that misled investors with fabricated information.
Meanwhile, on September 19, the German government took decisive action by closing down 47 cryptocurrency exchanges accused of enabling an “underground economy” that benefited cybercriminals. Authorities stated that these exchanges had “deliberately” obscured the origins of “criminally obtained funds on a large scale.” The German government reported that the exchanges had inadequately implemented legal measures to combat money laundering. Users of these platforms allegedly included botnet operators, ransomware attackers, and black market traders who utilized the services to convert illicit funds into legitimate currencies.
In a related incident on the same day, US federal agents apprehended and charged two men in connection with a $230 million Bitcoin scam that targeted a Washington, D.C. resident believed to be the creator of Genesis. The US Attorney’s Office for the District of Columbia announced that Jeandiel Serrano and Malone Lam face charges of conspiracy to steal and unlawfully transfer over 4,100 BTC. The duo employed various online aliases and intricate techniques to access the victim’s accounts, abscond with the funds, and launder the proceeds since at least August. The stolen assets were reportedly funneled into extravagant lifestyles, which included nightlife, international travel, luxury jewelry, high-end vehicles, and more.