The National Sheriffs’ Association (NSA) has withdrawn its earlier opposition to the Digital Asset Market Clarity (CLARITY) Act, saying in a Thursday letter that its stance is now “neutral.” The development comes ahead of a potential Senate vote later this month when Congress returns to session.

In the letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, the NSA pointed to the complexity of the legislative process and the “significant work undertaken” by lawmakers, the Administration, and stakeholders to address “legal, regulatory, and enforcement considerations” tied to the bill. NSA leadership said the group believes it is more constructive to let the legislative process continue as Congress seeks to build a clearer regulatory structure for digital assets.

Key takeaways

• The NSA has changed its position on the CLARITY Act from opposition to “neutral,” signaling less resistance to the bill’s advancement.
• The association’s earlier concern centered on amendments that would exempt crypto mixers from multiple registration requirements.
• House passage in July 2025 has been followed by multiple Senate hurdles, including committee progress and continued debate among lawmakers and stakeholders.
• Senate leaders have taken procedural steps toward a vote, with Thune filing a motion to hold cloture after senators return.

NSA shifts from opposition to neutrality

The NSA’s updated position was articulated by NSA president Troy Wellman alongside CEO and executive director Justin Smith. They said the association is no longer pushing against the measure at this stage, arguing that the most appropriate path is to “step back” and allow Congress to proceed to establish “a clear, effective, and much needed regulatory framework.”

This change represents a notable recalibration from the NSA’s earlier messaging. Previously, the group had expressed “significant concerns” about specific CLARITY provisions—particularly amendments involving crypto mixers and how they could affect registration obligations.

What the NSA previously objected to: crypto mixer exemptions

According to the NSA’s earlier letter, the association’s opposition was driven by provisions it believed could limit law enforcement tools used to trace illicit activity and recover victims’ funds. In that prior stance, the NSA argued that exempting crypto mixers from many registration requirements could “[impair] law enforcement’s ability to trace transactions and digital assets, and recover victims’ money.”

In July, Sheriff Jim Skinner—speaking in a video posted by the NSA—also criticized the framing of the bill, stating, “The CLARITY Act protects the crypto industry, not the public.” Earlier coverage and the Senate Banking Committee correspondence cited by the NSA indicate that mixer-related language was at the heart of the dispute.

While the Thursday letter does not detail which provisions have been addressed or how the group views the bill’s current draft, the shift to neutrality suggests the NSA is at least willing to allow continued consideration rather than maintain active resistance.

CLARITY’s path through Congress remains contested

The CLARITY Act passed the US House of Representatives in July 2025 and has encountered obstacles since being sent to the Senate. While Senate committees—including the agriculture and banking committees—passed versions of the bill in 2026, the measure has continued to face pushback and uncertainty from multiple groups and lawmakers.

Debates described around the legislation have reportedly included issues beyond enforcement logistics, such as stablecoin-related rewards, tokenized equities, and concerns about potential conflicts of interest involving President Donald Trump and his family. These sticking points have kept the bill from reaching a final, unified Senate outcome even after committee progress.

As Congress nears its return to session, procedural moves have also signaled an effort to bring the bill to the floor. Before going on break, Thune reportedly filed a motion to hold a cloture vote on the measure on Sept. 15 once senators return from state work periods—an action that typically aims to limit extended debate and move legislation forward.

Regulators signal they could act even without legislation

Even as CLARITY awaits a Senate path to final passage, US regulators have indicated that crypto oversight may not wait indefinitely for congressional action. Earlier reporting noted that Trump publicly pushed for passage alongside the heads of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as representatives from digital asset companies.

According to earlier coverage, SEC Chair Paul Atkins and CFTC Chair Michael Selig—both nominated by Trump—have signaled that their agencies would continue efforts to address crypto regulation if Congress is unable to pass a market structure bill.

This matters for market participants because it reframes timing and certainty. A shift in the NSA’s position reduces one vocal source of resistance, but it does not remove other policy debates reportedly surrounding stablecoin rewards, tokenized assets, and broader governance concerns. Meanwhile, regulator willingness to proceed without CLARITY could mean the industry faces parallel developments: legislative negotiations in the Senate alongside rulemaking and enforcement direction from the agencies.

