FinCEN Links $12.7B to Crypto Scams
The Financial Crimes Enforcement Network reported $12.7 billion in activity linked to digital asset investment scams between September 2023 and December 2025. This figure highlights the scale of transnational fraud targeting the sector.
FinCEN identified $12.7 billion in financial activity tied to suspected crypto investment scams. The data covers Bank Secrecy Act reports filed from September 2023 to December 2025. The agency attributes these operations to transnational criminal organizations based in Southeast Asia.
These entities use sophisticated tactics to move funds. Methods include guarantee marketplaces, shell companies, and professional money launderers. They also utilize stablecoin transfers through decentralized finance protocols to move assets outside the United States.
Regulators Tighten Cybersecurity Standards
The New York Department of Financial Services issued new cybersecurity guidance on September 10. It targets regulated financial services entities and BitLicense holders. The directive addresses gaps found in recent examinations of risk assessment practices.
Examiners found incomplete asset inventories and weak risk methodologies. Entities often failed to account for emerging threats like AI and quantum computing. The new guidance requires comprehensive scoping that includes third-party dependencies and concentration risks.
Firms must adopt a defined and repeatable methodology for cyber risks. They need to document how identified risks link to specific controls. Updates are required annually or whenever material changes occur in the threat landscape.
Block Seeks Federal Trust Charter
Block Inc. submitted an application to the Office of the Comptroller of the Currency on September 8. It seeks to establish Builders Bank and Trust as a national trust bank. This move follows an OCC initiative encouraging new de novo charters.
The OCC has received over 40 de novo applications in the past 18 months. Builders Bank would operate under federal regulatory supervision. The charter would provide a framework for custody activities that Block already performs.
Market Structure Continues To Evolve
These developments reflect a maturing digital asset market. Regulatory focus is shifting toward robust risk management and clear legal structures. The source GN markets/crypto (en-US) notes that participants are adapting their businesses to these new standards.
Financial institutions are encouraged to share information voluntarily. This supports law enforcement investigations and victim recovery efforts. The industry faces increasing pressure to align with traditional banking compliance frameworks.
