Today in crypto, the UK Financial Conduct Authority has raided eight locations suspected of illegal peer-to-peer crypto trading, Justin Sun has filed a lawsuit against World Liberty Financial, alleging that the company froze his tokens and threatened to burn them without justification, and New York Attorney General Letitia James filed suit against Coinbase and Gemini in the latest state legal challenge to prediction markets.
UK cracks down on illegal P2P crypto trading in nationwide raids
The UK Financial Conduct Authority (FCA) has raided multiple sites suspected of running illegal peer-to-peer (P2P) crypto trading operations.
The financial services and markets watchdog said Wednesday that it worked alongside HM Revenue & Customs and the South West Regional Organised Crime Unit to inspect eight locations linked to illegal crypto trading. Officials issued cease-and-desist notices on site, ordering operators to halt activity immediately, while gathering evidence tied to ongoing criminal investigations.
“Unregistered peer-to-peer crypto traders operating in the UK are doing so illegally and pose a financial crime risk,” Steve Smart, the FCA’s executive director of enforcement and market oversight, said.
P2P crypto trading allows individuals to buy and sell digital assets directly, bypassing centralized exchanges. In the UK, such activity requires registration under anti-money laundering rules. The FCA said no peer-to-peer crypto traders or platforms are currently registered with the regulator.
The raids mark the FCA’s first operation of this kind focused on P2P crypto trading, but follow a series of enforcement steps against the sector. Previous actions include prosecutions tied to illegal crypto ATM networks and arrests linked to unlicensed exchanges.
Justin Sun sues World Liberty Financial over token lockup
Tron founder Justin Sun said he has filed a lawsuit against Trump-family-backed World Liberty Financial for allegedly freezing his tokens and threatening to burn them “without any proper justification.”
In a post to social media on Wednesday, Sun said the suit, filed in a California federal court, was meant to protect his rights as a token holder.
“I have tried in good faith to resolve this situation with the World Liberty project team without resorting to litigation. But the project team has refused my requests to unfreeze my tokens and restore my rights as a token holder. They have left me with no choice but to turn to the courts,” he added.
Sun previously threatened legal action earlier this month over lengthy lockup periods for WLFI’s governance token and accused WLFI’s recent governance proposal of lacking transparency because 76% of the voting tokens came from 10 wallets.
New York targets Coinbase, Gemini in fresh crackdown on prediction markets
New York's attorney general has filed lawsuits against crypto exchange operators Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws, according to court records cited by Reuters.
Copies of the complaints show the state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their markets, Reuters reported.
“Gambling by another name is still gambling, and it is not exempt from regulation under our state laws and Constitution,” Attorney General Letitia James said in a statement.
James said the lawsuit seeks to recover alleged illegal profits from operating prediction markets in the state, as well as restitution, and would bar Coinbase and Gemini from offering such products to individuals under 21.
