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Nintendo seeks $4.5m against reddit moderator accused of pirating Switch games, in latest crackdown against piracy
Game Reviews

Nintendo seeks $4.5m against reddit moderator accused of pirating Switch games, in latest crackdown against piracy

by admin October 7, 2025


Nintendo is seeking $4.5m in damages against a reddit moderator the company has accused of pirating its games.

The lawsuit was filed earlier this month with the US District Court for the Western District of Washington (thanks OatmealDome), and according to a document, Nintendo is accusing James Williams (known as “Archbox”) of piracy having “facilitated a network of unauthorised ‘shops’…that have offered to the public extensive libraries of pirated Nintendo Switch games for download.”

Nintendo has accused Williams of copying and distributing its games, as well as actively promoting their distribution as a moderator on the SwitchPirates reddit group.

Super Mario Galaxy + Super Mario Galaxy 2 – Overview Trailer – Nintendo SwitchWatch on YouTube

“Since 2019, Williams has been either directly or indirectly the owner, manager, operator, creator, administrator, supplier, and/or overseer of several online Pirate Shops, and has worked to actively promote these Pirate Shops to communities consisting of many thousands of individuals,” the document reads.

Williams has been “instrumental in the planning, development, functioning, and proliferation” of these shops, while further promoting the shops, soliciting donations, and offering “technical advice and encouragement” through his position as moderator on reddit.

Further, Nintendo claimed Williams was “directly involved in creating, promoting, and distributing the Circumvention Software to facilitate widespread use of the Pirate Shops”.

Ahead of this lawsuit, Nintendo sent Williams a cease and desist letter back in March 2024. In response, Williams acknowledged his conduct violated Nintendo of America’s rights and “stated that he would work with NOA to satisfy its demands”. However, Nintendo claimed he did not agree to cease his conduct and denied involvement with the piracy shops.

“When NOA requested that Defendant confirm in writing that he would comply with NOA’s demands, he became combative and uncooperative,” said Nintendo.

Since then, some of the piracy shops (or their content) have become inaccessible, while Williams is also accused of deleting or hiding evidence relevant to Nintendo’s claims (such as social media posts).

Nintendo sent Williams a final opportunity to comply in May 2024, to which he stated an attorney would be in contact with Nintendo. However, “NOA never received any such outreach, and its efforts to contact Defendant’s purported counsel were ignored,” the document reads.

As a result, Nintendo has requested a default judgement be granted against Williams, along with damages of $4.5m due to a number of violations including copyright infringement, trafficking in circumvention devices, and breach of contract.

“Here, the amount of money sufficient to remedy NOA’s injury would be extremely difficult to quantify; but it is indisputable that such amount would be large,” the document reads. “Therefore, the money at stake by this Motion is nowhere near an amount that would compensate NOA for the seriousness of Defendants’ conduct.”

This lawsuit is the latest in Nintendo’s ongoing actions against piracy.

Back in March, Nintendo claimed its victory over French file-sharing company Dstorage was “significant…for the entire games industry”. Then, in July, the FBI seized a number of ROM piracy sites it claimed had seen cumulative downloads of 3.2m in just three months, representing “an estimated loss of $170m.



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October 7, 2025 0 comments
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Tether
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Tether Seeks To Raise $200 Million For Tokenized Gold Treasury – Report

by admin October 5, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

According to a recent report, the world’s largest stablecoin company, Tether, and a partner firm are looking to raise capital for a digital asset treasury company that would accumulate its tokenized gold.

Tether To Launch Digital Asset Treasury Firm With XAUT: Report

On Friday, October 3rd, Bloomberg reported that Tether and financial services firm Antalpha Platform Holding are leading an effort to raise at least $200 million to set up a digital asset treasury company. Citing unnamed sources close to the matter, this public vehicle would use the capital to purchase XAUT, Tether’s gold token.

