DOJ – The Shib Daily

Senators Demand Probe Into WLFI Over Ties to North Korea and Russia

Michaela — Wed, 19 Nov 2025 07:29:34 +0000

U.S. Senators Elizabeth Warren and Jack Reed are calling on the Department of Justice (DOJ) and the Treasury Department to investigate World Liberty Financial (WLFI), a firm linked to the Trump family, over its alleged connections to illicit actors in North Korea and Russia.

According to a CNBC report, Senators Warren and Reed sent a letter on Tuesday to Attorney General Pamela Bondi and Treasury Secretary Scott Bessent, arguing that World Liberty Financial (WLFI) lacks sufficient safeguards to prevent bad actors from moving funds or exerting influence over its governance.

In their letter, the senators cited a September report from the nonprofit corporate watchdog Accountable.US, which claimed that WLFI had sold its $WLFI tokens to “various highly suspicious entities.”

The “suspicious entities” included traders with ties on the blockchain to a notorious North Korean hacking organization, a sanctioned Russian “ruble-backed sanctions evasion tool,” an Iranian crypto exchange, and Tornado Cash, a known money-laundering platform, the watchdog alleged.

CNBC shared that World Liberty Financial denied any wrongdoing, asserting that there is “no conflict of interest between World Liberty Financial, a private crypto company with zero political power, and the U.S. government.”

A spokesperson for World Liberty Financial told CNBC that the company conducted thorough anti-money laundering (AML) and know-your-customer (KYC) checks on every pre-sale purchaser of the $WLFI governance token, adhering to what they described as the highest industry standards. The spokesperson added that millions of dollars in potential purchases were declined from individuals who did not meet these compliance requirements.

Last month, a group of seven Democratic senators, including Warren and Reed, formally called on Bondi and the DOJ to provide more information about President Donald Trump’s pardon of Binance CEO Changpeng “CZ” Zhao, expressing concerns that the action could signal leniency toward unlawful conduct.

In a public letter, the senators argued that the pardon could be perceived as a warning to cryptocurrency leaders and other corporate figures that legal consequences may not apply. They requested clarification on how Zhao’s pardon might affect the DOJ’s and Attorney General Bondi’s ability to enforce the law. Their inquiry references reported ties between Zhao, Trump, and Binance, including allegations that Binance helped develop the code for WLFI’s stablecoin USD1, potentially generating a multi-million-dollar revenue stream for the Trump family.

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Sam Bankman-Fried Alleges Political Payback After Donating to Republicans

Michaela — Thu, 16 Oct 2025 10:02:41 +0000

Sam Bankman-Fried, co-founder of the now-defunct crypto exchange FTX, has alleged that his 2022 arrest was politically driven, claiming the Biden administration targeted him after he privately contributed tens of millions of dollars to Republican campaigns.

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Key points:

Sam Bankman-Fried alleges his 2022 arrest was politically motivated, claiming the Biden administration targeted him after donating tens of millions to Republicans.
House Republicans have questioned the timing of his arrest and demanded SEC Chair Gary Gensler release communications surrounding the case.
The SEC’s Office of Inspector General disclosed that Gensler’s government phone was wiped, deleting nearly a year of messages, intensifying scrutiny of the agency’s transparency.

In a post on the social platform GETTR on Wednesday, Bankman-Fried said his political alignment shifted from center-left in 2020 to a more centrist position by 2022, citing what he described as aggressive crypto enforcement under then-U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler and the Department of Justice (DOJ). SBF claims that shortly after making sizable donations to the Republican Party, the Biden administration’s SEC and DOJ began pursuing charges against him.

Source: Sam Bankman-Fried GETTR

“They had me arrested weeks before the crypto bill I was working on was set for a vote—and the night before I was set to testify before Congress,” Bankman-Fried wrote.

Bankman-Fried claimed that House Republicans suggested his arrest was intended to stop him from testifying before Congress. Lawmakers reportedly urged Gensler to release communications related to the timing of the charges and his detention, a move that has fueled further scrutiny of the Biden administration’s handling of the case.

