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

As of February 4, data from EmberCN shows Yilihua’s Trend Research has closed 153,500 ETH positions via stop-losses since February 1, with an average exit price of $2,294—totaling $352 million in proceeds. The firm has repaid 266 million USDT to reduce leverage. Current liquidation prices for its multiple ETH borrowing positions range from $1,685 to $1,855, with the bulk concentrated around $1,800. Trend Research now holds 498,000 ETH (valued at $1.1 billion) at an average cost of $3,180. Total losses stand at $605 million: $136 million in realized losses and $469 million in unrealized losses. The firm still maintains $743 million in leverage.

On February 4, Patrick Witt, digital asset advisor to former President Donald Trump, said the White House would not sign off on the **Cryptocurrency Market Structure Clarity Act** (CLARITY Act) if it includes provisions targeting Trump. Witt called the ethical provisions in the bill’s early draft “completely outrageous” and explicitly stated, “We would not allow provisions targeting the President personally or his family members.” The CLARITY Act is currently deadlocked over several issues, with Democrats pushing to bar senior government officials from profiting from the crypto industry. Sources say the White House has instructed industry insiders to submit a compromise proposal by the end of February. As midterm elections approach, the longer the legislative process drags on, the harder it will be for Congress to pass the bill.

**February 4** — The Nevada Gaming Control Board has filed a civil enforcement action against Coinbase, accusing the crypto exchange of offering sports event contract betting services without a license. Nevada regulators are seeking a temporary restraining order and preliminary injunction to bar Coinbase from operating derivative exchanges and prediction markets tied to sports betting. The lawsuit comes shortly after Coinbase announced a partnership with Kalshi to launch prediction markets across all 50 U.S. states. While Kalshi is federally regulated by the Commodity Futures Trading Commission (CFTC), it faces legal pushback from state-level regulatory bodies.

On Feb. 4, Onchain Lens data shows the "BTC OG Insider Whale" has deposited another 15,000 ETH (valued at $33.5 million) into Binance to repay a loan. Over the past 7 hours, this whale has transferred a total of 35,000 ETH (worth $78.31 million) to Binance and repaid $82.39 million in outstanding loans.

Feb 4th — Per GMGN data, the Base ecosystem meme token CLAWSTR saw its market cap surge to $13.7 million (now at $12.8 million), up over 33x in 24 hours, with a trading volume of $13.4 million. Nostr and Bitcoin ecosystem developer Alex Gleason launched CLAWSTR as a community support token for Clawstr.com — a decentralized social network built on the Nostr protocol, tailored for AI agents. BlockBeats notes that meme coins often lack practical utility, carry high price volatility, and investors should exercise caution.

On February 4th, OnchainLens data shows Easy Hwao's Trend Research transferred another 15,000 ETH to Binance, valued at roughly $33.08 million. To date, Trend Research has moved a total of 153,588 ETH to Binance — equivalent to approximately $352.43 million — as part of its deleveraging strategy.