Bitcoin jumps as Trump softens Powell stance

Crypto CEO charged over $198M Ponzi scheme

The U.S. Securities and Exchange Commission has filed its first major crypto enforcement case under new Chairman Paul Atkins, charging PGI Global CEO Ramil Palafox with running a $198 million Ponzi scheme disguised as an AI-powered crypto trading platform.

According to the SEC’s complaint, filed Tuesday in the Eastern District of Virginia, Palafox used the funds to enrich himself and associates – buying luxury homes, Lamborghinis, and $1.18 million in Cartier jewelry – while falsely claiming investor profits were generated through “Auto Trading” powered by artificial intelligence.

“His false claims of crypto industry expertise and a supposed AI-powered auto-trading platform were just masking an international securities fraud,” said Laura D’Allaird, chief of the SEC’s Cyber Unit.

From 2020 to 2021, PGI Global sold “membership packages” promising up to 200% returns. But the SEC says little to no trading occurred. Fake dashboards and circular transactions were allegedly used to simulate activity while funds were diverted to family members and shell companies.

The case also names Palafox’s wife, mother, and brother-in-law as relief defendants for receiving luxury goods and a $320,000 mortgage payoff. Prosecutors are seeking to permanently ban Palafox from any crypto or MLM securities activity. A related criminal investigation is underway.

Clayton takes helm at powerful SDNY office

Former SEC Chair Jay Clayton has been sworn in as U.S. Attorney for the Southern District of New York – one of the country’s most powerful legal posts – bringing his crypto enforcement experience to a new stage.

Appointed on an interim basis by President Trump, Clayton pledged to prioritize financial system integrity and fraud protection, especially for “the elderly and most vulnerable.”

During his SEC tenure (2017–2020), Clayton led 57 crypto-related actions, including the original case against Ripple. The SEC dropped its Ripple appeal just this month.

Clayton’s track record includes unanimous commission votes in 50% of actions – higher than his successor Gary Gensler’s 37%. Since leaving public office, he advised crypto firms One River and Fireblocks and helped push a Bitcoin ETF to market.

His SDNY appointment could signal tougher criminal enforcement ahead for crypto’s bad actors.

Bitcoin soars to monthly high above $93,000

Bitcoin surged 4.7% to $93,500 Tuesday evening in New York, tracking broader market optimism as U.S. officials softened rhetoric on both China trade tensions and Federal Reserve Chair Jerome Powell’s job security.

“Gold’s recent spike and reversal is telling,” said Merkle Tree Capital CIO Ryan McMillin. “It often signals Bitcoin is next.”

He noted that capital rotation from gold into BTC could be underway, with global liquidity poised to expand. Crypto analyst Jamie Coutts suggested that a 10% increase in global money supply – $13 trillion – could drive Bitcoin as high as $186,000.

Despite the rally, some traders flagged caution due to high funding rates and weakening on-chain activity. But for now, macro sentiment appears tilted in Bitcoin’s favor.

Yuga Labs moves to seize Cahen’s crypto

Yuga Labs has filed a motion in federal court to seize $400,000 in crypto assets from influencer Jeremy Cahen (aka Pauly0x), alleging he transferred funds to evade asset levies following a $9 million judgment.

The case stems from Cahen and Ryder Ripps’ controversial “RR/BAYC” NFT project, which a court ruled infringed Yuga’s Bored Ape trademark. Cahen allegedly moved nearly $400K in ETH, BTC, and PEPE coin after U.S. Marshals attempted to freeze his Gemini account.

Yuga Labs says Cahen has flouted the court’s orders, refusing to pay or comply with post-judgment discovery. He remains on San Juan’s top 10 most wanted list for unrelated assault charges.

$3B Bitcoin SPAC in the works

A new Bitcoin acquisition firm spearheaded by Brandon Lutnick – son of U.S. Commerce Secretary Howard Lutnick – is set to launch with support from Tether, SoftBank, and Bitfinex, according to a report by the Financial Times.

Dubbed 21 Capital, the firm will operate via Cantor Equity Partners, a SPAC that raised $200 million in January. The consortium aims to mirror Strategy’s publicly traded BTC strategy, converting crypto into equity priced at $10 per share, valuing Bitcoin at roughly $85,000.

The deal could mark a major milestone in institutional Bitcoin investment, especially under a more favorable Trump administration stance.

Tether is expected to contribute $1.5 billion, with SoftBank adding $900 million and Bitfinex $600 million. Cantor Fitzgerald, where Secretary Lutnick remains Chairman and CEO, is also behind a separate $2B Bitcoin lending program.

A launch announcement is expected in the coming weeks, though terms remain subject to change.

Crypto tightens its grip on global finance

Today’s developments paint a picture of a rapidly maturing crypto landscape. SEC Chair Paul Atkins is wasting no time sending enforcement signals with the PGI Global case, while Jay Clayton’s return to SDNY adds weight to future prosecutions.

On the corporate front, Brandon Lutnick’s 21 Capital could become a new publicly traded Bitcoin heavyweight. Meanwhile, Bitcoin’s price surge reminds investors why the asset still matters in a macro landscape increasingly defined by money printing and geopolitical instability.

As the legal system catches up to past frauds and traditional finance embraces digital assets, crypto continues to straddle the line between speculation and institutional legitimacy – driven by personalities, policy shifts, and the persistent appeal of financial alternatives.