As the Senate calendar firms up, readers should watch whether the bill’s most contested provisions—particularly those tied to enforcement and registration—change between committee language and the final text heading to a vote, and whether additional stakeholders follow the NSA’s example by shifting their stance ahead of the chamber’s next steps.

The United States and United Kingdom have formed a joint law enforcement alliance to investigate and dismantle scam centers behind cryptocurrency investment fraud and other cyber-enabled schemes.

The U.S. Department of Justice announced on Sept. 3 that the U.S. Attorney’s Office for the District of Columbia, the Crown Prosecution Service of England and Wales and the UK National Crime Agency had signed a memorandum of understanding focused on cross-border enforcement against the operations.

The DOJ called the pact the first international cooperation agreement of its kind specifically designed to disable scam centers carrying out cryptocurrency and cyber-enabled investment fraud. U.S. authorities estimate such schemes are costing Americans approximately $10 billion a year.

US and UK crypto scam alliance targets common cases

Investigators from both countries will pursue parallel investigations into common targets, exchange information on organized crime syndicates and determine which jurisdiction should handle specific cases where their investigations overlap.

Authorities have already identified several cases of common interest, according to the DOJ. The agencies plan to meet with private-sector companies in London in early October for an in-person disruption operation hosted by the National Crime Agency.

U.S. Attorney Jeanine Ferris Pirro signed the agreement alongside Crown Prosecutor for England and Wales Stephen Parkinson and NCA Director General Graeme Biggar at the residence of UK Ambassador to the United States Sir Christian Turner.

Pirro said the agencies would work together to disable transnational organized crime networks operating scam compounds and targeting victims while using trafficked workers to carry out fraudulent schemes.

The alliance builds on existing cooperation between U.S. and UK authorities. During a May enforcement initiative organized by the Scam Center Strike Force, the NCA joined agencies from Australia, Canada, New Zealand and Thailand, along with private companies, to exchange information on scam infrastructure.

That operation resulted in the disruption of more than 1.4 million social media and email accounts, while private companies froze more than $3.8 million in cryptocurrency linked to laundering funds stolen from Americans. Seven suspected scammers were arrested in Thailand, and authorities disrupted servers, network connections and other infrastructure.

Crypto.news previously reported that Coinbase froze over $3 million in cryptocurrency linked to Southeast Asian scam networks during the enforcement effort. Meta, Microsoft and Starlink took action against accounts and infrastructure linked to suspected fraud operations.

Crypto investment fraud losses reached $8.65 billion

The new agreement follows a sharp rise in reported losses from cyber-enabled investment fraud in the United States.

FBI Internet Crime Complaint Center data cited by the DOJ showed reported losses from such scams climbed 89% from $4.57 billion in 2023 to $8.65 billion in 2025. Cyber-enabled fraud accounted for almost 85% of all losses reported to the center last year.

The DOJ cautioned that the figures were largely based on reports submitted by victims and could substantially understate actual losses because many fraud cases are never reported.

Created by Pirro in November 2025, the Scam Center Strike Force has concentrated on Chinese organized crime groups accused of running compounds primarily across Southeast Asia.

Its investigations cover cryptocurrency investment scams, cyber-enabled fraud, human trafficking and money laundering. Participating agencies include the FBI, U.S. Secret Service, Justice Department Criminal Division, U.S. Postal Inspection Service, IRS Criminal Investigation and Homeland Security Investigations, while the Treasury and State departments work with the task force on related actions.

Federal prosecutors have increasingly pursued the cryptocurrency and online infrastructure used by the networks. In July, the DOJ sought forfeiture of $25 million recovered through five investigations involving suspected victims in the United States and Canada.

Those cases involved fake cryptocurrency investment platforms and laundering networks linked to China, Malaysia and Cambodia. Prosecutors said at the time that the Scam Center Strike Force had seized more than $800 million since its November 2025 launch.