Bloomberg revealed that Antalpha Platform Holding has close ties to Bitmain Technologies, the world’s largest Bitcoin hardware supplier based in China. According to a report from the University of Cambridge Judge Business School, the Bitcoin hardware manufacturer supplies about 82% of the world’s crypto mining machines.

Bloomberg posited that this capital-raising effort would further strengthen the relationship between two of the largest companies in the global crypto industry. Meanwhile, this venture would represent a continuation in digital asset treasury companies’ craze happening this year, with more than 80 firms set up so far in 2025.

Furthermore, the report revealed that asset manager Cohen & Company is the lead advisor on the deal, with further talks kept private. While most parties declined to comment, Tether reportedly pointed out a post on the social media platform X about its recent announcement with Antalpha.

Source: @paoloardoino on X

As per the post on X, Antalpha revealed that it would be integrating Tether Gold into its Real-World Assets (RWA) Hub, offering tokenized gold-backed lending and infrastructure solutions. The financial services firm also announced that it would set up physical vaults in major financial centers around the world to allow holders to exchange the tokens for gold bars.

This move to offer XAUT-backed lending came after Tether had purchased an 8.1% stake in Antalpha during its initial public offering (IPO) earlier in May 2025. 

Tether Gold, launched in 2020, offers investors an exposure to gold without physically owning the metal. With a market capitalization of about $1.5 billion, Tether claims that the almost 250,000 XAUT tokens in circulation are backed by an equivalent of more than 7.66 tons of gold.

USDT Market Cap At $175 Billion

At the same time, Tether owns the largest dollar-backed stablecoin and the fourth-largest digital asset in the cryptocurrency market, with a market cap of more than $175 billion.

The USDT market cap at $176 billion on the daily timeframe | Source: USDT chart on TradingView

Featured image from Pexels, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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October 5, 2025 0 comments
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Wisconsin Bill Seeks to Exempt Crypto Activities From Money Transmitter Laws

by admin September 30, 2025



In brief

  • Wisconsin’s Assembly Bill 471, introduced Monday, would exempt crypto users from licensing when accepting payments, using self-hosted wallets, running nodes, developing software, and staking.
  • The bill would prohibit state agencies and local governments from restricting these fundamental blockchain activities.
  • The move follows Wisconsin’s $300 million Bitcoin ETF liquidation in Q1 2025 and Democrats’ bills targeting crypto kiosk fraud.

Wisconsin lawmakers introduced legislation Monday that would shield crypto users and businesses from state licensing requirements, just months after the state dumped its entire $300 million Bitcoin ETF stake.

Assembly Bill 471, a moderate bipartisan measure with nine sponsors, would exempt individuals and businesses from money transmitter licensing when accepting cryptocurrency payments, using self-hosted wallets, running blockchain nodes, developing software, or participating in staking operations.

The bill was referred to the Committee on Financial Institutions, where it now awaits review. The legislation explicitly bars state agencies and political subdivisions from prohibiting or restricting these activities.



The measure would create exemptions for anyone “operating a node or a series of nodes on a blockchain,” “effectuating the exchange of one digital asset for another digital asset if there is no exchange of digital assets for legal tender,” “developing software on a blockchain,” or engaged in “digital asset mining or staking,” according to the bill text.

Under the legislation, state agencies and local governments wouldn’t be able to “prohibit, restrict, or otherwise impair” residents from accepting digital assets as payment or taking custody of crypto “using a self-hosted wallet or hardware wallet.”

“If this bill passes, it’ll help attract more crypto-native businesses to Wisconsin—think DEXs, staking providers, and other fully on-chain platforms,” Ruchir Gupta, co-founder of Gyld Finance, told Decrypt. “Just as importantly, it sets a useful precedent for other states by showing what regulatory clarity can look like.”

Gupta cautioned the legislation wouldn’t fundamentally transform crypto operations since “most providers operate across multiple states and will still be subject to FinCEN registration and compliance.”

He noted the bill “doesn’t really impact banks and payment processors,” since on- and off-ramps continue to operate under existing money transmitter licenses.

