U.S. Seizes $15B in Bitcoin, FCA Explores Fund Tokenisation, Japan Targets Crypto Insider Trading, Crypto's Impact on U.S. Midterms (#229 – Oct 2025)

Sponsored by Kula

1. U.S. Government Seizes $15 Billion of Bitcoin From Pig Butchering Scam

The U.S. DOJ filed its largest-ever forfeiture action against 127,000 Bitcoin—worth around $15 billion—from a UK and Cambodian national, Chen Zhi, the founder and chairman of Prince Group, a multinational business conglomerate based in Cambodia.

He is accused of engaging in crypto investment fraud schemes, known as “pig butchering” scams, that stole billions of dollars from victims in the United States and around the world. The defendant remains at large.

This is important for two reasons:

Pig butchering scams (where generally male victims are approached on social media by what they believe are beautiful women) are a serious problem.

It is estimated that around $10 billion was scammed from victims last year alone in such schemes—but that number is likely underreported, as many victims are too ashamed to come forward. For most of these victims, these scams are their first interaction with crypto. So any action against these scammers is positive.

Second, the U.S. is now holding around $35 billion in seized Bitcoin. This not only makes the U.S. the country with the largest Bitcoin holdings, but these seizures also align with the Bitcoin Strategic Reserve proposed by the White House as a tax-neutral way to increase Bitcoin reserves.

__

2. UK’s FCA Launches Fund Management Tokenisation Consultation

The FCA issued a consultation to explore how blockchain and tokenisation could be used to modernise the asset management industry.

This is a positive development for two main reasons.

First, the UK is a leading asset management hub, with around 2,600 firms managing £14 trillion in assets. So while the UK and the FCA are far behind regulators like Dubai or Hong Kong when it comes to crypto regulation, this is an area where the UK has a natural edge—so capitalising on it makes sense.

Second, the asset management industry, especially when it comes to private funds, is still stuck in the past—with fund administrators, custodians, auditors, and paper subscription documents that haven’t evolved in decades. This is a vertical within financial services that is long overdue for disruption.

Will the UK and the FCA succeed? Time will tell—but it’s definitely worth trying.

Sponsored by Kula

Kula is a decentralised impact investment firm that transforms overlooked assets into shared prosperity and thriving communities by re-shaping how value and opportunity are recognised worldwide.

By tokenizing real-world assets, we provide opportunity, transparency, and financial sovereignty to historically excluded communities.

Our model aligns economic growth with sustainable development, ensuring that wealth is not extracted but reinvested into the communities that generate it.

Kula VASP Limited is registered as a VASP in Mauritius with the Financial Services Commission (FSC) under the VAITOS Act 2021.

Disclaimer: Nothing on this post constitutes approval or endorsement by the FSC Mauritius. Kula operates under strict regulatory compliance.

__

3. Japan Looking to Cracking Down on Crypto Insider Trading

Japan’s securities regulator, the FSA, plans to bring crypto under the same market integrity rules as securities and traditional assets.

This would empower regulators to take action in cases of insider trading involving digital assets.

The framework is expected to be finalised this year and submitted to parliament by 2026.

This is a very positive development, as market integrity is essential for the long-term growth of the digital assets ecosystem.

Until now, regulatory focus has largely been on counterparty risk and transaction monitoring compliance. We should now expect increased emphasis on market monitoring and surveillance.

__

My Latest Podcast Episode

How UAE banks are embracing stablecoins and blockchain? My interview with Michael Chan 陈玉涛, CEO of Zand Bank.

• How stablecoins are reshaping global banking
• The role of U.S. regulatory shifts in driving adoption
• Why Zand is betting big on digital assets
• How AI and blockchain are enhancing compliance and efficiency
• Why banks launching their own stablecoins could be a game changer
• The biggest risk keeping crypto-bank CEOs up at night

The full interview is available on my YouTube and podcast platforms.

YouTube: http://bit.ly/4q9StyM

Spotify: http://bit.ly/4qaCfpk

Apple: http://bit.ly/42F6jiH

__

4. Young Crypto Voters Could Impact the 2026 Midterms in the US

A recent poll by consulting firm McLaughlin & Associates, in partnership with The Digital Chamber, surveyed the voting preferences of 800 young, demographically diverse cryptocurrency investors.

Although these voters lean slightly Democratic and identify more as liberal than conservative, a plurality plan to vote for the Republican Party in the upcoming elections.

The results showed overwhelming bipartisan support for President Donald Trump’s move to scale back Biden-era cryptocurrency regulations and enforcement. Most respondents also indicated that a candidate’s stance on crypto significantly influences their vote.

This is notable when you consider that, according to a July Gallup poll, 14% of U.S. adults currently own cryptocurrencies, with another 4% likely to buy them in the near future.

Crypto was already a key issue for many single-issue voters in the last presidential election—so it’s no surprise it’s shaping up to be just as important in the midterms.

Join My WhatsApp Community

Interested in getting daily curated crypto news updates and hearing my point of view on significant developments?

You can join my WhatsApp Announcement Group community here.

Enjoyed this content? Make sure to subscribe or share it with a friend! A new Future of Money newsletter will be in your inbox each week!

See you all next week!!

Henri Arslanian

*Please note that this newsletter reflects Henri’s personal views and not those of any organisation he is involved with. This newsletter is for educational purposes only, and none of its content should be construed as investment or financial advice of any kind.