CFTC has opened a wide ranging investigation into Polymarket’s business activities, including its social media operations, according to new reports.

According to Bloomberg, the Commodity Futures Trading Commission is conducting an extensive investigation into prediction market platform Polymarket that covers multiple parts of its business, including its social media activities.

The report follows a Wall Street Journal investigation published last week that alleged Polymarket hired dozens of mostly college-aged content creators to post fake trading videos designed to attract new users. Bloomberg reported that the CFTC inquiry extends beyond those marketing practices into other aspects of the company’s operations.

CNBC has separately reported, citing a person familiar with the matter, that the investigation remains active, although the source did not disclose when it began. 

Both the CFTC and Polymarket have yet to issue an official statement regarding the matter.

Investigation follows scrutiny over promotional campaign

The Wall Street Journal has also alleged that Polymarket used replica versions of its trading platform to create promotional videos showing fabricated bets and winnings.

According to the newspaper, it reviewed 1,105 videos posted between December 2025 and mid-May and found that about 70% contained simulated trades rather than real market activity. The report said the campaign displayed roughly $1.9 million in fake bets, including nearly $900,000 in fabricated winnings that would instead have resulted in losses if placed on the live platform.

Further, it alleged that creators were paid about $2,000 to $3,000 per month through marketing contractor Virality and were instructed not to disclose the sponsorships. Analytics firm Tubular, separately, estimated the videos generated more than 140 million views across TikTok, YouTube, and Instagram.

Responding to those allegations, Polymarket told CNBC it is conducting a comprehensive audit of its active promotional content to ensure it complies with company standards as well as regulatory and legal disclosure requirements.

Questions over U.S. access continue

Bloomberg reported that the CFTC previously closed, alongside the U.S. Department of Justice, an investigation into whether Polymarket violated restrictions on U.S. users without filing charges last year. 

The company has barred Americans from its main platform since reaching a settlement with the regulator in 2022, although the report noted that some users continue accessing the service through virtual private networks.

The company has also been working to restore access to the U.S. market. As crypto.news has previously covered, Polymarket launched a CFTC-regulated U.S. exchange in December.

In the meantime, Senators Adam Schiff and John Curtis asked CFTC Chair Michael Selig last week to confirm whether the agency had opened an investigation into Polymarket’s advertising practices and to explain how it has prevented the platform from attracting U.S. users since the 2022 settlement.

According to their letter, the senators also questioned whether the agency has sufficient oversight tools to supervise prediction markets and requested details on advertising standards, influencer disclosure rules, consumer safeguards and age verification requirements.

The current inquiry would be the first major investigation into an event contract platform under CFTC Chair Michael Selig, whose tenure has generally been viewed as supportive of prediction markets.

Following the US dollar’s notable strength last week, European currencies have entered a period of consolidation. Investors and market participants have temporarily reduced trading activity ahead of a series of key macroeconomic releases from the euro area, the UK and the US, which could determine the next direction for EUR/USD and GBP/USD. At the same time, markets continue to monitor developments in the Middle East, as easing geopolitical tensions have somewhat reduced demand for safe-haven assets, allowing investors to shift their focus back to economic fundamentals.

Investor sentiment has also been supported by reports suggesting that the US and Iran may be close to reaching an agreement to halt mutual strikes and resume negotiations. The restoration of shipping through the Strait of Hormuz has reduced concerns over disruptions to global oil supplies and contributed to greater stability across financial markets. Nevertheless, ongoing disagreements over the situation in the Strait of Hormuz and conflicting statements from Iranian officials indicate that geopolitical risks have not yet fully subsided.

EUR/USD

Following a test of the March low, a bullish Piercing Line candlestick pattern formed on the daily timeframe. Technical analysis suggests that EUR/USD is trading within a sideways range between 1.1340 and 1.1430. Price action around these boundaries, together with the incoming macroeconomic data, should provide further clues regarding the pair’s next directional move.

Key events for EUR/USD:

• Today at 09:45 (GMT+3): France CPI.
• Today at 15:00 (GMT+3): Germany CPI.
• Today at 17:00 (GMT+3): US JOLTS Job Openings.

GBP/USD

After testing this year’s March low at 1.3160, sterling buyers regained the initiative and formed a bullish Piercing Line candlestick pattern. The pair has since rebounded towards 1.3270, although any further upside is likely to depend on incoming macroeconomic data. Technical analysis suggests the pair may retest the 1.3270 level. A decisive break and close above this resistance could pave the way for further gains towards 1.3300–1.3310, while rejection from current resistance may trigger a decline back towards the 1.3140–1.3160 area.