Wisconsin and crypto

In May, SEC filings revealed that the State of Wisconsin Investment Board quietly liquidated its entire $300 million stake in BlackRock’s iShares Bitcoin Trust during Q1 2025, just ahead of tariff-driven market turmoil that sent Bitcoin below $75,000.

In August, the state’s Democratic lawmakers introduced twin bills requiring money transmitter licenses for crypto kiosks, citing a 99% surge in fraud complaints that cost victims nearly $247 million in 2024.

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September 30, 2025 0 comments
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Stablecoin Titan Tether Seeks $500 Billion Valuation on $20 Billion Raise: Report

by admin September 24, 2025



In brief

  • Tether is seeking to raise up to $20 billion, according to a report.
  • The private raise could give the stablecoin issuer a valuation of $500 billion.
  • AI giant OpenAI and Elon Musk’s SpaceX have received similar valuations.

Stablecoin giant Tether Holdings is hoping to raise up to $20 billion in a private placement that could give the company a monetary value of up to $500 billion, Bloomberg reported on Tuesday, citing two unnamed sources.

The valuation would cast the issuer of USDT, the world’s largest stablecoin, into the ranks of artificial intelligence developer OpenAI and Elon Musk’s space transport company SpaceX, which received similar valuations.

El Salvador-based Tether is aiming to raise $15-$20 billion for an approximate 3% stake, Bloomberg reported, although an additional source said that the range was a goal and could be much lower. The sources said discussions were in the initial stages and that the deal could change.



The announcement is the latest evidence of the rising significance of stablecoins, a result of the friendlier political and regulatory environment in the U.S. under the Trump administration, including the Genius Act greenlighting the issuance and trading of stablecoins.

During a White House visit in July shortly before the passage of the legislation, Tether CEO Paolo Ardoino, told Decrypt of the firm’s plans to create USAT, a U.S.-specific stablecoin catering to different use cases than USDT, the company’s flagship stablecoin. In September, the company named Bo Hines, former executive director of the White House’s digital assets working group, to serve as USAT’s CEO.

Earlier in the summer, stablecoin rival Circle listed on the New York Stock Exchange. The stock’s debut outpaced those of tech behemoths Meta, Robinhood, and Airbnb, nearly quadrupling its initial offer price of $31. The company currently has a valuation above $30 billion, according to Yahoo Finance data.

Tether has a market cap of $172 billion, more than double Circle’s $74 billion value, according to crypto data provider CoinGecko.

On Tuesday at a conference in Seoul, Hines said during an interview that Tether has no plans to raise money, Bloomberg reported. The deal would involve new shares, not current investors selling their equity. Investment bank Cantor Fitzgerald is serving as the lead adviser.

In recent weeks, potential investors have received access to a data room as they consider their participation, the publication reported, which added that a deal is expected to close by year’s end.

According to its own attestation in July, Tether issued $20 billion in USDT through the first six months of the year and generated a net profit of $5.7 billion over this period, including $4.9 billion in its second quarter alone. The firm counts Bitcoin and gold among its holdings.

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September 24, 2025 0 comments
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GENIUS Act
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US Treasury Seeks Public Comment On Implementation Of GENIUS Act – Details

by admin September 21, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The United States Treasury Department has opened a request for public comment on the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The GENIUS Act, signed into US law in July, was designed to provide a regulatory framework for stablecoin issuers.

This latest call for public input comes exactly a month after the Request for Comment on Innovative Methods to Detect Illicit Activity linked to payment stablecoins. At the time, the US Treasury was interested in gathering feedback on different technologies to identify and combat the risks associated with these dollar-backed digital assets.

Call For Public Comment On Stablecoin Act To Close In 30 Days

On Thursday, September 18, the US Department of the Treasury issued an Advance Notice of Proposed Rulemaking (ANPRM), calling on the public for comments on the implementation of the GENIUS Act. This request will allow a wide range of stakeholders to contribute, by offering data and other information, to the implementation of this law.

