Scams

Do Kwon received a 15-year U.S. federal sentence for deceiving investors during TerraUSD's collapse. He pleaded guilty to two counts, while prosecutors sought at least 12 years and the defense asked for no more than five. He also agreed to an $80 million SEC civil penalty and a ban on crypto-related activities.

On Dec. 12, 2025, a U.S. court confirmed a 15-year federal prison sentence for Terra founder Do Kwon after a hearing that featured victim testimonies. Earlier this year, he pleaded guilty, narrowing a nine-count indictment to two fraud charges, while prosecutors had recommended 12 years. The judge also addressed potential transfer to South Korea and limited credit for time Kwon spent in custody in Montenegro.

U.S. federal prosecutors have charged 26-year-old Canadian citizen Nathan Gauvin with running an alleged $42 million fraud scheme linked to Gray Digital Capital Management and its Gray Fund products. According to an indictment in the Eastern District of New York, he is accused of using Discord to promote misleading crypto and traditional finance investments, diverting investor funds for personal expenses, and securing more than $800,000 in credit by misrepresenting his finances. Authorities say much of the money raised did not go into legitimate investment activity and was instead used to repay earlier investors and cover luxury spending. The SEC has filed parallel civil charges and the FBI has asked additional potential victims to come forward.

On 10 December 2025, China's financial authorities issued a warning that digital assets are being used in illicit fundraising schemes, emphasizing misuse and marketing practices over the underlying technology. Pi Coin was singled out and described as having slow development and opaque progress, with officials warning that hype-driven claims of mining payouts and guaranteed returns can expose inexperienced participants to fraud.

California resident Evan Tangeman, 22, pleaded guilty to participating in a crypto laundering operation and admitted to moving about $3.5 million. The ring stole roughly 4,100 BTC valued at approximately $263 million and operated from October 2023 to May 2025, according to prosecutors. Tangeman is the ninth defendant to enter a plea.

The Supreme Court of British Columbia has ordered the forfeiture of approximately $1 million in cash, gold, and luxury items tied to QuadrigaCX co-founder Michael Patryn. The assets—seized in 2021 under an Unexplained Wealth Order—will now be liquidated after Patryn withdrew his legal response, marking a significant step in the province’s civil action linked to the infamous crypto exchange’s collapse.

A 65-year-old retired engineer from Miyapur lost ₹1.28 crore (about $130,000) between November 4 and December 5 to a fake trading app posing as DBS and promoted via a WhatsApp investment group, according to Cyberabad cybercrime police. The fraudsters allegedly used cloned app interfaces, staged returns and social messaging channels to build trust before blocking withdrawals. Police have registered a case under relevant sections of the Bharatiya Nyaya Sanhita and the Information Technology Act. Authorities are urging investors to verify platforms, check regulatory approvals and report suspicious apps, links and chat groups.

The Supreme Court of British Columbia has ordered the forfeiture of more than $1 million in cash, gold bars and luxury items tied to QuadrigaCX co-founder Michael Patryn after he chose not to contest the case. Authorities say the assets, including 45 gold bars, high-end watches and a loaded pistol found in a Vancouver safety deposit box in 2021, were allegedly purchased with misappropriated customer funds from the failed crypto exchange. The ruling allows the province to liquidate the seized property and examine whether any proceeds can be distributed to QuadrigaCX creditors, who recovered only a small fraction of their balances in bankruptcy.

On 8 December 2025, US prosecutors asked a federal court in New York to impose a 12-year prison term on Terraform Labs co-founder Do Kwon following his guilty plea to wire fraud and conspiracy. As mounting legal action underscores risks in the crypto sector, the DeepSnitch AI token presale has raised more than $700,000 at a price of $0.02682 ahead of a planned January launch. The project is positioning itself as a security-focused alternative, with live features such as SnitchScan and staking aimed at traders seeking risk controls alongside growth potential. Backers frame the presale as part of a broader shift toward safety and transparency in digital assets.

Federal prosecutors have requested a 12-year prison sentence for Terraform Labs co-founder Do Kwon following his guilty plea to orchestrating the TerraUSD collapse that wiped out $40 billion in market value. Kwon admitted to defrauding investors and concealing Jump Trading's role in supporting the stablecoin. His defense team is seeking a reduced five-year term, citing nearly three years already spent in detention in Montenegro. Sentencing is scheduled for December 11.