Key events for GBP/USD:

• Today at 09:00 (GMT+3): UK GDP.
• Today at 13:40 (GMT+3): Speech by Bank of England Financial Policy Committee member Sarah Breeden.
• Today at 17:00 (GMT+3): US CB Consumer Confidence Index.

Following the sharp moves seen in recent sessions, the foreign exchange market has entered a wait-and-see mode. The release of key economic data on both sides of the Atlantic is likely to determine whether the current consolidation becomes the starting point for a recovery in European currencies or gives way to a renewed strengthening of the US dollar.

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U.S. spot bitcoin ETFs lost a net $231 million on Monday, with BlackRock’s IBIT accounting for $300 million of outflows that other funds partly offset, including $50 million into ARKB and $35 million into GBTC, per SoSoValue data.

The outflow lands as risk appetite elsewhere is surging. Wall Street’s technology rally spread into Asia on Tuesday, with the MSCI Asia Pacific index up 1% on the year’s final trading day after a semiconductor rebound helped the S&P 500 snap a five-session losing streak. The Asian benchmark is on track for its biggest quarterly gain in almost 17 years.

South Korea’s Kospi, which crashed 10% in a single session earlier this month, climbed 2.1% to extend its lead as the world’s best-performing major benchmark this year. Samsung is up more than 100% this quarter, and SK Hynix has gained almost 240% since April. The yen slid to its weakest level against the dollar since 1986, a sign investors are funding the AI trade by borrowing in yen.

Bitcoin ETFs are not participating in that capital rotation, however. The same AI infrastructure spending fueling record quarters in Seoul and Tokyo is the trade competing for the dollars that might otherwise flow into bitcoin, a dynamic that has run through the month’s coverage of SpaceX, Anthropic and the chip sector.

Key Highlights

• BitMine acquired 27,084 ETH in the past week, marking its fourth-smallest weekly accumulation this year, pushing total reserves to 5.7 million ETH.
• US-based spot Ethereum ETFs experienced their seventh consecutive week of net redemptions, shedding $273.3 million in the steepest weekly decline since January.
• Sharplink re-entered the market after an eight-month hiatus, acquiring 39,196 ETH valued at $62.4 million across three consecutive days.
• Ethereum has declined approximately 50% year-to-date and approaches the possibility of recording three consecutive quarterly losses.
• Derivatives markets reveal $4.09 billion in short positions compared to $1.31 billion in long positions, highlighting prevailing bearish sentiment among traders.

Ethereum’s market value hovers around $1,580 as the blockchain network contends with diminishing corporate accumulation and persistent outflows from investment vehicles. The cryptocurrency has found it difficult to maintain critical price thresholds throughout June.

BitMine Immersion, holding the distinction of being the largest institutional ETH holder, acquired 27,084 ETH during the previous week. This transaction elevated the company’s aggregate holdings to 5.7 million ETH, representing approximately $9.22 billion in value. The purchase volume represents one of the company’s most modest weekly acquisitions this year.

Simultaneously, BitMine allocated 160,480 ETH to its staking infrastructure. The firm’s staked portfolio now encompasses 4.879 million ETH, producing approximately $211 million in annual staking rewards.

BitMine Chairman Thomas Lee attributed the reduced acquisition pace to end-of-quarter “window dressing” activities. He observed that market participants frequently reduce exposure to underperforming assets during quarterly closings, regardless of positive fundamental developments.

Investment Fund Redemptions Accelerate

US spot Ethereum exchange-traded funds registered their seventh straight week of negative net flows. These investment vehicles experienced redemptions totaling $273.3 million over the past week, representing the most substantial weekly decline since January, based on SoSoValue tracking data.

BlackRock’s iShares Ethereum Trust experienced the largest redemptions among ETF providers. The trend demonstrates retail and institutional fund investors reducing allocations while certain corporate treasuries maintain their accumulation strategies.

This divergence has generated an atypical market dynamic. Corporate balance sheet strategies continued adding ETH exposure while traditional fund investors redirected capital to alternative investments.

Sharplink, another prominent institutional ETH holder, re-initiated purchases following an eight-month dormant period. Blockchain analytics from Lookonchain documented the company’s acquisition of 39,196 ETH valued at $62.4 million through three separate transactions during the previous week.

