A landmark 20-year prison sentence for orchestrating a $73 million ‘pig butchering’ scheme has laid bare the systemic vulnerabilities plaguing the cryptocurrency industry. As sophisticated social engineering attacks drive record losses, with $370 million stolen in January 2026 alone, the sector faces a structural security crisis. In response, a new wave of infrastructure projects like BMIC ($BMIC) is emerging, betting that quantum-resistant architecture and AI threat detection represent the only viable defense against the next generation of crypto theft.
about Crypto Security Crisis: $73M Pig Butchering Case & Quantum DefenseDepartment of Justice (DOJ)
0 in Finance and 2 in Crypto last weekCrypto Crash: Why Bitcoin, Ether, Solana Plunged 30-40%
The cryptocurrency market is reeling from a severe, multi-week selloff that has erased tens of billions in value. Bitcoin fell 8.1% in 24 hours and is down roughly 29.5% over the past month, while Ether dropped 9.4% and 41.4% over the same periods, with Solana and XRP suffering even steeper declines. Renowned macro analyst Alex Krüger argues this is not a single-event crash but a ‘momentum break’ fueled by a pileup of internal and external pressures—from reversed criminal flows and AI competition to a structural shift toward institutional ownership—all crystallized by macro fears triggered by the nomination of Kevin Warsh as the next US Federal Reserve chair.
about Crypto Crash: Why Bitcoin, Ether, Solana Plunged 30-40%Coinbase Urges DOJ for Federal Crypto Regulation Clarity
Coinbase has appealed to the Department of Justice for federal intervention against what it calls a ‘hostile’ patchwork of state crypto regulations. The exchange warns that inconsistent state lawsuits and licensing requirements are undermining national market efficiency. This move highlights growing tensions between federal innovation efforts and state-level enforcement actions.
about Coinbase Urges DOJ for Federal Crypto Regulation ClarityCrypto Influencer Sentenced for $3.5M Cloud Mining Fraud
Charles O. Parks III, also known as ‘CP3O,’ was sentenced to one year and one day in prison for defrauding two cloud computing providers of over $3.5 million in resources. Prosecutors revealed that Parks used fake corporate identities to gain elevated computing privileges, which he exploited to mine nearly $1 million worth of Ether (ETH), Litecoin (LTC), and Monero (XMR) between January and August 2021. The Department of Justice (DOJ) described the operation as a large-scale cryptojacking scheme, highlighting the growing risks of cloud-based crypto mining fraud.
about Crypto Influencer Sentenced for $3.5M Cloud Mining FraudTornado Cash Developer Faces Possible Retrial After Hung Jury
The trial of Tornado Cash developer Roman Storm has ended with a hung jury on charges of money laundering and sanctions violations, leaving the door open for a potential retrial by the US Department of Justice (DOJ). Storm was convicted on one felony count for conspiracy to operate an unlicensed money-transmitting business. Legal experts suggest the DOJ will decide soon whether to pursue a new trial, highlighting the ongoing legal scrutiny of crypto privacy tools. The case underscores the regulatory challenges facing developers in the decentralized finance (DeFi) space.
about Tornado Cash Developer Faces Possible Retrial After Hung JuryBoston Dealer Charged in $1.3M Tax Fraud Scheme
Jessie El-Ghoul, owner of Affordable Motor Group, has been indicted for allegedly depositing a forged $1.34 million tax refund check from the U.S. Treasury into his business account. Authorities claim he laundered the funds through shell companies and a law firm. El-Ghoul faces up to 10 years for theft, 30 years for bank fraud, and 20 years per count of money laundering. The DOJ alleges he was part of a larger criminal ring that stole $8.8 million in tax refunds between 2023 and 2024. U.S. Attorney Leah B. Foley emphasized that such crimes victimize hardworking Americans and warned against defrauding the Treasury.
about Boston Dealer Charged in $1.3M Tax Fraud SchemeUS Seeks $2.4M in Stolen Bitcoin from Ransomware Group
The US government has filed a civil complaint to claim over $2.4 million in Bitcoin seized from the ‘Hors’ ransomware group. The DOJ alleges the funds, originally stolen via ransomware attacks, were involved in money laundering and extortion. The seizure aligns with broader discussions around a potential Strategic Bitcoin Reserve, as hinted by Trump Administration advisors. The case highlights ongoing efforts by authorities to combat crypto-related cybercrime and recover illicit assets.
