A&D Forensics Brief, February 14, 2025
A&D Forensics
Financial and Blockchain Intelligence Consulting, Blockchain Forensics, Crypto Investigations and Training Firm.
ZkLend was hacked for $9.5 million on Feb. 12, marking a resurgence in crypto exploits. The stolen funds were bridged to Ethereum and laundered via Railgun, but due to protocol policies, Railgun returned them to the original address. Following the exploit, zkLend offered the hacker 10% as a whitehat bounty in exchange for returning the remaining funds.
Acting CFTC Chair Caroline Pham announced on Feb. 4 that the commission would end regulation by enforcement. Days later, the CFTC charged Rashawn Russell with fraud for running a $1.5 million crypto scheme from 2020 to 2022. He later pleaded guilty to wire fraud.
The SEC and CFTC explored a joint approach to digital asset regulation, considering reviving the long-dormant Joint Advisory Committee (JAC) to address jurisdictional uncertainties. The CFTC launched a pilot program for tokenized collateral and restructured its enforcement division, while the SEC, under new leadership, engaged industry players in regulatory discussions.
South Korea plans to gradually lift its ban on corporate crypto trading, according to the Financial Services Commission (FSC). The phased approach will first allow law enforcement agencies, non-profits, and universities to sell crypto for cashing out. In the second half of the year, a pilot program will enable 3,500 listed companies and corporations to trade digital assets under the Capital Market Act.
The SEC and Binance have filed a joint motion to pause their legal case for 60 days, marking the first major crypto litigation halt since Mark Uyeda became acting SEC chair. The Feb. 10 motion cites the newly established SEC Crypto Task Force as a factor that could impact the case’s resolution. Following the pause, both parties will submit a report on whether an extension is needed.
Italy’s CONSOB has blocked the websites of Dobibo and Fameexn under the MiCAR regulation. It also blacked out Fininvestonline.com for fraudulent financial activities. Other blocked sites include TORO500, Trading42 Ltd, Fpmarketseu, and AllFinanz Plus, bringing the total to 1,226 since 2019. Blackouts are ongoing.
Dubai’s Virtual Assets Regulatory Authority (VARA) has warned investors about the risks of memecoins, citing their reliance on hype, social media trends, and misleading promotions. The regulator cautioned against unrealistic return claims and highlighted risks such as price crashes, liquidity shortages, and scams. VARA also stressed that any virtual asset issued in Dubai, including advertising and promotions, must comply with its regulations.
The FBI’s Operation Level Up has saved 4,300+ victims from losing $285 million to crypto scams by identifying and intervening before funds are lost. Targeting “pig butchering” scams, the FBI warns victims in real time and works with global partners to shut down fraudulent platforms.
Austrian crypto platform Bitpanda received approval from the UK’s Financial Conduct Authority (FCA), allowing it to offer 500+ crypto assets and services like staking, savings plans, and crypto-indexes. This marks a major step for Bitpanda, which had paused new user onboarding in 2023 due to stricter UK crypto marketing regulations.
Crypto.com launched its services across the European Economic Area (EEA) after receiving its full MiCA license. The platform is now authorized to offer crypto asset services in all EEA states. This follows its January licensing by the Malta Financial Services Authority. In compliance with MiCA, Crypto.com removed Tether's USDT and nine other tokens from its platform.