August 24, 2022:

Defendants allegedly participated in a "scheme to steal millions of dollars’ worth of cryptocurrency and trick U.S. banks into refunding them for the millions used to purchase that cryptocurrency, in part by using personal identifying information stolen from other people."  DOJ Link

Government alleges defendants "engaged in a scheme to deceive U.S. banks and a leading cryptocurrency exchange platform (the “Cryptocurrency Exchange”) by purchasing more than $4 million in cryptocurrency and then falsely claiming that the cryptocurrency purchase transactions were unauthorized, deceiving the U.S. banks and the Cryptocurrency Exchange into reversing those transactions and redepositing the money into the bank accounts that the Defendants controlled. The Defendants then withdrew the money from the bank accounts.

August 23, 2022:

Nate Chastain’s lawyers have filed a motion to dismiss the government’s indictment charging him with wire fraud and money laundering in connection with the OpenSea “insider trading” case. Nate’s lawyers raise two very novel theories. Here’s a thread breaking it down. Twitter Thread

First, let’s set the ground rules. Fed. R. Crim. Pro. 12(b) permits the defense to seek dismissal before trial of any charges brought by the government on the theory that even if all facts alleged in the indictment are “true”, those facts are insufficient to prove the elements of the crime charged. 

Nate’s lawyers argue that in bringing this “first-of-its-kind prosecution”, the government 
“posit[s] broad assertions of insider trading, property theft, and money laundering” legal theories that “are contrary to years of settled precedent and are a transparent effort to plant a flag in the blockchain industry.”

August 24, 2022:

“John Doe” Summons Issued Seeking Identities of U.S. Taxpayers. The subpoena seeks information about U.S. taxpayers who conducted at least the equivalent of $20,000 in transactions in cryptocurrency between 2016 and 2021. DOJ Link

“Taxpayers who transact with cryptocurrency should understand that income and gains from cryptocurrency transactions are taxable,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “The information sought by the summons approved today will help to ensure that cryptocurrency owners are following the tax laws.” 

August 25, 2022:

Defendant charged with "violating the Bank Secrecy Act ... by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX, and aiding and abetting the same." Defendants "willfully caused BitMEX to fail to establish and maintain an AML program, including a program for verifying the identify of BitMEX’s customers (or a “know your customer” or “KYC” program)." DOJ Link

August 25, 2022: 

"Two Orange County men each were sentenced today to federal prison terms for conning more than 2,000 investors into purchasing a cryptocurrency that purportedly provided exclusive access to a profitable trading program, and then using most of the $1.9 million raised to line their own pockets." DOJ Link