Crypto Regulation and Compliance Updates

Federal prosecutors in North Carolina seized over $61 million USDT related to a cryptocurrency scam known as "pump and dump." Authorities traced stolen funds through a complex network of wallets used for laundering money from global victims. The scam often starts with fake romantic relationships to gain trust, leading victims to invest in false trading platforms with fabricated profits. When attempting to withdraw funds, victims face blockages or fake fees. This action is part of a broader effort to eliminate illegal profits and deter online scams exploiting digital assets.

With the death of Iran's Supreme Leader Ali Khamenei, related prediction markets have sparked criticism in U.S. politics, with some senators calling for restrictions on contracts related to individual deaths. Trading volume has surged significantly, and platforms are facing regulatory ambiguities and user doubts, while regulators may tighten scrutiny. The legality and morality of prediction markets will become new issues.

The Korean government is reevaluating the management of seized crypto assets to strengthen security measures and prevent errors. This review stems from incidents such as police losing Bitcoin and large platforms making accounting errors, revealing regulatory gaps. Plans include enhancing multi-signature management and technical audits to improve digital asset security.

South African crypto-asset service providers must now transmit detailed transaction data directly to the revenue collector, allowing for precise automated reconciliation and targeted audits. The End of the ‘Offshore Shield’ The South African Revenue Service (SARS) has, since March 1, used its

The National Tax Service's mistake led to the leakage of the mnemonic phrase, resulting in virtual assets being stolen by hackers. The police have now launched an official investigation. This incident involves PRTG coins, valued at approximately 6.9 billion Korean won. The actual loss may be limited, but it could trigger discussions on virtual asset security and regulatory improvements.

After Iran's Supreme Leader Khamenei's death, the prediction market Kalshi refunded $2.2 million due to contract settlement disputes, as its original intention was to avoid profiting from death events. This incident has prompted US lawmakers to call for a thorough investigation of war-related contracts and question the morality and fairness of the market. Other platforms like Polymarket are also facing controversy over similar issues.

The measures seek to fully integrate crypto exchanges into the established financial system and protect the identity information of the institution’s customers. The Central Bank states that this will promote “transparency, comparability, and predictability of information provided to the market.” B

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.

The Russian Central Bank warns of a rapid increase in cryptocurrency scams, with 84% of fraudsters using cryptocurrencies for fundraising in the 2025 report. Last year, 7,087 financial scam schemes were identified, with 80% operating online. The central bank has taken action to block related websites and strengthen regulation, and plans to restrict overseas crypto exchanges, emphasizing the need to choose legitimate companies for investment.

PeckShield report shows that cryptocurrency losses in February 2026 dropped to $26.5 million, the lowest monthly level. The main reasons include the absence of major attacks, market volatility affecting strategies, and strengthened security measures. The largest loss events that month were YieldBlox and IoTeX, accounting for over 70% of the total losses. Experts expect future losses to continue decreasing, but phishing attacks still require vigilance.

The Korean government will conduct a comprehensive review of public sector management of digital assets. Deputy Prime Minister Koo Yun-cheol announced plans to strengthen regulation and security mechanisms, especially the process of seizing encrypted assets. This move stems from recent public criticism due to management errors. The government will work with relevant agencies to systematically review related procedures and establish stricter security standards to prevent similar incidents from happening again.

PANews March 2 News, according to BlockSec Phalcon monitoring, a suspicious transaction targeting the Inverse Finance contract on Ethereum was detected by their system a few hours ago, resulting in approximately $240,000 in losses. The incident appears to involve DOLA price manipulation, forcing multiple users to liquidate contracts. BlockSec stated that they have contacted the project team but have not yet received a response. As it is unclear whether other users are affected, no further technical details are disclosed at this time, and relevant users are advised to take immediate action.

The social platform X (formerly Twitter) has launched the "Paid Partnership" label feature, allowing creators to easily mark sponsored content and enhance transparency. This is especially important for crypto KOLs' promotional posts, as undisclosed content may result in account suspension, emphasizing the platform's credibility and user trust. This move requires creators to pay more attention to compliance and changes the marketing collaboration model.

GoPlus Chinese Community Issues Warning: OpenClaw Gateway has a high-risk vulnerability. Users are advised to upgrade to version 2026.2.25 or later and audit unnecessary credentials and permissions. The attack chain exploits weaknesses at the Gateway layer through malicious websites, ultimately enabling administrator-level control.

Kalshi announces the activation of the "Death Exemption Clause" to handle the Hamini market, refunding all fees and settling at the last transaction price before death. This has sparked some user backlash, who believe that restricting profits is unfair. Meanwhile, Polymarket faces insider trading allegations, with six traders profiting approximately $1 million before the Iran airstrike. The market is under widespread scrutiny.

Polymarket experienced abnormal betting before the US-Iran airstrikes, with six new wallets totaling a profit of $1.2 million, raising concerns about insider trading and increasing global regulatory pressure. U.S. Congress members have proposed legislation to ban officials from participating in prediction markets, and many countries consider them illegal gambling. The accuracy of prediction markets and their potential ethical issues have become hot topics of discussion.

The social media platform X announced that it will allow crypto promotions with a "Paid Partnership" label, but it remains heavily regulated in regions such as the European Union, the UK, and Australia. Influencers are responsible for compliance and ensuring that users in restricted areas cannot see such content. This policy adjustment provides a new commercialization pathway for crypto KOLs and is accompanied by new financial service arrangements.