The Shanghai Jing'an District People's Procuratorate has recently filed a public prosecution in a cross-border virtual currency illegal currency exchange case involving over 200 million yuan. The main culprit Li and four others were sentenced to fixed-term imprisonment ranging from six years to two years and six months, with fines from 1.5 million to 300,000 yuan. Four others were given relative non-prosecution. The case originated from Z Company, registered overseas in 2019, which disguised itself as a 'private bank' and used study abroad/immigration agents to solicit clients. It exploited virtual currency 'peer-to-peer' transfers between domestic and offshore pools, charging a 3% service fee and giving agents 0.5% kickback. In July 2024, the State Administration of Foreign Exchange (SAFE) detected anomalies during routine monitoring and transferred the case to police via the administrative-criminal linkage mechanism. Nine individuals have been arrested, with one mastermind still under investigation. This case reveals the core modus operandi of virtual currency 'leveraging' to evade traditional cross-border oversight and serves as a critical warning for crypto compliance and anti-money laundering efforts.

The Shanghai Jing'an District People's Procuratorate has indicted a criminal ring that used cryptocurrencies to conduct illegal cross-border foreign exchange transactions worth over 200 million yuan (approximately $28 million). Five main defendants, including ringleader Li, were sentenced to prison terms ranging from 2.5 to 6 years and fined between 300,000 and 1.5 million yuan. The ring operated through an offshore company 'Z' registered in 2019, which marketed itself as a 'private bank' with a dedicated virtual banking app but held no forex license in China. By using a 'counterparty settlement' model—buying crypto domestically, depositing into overseas wallets, and then converting to fiat abroad—the scheme bypassed actual cross-border fund flows. A total of nine individuals were apprehended, with one key suspect still under investigation. The case highlights the use of crypto 'crypto-for-fiat' arbitrage to evade China's capital controls and underscores the need for enhanced surveillance of crypto-enabled financial crimes.

Blockchain security firm TenArmor reports an on-chain attack on the Ethereum protocol BackedFi, resulting in approximately $204,200 in asset losses.

According to blockchain security firm TenArmor, the Ethereum-based protocol Backed (BackedFi) suffered an on-chain attack, resulting in asset losses of approximately $204,200. The incident was reported on July 1, 2026, with further details yet to be disclosed.

Chainalysis has released the Blockchain Tracing Ontology, a data framework aiming to standardize address clustering across blockchain analysis tools. The framework introduces a hierarchical 'Wallet Fragment' model to replace traditional clusters, emphasizing source of evidence, reasoning, and confidence levels. This move is designed to improve the admissibility and interoperability of on-chain analysis in legal and compliance contexts.

According to on-chain analyst Ember monitoring, Pump.fun transferred 16.43 million USDT to Kraken 7 hours ago, continuing its pattern of moving stablecoins from its public sale proceeds to centralized exchanges. To date, approximately $770 million in stablecoins (USDC and USDT) from Pump.fun's July 2024 PUMP token sale have flowed into CEXs. Additionally, Pump.fun has recently resumed selling fee income, depositing 342,500 SOL (valued at around $27.59 million) to Kraken since mid-May. The movements suggest potential liquidity management, market making, or impending sales.

Whale Alert reported that at 10:12 Beijing time, USDC Treasury minted 250 million USDC on the Solana blockchain. This large-scale issuance may impact market liquidity; subsequent fund flows warrant close observation.

In a CNBC interview, Coinbase's Head of Strategy, John D’Agostino, revealed that more than 40 countries have committed to buying Bitcoin for their national balance sheets or other arrangements. He noted that a steady influx of new institutional investors is occurring daily, with adoption progressing steadily on the inside.