News linked to this event type.
on April 23, Wisconsin Attorney General Josh Kaul filed a lawsuit in Dane County against Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, accusing these fintech and crypto platforms of facilitating illegal sports betting through event contracts. Josh Kaul is requesting the court to issue preliminary and permanent injunctions, declaring that the platforms' operations violate Wisconsin's gambling laws and constitute a public nuisance. The complaint states that repackaging wagers as event contracts does not change their fundamental nature, with approximately 90% of Kalshi's business coming from sports-related contracts, generating annualized revenue exceeding $1 billion. Robinhood and Coinbase are also implicated in the case, routing user orders to Kalshi's markets through distribution agreements. Regulators in Nevada, Arizona, and Tennessee have also taken similar legal actions or issued cease-and-desist orders.
On April 17, South Africa’s National Treasury released the Draft Capital Flow Management Regulations (2026) for public consultation. The draft proposes incorporating crypto assets into the foreign exchange control framework to address associated risks and strengthen oversight of emerging financial instruments. It also aims to align the foreign exchange control framework with recommendations from the OECD and the FATF on combating money laundering, terrorist financing, and illicit financial flows, further clarifying exemptions, licensing requirements, and conditions of application, while imposing administrative penalties for violations.
According to The Block, OSL Group has announced a partnership with Circle’s affiliated entities to expand USDC integration across its payment and trading platforms. Through OSL Global, users can exchange USD for USDC at a 1:1 ratio and trade BTC, ETH, SOL, USD, and USDT pairs in a dedicated USDC trading zone. Meanwhile, OSL has adopted USDC as its unified margin asset and integrated USDC into its payment services to support compliant digital dollar settlement and payment use cases. OSL also stated that it plans to support Circle’s tokenized money market fund, USYC, subject to regulatory requirements and platform eligibility criteria.
The People’s Bank of China, the Ministry of Industry and Information Technology, the State Administration for Market Regulation, the National Financial Regulatory Administration, the China Securities Regulatory Commission, the China National Intellectual Property Administration, the Cyberspace Administration of China, and the State Administration of Foreign Exchange jointly issued the “Measures for the Online Marketing of Financial Products,” which will take effect on September 30, 2026. The Measures clarify that, except for financial institutions and third-party internet platforms lawfully entrusted by them, no other organizations or individuals may engage in online marketing of financial products; no institution or individual may provide online marketing services or facilitation for illegal financial activities, and explicitly include virtual currency issuance and trading, illegal foreign exchange margin trading, and other activities within the scope of illegal financial activities.
According to CoinDesk, Morgan Stanley Investment Management (MSIM) has officially launched the “Stablecoin Reserve Portfolio” (MSNXX), a government money market fund specifically designed for stablecoin issuers. The fund invests exclusively in highly liquid instruments such as U.S. Treasury securities and repurchase agreements backed by government securities, targets a net asset value of $1.00, and offers daily liquidity. This move aims to provide stablecoin issuers with a compliant, low-risk custodial solution for reserve assets.
According to CoinDesk, the cryptocurrency market weakened overall on Friday, with BTC hovering near $77,800—its upward momentum since Wednesday’s rally from $65,000 notably slowing. ETH traded at $2,300, down approximately 0.8% over the past 24 hours, underperforming BTC. Market pressure stems primarily from two sources: First, Japan’s March Corporate Services Price Index rose 3.1% year-on-year—above expectations—and core inflation accelerated, raising market expectations that the Bank of Japan may signal an interest rate hike at its next policy meeting; a stronger yen could trigger unwinding of global risk-asset carry trades. Second, the ongoing Iran conflict continues disrupting oil shipments through the Strait of Hormuz; WTI crude futures have surged over 40% since the outbreak of hostilities, reaching $96 per barrel. The U.S. Department of Defense warned that mine clearance will take at least six months, implying persistent global inflationary pressures and further constraining the Federal Reserve’s room to cut interest rates.
According to Bloomberg, U.S. Democratic Senator Elizabeth Warren has raised questions about the regulatory approval process for cryptocurrency bank Erebor. A fundraising document obtained by Senator Warren’s office shows that the bank received its banking license within just a few months—sparking “serious concerns” over whether political connections influenced the approval process. Erebor was co-founded by Palmer Luckey, founder of defense startup Anduril Industries, who has publicly disclosed donations to multiple pro-Trump groups. Senator Warren has now requested further clarification from relevant parties regarding the details of the approval process.