Late last month, the SEC’s Office of Inspector General revealed that Gensler’s official phone was subjected to an “enterprise wipe,” deleting all text messages sent and received between October 2022 and September 2023. Reports indicate the device stopped syncing with the agency’s system in July 2023 and was flagged as “inactive” for 62 days, despite remaining operational.

After unsuccessful forensic efforts to retrieve Gensler’s deleted messages, the SEC’s Office of Information Technology examined phone records to determine his most frequent contacts. Investigators compiled a list of 34 agency employees believed to have regularly communicated with the former SEC chair.

Gensler did not assist in creating the list, and other commissioners were initially excluded. Although staff described most texts as routine, the Inspector General’s review found several that contained substantive, work-related discussions.

As Bankman-Fried continues to serve his sentence, his latest claims mark a new chapter in his post-conviction narrative, one that intertwines politics, regulation, and personal redemption. Whether his allegations gain traction or fade into the broader debate over crypto’s relationship with Washington remains to be seen, but they’ve already reignited scrutiny of how power and policy collide in the digital finance era.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Roger Ver Strikes $50M Deal as US Moves to Drop Bitcoin Tax Case

Michaela — Wed, 15 Oct 2025 09:34:03 +0000

Roger Ver, widely known as “Bitcoin Jesus,” has reached a deferred prosecution agreement with the U.S. Department of Justice (DOJ) to resolve his federal tax case.

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Key points:

Roger Ver, aka “Bitcoin Jesus,” reached a $50M deferred prosecution deal with the DOJ to resolve his federal tax case.
Ver admitted failing to report full Bitcoin holdings on his 2016 tax returns, resulting in over $16M in unpaid taxes, plus penalties exceeding $12M.
The agreement includes dismissal of the indictment and spotlights broader issues around taxation of digital assets and compliance for expatriates.

The DOJ announced that Ver has reached an agreement to resolve federal tax charges, agreeing to pay the Internal Revenue Service (IRS) nearly $50 million in back taxes, penalties, and interest. The charges stem from Ver’s alleged “willful failure” to report his Bitcoin holdings on tax returns after renouncing his U.S. citizenship in 2014.

The U.S. government has filed to dismiss the indictment against Ver as part of the agreement. In it, Ver acknowledged that his May 2016 tax returns failed to report his full Bitcoin holdings and omitted the required capital gains taxes on their constructive sale, resulting in a loss of over $16 million to the United States.

Furthermore, Ver acknowledged that he owed the maximum penalty under 26 U.S.C. § 6663, exceeding $12 million, in addition to accrued interest on the taxes and penalties.

In 2014, Ver renounced his U.S. citizenship after acquiring citizenship in St. Kitts and Nevis. Due to his net worth, he was required to file expatriation-related tax returns and report capital gains on global assets, including his Bitcoin holdings.

In December 2024, Ver submitted a motion to dismiss the charges, contending that the IRS “exit tax” was unconstitutional and lacked clear legal definition.

Earlier this year, Ver publicly appealed to President Donald Trump, seeking intervention to prevent his potential extradition to the U.S. Ver, an early Bitcoin advocate, faces legal scrutiny over alleged violations connected to his promotion of certain cryptocurrency ventures.

The legal challenges trace back to his involvement with the Bitcoin Cash network, which forked from Bitcoin in 2017. Authorities allege Ver promoted projects and individuals later linked to fraud and money laundering, drawing him into ongoing legal disputes.

The resolution of Ver’s tax case could have wider implications for expatriates and crypto investors alike, emphasizing ongoing debates over the taxation of digital assets and cross-border financial compliance.

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US Cracks $14B Pig Butchering Scam Linked to Human Trafficking Network

Michaela — Wed, 15 Oct 2025 09:34:00 +0000

U.S. and U.K. authorities, including the Department of Justice (DOJ) and Treasury, have jointly targeted Cambodia-based Prince Holding Group and its chairman, Chen Zhi, in connection with a large-scale Pig Butchering crypto scam.