Authorities have targeted Southeast Asian scam compounds

A major enforcement action announced in April demonstrated the scale of the networks under investigation. U.S. authorities charged two Chinese nationals accused of managing a cryptocurrency investment fraud compound in Burma and attempting to establish another operation in Cambodia.

The DOJ said more than $700 million in cryptocurrency linked to suspected scam-related money laundering had been restrained through coordinated enforcement actions. Authorities seized 503 fake investment websites and a Telegram channel with more than 6,000 followers that prosecutors said was used to recruit people to a scam compound in Cambodia.

Workers were allegedly attracted with promises of high-paying employment before being held against their will and forced to participate in fraud schemes. Some job advertisements specifically sought workers who could speak with American accents and work during U.S. daytime hours.

Fraudulent cryptocurrency platforms used by such networks commonly displayed fake account balances and investment returns to persuade victims to send more funds. Investigators have tied similar methods to relationship-based schemes in which scammers spend extended periods building trust before introducing fake investment opportunities.

An international crackdown announced in April led to 276 arrests and the disruption of at least nine scam centers connected to investment fraud. Dubai police detained 275 people, while another suspect was arrested in Thailand as investigators pursued networks accused of using fake cryptocurrency platforms.

Chinese, U.S. and UAE authorities later described the Dubai action as their first joint crackdown on telecom and online fraud. Investigators said suspects used social media to establish fake romantic relationships before directing victims toward purported high-return cryptocurrency investments.

Regional governments step up action against scam centers

Countries where scam compounds operate have pursued their own enforcement and legislative measures as international investigations continue.

Myanmar’s Parliament approved an anti-online scam bill on July 28 after lawmakers reconciled versions adopted by its two chambers.

A draft published in May proposed prison sentences ranging from 10 years to life for operating an online scam center or committing digital currency fraud. It covered recruitment, financial facilitation, telecommunications support and other activities connected with online fraud networks.

The draft permitted capital punishment where violence, torture, unlawful detention or cruel treatment was used to force people to work in scam operations, with the death penalty required when such conduct caused a person’s death.

Final amended legislation, a presidential assent notice and a commencement date had not been publicly confirmed when the parliamentary approval was reported on July 29.

International enforcement has continued outside Southeast Asia as investigators follow the financial infrastructure used by organized fraud groups. An INTERPOL operation running from November 2025 through June 2026 resulted in 58 arrests and involved authorities from 22 countries, including the United States and United Kingdom.

Investigators examined romance scams, fake cryptocurrency investments, business email fraud and the shell companies, bank accounts and digital wallets used to move proceeds. Separately, an INTERPOL-led operation announced in July resulted in 5,811 arrests across 97 countries and territories, with authorities blocking more than 31,000 bank accounts and intercepting $293 million in illicit assets.

The U.S.-UK agreement now provides a formal framework for investigators and prosecutors in both countries to share information, pursue overlapping scam-center cases and decide where suspects should face prosecution. Their first planned joint disruption event under the pact is scheduled to take place with private-sector partners in London in early October.

Binance warned cryptocurrency users on Sept. 3 about an increase in phishing attacks involving text messages disguised as account security alerts.

The exchange said scammers were sending messages claiming that account settings had changed or that suspicious login activity had occurred. The messages include shortened links and direct recipients to “verify” or “secure” their accounts.

Binance did not disclose how many users received the messages. It also provided no figure for losses connected specifically to the latest campaign.

Binance phishing texts create false urgency

The fraudulent messages are designed to resemble official Binance notifications. They commonly warn about an unexpected login, changed account settings or another supposed security issue requiring immediate action.

The links may direct recipients to websites created to imitate Binance’s login or account verification pages. Scammers can then attempt to collect passwords, authentication codes or other information needed to access the victim’s account.

“We’ve recently observed an increase in phishing attacks targeting crypto users,” Binance said, without quantifying the increase.

The warning follows earlier campaigns using the exchange’s name. In 2025, the Australian Federal Police said scammers sent spoofed messages that appeared within existing Binance message threads. As previously reported, those messages falsely claimed that customer accounts had been compromised.