Arkham Intelligence data identified the initial purchase batch through FalconX on Thursday. Sharplink executed additional transactions on Friday, complemented by substantial over-the-counter trades throughout the weekend.

As of June 21, Sharplink maintained holdings of 876,285 ETH, establishing its position as the second-largest public corporate ETH holder after BitMine. The company has not publicly addressed the rationale behind resuming its accumulation strategy.

Quarter-End Performance and Derivatives Market Positioning

Ethereum has experienced a decline approaching 50% since the beginning of January. This downturn temporarily allowed Tether’s USDt stablecoin to surpass ETH in overall market capitalization during the past week.

Cryptocurrency analyst Max Crypto highlighted in a social media post that ETH approaches the possibility of recording three consecutive quarterly losses for the first time in its history. He characterized this pattern as a structural concern extending beyond temporary price volatility, prompting market observers to monitor whether the asset can prevent a fourth consecutive negative quarter.

Derivatives market information from CW indicated that high-leverage short positions on ETH totaled $4.09 billion. Long positions registered $1.31 billion on the identical platform, suggesting that speculative traders anticipate continued downward price movement.

From a technical perspective, ETH trades beneath its 20-day, 50-day, and 100-day Exponential Moving Averages, which range between $1,670 and $2,004. The Relative Strength Index currently registers 35, while the Stochastic indicator stands at 26, both metrics indicating persistent downward momentum with minimal signals of reversal.

Market analyst Daan Crypto Trades remarked on social platform X that Ethereum has been unable to successfully recapture previous support zones. He indicated that a recovery above $1,750 would represent the initial indication of bullish strength on extended timeframes, whereas a breach below the current $1,500 support level, which has provided a floor on two prior occasions, could trigger a decline toward April 2025 price lows.

Near-term resistance levels for ETH are positioned at $1,626, followed by additional barriers at $1,670 and $1,741. Support zones are established near $1,524, with a secondary support foundation at $1,404.

Key Takeaways

• XRP currently hovers around $1.05, maintaining stability above the critical $1 threshold following a June 25 dip to $1.01—the lowest level in 19 months.
• Tokens flowing out of exchanges increased dramatically, jumping from 40.7 million to approximately 123 million XRP within days, suggesting potential accumulation by holders.
• Spot XRP ETFs recorded their eighth consecutive week of positive inflows, bringing total cumulative inflows to approximately $1.47 billion.
• Network engagement surged with daily active addresses climbing 72% over a two-week period, moving from 23,000 to nearly 39,500.
• Derivatives open interest contracted sharply from 1.3 billion to under 150 million, indicating a significant deleveraging event.

XRP maintains its position around the $1.05 level following a challenging June performance. The digital asset touched approximately $1.01 on June 25, marking its lowest valuation in 19 months, yet purchasing pressure has successfully defended the psychologically important $1.00 threshold in subsequent trading sessions.

While price action has remained subdued, the underlying XRP Ledger has demonstrated notable vitality. The blockchain recorded 4,941 newly created wallets within a 24-hour window, representing the most significant single-day expansion in wallet creation observed over the past three months.

Concurrently, daily active addresses have experienced substantial growth. The metric expanded from approximately 23,000 on June 14 to nearly 39,500 by June 27, reflecting a 72% increase within a fortnight.

Token Movement and Institutional Capital Flow

Blockchain analytics reveal an accelerating trend of tokens being withdrawn from centralized exchanges. The exchange net position change metric shifted from roughly 40.7 million XRP on June 22 to approximately 123 million XRP several days afterward, representing an increase of nearly 200%.

Such withdrawal patterns typically indicate that holders are moving assets into self-custody rather than positioning for immediate sales. Meanwhile, institutional appetite for XRP exposure continues unabated.

Spot XRP exchange-traded funds have maintained positive net inflows for eight consecutive weeks. Total cumulative inflows now approach $1.47 billion, with an additional $22.99 million recorded during the week ending June 26.

Notably, on June 26, XRP-focused ETFs attracted $15.6 million in capital while bitcoin-based products experienced $444.5 million in withdrawals and ethereum funds recorded $12.9 million in outflows.

The derivatives market has undergone significant consolidation. Open interest across primary trading venues declined from a peak exceeding 1.3 billion to beneath 150 million, eliminating substantial speculative positioning that accumulated during XRP’s previous upward movement.