Polymarket posted on X platform, saying, "Last month, we released enhanced market integrity rules to combat insider trading. When we discovered that a user was trading based on government classified information, we referred the matter to the Department of Justice and cooperated with their investigation. Polymarket has zero tolerance for insider trading, and today's arrest proves the system is effective."The arrest referred to by Polymarket involved a special forces soldier who participated in the arrest of Venezuelan President Nicolás Maduro and was taken into custody by U.S. federal authorities on Thursday. The soldier is suspected of profiting over $400,000 by betting on Maduro's removal from power. Sources say federal investigators believe that the commando placed over $33,000 in bets on the prediction market Polymarket just hours before President Trump announced Maduro's capture in January.For details on the insider trading related to the Maduro capture operation on Polymarket, please see When War is Settled Before the News is Out: How Prediction Markets "Priced In" Maduro's Capture 6 Days Early
According to CoinDesk, Wisconsin Attorney General Josh Kaul filed a lawsuit on April 24 against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, accusing these platforms of operating unlicensed gambling businesses under the guise of “event contracts.” The complaint cites marketing language used by the platforms themselves—for instance, Kalshi’s claim to be “the first legal sports betting platform in the U.S.,” and Polymarket’s statement that users can “bet on the outcomes of future events”—to argue that such contracts constitute wagering under Wisconsin law. The state government further noted that the platforms’ business model—charging fees per transaction—is functionally identical to casinos’ commission-based revenue structure. At the heart of this case lies a jurisdictional dispute: whether prediction market contracts fall under federal regulation by the Commodity Futures Trading Commission (CFTC) or are subject to individual states’ gambling laws. Similar lawsuits have already been filed by multiple states, and this conflict is expected to ultimately be resolved by the U.S. Supreme Court.
According to Decrypt, Bitcoin financial services company Fold has launched a “Bitcoin Bonus Program” that allows businesses to distribute recurring bonuses to employees in Bitcoin. Steak ’n Shake is the first partner, offering over 10,000 hourly workers a Bitcoin bonus of $0.21 per hour worked, fully vesting after two years. The program is operated by Fold Business, which handles all custody and compliance requirements—enabling traditional enterprises to offer crypto-based incentives without managing technical infrastructure. Fold plans to expand its enterprise offerings to include payroll disbursement, corporate Bitcoin treasury management, and corporate cards.
Kelp DAO released a community update on X, noting that the recent rsETH security incident has remained tense over the past several days. However, with support from partners and the broader community, discussions are progressing in a positive direction, and efforts to identify an appropriate resolution are being accelerated. The guiding principles have already been reflected in initial actions, and subsequent updates will continue along this path, aiming for a win-win outcome for all stakeholders. Over the past four days, the Kelp team has engaged in in-depth communication with partners and other relevant parties. Specific progress includes: the Arbitrum Security Council has taken measures to freeze the stolen funds, and the SEAL 911 emergency response team has swiftly stepped in to conduct preliminary investigations, providing a clear and objective analytical perspective on the incident. While some developments have not yet been fully disclosed, related work continues to advance steadily. Kelp DAO stated that its current priority is safeguarding user assets and strengthening the protocol itself. This incident is also viewed as a critical test—not only for the project but for the broader DeFi ecosystem—and key follow-up developments will continue to be shared via official channels.
According to the Belarusian state news agency BELTA, Alexander Yegorov, First Deputy Chairman of the National Bank of the Republic of Belarus, revealed at the “Digital Banking–2026” conference that Belarus has adopted Decree No. 19, formally establishing a regulatory framework for crypto banks. Under the decree, crypto banks will support 26 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), TON (Toncoin), Solana (SOL), and multiple stablecoins. They will also be authorized to conduct 11 types of operations, such as crypto deposits, crypto lending, crypto staking, crypto collateralization, crypto transfers, issuance of proprietary tokens, and crypto storage and exchange. Yegorov stated that the current list of supported cryptocurrencies and permitted operations is not final and will be continuously updated and refined in response to investor demand and emerging ideas.
According to Bloomberg, U.S. President Trump said he would launch an investigation into federal employees’ betting activities on event prediction platforms, expressing concern that some individuals might be profiting from government classified information in prediction markets. Previously, federal authorities arrested a soldier involved in the operation to capture Venezuelan leader Nicolás Maduro; the soldier had successfully bet on Maduro’s ouster and earned approximately $400,000.
Trump commented on insider betting and federal employees wagering on prediction markets, stating that an investigation will be conducted. Regarding insider trading related to wars, he said, "The world is a bit like a casino," and added that he has never been a strong supporter of these betting platforms. Trump also noted that he conceptually dislikes gambling.
ABC News, citing sources, said that US federal authorities arrested a Special Forces soldier on Thursday involved in the capture of Venezuelan President Nicolás Maduro. The soldier allegedly made over $400,000 by betting on Maduro's ouster. Sources said federal investigators believe the soldier placed over $33,000 in bets on the prediction market Polymarket just hours before President Trump announced Maduro's capture in January. The series of bets yielded over $409,000 in profit, immediately triggering scrutiny within the prediction market and launching a months-long insider trading investigation.