Binance says text links should not be trusted

Binance said it will never ask customers to click a link in a text message to verify or secure an account. Users who receive unexpected messages should instead open the official Binance application or enter the exchange’s address directly.

Customers can also use Binance Verify to check whether a website address, email address, phone number, social media account or other contact belongs to the exchange. Verification should take place before users enter account information or contact anyone presented as customer support.

Anyone who has already followed a suspicious link should contact Binance customer support through the official application. Users should avoid communicating further with the sender or providing passwords, recovery phrases and authentication codes.

Three account controls can limit phishing losses

Binance advised users to enable its withdrawal address whitelist. The feature limits withdrawals to wallet addresses approved by the account holder, creating another barrier if an attacker obtains login credentials.

The exchange published a separate guide explaining how customers can activate and manage the whitelist. Users should secure access to the email account and authentication method used to approve changes because attackers may target those services as well.

Binance also recommended activating its anti-phishing code. Once configured, legitimate Binance emails include a personalized code selected by the user. An email without the correct code may be fraudulent, although customers should still check its sender and destination links.

The protection applies to email rather than ordinary text messages. Binance’s instructions explain how users can create and update the code through their account security settings.

Binance also uses automated systems to detect suspicious behavior during logins, trading and withdrawals. The exchange previously said more than 100 artificial intelligence models support its fraud controls. According to related crypto.news reporting, Binance attributed an eightfold reduction in phishing success rates to those systems.

Platform controls cannot prevent every loss when customers voluntarily provide credentials or approve transfers after receiving deceptive instructions. Withdrawal whitelists, passkeys and application-based authentication can add barriers, but users still need to verify unexpected communications independently. Binance recommends contacting support only through its official application or website, particularly after opening a suspicious link.

Earlier scams show how impersonation causes losses

Binance impersonation through text messages is not new. Hong Kong police said 11 users lost approximately $446,000 in a 2023 campaign after receiving messages that threatened to deactivate their accounts unless they completed verification. The victims followed links contained in fraudulent messages.

In July 2026, Hong Kong’s Securities and Futures Commission ordered licensed crypto platforms and brokers to replace authentication based on SMS, email or app-generated one-time codes. The new standards require phishing-resistant authentication methods within 12 months.

Binance’s latest warning does not identify a deadline, investigation or regulatory action. The campaign remains an account-security matter, with users advised to verify communications and contact official support if they disclosed information or followed a suspicious link.

“Saint Seiya” creator Masami Kurumada has sued his former manager and other defendants for roughly 2.89 billion yen ($19.6 million) after alleging that billions of yen were diverted from his companies over six years, with some of the money believed to have been invested in cryptocurrency.

According to the lawsuit filed with the Tokyo District Court on Sept. 2, Kurumada Production and two other companies headed by the 72-year-old manga artist claim they suffered approximately 4.68 billion yen in losses between 2018 and 2024 through unauthorized transfers and diverted licensing payments.

The former manager, who served as a director of the three companies, had been entrusted with accounting, editorial work and other administrative duties for years. Kurumada’s lawyers said the manager has acknowledged taking the funds and told them he had acted with Kurumada’s interests in mind and had no malicious intent.

Some of the diverted money is believed to have been used for cryptocurrency investments, according to Kurumada’s legal representatives.

Kurumada seeks 2.89 billion yen after partial repayment

The three companies are seeking approximately 2.89 billion yen in damages from the former manager, his relatives, acquaintances and other parties after roughly 1.8 billion yen of the alleged losses was repaid.

Court filings allege that the former manager transferred money without authorization from bank accounts belonging to Kurumada’s companies into accounts held by separate companies he had established or controlled.

Another method involved licensing revenue. Business partners that would normally have paid licensing fees to Kurumada’s companies were allegedly directed to send the money elsewhere, allowing funds generated from Kurumada’s intellectual property to be diverted.

The alleged transactions continued for around six years before irregularities were uncovered during a Tokyo Regional Taxation Bureau audit in 2024.