Market intelligence firm Santiment Intelligence highlighted this divergence between price weakness and growing network participation in a recent analysis. The firm observed that new wallet creation and optimistic market sentiment are materializing even as price threatens the $1 level, with sentiment analysis revealing 3.7 positive comments for each negative one—the highest ratio in three months.

Critical Technical Zones Under Observation

XRP has remained confined within a descending price channel throughout the past year. The 20-period exponential moving average, which tracks near-term momentum, currently aligns with the upper boundary of this channel in the $1.18 to $1.22 range.

This region also coincides with a Fibonacci retracement level at $1.178 and a concentration of approximately 22.8 million XRP in cost basis distribution between $1.18 and $1.19. An additional 27.4 million XRP are positioned between $1.21 and $1.22.

These price zones represent areas where previous purchasers may attempt to exit positions at breakeven, establishing resistance. A decisive move above $1.18 followed by $1.22 would push XRP beyond its established downtrend into more neutral technical territory.

For downside protection, immediate support is established near $1.02. A violation of this level could potentially trigger a decline toward $0.87, according to Fibonacci extension analysis.

In the near term, market participants are monitoring $1.06 as initial resistance, followed by the $1.09 to $1.10 zone where previous recovery attempts have encountered selling pressure. A sustained move above $1.20 would represent the first meaningful indication of a potential trend reversal.

The 4-hour relative strength index has recovered to 46 after entering oversold territory, though it remains below the neutral 50 threshold. Price action recently consolidated within a $1.03 to $1.06 range, with peak trading volume occurring on June 29 at 17:00 UTC when 86.5 million XRP were exchanged.

The pickup began about 18 months ago, before MiCA’s first rules took effect, she said. Stablecoin regulations began applying about a year ago, and crypto-asset service providers have been working through a transition period before the July 1, 2026, deadline. After that date, firms relying on legacy national regimes will no longer be able to provide MiCA-regulated services in the EU.

The inquiries come from entrepreneurs frustrated by bureaucracy and regulatory burdens in Europe.

“They’re not just some random guys,” she said. “They’re former founders or current founders, somebody with multiple exits, somebody with years of experience in crypto.”

The deadline is already reshaping the competitive landscape. Binance, the world’s largest cryptocurrency exchange by trading volume, withdrew its MiCA application in Greece last week and notified EU users it would suspend some services while seeking another regulatory route. The company said it remains committed to Europe.

“Our ambitions in Europe remain the same, and we are confident we will secure a MiCA licence in the coming months,” Binance said in a statement to CoinDesk on Thursday.

Rivals are trying to capitalize. OKX and Coinbase (COIN) announced bonuses of up to 8% of total deposits and transfers for new users the following day.

Sovereign wealth funds are reportedly increasing exposure to spot Bitcoin, a development MidChains CEO Basil Al Askari said may reflect growing institutional interest at current price levels. Speaking on Cointelegraph’s “Chain Reaction” podcast on Monday, Al Askari said he could confirm at least one—and potentially two—in the coming weeks—sovereign wealth funds accumulating spot Bitcoin.

While retail participation has slowed, Al Askari pointed to stronger momentum from institutions and corporates, arguing that the present price environment is functioning as an “entry level” for larger funds that can wait through long accumulation cycles.

Key takeaways

• MidChains CEO Basil Al Askari says one, possibly two, sovereign wealth funds are accumulating spot Bitcoin, potentially in the coming weeks.
• Al Askari frames the current price level as attractive “entry level” positioning for mega funds with long time horizons.
• He expects the effect on markets to be gradual rather than a rapid cascade, but sees it as a clear signal to other institutions.
• Coinbase institutional strategy head John D’Agostino earlier said institutional buyers view the dip as an opportunity, particularly among UAE family offices and sovereign-linked investors.
• Despite spot Bitcoin ETF outflows in the U.S., corporate treasuries—especially Strategy—continue adding to BTC holdings.

Sovereign funds add spot Bitcoin exposure

Al Askari’s remarks center on state-backed capital moving into Bitcoin at a time when retail demand appears to be cooling. A sovereign wealth fund is typically a government-owned investment pool funded by national reserves, so the implication is less about short-term trading and more about long-term allocation decisions.

To help contextualize the scale of that player base, the article notes sovereign wealth funds collectively control more than $13 trillion globally, citing Visual Capitalist. Al Askari described these allocations as experiments for institutions that may have been waiting for a more compelling price to begin building positions.

Importantly for investors, he argued that this type of activity is unlikely to trigger an immediate, dramatic repricing. Instead, it can act as a confidence signal—encouraging other institutions that view larger funds as leaders to “start to get involved.”

