Crypto Sector in 2025: Fines, Growth, Security Threats & Major Investigations

Australian Crypto Exchange Cointree Fined for Delayed Suspicious Activity Reports

Melbourne-based crypto exchange Cointree has been fined $75,120 by the Australian Transaction Reports and Analysis Centre (AUSTRAC) for failing to submit suspicious matter reports (SMRs) within the required timeframes. The enforcement action followed Cointree’s voluntary disclosure of delays in meeting anti-money laundering reporting obligations, as reported by Decrypt. SMRs are mandatory filings when regulated entities suspect transactions may be linked to criminal activity, such as money laundering or terrorism financing. AUSTRAC stated that the delayed reports hindered law enforcement’s ability to act quickly on emerging threats.

Entities are required to file SMRs within three business days for suspected money laundering and within 24 hours for suspected terrorism financing. AUSTRAC CEO Brendan Thomas emphasized the importance of timely reporting, stating, “We need to action these reports as soon as possible, which is why the timeframes are put in place – they allow us to move with pace and alert our partners to suspected criminal conduct.” Cointree cooperated fully, self-reported the issue, and is now taking proactive steps to remediate its systems and controls. Without such cooperation, the regulatory response could have been more severe.

AUSTRAC has launched enforcement actions against 13 crypto businesses and warned over 50 others of potential compliance failures in 2024.
The regulator is also addressing dormant registrations and plans to publish a public registry of registered providers soon.
Andrew Charlton was recently appointed as Assistant Minister for Science, Technology, and the Digital Economy, signaling a broader push to modernize crypto regulation in Australia.

“We need to action these reports as soon as possible, which is why the timeframes are put in place – they allow us to move with pace and alert our partners to suspected criminal conduct.” – AUSTRAC CEO Brendan Thomas

Fine Amount	$75,120
Number of Crypto Businesses Facing Enforcement	13
Number of Warnings Issued	50+

Summary: Cointree’s fine highlights AUSTRAC’s intensified oversight of the crypto sector, with a focus on timely reporting and compliance. (Source: Decrypt)

S.E.C. Investigates Coinbase Over User Metrics and Data Breach

The Securities and Exchange Commission (S.E.C.) is investigating whether Coinbase, the largest U.S. cryptocurrency exchange, misstated its user numbers in past disclosures, according to The New York Times. The inquiry, which began during the Biden administration and has continued under President Trump, focuses on Coinbase’s claim of having more than 100 million “verified users.” This metric appeared in the company’s 2021 public offering document but was discontinued two years later. Coinbase has since shifted to reporting “monthly transacting users” instead.

Coinbase has been in communication with the S.E.C. throughout the year and has hired the law firm Davis Polk & Wardwell to assist with its response. Paul Grewal, Coinbase’s chief legal officer, described the investigation as “a holdover investigation from the prior administration about a metric we stopped reporting two and a half years ago.” The S.E.C. has contacted former Coinbase employees for information about the “verified user” figure. In 2022, CEO Brian Armstrong stated the company had 103 million verified users, but public filings included a caveat that the figure might “overstate the number of unique customers.”

Coinbase, now worth over $60 billion and recently added to the S&P 500, also revealed a data breach that could cost up to $400 million to resolve. The breach exposed customers’ private information and was the result of a social engineering attack involving bribed overseas support agents. The company has promised to reimburse affected customers and has implemented additional security measures.

Coinbase’s “verified user” metric was cited in filings until 2023, with a peak figure of 103 million users.
The S.E.C. dropped more than a dozen lawsuits and investigations against crypto firms since January, including a 2023 case against Coinbase.
The data breach affected less than 1% of Coinbase’s monthly transacting users and led to an extortion attempt for $20 million.

“While we strongly believe this investigation should not continue, we remain committed to working with the S.E.C. to bring this matter to a close.” – Paul Grewal, Coinbase Chief Legal Officer

Coinbase Valuation	$60 billion+
Peak Verified Users	103 million
Potential Data Breach Cost	$400 million

Summary: The S.E.C. continues to scrutinize Coinbase’s past user metrics, while the company faces significant costs from a recent data breach. (Sources: The New York Times, PYMNTS.com, Computing UK)

Bitget, a leading cryptocurrency exchange and Web3 company, reported significant growth in April 2025, according to its Transparency Report highlighted by GlobeNewswire. Despite a broader market correction, Bitget’s futures trading volume reached $757.6 billion, marking a 17.3% month-on-month increase. Spot trading volume also rose to $68.6 billion. These results contributed to Bitget’s rise as the third largest crypto exchange by trading volume, with a market share of 7.2%.

Bitget surpassed 120 million users and secured both DASP and BSP licenses in El Salvador, enabling it to offer a full suite of crypto services under a progressive regulatory framework. The company also launched Bitget Onchain, allowing users to trade on-chain assets directly through its app. To support institutional growth, Bitget upgraded its Liquidity Incentive Program, improving maker-taker rates and onboarding speed. Marketing initiatives included partnerships with FC Barcelona star Raphinha and the “Your Team, Your Skin” campaign with LALIGA.

Futures trading volume: $757.6 billion (+17.3% MoM)
Spot trading volume: $68.6 billion
Market share: 7.2% (3rd largest globally)
User base: 120 million+
Bitget Wallet surpassed 80 million users globally
Regulatory licenses obtained in El Salvador

Futures Trading Volume	$757.6 billion
Spot Trading Volume	$68.6 billion
Market Share	7.2%
Total Users	120 million+
Bitget Wallet Users	80 million+

Summary: Bitget’s April 2025 report demonstrates robust growth, regulatory progress, and user engagement, positioning it as a top global crypto exchange. (Source: GlobeNewswire)

Kidnap Attempt Targets Family of French Crypto Exchange CEO

The daughter and grandson of the CEO of French crypto exchange Paymium were targeted in a failed kidnap attempt in Paris, as reported by CoinDesk. Three masked men attacked the woman and another person, but a shop owner intervened with a fire extinguisher, causing the attackers to flee. The incident adds to a series of crypto-related kidnappings in France, including the January abduction of Ledger co-founder David Ballard and a May case involving the father of a French crypto millionaire, both of whom suffered severe injuries.

French Interior Minister Bruno Retailleau announced plans to meet with crypto entrepreneurs to discuss enhanced protection measures. The Paris prosecutors office has opened an investigation into the latest attack. Chainalysis CEO Jonathan Levin commented on the traceability of ransom payments, emphasizing law enforcement’s success in holding perpetrators accountable.

Recent kidnappings in France have targeted individuals with crypto ties.
Victims in previous cases suffered physical harm, including the loss of fingers.
Authorities are increasing efforts to protect the crypto community.

Summary: The failed kidnap attempt highlights growing security risks for crypto entrepreneurs in France, prompting government action. (Source: CoinDesk)

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