The United States Commodity Futures Trading Commission (CFTC) announced during a July 17 discussion at Georgetown Psaros Center for Financial Markets and Policy that it is closely watching Polymarket and other offshore crypto betting platforms .

CFTC Chair Rostin Behnam stated that the commission was “observing any activity” occurring offshore and providing “exposure to US customers.” 

Behnam explained that the concern is ensuring that Polymarket and others carry out services “legally and within the bounds of the law.”

He further stated that enforcement action will ensue if an entity’s “footprint” is significant enough in the US and doesn’t register the derivatives contracts it offers. 

SEC sues “fake” crypto exchanges in first action on pig butchering scams

On Sept. 17, the US Securities and Exchange Commission said it had taken its first-ever action against crypto “pig butchering” scammers.

The regulator sued five entities and three individuals connected to the alleged fake exchanges CoinW6 and NanoBit, accusing them of stealing almost $3.2 million.

The theft accusations involved the exchanges gaining investors’ trust and establishing relationships with them via social media platforms.

In CoinW6 and NanoBit, the SEC alleged that the exchanges had “created fake crypto ecosystems that displayed false information to investors.”

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Germany seizes 47 crypto exchanges tied to “underground economy”

On Sept. 19, The German government shuttered 47 cryptocurrency exchanges for allegedly facilitating an “underground economy” where cybercriminals could prosper.

The government stated that the exchanges had “deliberately” concealed the origin of “criminally obtained funds on a large scale.”

According to the German government, the seized exchanges allegedly did so through “inadequate implementation of legal requirements for combating money launders.” 

Users allegedly included botnet operators, ransomware, and black market traders who use the services to convert criminally obtained money into a “regular currency cycle.”

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Feds end Bitcoin bandits’ luxury life fueled by $230 million crypto scam

On Sept. 19, US federal agents arrested and indicted two men for stealing $230 million of Bitcoin ( BTC ) from a resident of Washington, D.C., believed to be the creator of Genesis.

The US Attorney’s Office for the District of Columbia reported that the arrested individuals, Jeandiel Serrano and Malone Lam, were charged with conspiracy to steal and launch over 4,100 BTC.

Serrano and Lam used multiple online aliases and complex methods to access the unnamed victim’s accounts, transfer the funds, and then launder the proceeds since at least August.

The stolen funds were reportedly used to establish lavish lifestyles featuring nightclubs, international travel, jewelry, luxury vehicles and more.

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