prison

A man in Anshun, Guizhou, used the name of a virtual currency airdrop project as a pretext to lure friends into investing with the bait of guaranteed high returns, ultimately crossing the legal red line. The People's Procuratorate of Pingba District, Anshun City, Guizhou Province, filed a public prosecution, and the court sentenced Zhao to seven months in prison for fraud, along with a fine of 5,000 yuan.Zhao had been paying attention to the field of virtual currency investment for many years and had long been posting investment insights and financial management tips on social media platforms. Zhang was also a virtual currency enthusiast, and the two met on a social platform due to their common interests, gradually becoming friends and frequently discussing investment strategies online. Through long-term communication, Zhao gained Zhang's trust with seemingly professional investment analysis. Subsequently, Zhao proposed a joint investment, to which Zhang agreed. However, after a period of investment, Zhang experienced significant losses and expressed his intention to stop further investments.On August 23, 2025, Zhao claimed that a certain app had launched an airdrop project (to promote a new project, encourage user participation, or reward loyal users, distributing native tokens of the project for free to eligible users), persuading Zhang to invest the remaining funds in his account into this project, promising a return of 100 to 200 U coins (virtual currency) within two days. Zhao also guaranteed that if there were any losses during this period, he would bear the responsibility. To further alleviate Zhang's concerns, Zhao claimed that all investment funds would be transferred to a public chain (the public address of the virtual currency). Believing Zhao, Zhang exchanged 1,757 dollars in his account for Ethereum and completed the transfer according to the wallet link provided by Zhao. In reality, the wallet corresponding to that link was a personal account registered using his girlfriend's identity information, not a public chain. The agreed time for the return of funds had passed, but Zhao had not fulfilled his promise. Zhang urged for repayment multiple times, but Zhao evaded responsibility with excuses such as sending the wrong link and needing time to track it down. On September 7 of the same year, Zhang reported the situation to the police after noticing something was wrong.On April 2 of this year, the Pingba District Procuratorate filed a public prosecution against Zhao for suspected fraud. The procuratorial agency believed that Zhao deceived others out of property by concealing the truth, with a significant amount involved, constituting the crime of fraud. Given that Zhao truthfully confessed to the criminal facts after being apprehended, showed signs of remorse, and had fully compensated the victim for their losses while voluntarily admitting guilt, he could be punished leniently according to the law.

According to Digital Asset, a South Korean court has made a first-instance ruling regarding Delio CEO Jeong Sang-ho involved in a cryptocurrency fraud case amounting to approximately 250 billion won (about 180 million USD), sentencing him to 15 years in prison.The 11th Criminal Division of the Southern District Court of Seoul stated that Jeong's criminal conduct was serious, and he continued to shift responsibility to other companies while attempting to evade accountability. This ruling comes about three years and two months after Delio suspended withdrawals in June 2023.

The U.S. Attorney's Office for Connecticut stated that three men from St. Louis, Sedric Louis, John Davis, and Martel Williams, have been charged with conspiracy to interfere with commerce by robbery, allegedly planning to break into a residence and force the victims to transfer cryptocurrency related to a theft of hundreds of millions of dollars in Bitcoin. Each faces a maximum of 20 years in prison.Prosecutors allege that the three traveled to Connecticut from August 21 to 24, 2024, rented a car, and prepared items such as air guns and walkie-talkies, monitoring their target and the target's parents for two consecutive days before abandoning the plan due to concerns that residential cameras would record their movements. Subsequently, another group from Florida executed the same plan and six individuals were arrested on August 25 in connection with a carjacking involving a Lamborghini Urus. Louis and Davis have been held since their arrest on June 25 and pleaded not guilty to the charges on July 30 in federal court in Bridgeport; Williams was released on bail after making the same plea on July 17. Prosecutors stated that the kidnapping target was the parent of an individual involved in the theft of hundreds of millions of dollars in Bitcoin, and the indictment does not constitute evidence of guilt.

According to The Block, former Los Angeles police officer Eric Halem was sentenced to life in prison plus 15 years for his involvement in a cryptocurrency-related robbery case.

Justin Ryan Schmidt, the founder of the cryptocurrency investment fund Translunar Crypto LP, has been sentenced to 37 months in prison by a U.S. court for tax evasion. The U.S. Department of Justice stated that the 46-year-old Schmidt pleaded guilty this year in federal court in Austin, Texas, where he was accused of underreporting income, declaring less than $5,000 in income from 2020 to 2022, while prosecutors claimed he actually earned over $7 million through fund operations from 2019 to 2022.It is reported that Schmidt founded Translunar in 2017, primarily investing in blockchain startups, with funding mainly coming from investors in the Austin area of Texas and Aspen, Colorado. He was arrested by the IRS Criminal Investigation Division on February 23, 2026, and has been in custody since then.

