U.S. CFTC Acting Chairman: Enforcement Division Restructured, Refocused on Combating Fraud

On Jan. 7, Farside Investors reported that the U.S. Bitcoin spot ETF posted a net outflow of $2.432 billion the prior day, while the U.S. Ethereum ETF recorded a net inflow of $1.147 billion.

On Jan. 7, the Shanghai Municipal Judicial Bureau announced via its official WeChat account that a new scam has emerged in several regions nationwide—using fake "food tasting cards" to lure victims into telecom fraud schemes. Scammers distribute counterfeit supermarket food tasting cards to trick people into scanning a QR code and joining a so-called "benefits group." Once inside, they carry out "transfer rebate" fraud. Shandong police have busted multiple related cases and taken several criminal suspects into custody. Probes show the suspects used foreign messaging apps to communicate with superiors and laundered illicit proceeds via crypto, making the operation highly secretive. The bureau warns the public this scam is highly tricky: stay alert, never scan QR codes from unrecognized sources, don’t share personal details with unfamiliar platforms, and avoid losing money.

Jan. 7 — Per monitoring from HyperInsight (via their Telegram channel @HyperInsight), the “Lightning Reversal” whale (address 0x50b30) continued to expand its long positions today. Current holdings are detailed below: - **20x leverage long**: 1,569.29 BTC (≈$145 million), entry price $93,838.7, unrealized loss $1.682 million; - **14x leverage long**: 15,677.02 ETH (≈$51.09 million), entry price $3,284.08, unrealized loss $0.388 million.

As of January 7, Arkham monitoring indicates that the Bitcoin address belonging to Manus founder Xiao Hong currently holds 0.0223 BTC, valued at roughly $2,068. The address only completed 5 transactions 12 years ago: it received a total of 0.15 BTC (worth approximately $66.5 at the time) and sent out 0.128 BTC.

January 7, YZi Labs announced on X that as a major shareholder of CEA Industries (BNC), it is disappointed in the company’s board of directors for adopting a poison pill and amending bylaws in response to YZi Labs’ launch of a written consent solicitation. YZi Labs contends these actions are intended to block and delay shareholders from exercising their rights via written consent—aimed at entrenching the board’s position rather than protecting shareholder interests—and calls on the board to refrain from further manipulative conduct. The firm also notes the BNC board has postponed its 2025 annual meeting, originally scheduled for December 17, and urges the board to desist from additional manipulative behavior to ensure a fair director nomination and election process. Additionally, YZi Labs disputes BNC’s claim that alternative token strategies were never considered, stating BNC CEO David Namdar explicitly referenced exploring a switch to assets like Solana during a November 202

**January 7 Update: Crypto Market Structure Bill Bipartisan Talks Underway** Galaxy Research Director Alex Thorn shared updates on the crypto market structure bill in a post on X (formerly Twitter) on January 7: “A bipartisan meeting was convened today to discuss key demands from both parties to move the bill forward. We went over a key document drafted during the session.” ### Democratic Party Key Demands - **DeFi sector**: Front-end compliance with sanctions rules; expanded “extraordinary measures” authority for the Treasury Department; regulatory rules for “non-decentralized” DeFi. - **Other priorities**: Revising crypto asset classifications; adding new investor protection provisions for crypto ATMs and FTC consumer safeguards; including anti-evasion provisions (to block circumvention of securities laws or other regulations via loopholes); capping issuer fundraising at $200 million; requiring protocol stakeholders to proactively notify the SEC that their offering does n