The press release read: 

The GENIUS Act tasks the Treasury with issuing regulations that encourage innovation in payment stablecoins while also providing an appropriately tailored regime to protect consumers, mitigate potential illicit finance risks, and address financial stability risks.

This notice asked for comments and views on a plethora of questions, including whether extra clarity is needed on the amount of reserve assets required to be held in custody. “Are there foreign payment stablecoin regulatory or supervisory regimes, or regimes in development, that may be comparable to the regime established under the GENIUS Act?” another question posed.

Some of the other questions asked in this notice include marketing restrictions, balancing state-level and federal oversight, and the application of Bank Secrecy Act (BSA), anti-money laundering regulations, and sanctions obligations. The Treasury Department noted that the public should submit their comments in response to the ANPRM within 30 days of publication in the Federal Register.

Crypto Market Structure Bill To Undergo Vote In September 

Indeed, signing the GENIUS Act into law represented a major breakthrough in regulating the crypto landscape in the United States. In its next move, the US Senate is looking to hold a vote on the crypto market structure bill, titled the Responsible Financial Innovation Act 2025, before the end of September.

The digital market structure bill is aimed at clarifying the roles of various financial agencies in the oversight and enforcement of crypto regulations. In an updated version, the Senate Banking Committee addressed the issue of blockchain developers being treated as financial institutions and non-fungible tokens (NFTs) being treated as securities.

The total crypto market cap on the daily timeframe | Source: TOTAL Chart on TradingView

Featured image from iStock, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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September 21, 2025 0 comments
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FCA crypto proposal seeks full UK oversight for firms by 2026
Crypto Trends

FCA crypto proposal seeks full UK oversight for firms by 2026

by admin September 17, 2025



FCA crypto proposals aim to bring digital asset firms under full UK oversight by 2026, spelling out provisions for governance, resilience, and crime prevention. The regulator says the framework mirrors traditional finance rules but will be adapted to reflect crypto’s unique risks.

Summary

  • FCA plans full UK oversight of crypto firms by 2026, adapting TradFi rules for governance, resilience and crime prevention.
  • Proposals include extending the Senior Managers Regime, applying Consumer Duty, and allowing disputes at the Financial Ombudsman.
  • The regulator aims to balance innovation with consumer protection and test the industry’s readiness for stricter oversight.

On September 17, the Financial Conduct Authority announced its proposal for comprehensive cryptoasset regulation, publishing a detailed consultation paper that maps how existing financial rules will be adapted to govern the digital asset sector.

The proposal outlines the application of the FCA Handbook to crypto firms, targeting key areas including operational resilience, financial crime prevention, and senior management accountability.

According to the announcement, the move follows HM Treasury’s draft legislation from April 2025 that legally expands the FCA’s remit to oversee new regulated activities like operating trading platforms, custody, and staking. The regulator is now seeking industry feedback by October and November deadlines, with a final framework slated for 2026.

A closer look at what the FCA is proposing

The FCA’s consultation paper laid out several proposals that show how the financial watchdog intends to bring crypto firms more firmly under regulatory oversight. A central pillar is the full application of the Senior Managers and Certification Regime, which will impose clear accountability on individuals leading crypto firms, a direct response to the industry’s historical opacity.

Firms will also be expected to meet stringent operational resilience standards, mandating robust systems to withstand cyberattacks, outages, and other operational shocks that have previously led to significant consumer losses.

The FCA has also opened a crucial debate on applying its flagship Consumer Duty to crypto activities. This would legally obligate firms to deliver good outcomes for retail customers, a potentially transformative shift from the current caveat emptor environment.

Tied to this is a consultation on integrating cryptoasset disputes into the Financial Ombudsman Service, which would provide a formal, independent redress mechanism for the first time. The FCA itself acknowledges that the inherent volatility of cryptoassets will remain, but these measures aim to insulate consumers from poor business practices and outright fraud.

