USDOrders & Courts This Week: Ripple’s $50M Deal, Worldcoin’s Biometric Ban
Ripple Agrees to Pay $50 Million to SEC, Faces Criticism Over Investor Protection Concerns
Ripple Labs has proposed a $125 million settlement with the SEC, agreeing to pay $50 million. This follows a lawsuit filed in December 2020 for selling XRP without proper registration. The parties will withdraw appeals, and if approved, Ripple can reclaim $75 million in escrow, signaling a potential regulatory shift. SEC Commissioner Caroline Crenshaw criticized the recent Ripple settlement, claiming it undermines regulatory oversight and investor protection. She argued the deal erodes legal precedent, limits future enforcement, and sends mixed signals to the market. Crenshaw emphasized the need for clarity and consistency in crypto regulation to safeguard investors effectively.
Worldcoin Suspended in Indonesia; Kenyan Court Orders Biometric Data Deletion
Worldcoin's operations have been suspended in Indonesia due to alleged registration violations and questionable activity by its local entities, prompting regulatory scrutiny from the Ministry of Communications and Digital (Komdigi). Two subsidiaries, PT Terang Bulan Abadi and PT Sandina Abadi Nusantara, allegedly operated without proper certification and misrepresented their legal status. The government emphasized the necessity of compliance to safeguard the digital space, inviting public reports on suspicious services. Meanwhile, Kenya’s High Court has mandated the World Foundation to delete the biometric data of local users within seven days, citing violations of privacy rights. The court's ruling prohibits further biometric data collection and nullifies prior decisions to process such data without adequate assessments.
Celsius Founder Alex Mashinsky Sentenced to 12 Years for Crypto Fraud
Alex Mashinsky, founder of Celsius Network, was sentenced to 12 years in prison for his role in a significant cryptocurrency fraud. Following the company’s collapse in 2022, which left a $1.19 billion deficit and $4.7 billion in frozen user funds, Mashinsky pleaded guilty to fraud and market manipulation in December 2023. He misled investors by artificially inflating the CEL token's value using customer deposits, making $48 million in the process. The court also ordered him to forfeit nearly $48.4 million in profits and pay a $50,000 fine, with ongoing civil suits from multiple regulatory agencies.
U.S. Treasury Sanctions Burmese Militia KNA for Cyber Crimes and Cryptocurrency Theft
The U.S. Treasury has sanctioned the Karen National Army (KNA), a Burmese militia, for allegedly facilitating extensive cyber crimes, including cryptocurrency thefts from U.S. citizens. The KNA is accused of overseeing "pig butchering" scams, where victims are lured into fraudulent romantic relationships leading to significant financial losses. The sanctions target KNA leader Saw Chit Thu and his sons, blocking their access to U.S. assets. This action follows recent sanctions against the Cambodian Huione Group, linked to money laundering for Southeast Asian criminal organizations. The KNA's operations reportedly involve human trafficking and smuggling as well.
Crypto Entrepreneur's Father Rescued in Paris Ransom Raid; Five Arrested
The father of a crypto entrepreneur was rescued by French law enforcement during a raid in Paris on May 3, 2025, where he was held for ransom, with demands reaching between 5 million and 7 million euros (up to $7.9 million). The incident led to five arrests and mirrors previous kidnappings, including that of Ledger co-founder David Balland in January 2025. This case is part of a troubling trend in which ransom attempts targeting crypto users and their families have increased, such as the high-profile kidnappings of WonderFi CEO Dean Skurka and a Chicago family demanding crypto ransoms.
US Fugitive Arrested in Israel Over $190M Nomad Bridge Exploit
Alexander Gurevich was arrested at Israel’s Ben-Gurion Airport as he attempted to leave for Moscow, using a new identity after changing his name. He is accused of exploiting a critical flaw in Nomad bridge technology, which resulted in a massive $190 million loss in 2022. Gurevich allegedly siphoned $2.89 million, sparking a frenzy as hundreds of copycat attackers mimicked his exploit. Charged in the U.S. with multiple crimes, including money laundering, he had previously reimbursed some stolen funds but demanded a reward. Nomad has since struggled to recover from the financial impacts of the exploit.
Supreme Court Warns of Regulation Gap as Bitcoin Trading Surges in India
India's Supreme Court has raised concerns about the lack of regulation surrounding Bitcoin amid its growing popularity, likening unregulated trading to illicit money transfer systems like Hawala. During a bail hearing for Shailesh Babulal Bhatt, accused of illegal Bitcoin trading, the court criticized the government's delayed response to establish a clear policy framework. Despite a 30% tax on crypto profits and AML compliance introduced in 2022, no comprehensive laws exist. Meanwhile, crypto trading volumes on top exchanges reached $1.9 billion in Q4 2024, with tier-2 cities leading in activity, showcasing the rising interest among young Indians seeking financial opportunities.
Coinbase Reveals SEC Discussions on XRP Security Status and NY's Ether Classification Request
Coinbase released over 10,000 documents related to Freedom of Information Act requests, revealing internal SEC discussions about classifying XRP as a security and a request from the New York Attorney General's office for the SEC to support a claim that Ether is a security. This request, made in June 2023, followed a lawsuit against KuCoin that included Ether as an unregistered security. Under former SEC Chair Gary Gensler, the classification of Ether remained unclear. However, the SEC has recently adopted a more cooperative approach towards crypto, dropping charges against major firms like Coinbase.
German Authorities Shut Down Crypto Exchange eXch, Seize $38 Million in Digital Assets
German authorities have closed the crypto exchange eXch, seizing about 34 million euros ($38 million) in various digital assets, including Bitcoin, Ethereum, Litecoin, and Dash. This operation, led by the Frankfurt Prosecutor's Office, is part of a significant crackdown on suspected money laundering linked to cryptocurrency hacks. The exchange is accused of providing laundering services for cybercriminals, potentially involving around $1.9 billion in total laundering activities. Additionally, the authorities confiscated the platform's infrastructure and over 8 terabytes of data, which will aid in further investigations into illicit activities related to the exchange.
This article has been refined and enhanced by ChatGPT.
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