Why a “long horizon” matters for Bitcoin supply dynamics

Al Askari suggested the strategic value of such accumulation lies in Bitcoin becoming “more and more scarce” over time as larger holders with longer investment horizons lock in supply. In his view, the key mechanism is not just who buys, but how long they plan to hold.

That distinction matters because it reframes the narrative from near-term momentum to liquidity and available float over extended periods. If more institutional capital transitions from sporadic exposure to sustained accumulation, the market’s effective supply can tighten gradually—potentially influencing volatility and depth even when short-term flows look mixed.

“I do think this is what will happen, is that over the longer term period, we’ll start to see Bitcoin becoming more and more scarce as a result of larger holders with much longer time horizons on their holding periods as far as looking at investments.”

ETFs see U.S. outflows even as corporate treasuries buy

The broader picture is mixed across investor segments. According to the source, sustained U.S. spot Bitcoin ETF outflows have totaled more than $4.1 billion so far this month, referencing Cointelegraph coverage of ETF flow performance and noting that Bitcoin ETF outflows are exceeding that threshold.

At the same time, corporate treasuries—particularly Strategy—continue accumulating. The article states that Strategy has scooped up 3,657 BTC this month, pointing to Cointelegraph reporting on the company’s reserve purchases.

This divergence—ETF outflows on one side and corporate accumulation on the other—can be read as a shift in where new demand is showing up. When exchange-traded product flows weaken but corporate balance-sheet demand persists, it suggests the marginal buyer may be changing rather than demand disappearing altogether.

Institutional “discount buying” and sovereign-linked appetite

Coinbase’s head of institutional strategy, John D’Agostino, previously weighed in on how institutional investors interpret the current market. In a CNBC interview earlier this month, D’Agostino said the “dip” is being welcomed by institutional investors, adding that he had just returned from the Middle East and observed that UAE family offices and sovereign-linked investors were not unhappy to buy at a discount.

The remarks underscore a practical reality for large-scale allocation: for patient capital, drawdowns can improve entry terms and reduce the risk of buying at potentially overextended levels. For traders, it also highlights that short-term market declines may not deter longer-term participants—especially those able to execute steadily rather than chase trends.

Known sovereign examples: Mubadala and Bhutan

The source highlights specific sovereign-related examples to illustrate the pattern. It notes that Abu Dhabi’s Mubadala Investment Company invested $437 million in BTC via BlackRock’s iShares Bitcoin Trust (IBIT) shares in February 2025. It also points to Bhutan’s Druk Holding and Investments as an early and more direct sovereign holder, while stating that the company has been selling some BTC this year, referencing Cointelegraph coverage of those sales.

Taken together, these examples point to a broader institutional learning curve: sovereign entities have already tested mechanisms for gaining Bitcoin exposure, and the current phase may be characterized by more deliberate scaling and timing—potentially shifting from ETF vehicles toward spot accumulation, as Al Askari suggested.

For readers, the next thing to watch is whether ETF outflows remain elevated as corporate and sovereign-related buyers continue adding, and whether Al Askari’s “one, possibly two” additional sovereign funds materialize publicly in the weeks ahead. That will help clarify whether this is a one-off window for discounted entries—or the start of a more durable institutional accumulation cycle.

Crypto exchange users in Australia will soon face stricter rules on all transfers as the country’s travel rule is set to come into force on Wednesday, aligning it with similar rules in the EU, US and UK.

From July, all crypto sent and received on locally-regulated crypto exchanges will require users to provide additional information, such as the name of the person the crypto is being sent to or received from, and the name of the platform.

Gabby Lewis, the head of fraud and financial crime at Swyftx, told Cointelegraph that for most exchange users, “the impact should be very limited. They’ll provide the required details once, and then these will be saved for future use.”

The rules are set to bring Australia in line with other countries that have implemented the travel rule for years, which the Financial Action Task Force, an international policy-making body, first extended to crypto in 2019.

Crypto users have long expressed concern that the rule would impact the anonymity of the technology and the risks of data linking crypto transfers to personal information being leaked.

However, Lewis said that the “travel rule isn’t crypto-specific. It already applies across financial services and has been implemented in areas including Singapore, the United States, New Zealand and the UK. Australia is now following suit.”

The rule aims to prevent money laundering, terrorist financing and scams by increasing the traceability of crypto transfers. It will be enforced by the Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency.

