European financial watchdogs are intensifying scrutiny of cryptocurrency exchanges OKX and Bybit amid allegations of their involvement in processing $100 million in illicit funds. The investigation highlights growing regulatory concerns over money laundering risks within the digital asset sector.

Authorities suspect that funds tied to criminal activities were funneled through these exchanges, prompting heightened oversight from EU regulators. The probe is part of a broader crackdown on unregulated crypto transactions, as financial enforcement agencies seek to curb illicit financial flows facilitated by digital assets.

OKX and Bybit have yet to issue detailed responses but have previously emphasized their commitment to compliance and anti-money laundering (AML) measures. Both platforms have expanded globally, navigating an evolving regulatory landscape while facing increasing pressure from authorities to enhance their oversight mechanisms.

The investigation signals the EU’s firm stance on crypto-related financial crimes, reinforcing the push for stricter regulations under frameworks such as the Markets in Crypto-Assets (MiCA) legislation. If wrongdoing is established, the exchanges could face penalties, regulatory restrictions, or enhanced compliance requirements.

As global regulators tighten their grip on crypto platforms, exchanges operating in the EU and beyond are under growing pressure to bolster AML protocols, ensuring compliance with stringent financial laws to avoid legal repercussions.

Starknet, the Ethereum layer-2 scaling solution, has announced plans to incorporate Bitcoin as a settlement layer, marking a significant step toward interoperability between the two largest blockchain networks. This move aims to bridge Ethereum’s smart contract ecosystem with Bitcoin’s robust security and decentralization.

The integration will enable Starknet transactions to be settled on Bitcoin, potentially enhancing security while fostering greater cross-chain functionality. By leveraging Bitcoin as a settlement layer, Starknet seeks to unify blockchain ecosystems, allowing developers and users to benefit from both Ethereum’s programmability and Bitcoin’s immutable ledger.

This development aligns with the broader trend of enhancing Bitcoin’s utility beyond a store of value. With innovations like Bitcoin ordinals and layer-2 solutions gaining traction, Bitcoin is increasingly being positioned as a foundation for decentralized applications.

Starknet’s decision reflects a growing industry focus on interoperability, as projects explore ways to connect major blockchain networks without relying on centralized intermediaries. While details on the implementation timeline remain unclear, the initiative could mark a milestone in blockchain unification, paving the way for a more interconnected decentralized financial ecosystem.

The U.S. Securities and Exchange Commission (SEC) has dropped its lawsuit against a prominent YouTuber accused of unlawfully promoting an initial coin offering (ICO) without proper disclosures. The decision marks a significant development in the ongoing regulatory scrutiny of social media influencers involved in cryptocurrency promotions.

The YouTuber had been targeted by the SEC for allegedly endorsing a crypto project without informing followers of any financial compensation received for the promotion. The case was part of the regulator’s broader crackdown on influencers who promote digital assets without adhering to securities laws.

While the SEC’s decision to dismiss the lawsuit removes immediate legal pressure, it does not indicate a change in the agency’s overall enforcement approach. The regulator has repeatedly warned content creators and social media personalities about their responsibility to disclose financial incentives when promoting crypto investments.

Legal experts suggest that the dropped case may reflect challenges in proving wrongdoing or indicate a shift in enforcement priorities. However, the SEC is expected to continue monitoring influencer-driven crypto promotions, especially as digital asset markets evolve.

The outcome serves as a reminder that regulatory scrutiny remains high in the crypto space, and influencers promoting token sales may still face legal consequences if they fail to comply with disclosure requirements.