Despite Ninth Circuit Win, SEC Asks Supreme Court to Take Disgorgement Case

US Asks Justices to Take SEC Enforcement Case Despite Appeal Win

The Trump administration wants the US Supreme Court to weigh in on the SEC’s power to recoup illicit profits in cases where investor harm can’t be quantified, asking the high court to take up a petition to review a Ninth Circuit ruling in the agency’s favor.

The government is willing to let the justices decide whether the Securities and Exchange Commission can seek disgorgement in enforcement actions without proof of investor harm, noting in a response brief Wednesday that the review could resolve a “recurring and important” question at the core of a split between the Ninth and Second circuits.

“Although the court of appeals correctly resolved the question presented, its decision warrants this Court’s review,” the government said in its brief. “This Court should therefore grant review to determine whether a showing of pecuniary harm is required.”

Jump Accused of Contributing to Collapse of Terraform, Do Kwon’s Crypto Empire

The administrator alleged Thursday in the U.S. District Court for the Northern District of Illinois, Eastern Division, that Jump had entered into a secret deal to prop up TerraUSD before the coin’s collapse, and later emerged from Terraform’s collapse with billions of dollars in gains. The SEC has previously said in court filings that Jump made about $1 billion in profit by selling Luna.

“Jump Trading actively exploited the Terraform Labs ecosystem through manipulation, concealment, and self-dealing that enriched Jump while financially devastating thousands of unsuspecting investors,” Snyder said in a statement. “This action is a necessary step to hold Jump Trading accountable for illegal conduct that directly caused the largest crypto collapse in history.”

Tricolor’s Excel Guy Failed to Fix Numbers in Alleged Fraud

On another August call with Tricolor leadership, Chu recalled a conversation with a representative of the lender that originally discovered the discrepancies in Tricolor’s data, according to the charges.

“‘Look, if we were trying to commit fraud, we wouldn’t be so stupid as to keep the same balances on there… Nobody would be that stupid,’” Chu recounted saying, noting that the representative for the lender said “‘you’re right.’”

The Tricolor executives “laughed in response,” according to the indictment.

North Korean Hackers Stole $2 Billion in Crypto in 2025, Chainalysis Finds

Hackers linked to the Democratic People’s Republic of Korea stole $2.02 billion in cryptocurrency in 2025, a 51% increase from the prior year, according to a report released Thursday by blockchain analytics firm Chainalysis. The surge came even as the number of confirmed attacks declined, indicating a shift toward fewer but far more destructive breaches.

Felix Shipkevich, a professor of law at Hofstra Law who teaches the business and policies of cryptocurrencies and is not involved in the report, said it reinforces, in concrete terms, that large-scale crypto theft remains a systemic and unresolved risk rather than a fringe or declining problem.

“These numbers will inevitably fuel claims premised on inadequate cybersecurity controls, deficient internal safeguards and failures to anticipate foreseeable attack vectors,” Shipkevich said. “While comprehensive litigation statistics are still developing, the scale and publicity of these losses make it increasingly difficult for custodians, exchanges and crypto-adjacent companies to argue that such risks were remote or unforeseeable.”

Coinbase sues Connecticut, Illinois and Michigan over prediction markets regulation

Coinbase (COIN), the crypto exchange that plans to add prediction markets to its platform, is taking legal action in Connecticut, Illinois and Michigan over the states’ attempts to regulate those markets.

The company filed lawsuits to “confirm what is clear,” Chief Legal Officer Paul Grewal wrote in a post on X on Friday: that prediction markets fall under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) and not individual state gaming regulators.