According to Decrypt, the Myanmar parliament passed a law on Tuesday that allows for the death penalty for those who coerce others into engaging in online fraud through violence or illegal detention.According to the draft bill released in May this year, if such abusive behavior results in the death of the victim, the death penalty should be imposed. The new law also stipulates that individuals operating online fraud parks or implementing "digital currency fraud (cryptocurrency fraud)" can be sentenced to life imprisonment; while criminals who commit violent coercion, illegal detention, and other acts can be sentenced to 10 years to life imprisonment.

According to Bits.media, Anatoly Aksakov, chairman of the Financial Market Committee of the State Duma of Russia, stated that the second and third readings of the criminal liability bill for illegal cryptocurrency transactions will be postponed until the new State Duma is reviewed. The reason is that the Duma's spring session will end on July 27, and there will be an election recess from August to September, with the Duma election voting ending on September 20. Therefore, the review will not resume until the autumn session at the earliest.The bill completed its first reading in early July, with a maximum penalty of 7 years in prison for organizing illegal cryptocurrency circulation. The relevant penalty provisions are proposed to officially take effect on July 1, 2027. Under the current regulatory framework, Russian citizens can only buy and sell cryptocurrencies through institutions holding a license from the Central Bank of Russia, and P2P and over-the-counter transactions may face criminal liability. Aksakov denied concerns that the bill would affect cryptocurrency exchanges and P2P users, stating that the related worries are "unfounded." Meanwhile, another Russian government initiative to strengthen state control over cryptocurrencies, the "Digital Currency and Digital Rights Law," has also been postponed, with the original timelines for implementation in July and September now missed.

According to Decrypt, the U.S. Department of Justice announced that Rossen Iossifov, the founder of the Bulgarian cryptocurrency exchange RG Coins, has been indicted for allegedly transferring approximately $290,000 in cryptocurrency assets that had been ordered to be forfeited by the court during his imprisonment.Prosecutors stated that in January 2024, while serving his sentence in federal prison, he conspired to transfer the assets involved through multiple cryptocurrency exchanges and mixing services to evade government seizure.Iossifov was previously sentenced to 111 months in prison in 2021 for participating in money laundering of nearly $5 million and assisting a Romanian cyber fraud gang in handling the proceeds, and he was ordered to pay restitution of over $2.6 million and forfeit related cryptocurrency assets. If the new charges are upheld, he could face an additional 25 years in prison.

A New York man was sentenced to 15 months in prison and 3 years of supervised release by a U.S. court for impersonating a cryptocurrency influencer on Telegram and using false staking returns as bait to defraud investors. 39-year-old Noman Saleem pleaded guilty to wire fraud in September 2025.Prosecutors stated that he created multiple fake Telegram accounts impersonating well-known crypto KOLs and attracted thousands of people to join his channels, even setting up paid "VIP sub-channels." Saleem claimed to victims that he could provide "guaranteed returns" through crypto staking or investment opportunities, inducing many to transfer their crypto assets into wallets under his control. However, prosecutors indicated that he did not actually engage in any staking operations and ceased communication after obtaining the funds, taking the victims' assets with him.The case resulted in losses exceeding $1.4 million, and the U.S. government has recovered and seized most of the funds.

According to HK01, the Hong Kong police have cracked a cross-border money laundering case. The involved group used 43 Hong Kong bank accounts to process funds from 34 fraud cases between June and September 2024, amounting to approximately HKD 18 million, and is suspected of laundering up to HKD 230 million in criminal proceeds through cryptocurrency transactions via bank accounts.The police investigation found that a 34-year-old woman from mainland China is suspected of coming to Hong Kong to set up multiple puppet bank accounts, assisting the criminal group in laundering approximately HKD 9.29 million in criminal proceeds, and purchasing cryptocurrency through virtual asset exchange shops to disguise the source and flow of funds. The woman was sentenced to 47.5 months in prison.The Hong Kong police remind that assisting a criminal group in handling funds could face up to 10 years in prison, and those involved in money laundering could face fines of up to HKD 5 million and imprisonment for up to 14 years.

Binance founder CZ disclosed on social media that over the past two years, he has donated $500,000 every six months to the nonprofit organization Prison Professors, totaling four donations and reaching $2 million. It is reported that this funding is primarily used to support free educational programs in U.S. prisons. CZ stated that he had not publicly disclosed this donation matter before.

