A&D Forensics Brief, April 25, 2025
A&D Forensics
Financial and Blockchain Intelligence Consulting, Blockchain Forensics, Crypto Investigations and Training Firm.
Justice Emeka Nwite of the Federal High Court in Abuja granted the EFCC ex parte application to arrest and detain six individuals accused of promoting Crypto Bridge Exchange (CBEX) and allegedly defrauding unsuspecting investors of over $1 billion. The suspects linked to ST Technologies International reportedly lured victims through aggressive advertising, only for CBEX to collapse, locking out thousands of Nigerian investors.
U.S. Federal Reserve Withdrew Crypto-Unfriendly Banking Guidance. In a significant policy shift, the Federal Reserve rescinded its 2022 and 2023 supervisory letters that discouraged state banks from engaging in crypto and stablecoin activities. Crypto oversight will now fall under the Fed’s standard supervisory process—signaling a more open stance towards digital assets under the current administration.
The FBI’s Internet Crime Complaint Center (IC3) reported over 140,000 complaints involving cryptocurrency in 2024, resulting in $9.3 billion in losses. Individuals over 60 were most affected, with $2.8 billion lost. Investment schemes were the primary source of losses, while sextortion and crypto ATM scams also saw significant activity.
On April 23, Binance announced new compliance measures requiring South African users to provide sender and receiver details for all crypto deposits and withdrawals effective from April 30. This move followed regulatory pressure from local authorities as South Africa strengthens oversight of its crypto ecosystem. Clearer regulations signal a growing focus on transparency, traceability, and compliance in emerging digital asset markets.
The Bank of Korea (BOK) took an active role in shaping South Korea's stablecoin regulations due to concerns over the potential risks to the country’s financial system. The BOK warned that widespread stablecoin adoption could destabilize monetary policy, increase financial risks, and disrupt the current payment system. In response, the BOK joined South Korea's second phase of digital asset legislation, which extended provisions of the Virtual Asset User Protection Act.
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The U.S. Securities and Exchange Commission (SEC) has formally charged PGI Global CEO Ramil Palafox for allegedly running a $198 million crypto-based Ponzi scheme. The SEC accused Palafox of deceiving investors with false promises of AI-driven trading and guaranteed returns. Over $57 million in fiat and Bitcoin were misappropriated for Palafox’s personal use and to benefit his associates.
The Kuwait government issued a strict warning against illegal cryptocurrency mining following an investigation that identified over 1,000 suspicious sites across the country. The Ministry of the Interior reiterated that mining is prohibited, a policy in place since July 2023 when the Financial Markets Authority banned all crypto-related activities. Despite this, the low cost of electricity in Kuwait has made it an attractive option for clandestine miners.
Binance has enforced mandatory KYC re-verification for all users in India, aligning with AML regulations and its obligations under registration with the Financial Intelligence Unit (FIU). The move aims to strengthen user accountability, enhance platform security, and set a new benchmark for crypto compliance in India’s evolving regulatory landscape.
The U.S. Securities and Exchange Commission (SEC) crypto task force, led by Hester Peirce, met with representatives from Ondo Finance and law firm Davis Polk and Wardwell on April 24 to discuss regulations around issuing tokenized versions of U.S. securities. Ondo Finance, which donated $1 million to Donald Trump’s inauguration fund, plans to explore registration requirements and compliance for tokenized securities. This meeting is part of the SEC's ongoing outreach to the crypto industry under new leadership after Paul Atkins replaced Gary Gensler.
A U.S. judge has approved Binance’s request to transfer a money laundering lawsuit from Washington to the Southern District of Florida, where a similar case is already pending. The decision, issued by Judge Barbara Rothstein on April 21, invokes the "first-to-file" rule to avoid duplicate litigation. The Washington case, filed in August 2024, mirrors a June 2023 Florida lawsuit, both accusing Binance of facilitating the laundering of stolen crypto.