Transfers from a regulated crypto exchange to a self-custodial address, such as a cold storage wallet, will also prompt a user to verify and declare that they are the owner of that address. 

“We’re generally talking about a quick confirmation that the wallet is theirs,” Lewis said. “The additional steps mainly come into force for transfers that involve another party or another exchange.”

Australia’s travel rule has no minimum value threshold, meaning a transfer of any size will require an exchange to gather information, aligning it with countries including France, the Netherlands and Japan that have no minimum.

Source: Sam Green

Other countries have set minimum reporting thresholds, such as the US, which only collects information on transfers starting at $3,000.

Some crypto exchanges operating in Australia have already begun to implement the travel rule, such as Kraken, which started on March 31, and CoinJar, which started on Tuesday.

Related: Australia passes digital asset bill bringing crypto platforms under licensing

Crypto users online have recently given mixed reactions to the rule, which the Australian parliament passed into law in 2024.

“With these new rules, you can forget about sending crypto anonymously,” a Reddit user wrote earlier this month.

“New travel rule is insane,” another Reddit user wrote earlier in June. “Thinking of moving everything to cold storage instead now.”

In response, one Reddit user said that “the regulated platforms were never anonymous.” 

“This is less of a problem than you’re making it out to be unless you’re involved in activities the authorities would be interested in already,” another user wrote.

Magazine: Crypto scammers face death, Aussie CGT makes Asian hubs attractive: Asia Express

Self-exiled Chinese billionaire Miles Guo has been sentenced to 30 years in a U.S. prison after being convicted in a fraud scheme that prosecutors said stole more than $1 billion from investors through multiple ventures, including cryptocurrency.

According to multiple media reports, U.S. District Judge Analisa Torres handed down the sentence on Monday and ordered Guo, also known as Guo Wengui, to forfeit $889 million in restitution.

The sentencing follows a July 2024 jury verdict that found Guo guilty on nine fraud and conspiracy charges after prosecutors accused him of raising money from hundreds of thousands of online followers through false investment promises tied to businesses under his control.

Crypto scheme formed part of fraud case

Federal prosecutors had alleged that Guo attracted investors by presenting himself as a critic of the Chinese Communist Party after fleeing China more than a decade ago, while using that reputation to promote fraudulent investment opportunities.

According to the U.S. Department of Justice, one of those ventures was the Himalaya Exchange, a cryptocurrency ecosystem that collected more than $262 million from victims. The department said Guo later spent investor funds on luxury assets, including a mansion and high end vehicles.

Earlier court filings from the DOJ said Guo orchestrated a scheme that defrauded thousands of investors of more than $1 billion after his arrest in March 2023.

At the sentencing hearing, the Associated Press reported  that Guo told the court he came to the United States “to destroy the CCP.” AP also reported that Judge Torres said Guo had preyed on supporters seeking democracy in China and had continued to deny causing financial harm.

SEC case remains part of wider enforcement action

Separate from the criminal prosecution, the U.S. Securities and Exchange Commission charged Guo and his financial adviser, William Je, in March 2023 over an alleged fraud that raised hundreds of millions of dollars through an unregistered crypto asset known as H Coin, or Himalaya Coin.

According to the SEC complaint, Guo falsely claimed the token was backed by gold and assured investors they would be reimbursed for any losses. The regulator also accused Guo and Je of diverting investor funds to finance luxury purchases, including a mansion and a Ferrari, while seeking permanent injunctions, civil penalties and the recovery of alleged illegal gains.

The SEC and DOJ announced their actions on the same day in March 2023, with the Justice Department filing a 12-count indictment that included securities fraud, wire fraud, investment fraud and money laundering charges against Guo. William Je was also charged with obstruction of justice, while authorities said they seized about $634 million held across 21 bank accounts linked to the investigation.

Guo is also known for his association with former Donald Trump strategist Steve Bannon. In 2020, the pair announced the New Federal State of China initiative, describing it as an effort to overthrow the Chinese government.

Elsewhere, Chinese authorities have also stepped up enforcement against cryptocurrency-related financial crimes.

China’s Supreme People’s Procuratorate said on June 25 that prosecutors had charged more than 1,200 people for drug related money laundering cases between January 2025 and May 2026, including schemes involving cryptocurrencies. 

The disclosure came as China announced a death sentence for a convicted drug trafficker found to have laundered more than 48 million yuan, or about $7 million, through cryptocurrency as part of a cross-border narcotics operation.