The Hebei High Court released typical cases of cracking down on illegal fundraising. A certain man packaged an investment project with the concept of "metaverse" to promote the virtual goods investment project of the "Newmateworks" platform under the "Yishang United Community" to the public, inducing the masses to participate in the investment. He directly introduced 19 investors who invested a total of 15.3936 million yuan in the platform, of which 1.1014 million yuan has been returned, while 14.2922 million yuan has not been returned. The court found that this case used emerging technology concepts such as "metaverse" as a cover to implement fraudulent marketing, violating national financial management laws and regulations, with a huge amount involved. The behavior constituted the crime of illegally absorbing public deposits, and Chen was sentenced to five years and four months in prison and fined.

According to a lengthy report by New York Magazine, FTX founder Sam Bankman-Fried (34 years old) is currently serving his sentence in a federal prison in Lompoc, California, taking Adderall and Emsam daily for clinical depression and ADHD. SBF continues to write a serialized memoir titled "Manfred," which he sends to a few close friends and family through the prison mail system. He does not eat in the cafeteria due to his commitment to vegetarianism and instead purchases ingredients from the commissary to prepare his meals, compiling a "Vegetarian Prison Cookbook."SBF spent about $135 to buy a prison tablet and has played the same game approximately 6,000 times. According to fellow inmate David Bunevacz, SBF has expressed that he will need $50 million to $100 million in startup capital to establish a business after his release, stating that he will "issue his own new token, and everyone will flock to it," but Bunevacz added that "he might be joking." SBF officially submitted a presidential pardon application on June 8, and his appeal was rejected on June 12, with his chances of receiving a pardon on Polymarket at about 14%.

According to Livecoins, the Brazilian House of Representatives' Finance and Taxation Committee (CFT) has approved a bill to penalize cyber fraud, authorizing the freezing of cryptocurrency balances of individuals under police investigation, and also proposing amendments to relevant provisions of the Penal Code to increase penalties for cybercriminals.Crimes committed through social media or phone will face harsher penalties, with those convicted of cyber attacks facing imprisonment of 6 to 10 years, up from the previous 4 to 8 years. Additionally, judges will have the authority to freeze suspects' assets in Bitcoin exchanges and bank accounts. Some preventive measures include freezing physical assets and prohibiting the use of payment systems. The bill will next be submitted to the Constitution and Justice Committee (CCJ) for review, which is expected to be completed in the coming days.

Recently, the Haidian Court in Beijing, China, made a ruling on a fraud case. Retired elderly man Meng, due to his obsession with virtual currency trading and unwillingness to use his pension, disguised himself as a "Central Ministry" staff member in his 20s named Xiao Hong on a short video platform and established an online romantic relationship with a young man. Meng deceived the young man out of over 200,000 yuan by claiming that his family member was ill and urgently needed surgery, and for other reasons such as preparing for an overseas exam.Meng invested all the over 200,000 yuan he defrauded into virtual currency trading and opened a tenfold leverage account. Subsequently, due to a market downturn, he faced liquidation, resulting in a total loss of funds. The Haidian Procuratorate previously prosecuted Meng for fraud, and the Haidian Court ultimately sentenced Meng to 4 years in prison and imposed a fine, while also ordering him to compensate the victim for their economic losses.

According to Decrypt, Geoffrey K. Auyeung, a resident of the Seattle area in Washington State, was sentenced to 5 years in prison for his involvement in a cryptocurrency money laundering scam. Prosecutors stated that he assisted a criminal gang in defrauding victims under the guise of oil and gas investments from 2022 to 2024, with a total amount involved of approximately $97.1 million.Auyeung was responsible for receiving the proceeds of the scam and transferring them to his accomplices by purchasing cryptocurrencies such as BTC, ETH, USDT, and USDC to obscure the flow of funds. Prosecutors pointed out that he continued to contact his accomplices even after being charged and arrested, and received illegal proceeds through his wife's bank account. Investigations revealed that Auyeung earned at least approximately $4 million in commissions, and over $2.3 million in bank deposits, approximately $7.1 million in cryptocurrency, and a car have been seized. Most of the funds were ultimately converted into cryptocurrency through platforms such as Gemini, Bitstamp, and Coinbase before being transferred to Binance.