“We want to develop a sustainable and competitive crypto sector – balancing innovation, market integrity and trust. Our proposals won’t remove the risks of investing in crypto, but they will help firms meet common standards so consumers have a better idea of what to expect,” David Geale, FCA’s executive director of payments and digital finance, said.

The coming consultation period will be a critical test, revealing whether the industry is prepared to operate with the rigor of traditional finance or if it will resist the very structures it has long claimed to seek.



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September 17, 2025 0 comments
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Binance seeks early exit from DOJ's watchful eye
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Binance seeks early exit from DOJ’s watchful eye

by admin September 16, 2025



Binance is reportedly negotiating an early termination of its court-appointed compliance monitor. The move, signaling a potential thaw in regulatory frost, could free the exchange from a key condition of its historic $4.3 billion settlement.

Summary

  • Binance is negotiating with the DOJ to end its court-appointed compliance monitor early, years ahead of schedule, according to Bloomberg.
  • The monitor was part of a $4.3 billion settlement resolving anti-money laundering and sanctions violations.

On September 16, Bloomberg reported that Binance Holdings Ltd. is in advanced, confidential negotiations with the U.S. Department of Justice to terminate its court-appointed compliance monitor years ahead of schedule.

The monitor, Forensic Risk Alliance, was imposed for a three-year term as part of the exchange’s landmark $4.3 billion plea deal in 2023, which resolved allegations of severe anti-money laundering and sanctions violations. This potential early release signals a significant shift in the DOJ’s enforcement strategy regarding corporate oversight.

A rare recalibration in oversight

According to the Bloomberg report, which cited individuals familiar with the confidential negotiations, the DOJ’s willingness to consider an early termination stems from a broader policy reassessment under the current administration.

The shift was telegraphed in an April memo where the Justice Department stated it “is not a digital assets regulator” and would prioritize cases involving clearer federal crimes like terrorism and hacks, rather than using its authority to superimpose regulatory frameworks.

This new directive appears to be a primary driver behind the reassessment of Binance’s monitorship, suggesting prosecutors may now view such oversight as exceeding their intended mandate.

Forensic Risk Alliance, the firm appointed in May 2024, was tasked with auditing Binance’s controls under the plea deal. Frances McLeod, a founding partner at FRA, was installed to oversee whether Binance adhered to anti-money-laundering and sanctions laws, and to test the effectiveness of its remedial programs. Independent monitors of this kind are rarely lifted ahead of time, underscoring the significance of these discussions.

Binance doubles down on compliance

Since the settlement, Binance has moved aggressively to shore up its compliance record. The Wall Street Journal reported the exchange spent an estimated $200 million on compliance in 2024 alone, a figure that aligns with CEO Richard Teng’s stated strategy of making regulatory adherence a “competitive advantage.”

Teng, a former regulator himself who took helm of the exchange from Changpeng Zhao, has also instituted a new seven-person board of directors, moving the company away from its previous centralized leadership structure.

Meanwhile, it is crucial to note that the DOJ monitor is just one piece of a much larger enforcement puzzle. Binance’s global $4.3 billion settlement also included a separate, five-year monitorship with the Treasury Department’s Financial Crimes Enforcement Network which appointed a monitor from Sullivan & Cromwell.

The arrangement was part of a record $3.4 billion settlement with FinCEN and a $968 million settlement with OFAC for enabling over 1.67 million trades between U.S. users and those in sanctioned jurisdictions. There is no indication yet that these separate Treasury-mandated monitorships are under similar review.



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September 16, 2025 0 comments
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Charlie Kirk Shooting Suspect Charged as Prosecutor Seeks Death Penalty
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Charlie Kirk Shooting Suspect Charged as Prosecutor Seeks Death Penalty

by admin September 16, 2025


Utah County prosecutors on Tuesday charged Tyler Robinson in the shooting death of conservative activist Charlie Kirk at Utah Valley University, a murder officials say was politically motivated. They intend to seek the death penalty.

