From ransomware seizures to Ponzi schemes and national mining strategies, this week’s crypto news is a reminder that regulation, enforcement, and digital assets are more intertwined than ever.
In the US, the government is seeking to claim $2.4 million in Bitcoin (BTC) seized from a ransomware group, potentially adding it to the newly proposed Strategic Bitcoin Reserve. Meanwhile, Russia’s move to formally regulate crypto mining has led to over 1,000 firms registering domestically — a shift that now places the country behind only the U.S. in global Bitcoin hashrate, raising fresh compliance and sanctions concerns.
A Seattle man has been jailed for running a fraudulent crypto mining operation that scammed friends and investors out of $900,000. And as always, behind every headline lie questions of trust, transparency, and where the industry is headed next.
Here’s what you need to know this week.
US seeks forfeiture of $2.4M in Bitcoin from ransomware group
The US Department of Justice has filed a civil complaint to claim 20.2 BTC — worth around $2.4 million — seized by the Dallas FBI from an address linked to the Chaos ransomware group. The seizure is part of a broader push to build the proposed US Strategic Bitcoin Reserve, first outlined in President Trump’s March executive order.
While blockchain analytics firms estimate the US government holds nearly 200,000 BTC, a recent Freedom of Infomation Act (FOIA)request revealed only ~29,000 BTC are held by the US Marshals Service, prompting questions about custody across other agencies like the FBI and DEA. Debate continues over whether seized assets can be counted as part of the reserve before formal forfeiture.
Why this matters:
This case shows how crypto seized from criminal activity is becoming a strategic asset for the US, but also highlights the legal and logistical grey areas around ownership, custody, and government transparency. The line between ‘seized’ and ‘forfeited’ Bitcoin matters more than ever.
Read more on Cointelegraph.
Russian crypto mining firms jump tenfold amid regulatory overhaul — AML concerns rise
Russia has seen a sharp increase in officially registered crypto mining firms — from just 91 in early 2024 to over 1,000 today — as new legislation requires high-electricity users to register with the Federal Tax Service.
The rules mandate disclosure of wallet addresses and mining output, creating a more traceable domestic framework. However, the growth raises compliance concerns globally. With Russia now contributing an estimated 17% of global BTC hashrate, state-aligned mining infrastructure could serve as a vehicle for sanctions-resistant revenue and complicate efforts to monitor cross-border crypto flows.
Why this matters:
While Russia’s formalization of mining may appear to bring structure to the sector, these changes may shift opacity rather than eliminate it. As geopolitical tensions persist, the risk of sanctioned entities leveraging regulated mining to obscure fund origins poses fresh challenges for exchanges and regulators alike.
Read more on Bitcoinist.
Seattle rugby player jailed over $900K crypto mining Ponzi scheme
A 37-year-old Seattle semi-pro rugby player, Shane Donovan Moore, has been sentenced to 30 months in prison for running a fraudulent crypto mining scheme. Moore promised investors 1% daily returns from mining equipment that never existed. Instead, he used the funds for a deposit on a lavish apartment, luxury items, travel, and to repay earlier investors.
Operating under the company Quantum Donovan LLC, Moore raised more than $900,000 from over 40 victims — many of them friends and fellow athletes — in a textbook Ponzi scheme. More than $387,000 in losses remain unpaid.
Why this matters:
Even as crypto matures, it remains a magnet for classic fraud tactics. This case is a reminder that investor education, due diligence, and enforcement are critical — especially when trust is exploited through personal relationships.
Read more on MSN.