According to The Block, the U.S. Department of Justice announced that Saif Faiq, one of the organizers of a kidnapping case related to Bitcoin in 2024, pleaded guilty to conspiracy charges on Monday in federal court in Connecticut, facing a maximum of 20 years in prison, with sentencing scheduled for August 28.Faiq and his brother Adam Iza planned to kidnap the parents of a crypto millionaire for extortion. Faiq recruited six individuals from Florida, organized them to travel to Connecticut, and helped plan a home invasion after surveilling the victim. The six individuals hijacked a Lamborghini Urus in Danbury during the day, assaulted the owner, and briefly held him captive.The victim is the parent of Veer Chetal, who previously stole approximately 4,100 Bitcoins through a social engineering scam and encountered Faiq's accomplices while flaunting his ill-gotten gains at a nightclub in Miami. Chetal pleaded guilty to theft charges last November and is awaiting sentencing. Both Faiq and his brother Iza have pleaded guilty to conspiracy charges.

According to Decrypt, although Do Kwon, the founder of Terraform Labs, has been sentenced to 15 years in prison for causing the collapse of Terra, which resulted in approximately $40 billion in losses, the abandoned original chain Terra Luna Classic (LUNC) has not disappeared. A group of community members continues to maintain the network, hoping to achieve one of the greatest revivals in the history of the cryptocurrency industry.The report states that a core community member known by the pseudonym "Vegas" lost about $50,000 during the Terra collapse and has since been involved in operating validation nodes, governance proposals, and developer coordination. He expressed that despite facing long-term internal power struggles and fraud accusations, and even being maliciously reported to the authorities, he still believes LUNC has the potential to return to the top ten in the cryptocurrency industry.After the Terra collapse in 2022, Terraform Labs launched a new chain, Terra, through a hard fork, while the original chain was retained and renamed Terra Luna Classic. Subsequently, the community organization Terra Rebels took over the maintenance work and launched a series of proposals, including a 1.2% burn tax, in hopes of revitalizing the ecosystem. However, due to disputes over fund allocation and governance, Terra Rebels eventually disbanded, and several developers left one after another.Despite this, the community continues to advance the development of projects such as lending protocols, games, and meme coins, and attempts to restore the stablecoin peg mechanism. Data shows that LUNC has risen 17.3% in the past year, but has cumulatively fallen 28.7% since 2022, with a decline of 99.99% from its historical high of $119.Some community members stated that the shared trauma after the collapse has formed a bond similar to "family," and that price is no longer the only goal. "What if we could achieve one of the greatest comebacks in cryptocurrency history? It's like a last-ditch pass." said a community member.

According to the "Procuratorial Daily," Lin, Zeng, and Dai conspired to use virtual currency trading as a pretext. During the trading process, they secretly filmed the victim's digital wallet private key and, after the virtual currency was credited, secretly logged into the victim's wallet to reverse the transaction, transferring the related virtual currency back to their controlled accounts. The three committed the crime three times, causing the victim a total economic loss of 660,000 yuan.The first-instance court held that in the absence of a clear judicial interpretation regarding the valuation method of virtual currency and sentencing standards, it was inappropriate to directly determine the amount involved as particularly huge based on the victim's purchase amount of 660,000 yuan. Therefore, they sentenced the three based on "other serious circumstances," imposing prison terms ranging from eight years to five years and six months, along with fines. The Hanyang District Procuratorate of Wuhan City in Hubei Province subsequently filed an appeal, which was supported by the Wuhan City Procuratorate.The prosecution argued that the first-instance court applied the law incorrectly and imposed an excessively light sentence. Prosecutor Dai Wentao of the Wuhan City Procuratorate stated that in the case where the victim had a clear loss amount to refer to, it was contradictory and legally erroneous to claim that the value of virtual currency could not be determined. In judicial practice, using the resale price and transaction price as the basis for determining the amount of theft has become mainstream, and determining the value of virtual currency based on the actual cost paid by the victim has factual, legal, and practical basis.The Intermediate Court of Wuhan accepted the prosecution's opinion in the second instance, revoked the corresponding content of the original judgment, and changed the determination of the theft amount to particularly huge. It sentenced the principal offender Lin to ten years and six months in prison for theft, and sentenced the accomplices Zeng and Dai to eight years in prison each, along with fines.

According to Bloomberg, Andrew Left, the founder of the well-known short-selling firm Citron Research, has been found guilty of manipulating stock prices using dishonest social media posts. After a three-week trial in Los Angeles, the jury ruled that Left was guilty on 13 out of 17 charges, including one count of securities fraud.Prosecutors accused Left of illegally influencing stock prices and profiting quickly from explosive tweets about dozens of companies between 2018 and 2023, earning over $20 million from it. Left stated in court that he would appeal, claiming the verdict is an attack on free speech and innocent trading behavior. He faces over 20 years in prison and will be sentenced on August 31. The case has drawn close attention from the short-selling industry, with a Yale professor stating that this ruling will have a chilling effect on short sellers.