Cryptocurrency Fraud Enforcement

• Its ACTION line reads 'Advanced notice of proposed rulemaking.', and its public-inspection DATES line reads: 'Comments must be received on or before [INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].'
• The Register's documents record for 2026-20888 lists type 'Proposed Rule', publication_date 2026-10-13, citation 91 FR 64811, comments_close_on 2026-12-14 and dates 'Comments must be received on or before December 14, 2026.'
• It states: 'The circumstances that led to and enabled the FTX scheme demonstrate how the Commission's regulation by enforcement posture has failed to effectuate the purposes and objectives of the Act and section 2(c)(2)(D)'.
• It states that it seeks 'to provide a complementary federal regulatory framework for crypto assets subject to the safe harbor proposed in Regulation Crypto Assets and thus freely tradable in secondary markets.'
• It reads: 'Issued in Washington, DC, on October 8, 2026, by the Commission.' Its voting summary reads: 'On this matter, Chairman Selig voted in the affirmative. No Commissioner voted in the negative.'

• CFTC files an advance notice on retail crypto transactions under section 2(c)(2)(D), calling FTX the failure of its 'regulation by enforcement'; the Register's record gives comments until December 14 →Oct 9, 2026 · records release

• The release is headed 'Release Number 9307-26' and dated 'October 05, 2026'.
• It states: 'The Commodity Futures Trading Commission today published an Advanced Notice of Proposed Rulemaking' on section 2(c)(2)(D) and retail commodity transactions involving crypto assets.
• It quotes Chairman Michael S. Selig: 'Under my leadership, the Commission will take every necessary step to establish regulations that are designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX.'
• It states: 'The Commission intends to use the information and comments received to inform potential future agency action, such as a rulemaking, with respect to section 2(c)(2)(D) and CTXs.'

• CFTC files an advance notice on retail crypto transactions under section 2(c)(2)(D), calling FTX the failure of its 'regulation by enforcement'; the Register's record gives comments until December 14 →Oct 9, 2026 · records release

• Its DATES section reads: 'This release was published in the Federal Register on [INSERT DATE OF PUBLICATION IN THE FEDERAL REGISTER]. Comments should be received on or before [INSERT DATE [60] DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER].'
• It proposes 'to redesignate it as 17 CFR 275.223-1 under the Advisers Act ("proposed rule 223-1")', the rule currently at 17 CFR 275.206(4)-2.
• It states: 'For purposes of this proposal, self-custody means the adviser holding a client's crypto asset through possession of any portion of the private keys that' — the sentence continues across a page break and three footnotes — 'is necessary to access and effectuate transactions in the crypto asset, or a regulated fund holding the crypto asset through an adviser that complies with the adviser self-custody rule, in each case without maintaining the crypto asset at a permitted custodian.'
• It states the conditions are 'designed to address the inherent conflicts of interest associated with self-custody and the risks of maintaining custody of crypto assets', and that the first 'would require that the adviser determine in writing, as an initial matter and on a quarterly basis, that a permitted custodian is not available to maintain the crypto asset.'
• On State trust companies it would require that 'the adviser or regulated fund must have a reasonable basis, after due inquiry, for believing that the State trust company is authorized by the relevant State banking authority to provide crypto asset custody.'
• It recounts: 'Shortly before the adoption of the Advisers Act custody rule in 1962, the Commission asked Congress for rulemaking and inspection authority under the Advisers Act's anti-fraud provisions because it was concerned about the custodial practices of advisers and the safety of client assets.'
• Its footnote 3 states: 'Unit investment trusts ("UITs") would similarly not be able to rely on the proposed rules related to regulated fund self-custody of crypto assets and custody of crypto assets by State trust companies. Given that UITs lack investment advisers and are unmanaged, it would not be possible for them to comply with certain aspects of the proposed rules.'
• It states: 'A summary of the proposal of not more than 100 words is posted on the Commission's website (https://www.sec.gov/rules-regulations/2006/10/s7-2026-35).'

• SEC proposes letting advisers and funds self-custody crypto, or use State trust companies, and moves the Advisers Act custody rule out of 206(4)-2 →Oct 1, 2026 · records release

• It states: 'The Securities and Exchange Commission today proposed new rules and amendments to provide a tailored framework for the custody of crypto assets for registered investment advisers and regulated funds, i.e. registered investment companies and business development companies.'
• It states: 'The proposal would also permit crypto assets to be held in self-custody under certain circumstances and allow the use of state trust companies as custodians for client and regulated fund crypto assets'.
• It quotes Chairman Paul S. Atkins: 'today's proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before'.
• It states the 'comment period will remain open for 60 days following the publication of the SEC's proposing release in the Federal Register.'

