Enforcement Actions

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, a bill to criminalize crypto-linked foreign currency tax evasion surges in Brazil, El Salvador finalizes its Bitcoin Diploma 2.0 educational program, and Engie mulls

Chainalysis links transaction spikes to protests, sanctions, and the 2025 Iran–Israel war. Citizens increased Bitcoin withdrawals during unrest as inflation hit 40–50% and the rial weakened. Addresses tied to the IRGC and central bank moved billions in crypto, including over $507M in

U.S. authorities have seized over $580 million in cryptocurrency linked to Southeast Asian scam centers operated by Chinese criminals, targeting "pig butchering" fraud schemes and potentially addressing nearly $10 billion in annual losses for victims.

Well-known on-chain detective ZachXBT revealed that Axiom employees at the crypto trading platform abused internal tools to spy on users' wallets and may have used this information for insider trading. Axiom has revoked the relevant access rights and stated that an investigation into the misconduct is underway, emphasizing that this does not represent the overall team values. The investigation has sparked heated discussion in the market, and some traders have profited from predicting the event.

A recent report by Elliptic reveals that five cryptocurrency exchanges linked to Russia are helping sanctioned entities evade international restrictions. Bitpapa is officially sanctioned, while others like ABCeX and Exmo facilitate significant transaction volumes, highlighting enforcement gaps.

Alleged bitcoin extortion turned violent in Seattle as prosecutors say a suspect posed as a postal worker, forced entry into a home, and demanded cryptocurrency. Seattle Couple Terrorized in Alleged Bitcoin Extortion Home Invasion Extortion schemes targeting digital assets such as bitcoin can

U.S. federal agents seized over $61 million in USDT linked to "pig butchering" scams, where victims were lured by fake relationships and promised high crypto returns. Tether cooperated with authorities in asset freezes related to money laundering and fraud cases.

Sen. Elizabeth Warren is pushing regulators to block Trump-linked World Liberty Financial's bank charter over concerns about foreign ownership and potential corruption, demanding full disclosure of major stakeholders amidst rising tensions in crypto oversight.

The National Tax Agency leaked security information during the seizure of virtual assets, raising suspicions that virtual assets were stolen. The police have received related reports and are currently verifying the situation. This incident could drive reforms in virtual asset protection and security management.

Freezes and seizures of cryptocurrency by the Scam Center Strike Force from Southeast Asian crime networks have topped $580 million, according to the U.S. Attorney for the District of Columbia. In an announcement Thursday, Jeanine Pirro stated that the force had made “significant progress” in

Tether froze 4.2 billion USDt in three years as regulators increased scrutiny on crypto crime. USDt supply fell by $2.7 billion in two months marking the sharpest drop since 2022. Authorities relied on Tether to blacklist wallets and restrict funds linked to fraud. Stablecoin issuer Teth

Tether has frozen approximately $4.2 billion in USDT linked to illegal activities, demonstrating its commitment to fighting crypto crime. The action, which hasn't destabilized USDT’s market, emphasizes compliance and enhances user trust in the stablecoin.

Allegations against Axiom Exchange reveal that Broox Bauer exploited internal dashboards to track private wallets for insider trading schemes, targeting high-volume traders. The lack of access controls raises significant security concerns, prompting calls for investigation.

Tether has frozen approximately $4.2 billion in Tether tokens in coordination with the U.S. Department of Justice's efforts against "pig butchering" scams and money laundering activities. The U.S. authorities recovered $61 million in Tether, indicating an increase in cryptocurrency money laundering activities, especially within Chinese-speaking communities. FATF urges countries to strengthen regulation to combat these types of financial crimes.

360 Group Founder Zhou Hongyi pointed out that the U.S. government’s handling of Bitcoin in the Chen Zhi case has many issues, emphasizing the hidden asset plundering motives behind it. Without any victims, the U.S. forms a closed loop through attacks and harvesting, taking the opportunity to seize others’ assets, demonstrating the far-reaching dangers of state-level attacks.

OpenAI has dismissed an employee for using non-public information obtained through work to engage in insider trading on prediction market platforms, violating the company's compliance policies. An on-chain analysis platform has reported that 77 suspicious transactions have been flagged, involving internal OpenAI information. The issue of insider trading in prediction markets continues to attract attention, and the misuse of internal information within the tech industry has become a new challenge.

Tether has frozen approximately $4.2 billion in USDT related to illegal activities, with $3.5 billion this year alone. They also collaborated with the U.S. Department of Justice to freeze $61 million linked to large-scale crypto fraud. USDT's circulating supply has surpassed $180 billion, reinforcing its status as the largest stablecoin. Tether can remotely freeze tokens at law enforcement's request to aid investigations and curb financial crime.

The Korean National Tax Service was targeted by unknown individuals who transferred 4 million Pre-Retogeum tokens, worth approximately $4.8 million, after releasing a photo containing the 12-word seed phrase for a Ledger hardware wallet. This incident exposed security vulnerabilities in government agencies' digital asset custody. Although the tokens have been returned, it highlights the need to strengthen digital asset protection.

Brad Garlinghouse, CEO of Ripple, revealed that former SEC Chairman Gary Gensler allegedly apologized to him regarding their lengthy legal battle. This exchange reportedly occurred during a digital asset policy meeting at the White House. Ripple challenged Gensler's enforcement strategy, winning a landmark ruling in 2023 that determined XRP is not a security. The legal dispute is expected to officially conclude in early 2025.

OpenAI has dismissed an employee for allegedly using insider information to conduct insider trading in prediction markets, violating company compliance policies. This is the first time a large tech company has fired an employee over insider trading, sparking concerns about regulation of prediction markets. On-chain data shows multiple suspicious transactions beyond that employee, which may indicate a broader insider information leak issue.