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Key points:

U.S. and U.K. authorities targeted Cambodia-based Prince Holding Group and chairman Chen Zhi in a massive $14B Pig Butchering crypto scam involving fraud, coercion, and human trafficking.
Investigators traced billions laundered through shell companies, crypto exchanges, and mining operations, with 127,000 BTC ($14B) held in private wallets linked to Chen and associates.
OFAC sanctioned 146 individuals and entities tied to the network, while U.S. losses from online scams surged past $16.6B, including $10B lost to Southeast Asia-based fraud in 2024 alone.

Unsealed filings in the Eastern District of New York show U.S. authorities are seeking the seizure of 127,000 Bitcoin, worth roughly $14 billion, linked to Chen and his associates. The DOJ describes Chen’s network as one of Asia’s most complex cross-border fraud schemes, with billions laundered through shell companies, cryptocurrency exchanges, and mining operations worldwide.

The company operated in real estate, finance, and hospitality across more than 30 countries, but prosecutors allege it became a criminal network that used deception and coercion. Victims were reportedly forced to run pig butchering scams, in which targets were slowly groomed before being duped into investing in fake cryptocurrency trading platforms.

After victims deposited funds, the fraudulent platforms disappeared. Prosecutors allege the money was laundered through over 100 shell and holding companies worldwide, routed through crypto exchanges and mining operations, and ultimately converted into Bitcoin stored in private wallets controlled by Chen and his associates.

Investigators uncovered that over 250 U.S. victims lost at least $18 million through shell entities operating in Brooklyn and Queens, New York. The DOJ notes that these losses are only a fraction of a sprawling global operation that funneled billions in stolen assets back to Cambodia.

Additionally, The Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on 146 individuals and entities linked to Prince Holding Group, describing the network as a transnational criminal organization involved in fraud, extortion, and human trafficking.

Authorities allege that proceeds from the pig butchering scam were spent on luxury assets, including private jets, vacation homes, and high-end collectibles, with Chen facing up to 40 years in prison if convicted.

U.S. losses from pig butchering scams have surged in recent years, exceeding $16.6 billion. In 2024 alone, Americans reportedly lost over $10 billion to Southeast Asia-based fraud schemes, marking a 66 percent increase from the previous year.

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Coinbase Pushes DOJ to Block State Crypto Crackdowns, Cites Risks

Michaela — Wed, 17 Sep 2025 14:08:59 +0000

Crypto exchange Coinbase has formally urged the U.S. Department of Justice (DOJ) to intervene in state-level crypto enforcement, warning that inconsistent “blue-sky” regulations could hinder industry growth.

Key points:

Coinbase urged the DOJ to intervene in state-level crypto enforcement, warning inconsistent “blue-sky” regulations could stifle industry growth.
The company called for Congress to adopt broad preemption measures, exempting federally regulated digital assets from state licensing and regulatory requirements.
Acting on Coinbase’s request could establish federal oversight as the primary authority, providing clearer rules, reducing legal uncertainty, and fostering a more innovation-friendly crypto environment.

In a 14-page letter dated September 15, Coinbase Chief Legal Officer Paul Grewal called on federal authorities to address state-level enforcement targeting crypto firms, urging the DOJ to encourage Congress to introduce comprehensive preemption measures.

Grewal noted that recent government initiatives aimed at promoting fairness, consistency, and uniformity in digital asset regulation have begun to address the damage caused by the prior administration’s “regulation-by-enforcement” approach.

However, Grewal argued that certain states are persisting with this approach through “novel, expansive, and flawed interpretations of their own securities laws” and by introducing new crypto licensing frameworks aimed at undermining the federal government’s pro-innovation agenda.

Grewal cited the Oregon Attorney General’s lawsuit against Coinbase, which alleges that numerous digital assets on the exchange are unregistered securities, and contends that other states are being encouraged to “fill” what is described as an “enforcement vacuum being left by federal regulators.”

