The UK's Financial Conduct Authority conducted raids on eight properties across London as part of a criminal investigation into alleged illegal cryptocurrency trading by unregistered individuals, marking the regulator's first joint operation of this nature alongside police and customs officials.
The FCA said it issued cease-and-desist letters at each of the properties and gathered evidence to support its ongoing investigations. The action reflects the regulator's efforts to crack down on unauthorized crypto trading ahead of a broader regulatory framework for the sector, set to take effect in September 2027.
Crypto trading service providers have been required to register with the FCA and comply with its anti-money laundering rules since January 2020. The FCA confirmed that the individuals at the raided properties were engaged in peer-to-peer crypto trading, in which digital assets are exchanged directly between individuals rather than through a centralized exchange. The regulator noted that no peer-to-peer crypto traders or platforms in the UK are currently registered as required.
Federal prosecutors have charged a US soldier involved in planning the January raid to capture Venezuelan leader Nicolas Maduro with placing prediction-market trades tied to the mission, reportedly earning more than $400,000 in the process.
According to a federal indictment unsealed Thursday, Gannon Ken Van Dyke allegedly used classified information to place bets on the prediction market platform Polymarket. Van Dyke, an active-duty soldier stationed at Fort Bragg in North Carolina, allegedly placed approximately 13 bets totaling $33,034 between December and January on positions including "US Forces in Venezuela" and "Maduro out" by January 31, while in possession of classified information.
After reportedly netting $409,881 in profits, Van Dyke allegedly transferred the majority of his winnings to a foreign cryptocurrency wallet and subsequently to a new online brokerage account.