Utah County Attorney Jeff Gray announced the indictment at a midday news conference, listing charges of aggravated murder, felony discharge of a firearm causing serious bodily injury, and commission of a violent offense in the presence of a child. Robinson, 22, is also charged with two counts of obstruction and two counts of witness tampering.

“Charlie Kirk was murdered while engaging in one of our most sacred and cherished American rights,” Gray said. “The bedrock of our democratic republic is the free exchange of ideas in a search for truth, understanding, and a more perfect union.”

Gray said that the murder was considered an aggravated offense because it was believed to be motivated by the victim’s political expression. On the matter of the death penalty, he added: “I do not take this decision lightly, and it is a decision I have made independently as county attorney based solely on the available evidence and circumstances and nature of the crime.”

Robinson will make his first court appearance at 3 pm MST on Tuesday.

Kirk, 31, was fatally shot on September 10 while taking questions from students. The cofounder of Turning Point USA, he was credited with galvanizing young conservatives and playing a pivotal role in Donald Trump’s 2024 White House return.

The shooting sparked chaos on campus, where delayed and contradictory emergency alerts left many students and faculty scrambling in confusion. Vigils for Kirk have since been held in Arizona, New York, and Washington, among other states. Across the US, Kirk’s murder has become both a rallying cry for far-right retribution and fuel for an assault on civil society.

Investigators claim forensic evidence links Robinson to the shooting, with FBI director Kash Patel telling Fox & Friends that matching DNA was found on a towel wrapped around the rifle and on a screwdriver recovered from the rooftop where the fatal shot was fired. Patel also said investigators believe Robinson wrote a note of his alleged intent to kill Kirk, bolstering claims the attack was premeditated.

An indictment released Tuesday adds vivid details to the allegations. Prosecutors say surveillance footage captured Robinson climbing onto a campus rooftop, lying prone in a “sniper position,” and firing from nearly 160 yards away. Investigators recovered cartridges at the scene with hand-engraved messages, which prosecutors argue points to premeditation and motive.

Prosecutors also cited interviews with Robinson’s parents and roommate, who said he expressed anger that Kirk “spreads too much hate” and admitted he had “enough of his hatred.” The filing further alleges that Robinson told his roommate to stay silent if approached by police and that children were visible near the stage when Kirk was shot—factors prosecutors say aggravated the seriousness of the crime.

The indictment recounts an interview with Robinson’s mother, who told investigators her son had grown more political in the past year “and had started to lean more to the left,” the indictment claims, citing “pro-gay” and “trans-rights” views. She described him as becoming increasingly consumed by online debates and grievances, noting his fixation with political topics seemed to intensify in the weeks leading up to the shooting, the indictment says. She added that Robinson had also begun to date his roommate, a transgender woman, adding that his father has “very different political views.” The roommate is said to be fully cooperating with the government.



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September 16, 2025 0 comments
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Canary Seeks Sec Nod For Spot Litecoin Etf With 0.95% Fee
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Canary Seeks SEC Nod for Spot Litecoin ETF With 0.95% Fee

by admin September 16, 2025



Canary Capital plans to charge a 0.95% yearly fee for its proposed spot Litecoin ETF, according to new regulatory documents. The move comes as the asset manager seeks regulatory approval to launch one of the first exchange-traded funds directly tied to Litecoin’s price movements.

Fee Structure and Prospectus Filing

According to the filing, the Canary Litecoin ETF would charge investors a 0.95% annual expense ratio if approved. 

The document notes: “The information in this Preliminary Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Preliminary Prospectus is not an offer to sell these securities, and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.”

The filing, dated September 15, 2025, outlines that the ETF will trade on the Nasdaq Stock Market under the sponsorship of Canary Capital Group LLC. CSC Delaware Trust Company is listed as trustee, while U.S. Bancorp Fund Services, LLC will serve both as transfer agent and administrator. U.S. Bank, N.A., will act as cash custodian. 

