Scams

FTX customers and Fenwick & West reached a proposed settlement in a fraud lawsuit, with both sides planning to seek approval from a Florida federal court on Feb. 27. The terms were not disclosed, and the parties asked the court to pause deadlines while they finalize the agreement. The case follows the exchange’s collapse in November 2022.

New York Attorney General Letitia James and Manhattan District Attorney Alvin Bragg sent a letter to Congressional leaders criticizing the GENIUS Act. According to CNN, they contend the law lets issuers keep interest on assets backing flagged coins rather than prioritizing restitution; Chainalysis reports illicit crypto flows hit $154 billion in 2025 with stablecoins at 84%.

CertiK reported $370.3 million in digital assets were stolen via exploits and scams in January 2026, the highest monthly total in 11 months. Phishing accounted for $311.3 million, including a single $284 million social engineering loss, while PeckShield tracked 16 hacks totaling $86 million in the same month.

On February 1, 2026, CrossCurve warned on X that its cross-chain bridge was under attack due to a smart contract vulnerability. The team reported about $3 million in losses across several networks, while Defimon Alerts described a spoofed cross-chain message path and CrossCurve offered a 10% white-hat bounty with a 72-hour deadline for fund returns.

On Friday, the U.S. Treasury’s OFAC blacklisted UK-registered exchanges Zedcex and Zedxion for facilitating Iran’s Islamic Revolutionary Guard Corps transactions. The move also put Iranian financier Babak Morteza Zanjani back under sanctions after his 2024 death sentence commutation. Treasury said Americans are prohibited from dealing with the newly sanctioned entities.

A single wallet lost 4,556 ETH, worth about $12.25 million, in an address poisoning incident. Attackers crafted lookalike vanity addresses that appeared in the user’s transaction history, leading to a misdirected transfer. The case adds to a recent spate of large crypto thefts, including an almost $50 million loss in December 2025.

On January 31, 2026, a U.S. court sentenced Chinese national Jingliang Su to 46 months in federal prison and ordered $26,867,242 in restitution for laundering over $36.9 million from American victims. The scheme routed funds to Deltec Bank in the Bahamas, converted them to Tether (USDT), and moved them to a wallet in Cambodia.

On January 31, 2026, the FBI seized both the clearnet and darkweb domains of the RAMP forum; banners on the sites cite coordination with the Southern District of Florida and DOJ's CCIPS. A user known as "Stallman", described as an owner, acknowledged the takedown, while industry analysts cautioned the long‑term impact may be limited.

Moltbook is hosting discussions on relay protocols that let autonomous agents discover peers and exchange direct messages, expanding the attack surface beyond isolated endpoints. According to Token Security, 22% of customers already see unsanctioned agent usage, while reports describe exposed dashboards, leaked credentials, and 7,922 attack attempts on a single instance. Some agents are offering Bitcoin bounties and calling it "sound money."

On January 31, Lookonchain reported that wallet 0xd674 lost 4,556 ETH (about $12.4 million) after copying a spoofed address. The attacker allegedly used address poisoning by sending dust transactions that mimicked Galaxy Digital's deposit address, leading to a copy-paste error.