Furthermore, Grewal urged that the DOJ submit a formal views letter to Congress advocating for broad preemption measures in upcoming market-structure legislation. He emphasized that any preemption framework should classify federally regulated digital assets as exempt from state blue-sky laws, clarify that new state licensing and regulatory requirements do not apply to crypto intermediaries, and ensure the provisions are applied retroactively.

If the DOJ acts on Coinbase’s request, it could mark a major shift in how digital assets are regulated in the U.S., establishing federal oversight as the dominant authority over patchwork state rules.

Such a move would provide clearer guidance for crypto firms navigating a fragmented regulatory environment, reducing the risk of conflicting state enforcement actions and legal uncertainty. By promoting uniform standards and preemption provisions, the federal government could foster a more innovation-friendly landscape, encouraging investment and growth within the sector.

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DOJ Charges AurumXchange Operator with Money Laundering Linked to Silk Road

Lawrence Damilola — Tue, 29 Oct 2024 15:24:09 +0000

The U.S. Department of Justice (DOJ) has filed charges against Maximiliano Pilipis, operator of the cryptocurrency exchange AurumXchange, for alleged money laundering related to Silk Road transactions.

According to a statement from the DOJ yesterday, Pilipis is accused of managing millions of dollars in cryptocurrency transactions through AurumXchange. Reports link some of the funds to accounts associated with Silk Road, the notorious darknet marketplace known for illegal activities, including drug trafficking.

The DOJ states that Pilipis, 53, operated AurumXchange without licensing from 2009 to 2013. During that period, the DOJ estimates that the exchange processed over $30 million across approximately 100,000 transactions. This includes transactions involving around 10,000 Bitcoin, valued at about $1.2 million back then.

The DOJ suspects that funds flowing through AurumXchange originated from Silk Road, which authorities dismantled in 2013.

“Pilipis allegedly processed substantial funds through AurumXchange without adhering to essential federal regulations,” the DOJ statement reads.

In addition, the agency alleges that Pilipis neglected to register his business with the U.S. Treasury Department, a requirement for cryptocurrency exchanges under federal law. It also asserts that Pilipis did not implement Know Your Customer (KYC) protocols, which is in violation of Anti-Money Laundering (AML) and counter-terrorism financing (CTF) laws.

After AurumXchange ceased operations, authorities claimed Pilipis attempted to conceal his gains by converting cryptocurrency into U.S. dollars and investing the proceeds. This reportedly included purchasing real estate properties in Arcadia and Noblesville, Indiana. Additionally, although Pilipis generated significant income from his investments in 2019 and 2020, he reportedly failed to file tax returns for those years. This resulted in additional charges.

The federal grand jury has charged Pilipis with five counts of money laundering and two counts of willfully failing to file tax returns. If convicted, he faces up to 10 years in prison and a fine of up to $250,000.

United States Attorney Zachary A. Myers for the Southern District of Indiana commented, “Combating the criminal abuse of cryptocurrencies and other digital assets is a fundamental priority for the Department of Justice.” Myers added that federal law enforcement partners are committed to investigating and prosecuting individuals who exploit digital assets for illegal purposes.

In related news, the U.S. Supreme Court recently declined to hear a case involving 69,370 Bitcoin seized from Silk Road, valued at approximately $4.38 billion. Battle Born Investments, a firm claiming ownership of Bitcoin through a bankruptcy estate, sought review but was denied. The decision leaves the government in control of the assets, as lower courts consistently ruled against Battle Born’s claims.

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DOJ – The Shib Daily

Senators Demand Probe Into WLFI Over Ties to North Korea and Russia

Sam Bankman-Fried Alleges Political Payback After Donating to Republicans

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Roger Ver Strikes $50M Deal as US Moves to Drop Bitcoin Tax Case

Read More

US Cracks $14B Pig Butchering Scam Linked to Human Trafficking Network

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Coinbase Pushes DOJ to Block State Crypto Crackdowns, Cites Risks

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DOJ Charges AurumXchange Operator with Money Laundering Linked to Silk Road

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