On the crypto side, Coinbase Custody Trust Company and BitGo Trust Company Inc. are named as custodians to securely hold the ETF’s Litecoin reserves.

Benchmarking and Structure

The Canary Litecoin ETF is designed to let investors track Litecoin’s price while factoring in the fund’s costs and expenses. Its net asset value (NAV) will be calculated daily using the CoinDesk Litecoin CCIXber 60m New York Rate. This benchmark is derived from a 60-minute time-weighted average price of the LTC-USD CCIXber Reference Rate, which aggregates trading data from multiple major platforms.

SEC Timeline and Industry Context

Bloomberg ETF analyst James Seyffart noted that “@CanaryFunds updates the prospectus filing for their Litecoin ETF. Notably its due for final approval decision (or denial?) by the SEC in the first week of October.”

If cleared, Canary Capital’s product would join the wave of digital asset ETFs emerging beyond Bitcoin, positioning Litecoin as one of the next cryptocurrencies to enter regulated investment vehicles. The decision, expected in early October, could mark a milestone moment for Litecoin’s integration into mainstream financial markets.

Also Read: Bitwise Seeks SEC Approval to Launch Avalanche Spot ETF



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September 16, 2025 0 comments
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DOJ Seeks to Seize $500K in USDT from Iran Drone Supplier’s Private Wallet

by admin September 13, 2025



In brief

  • The U.S. DOJ has filed a civil forfeiture action to recover over $500,000 in USDT from an Iranian national.
  • Per the DOJ, Mohammad Abedini is founder of Iranian firm SDRA, which supplies technology used in Iran’s Shahed military drones.
  • The USDT tokens were said to be kept in an unhosted cryptocurrency wallet, posing questions over how the seizure could be effected.

The United States Attorney’s Office for the District of Massachusetts has filed a civil forfeiture action to recover approximately $584,741 in Tether (USDT) stablecoins from an Iranian national who provided technology to the Iranian military.

The tokens were said to be kept in an unhosted cryptocurrency wallet, though authorities gave no further details.

Mohammad Abedini, 39, is founder and managing director of San’at Danesh Rahpooyan Aflak Co. (SDRA), an Iranian firm that supplies technology used in drones to the country’s military.

SDRA provides navigation equipment to the firm that produces Shahed drones, which have been widely used in Iran’s drone strikes, by Russia in the war in Ukraine, and by several Middle Eastern military groups.

In January 2024, three U.S. service members were killed on a military base in northern Jordan. Later analysis revealed that an Iranian Shahed UAV using SDRA’s Sepehr Navigation System was responsible for the attack, according to the DOJ.

Abedini is charged with providing material support to foreign terrorist organizations resulting in death, as well as conspiring to procure sensitive U.S. technology used in military drones. He was detained by Italian authorities in December 2024, but was released in January 2025. Per the DOJ, he is now believed to be in Iran.

According to claims from the nonprofit Iran Watch, from 2016 to 2024, Abedini and his business partner allegedly smuggled U.S.-origin electronics and technical data from American manufacturers and re-exported them from Switzerland to Iran. Because the devices were so small, they could reportedly have been carried in a suitcase. These allegations have not yet been proven.

Can the government seize crypto from private wallets?

Seizing crypto from private wallets is not straightforward. Unlike centralized exchanges such as Coinbase or Binance, there is no intermediary for governments to compel—wallet owners control their own keys. However, the U.S. government has managed to do it before.

In 2022, the DOJ seized 94,000 BTC (worth roughly $3.6 billion at the time) from Ilya Lichtenstein and Heather Morgan, who carried out the record-breaking Bitfinex hack.

According to the announcement, investigators traced the stolen Bitcoin through multiple mixers and eventually located the couple’s private keys after gaining access to an online cloud storage account.

In other instances, federal investigators have performed digital forensics on confiscated laptops in order to obtain private keys, as in the case of Silk Road founder Ross Ulbricht.

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