Act I : The AI Prophecy Kurs ACT

According to CNBC, U.S. President Donald Trump has granted pardons to the three co-founders of cryptocurrency exchange BitMEX. In October 2020, the U.S. Department of Justice charged them with violating the Bank Secrecy Act. In 2022, they pleaded guilty and each agreed to pay a

Anthony Scaramucci, founder of SkyBridge Capital, says New York’s Martin Act, an anti-fraud statute enacted in 1921, should be repealed. The SkyBridge Capital founder’s call for the abolishing of the law comes in the wake of the New York Attorney General’s $200 million settlement settlement with Galaxy Digital . And it all relates to the collapsed LUNA ( LUNA ) token. In a post on X , Scaramucci, labelled the Martin Act as a “dangerously powerful” law whose application is likely to be abused and lead to legal overreach. The Martin Act allows the NYAG to bring lawsuits against parties deemed to have violated its stipulations, but according to Scaramucci, the sweeping authority allowed the AG in terms of investigation and penalties can be abused. With no need to prove intent, the Act comes short. It’s “low standard of proof” is what the SkyBridge Capital founder says is dangerous. To him, this law “shouldn’t exist,” and NYAG’s use of the Act to reach the $200 million settlement with Galaxy Digital is “lawfare pure and simple.” He added that the case and the settlement is at odds with actions taken by the United States Securities and Exchange Commission and the Department of Justice. “This makes no sense and is completely at odds with the SEC and DOJ which have been pursuing actions against Do Kwon and Terraform,” he posted. “It’s [lawfare] pure and simple due to an obscure but dangerously powerful New York law known as the Martin Act. The law has no need to prove intent, creating a low standard of proof that can open the door for abuse like this. It shouldn’t exist.” In its investigation, the NYAG alleged financial misconduct on the part of Galaxy Digital, claiming the firm’s marketing of LUNA eventually harmed retail. The crypto project’s collapse in May 2022 saw more than $40 billion in value vanish into thin air. Scaramucci says Galaxy Digital and its chief executive Michael Novogratz were deceived by bad actors – Terraform Labs and its founder Do Kwon . “Novogratz is a dear friend and one of the smartest investors I know. Everything he ever said about Luna was because he thought it was true based on the deception perpetrated by the real bad actors here, Do Kwon and Terraform Labs.” Despite the sentiment on the Martin Act, Scaramucci’s remarks on Novogratz have largely been criticized on social media. Many say Galaxy Digital “was paid” to pump LUNA and it reaped huge profits as alleged in the investigation.

The Federal Deposit Insurance Corporation has issued new guidance allowing FDIC-supervised institutions to engage in permissible crypto-related activities without prior agency approval. This marks a reversal from previous policies that were seen as restrictive toward banks working with crypto firms. The guidance , released in Financial Institution Letter (FIL-7-2025), rescinds a 2022 directive that required banks to notify the FDIC before engaging in digital asset activities. The FDIC stated that banks may now participate in crypto-related ventures as long as they effectively manage associated risks. The policy shift follows the release of 175 FDIC documents earlier this year, revealing efforts by the previous administration to pressure banks into cutting ties with crypto firms. These documents were made public in response to a Freedom of Information Act request filed by Coinbase , which sued the FDIC in 2024 over alleged unfair practices. “With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Acting FDIC Chairman Travis Hill. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.” The records detail instances of the FDIC instructing banks to pause or suspend services to crypto-related businesses, a practice that critics dubbed “Operation Choke Point 2.0.” The agency frequently cited reputational risks and market volatility as reasons for discouraging financial institutions from working with crypto firms. The FDIC indicated it will continue working with the President’s Working Group on Digital Asset Markets and collaborate with other banking agencies to develop clearer guidance on crypto-related activities.

Former President Donald Trump has pardoned BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed. The three had previously pleaded guilty to federal charges related to money laundering and regulatory violations, according to CNBC reporting . The three executives were convicted for failing to implement anti-money laundering measures at BitMEX, which prosecutors labeled a “money laundering platform.” Reed admitted to violating the Bank Secrecy Act in 2022 and agreed to pay a $10 million fine. Despite BitMEX’s claims of withdrawing from the U.S. market, authorities alleged that the move was a “sham.” In January, BitMEX was ordered to pay a $100 million penalty for violating U.S. banking laws. A federal judge ordered HDR Global Trading Limited, BitMEX’s parent company, to pay the penalty along with a two-year unsupervised probation sentence. BitMEX sought a buyer earlier this year and enlisted Broadhaven Capital Partners for the sale. Reports indicated the investment bank was appointed in late 2024 to facilitate the deal. The move followed increasing mergers and acquisitions in the crypto derivatives sector. Trump issued the pardons on Thursday, according to CNBC, the same day Trevor Milton, the former CEO of Nikola, announced that he had received clemency for his securities fraud conviction. Milton had been sentenced to four years in prison but remained free on appeal.

Trump pardons BitMEX co-founders over AML violations CNBC reported that the U.S. President Donald Trump has pardoned BitMEX exchange co-founders Arthur Hayes, Benjamin Delo and Samuel Reed. The trio had pleaded guilty to violating the Bank Secrecy Act and agreed to pay $10