: Quantitative trading firm Jane Street has filed a motion with the court to dismiss the insider trading and market manipulation lawsuit filed by Terraform Labs, which accuses the firm of causing the collapse of the UST/LUNA algorithmic stablecoin.In its filing submitted to the U.S. District Court for the Southern District of New York, Jane Street stated that the lawsuit is "baseless" and represents an attempt by Terraform's bankruptcy estate to shift responsibility for the collapse of a multi-billion dollar ecosystem onto a third party.The firm has requested the court to dismiss the entire case "with prejudice," meaning the plaintiff cannot refile the same claims.Jane Street further pointed out that the fraudulent conduct associated with Terraform has already been prosecuted, adjudicated, and penalized, and that it was not involved. Do Kwon has previously pleaded guilty to conspiracy and wire fraud charges and is currently serving a 15-year sentence. A jury has also found Terraform and Kwon liable for securities fraud.
the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has announced sanctions against Cambodian Senator Kok An, accusing him of controlling "fraud compounds" across the country that defrauded U.S. victims through crypto investment scams.According to an OFAC statement released on Thursday, in addition to Kok An, 28 other individuals and entities have been added to the sanctions list, all believed to be linked to his fraud network. The network allegedly lured victims into sending crypto assets by promising "high-return investments."This action follows a raid by Cambodian police on two fraud centers in the border town of Poipet. Kok An had previously been accused of operating fraud hubs in that area.OFAC stated that fraudsters typically gain victims' trust by establishing "friendships" or "romantic relationships," then guide them to participate in so-called crypto investment platforms to defraud funds, with total losses reaching millions of dollars.Notably, some individuals involved in the fraudulent activities are themselves victims of human trafficking, forced to engage in illegal acts under threats of violence. OFAC pointed out that these fraud centers are often located in casinos or repurposed office parks, serving not only as hubs for money laundering but also as bases for committing fraud and human rights abuses against U.S. citizens.Additionally, regulators have simultaneously seized over 500 domain names of fake websites used for crypto investment scams, indicating that the U.S. is further intensifying its crackdown on related criminal activities.
MoonPay, a cryptocurrency payment network, announced that its Iron platform has officially launched virtual account services in New York State, enabling fintech companies, crypto platforms, neobanks, and financial institutions to integrate compliant fiat-to-stablecoin infrastructure. This launch follows MoonPay’s 2025 acquisition of Iron, an enterprise-grade stablecoin infrastructure platform. Users can receive funds via ACH, wire transfer, SWIFT, and other channels, with automatic conversion into stablecoins settled directly into non-custodial wallets. In the same year, MoonPay obtained New York State Department of Financial Services (NYDFS) licenses—including a BitLicense, a money transmitter license, and a limited-purpose trust charter.
Polymarket, a crypto prediction market platform, has become embroiled in an insider trading controversy due to predictive trading centered on US President Donald Trump's related policies and statements. Data shows that from April 5th to April 8th alone, markets related to the situation in Iran generated approximately 413 million predictions, involving funds exceeding $100 million.Analysts point out that Trump's highly unpredictable decision-making style has significantly boosted activity in the prediction market. Topics such as whether he will take military action against Iran or push for a ceasefire have become high-frequency trading targets. Related trading volumes surged rapidly following his social media posts.Notably, Donald Trump Jr. was revealed to hold shares in Polymarket while also serving as an advisor to another prediction platform, Kalshi, sparking external questions about potential conflicts of interest and insider trading. Industry data indicates that political predictions have become the second-largest category in prediction markets, trailing only sports. Despite the escalating controversy, the overall attitude of US regulators remains relatively lenient, driving the continuous expansion of this sector. (Fortune)
the Bank for International Settlements (BIS) has released a report stating that crypto exchanges are increasingly offering banking-like services, such as lending and yield-bearing products (Earn), but lack the regulatory oversight and deposit protection found in traditional financial systems, posing systemic risks.The report states that these high-yield products are essentially more akin to "unsecured loans." User assets are often used by platforms for high-risk operations such as lending, trading, or market making, while users only hold a claim against the platform. If the platform encounters problems, users are directly exposed to solvency risks.The BIS also noted that major crypto platforms have evolved from simple exchanges into "multi-functional intermediaries," integrating the functions of banks, brokerages, and exchanges, but with insufficient transparency and risk isolation mechanisms. The collapses of Celsius Network and FTX are typical examples of this structural risk. Additionally, the report mentions the crypto market flash crash in October 2025, which triggered approximately $19 billion in forced liquidations, highlighting the risk of cascading effects under high leverage and opaque structures. (CoinDesk)