Kurumada said he had left the movement of money entirely in the former manager’s hands and was unaware of the scale of the funds passing through the companies.

Speaking at a press conference in Tokyo after the lawsuit was filed, Kurumada said he initially found the allegations difficult to believe after spending decades working in the manga and anime business.

“I really couldn’t believe it,” Kurumada said, describing his feelings after learning about the alleged losses.

He said the situation eventually left him feeling empty and frustrated after a person he trusted with his finances was accused of diverting company money for years.

Crypto investments reportedly involved diverted funds

Kurumada’s lawyers said interviews conducted with the former manager indicated that at least part of the money had been directed into cryptocurrency investments.

The available court reports have not identified which cryptocurrencies were purchased, the platforms used to make the investments or how much of the alleged 4.68 billion yen was ultimately placed into digital assets.

No information has been disclosed on whether the cryptocurrency investments produced gains or losses, or whether any digital assets remain among the funds that Kurumada’s companies are seeking to recover.

The case comes as Japanese authorities have increased scrutiny of cryptocurrency transactions linked to fraud and other financial crimes. In August, crypto.news previously reported that Japan’s Financial Services Agency and National Police Agency had requested stronger withdrawal controls from domestic crypto exchanges, including waiting periods for newly registered withdrawal addresses and faster restrictions on suspicious accounts.

Official figures cited at the time showed Japan recorded 18,067 special fraud cases through May 2026, with losses reaching 151.47 billion yen. Social media investment scams accounted for 5,099 cases and 70.04 billion yen of those losses.

Japanese authorities have dealt with crypto-linked cases extending beyond investment scams. Tokyo police in June arrested Hu Xiaowei, an alleged senior figure connected to Cambodia’s Prince Group, which U.S. authorities have accused of involvement in cryptocurrency investment fraud and money laundering.

A separate Nikkei investigation published that month linked a crypto fraud operating through Japan to a Chinese network suspected of exporting fentanyl precursor chemicals. The reported scheme used Japanese internet domains and a fake token called Zksync.jp to target cryptocurrency users.

Japan has tightened its crypto framework

Japan has been changing the rules governing legitimate digital asset activity at the same time authorities are strengthening controls against fraud.

The country’s parliament in July passed financial law amendments that classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act.

The legislation creates a framework for stricter market oversight and insider trading restrictions while opening a route toward domestic crypto exchange-traded funds and a proposed 20% tax treatment for cryptocurrency gains.

Major financial groups have been preparing products under the changing framework. SBI, Rakuten, Nomura and other Japanese financial institutions have been exploring crypto investment trusts as regulators work toward allowing investment funds to hold digital assets.

The cryptocurrency component of Kurumada’s lawsuit, however, concerns the alleged use of company funds after they had been diverted, based on statements from his legal team, rather than an allegation against a cryptocurrency platform or digital asset issuer.

Saint Seiya licensing revenue was allegedly redirected

Kurumada’s works have generated substantial licensing income, particularly as “Saint Seiya” developed an international audience through manga, animation, merchandise and other products.

At the Tokyo press conference, Kurumada said revenue had increased substantially over the past decade as Chinese companies, including Tencent and Alibaba, became involved with products connected to his work.

The scale of those payments formed part of the alleged mechanism described in the lawsuit, with licensing fees from business partners among the funds that Kurumada’s side says were redirected.

Kurumada made his debut with “Sukeban Arashi” before creating titles including “Ring ni Kakero.” “Saint Seiya,” one of his best-known works, later became an animated series and developed a large audience outside Japan.

The alleged embezzlement affected plans connected to his work as well. Kurumada said a planned exhibition of original artwork at Roppongi Hills in Tokyo in 2024 had to be canceled after the financial irregularities were discovered.

He apologized to fans who had expected to attend the exhibition and said he now intends to hold it in Tokyo’s Ikebukuro district in spring 2027.

Despite saying the episode had temporarily left him distrustful of people, Kurumada told reporters that he intends to continue drawing for readers and fans of “Saint Seiya” and his other manga around the world.