about US Seeks $2.4M in Stolen Bitcoin from Ransomware GroupDragonfly Faces Charges Over Tornado Cash Investment
Dragonfly, a venture capital firm, revealed that the U.S. government is weighing potential charges related to its 2020 investment in PepperSec, the developer of Tornado Cash. Managing partner Haseeb Qureshi called the prospect ‘outrageous,’ stating the firm secured legal confirmation that Tornado Cash complied with FinCEN guidance before investing. The case follows setbacks in the prosecution of Tornado Cash developer Roman Storm and ongoing regulatory scrutiny of crypto privacy tools. Dragonfly emphasized it had no operational role in Tornado Cash and complied fully with a DOJ subpoena. The firm warned that targeting investors could stifle venture funding for blockchain innovation. The Treasury’s OFAC sanctioned Tornado Cash in 2022, but court challenges later forced adjustments to the sanctions.
about Dragonfly Faces Charges Over Tornado Cash InvestmentOCC Bans Ex-Bank Employee Over Check Fraud Scandal
The OCC has taken action against Cricel Santamaria, a former client service representative at Webster Bank, for allegedly selling check images obtained from the bank’s internal systems. Between October 2021 and April 2022, Santamaria sold 62 check images online, leading to reported fraud of $237,374 and a bank loss of approximately $108,000. The OCC found Santamaria engaged in unsafe practices, personal dishonesty, and disregard for bank safety, resulting in a permanent ban from the financial industry. Santamaria consented to the order without admitting wrongdoing, while the DOJ retains the right to pursue further legal action. Webster Bank, with over $70 billion in assets, has not commented further on the incident.
about OCC Bans Ex-Bank Employee Over Check Fraud ScandalEx-TD Bank Employee Banned for $41.5K Theft
The OCC has prohibited Lacey Ann Henry, a former TD Bank teller manager, from working in the banking industry after she allegedly stole $41,500 via unauthorized customer withdrawals in late 2021. Henry accessed confidential customer information to facilitate the theft, leading to financial losses for the bank and personal gain for herself. The order bars her from involvement with insured depository institutions and related agencies, though she neither admitted nor denied the findings. Additional legal actions by other agencies, such as the DOJ, remain possible.
about Ex-TD Bank Employee Banned for $41.5K TheftBlockFi, DOJ Dismiss $35M Crypto Lawsuit in Bankruptcy Case
BlockFi and the Department of Justice (DOJ) have reached an agreement to dismiss a $35 million lawsuit concerning crypto assets held during BlockFi’s bankruptcy proceedings. The dismissal, approved by the U.S. Bankruptcy Court for the District of New Jersey on July 11, 2025, marks the end of a legal dispute initiated in May 2023. This resolution removes a significant legal hurdle for BlockFi as it navigates its bankruptcy process, though details of the settlement remain undisclosed. The case highlights ongoing regulatory and legal challenges in the crypto industry, particularly for firms facing financial distress.
about BlockFi, DOJ Dismiss $35M Crypto Lawsuit in Bankruptcy CaseBlockFi Drops $35M Crypto Lawsuit Against US Government
BlockFi Inc.’s bankruptcy estate has dropped a lawsuit seeking to transfer $35 million in crypto assets to the U.S. government, following a joint motion with the DOJ. The case, tied to a 2023 DOJ seizure attempt of funds linked to Estonian fraud suspects, was dismissed with prejudice, barring future claims. BlockFi’s estate argued the assets were part of its Chapter 11 proceedings, but both sides opted for a resolution. The dismissal coincides with BlockFi’s broader bankruptcy, stemming from exposure to FTX and Three Arrows Capital. A separate settlement with FTX/Alameda resolved $1 billion in claims, while BlockFi’s restructuring plan, approved in 2023, addresses $10 billion in creditor debts.
about BlockFi Drops $35M Crypto Lawsuit Against US Government