• SEC proposes letting advisers and funds self-custody crypto, or use State trust companies, and moves the Advisers Act custody rule out of 206(4)-2 →Oct 1, 2026 · records release

• It states the court 'entered a default judgment against defendants Brian Early and Alisha Ann Kingrey for their participation in a digital assets and precious metals fraud involving the unincorporated Fundsz entity and its website.'
• It states: 'The court ordered Early and Kingrey to pay $15,732,455 in restitution and a $15,752,455 civil monetary penalty.'
• It states: 'The court also found that Larralde had misappropriated funds for personal use.'
• It states the court ordered the estate representative to relinquish a residence Larralde bought with investor funds, 'as well as more than $2.7 million in other assets, to the court-appointed receiver.'
• It states: 'The default judgment and consent orders resolve all remaining claims in the CFTC's action.'

• Court orders two Fundsz promoters to pay more than $31 million by default judgment, closing the CFTC's crypto and precious-metals pool case →Sep 15, 2026 · case disposition

• It states Van 'was charged in a Western District of Missouri two-count criminal complaint with money laundering that was unsealed following his initial appearance in federal court in Los Angeles yesterday.'
• It states: 'From Feb. 9, 2018, through Dec. 17, 2024, Van's cryptocurrency wallets received approximately $53,275,939 in cryptocurrency assets from wire fraud schemes targeting United States citizens.'
• It states: 'The wallet transferred approximately $53,188,466 worth of the same cryptocurrency assets to other accounts off the centralized blockchain network.'
• It states: 'The charges contained in the complaint are simply accusations, and not evidence of guilt.'

• Complaint says wallets tied to one man took in $53.3 million from wire-fraud schemes and passed nearly all of it on →Sep 25, 2026 · charge

• It states the claims against Early and Kingrey 'are the only remaining claims in this action following the voluntarily dismissal of Fundsz (Doc. # 186) and the recent entry of Consent Orders as to Defendants Larralde and Valcarce (Docs. # 205, 206).'
• It states: 'Specifically, 9,138 participants suffered losses totaling $15,732,455.40.'
• It orders: 'Defendants Early and Kingrey are ordered to pay, jointly and severally, a civil monetary penalty in the amount of $15,752,455.40, plus post-judgment interest'.
• It states the penalty amount 'is equivalent to one times participants' net losses.'
• It states: 'The Receiver has proposed distribution of $4,001,588.96, approximately 95% of the cash on hand after setting aside funds for payment of outstanding and anticipated administrative expenses.'
• It is signed: 'DONE and ORDERED in Chambers in Orlando, Florida this September 15, 2026.'

• Court orders two Fundsz promoters to pay more than $31 million by default judgment, closing the CFTC's crypto and precious-metals pool case →Sep 15, 2026 · case disposition
• CFTC sues Fundsz and four promoters over a purported crypto and precious-metals trading pool, and a court freezes their assets →Jul 31, 2023 · charge

• It states the charges are 'arising from a scheme to misappropriate confidential business information from their employer'.
• It states: 'Between 2025 and 2026, CHAI and XIANG repeatedly bought perpetual futures linked to cryptocurrency tokens on Hyperliquid in advance of Robinhood's public announcements that the underlying cryptocurrency tokens would be listed on Robinhood Crypto.'
• It states: 'CHAI and XIANG each profited more than $50,000 from their illicit trading.'
• It states each is charged with 'one count of violating the Commodity Exchange Act, which carries a maximum sentence of 10 years in prison, and one count of wire fraud'.
• It states: 'The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.'

• Two Robinhood engineers charged with trading crypto perpetual futures ahead of Robinhood's token listings →Sep 15, 2026 · charge

A shared source does not establish conduct or a direct personal relationship.

• U.S. Attorney's Office, Southern District of New York →active investigation authority

• It announces 'the filing of a civil forfeiture Complaint against approximately $61 million in cryptocurrency as the proceeds of black-market sales of sanctioned Iranian crude oil and petroleum products'.
• It states: 'Two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts at the UAE-based cryptocurrency exchange Binance to launder the proceeds of black-market sales of Iranian oil'.
• It states that addresses termed the 'Entity A' addresses 'have received and distributed more than approximately $1.5 billion of proceeds of the illicit sale of Iranian oil.'
• It states: 'A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.'

• SDNY seeks forfeiture of about $61 million in crypto it says came from sanctioned Iranian oil sales →Sep 14, 2026 · active investigation

A shared source does not establish conduct or a direct personal relationship.

• U.S. Attorney's Office, Southern District of New York →active investigation authority

• The docket reads: "Sep 10 2026 Petition for a writ of certiorari filed. (Response due October 15, 2026)".
• The docket lists the lower court as the Second Circuit, case number 24-961, decision date June 12, 2026.
• Question 1 asks, in a fraudulent-inducement prosecution, "when, if ever, may the trial court admit evidence indicating whether victims suffered such losses?"
• Question 2 asks: "Does the Eighth Amendment permit a forfeiture or other criminal fine that destroys any future prospect of earning a livelihood?"

• Bankman-Fried asks the Supreme Court to review his affirmed conviction; response due Oct 15 →Sep 10, 2026 · case disposition