OKX’s operating company, Aux Cayes FinTech Co. Ltd, has pleaded guilty to running an unlicensed money-transmitting business and agreed to a $505 million settlement with U.S. authorities. The settlement includes $84 million in penalties and the forfeiture of $421 million in transaction fees, mostly from institutional clients. The charges stem from legacy compliance gaps that allowed some U.S. customers to trade on the platform despite restrictions.

According to the U.S. Department of Justice, OKX knowingly violated anti-money laundering laws, facilitating over $5 billion in suspicious transactions. Investigators also found that the exchange advised users on ways to bypass compliance checks, further aggravating the violations. However, no allegations of customer harm or charges against OKX employees were filed.

The breaches reportedly occurred between 2018 and early 2024, even though OKX had policies preventing U.S. customers from accessing its services since 2017. Acting U.S. Attorney Matthew Podolsky emphasized that financial institutions operating in the U.S. must comply with regulations and that the penalties serve as a warning to others. The FBI also condemned the company’s actions, stating that regulatory breaches would not be tolerated.

OKX has committed to strengthening its compliance framework and hiring a consultant to address past shortcomings. CEO Star Xu stated that the company aims to become a leader in regulatory compliance across global markets. Despite the hefty settlement, OKX maintains that its U.S. customer base was minimal and has since been removed from the platform.

South Dakota lawmakers have effectively blocked a bill that would have permitted the state to invest in Bitcoin. During a House Commerce and Energy Committee meeting, legislators voted to defer House Bill 1202 to the 41st day of the session, a procedural move that ensures its failure since the legislative session only lasts 40 days. The bill, introduced by Representative Logan Manhart, sought to amend the state’s public funds classification to allow up to 10% investment in Bitcoin.

Despite the setback, Manhart has stated that he plans to reintroduce the bill in 2026. South Dakota’s attempt follows similar initiatives in other states, including North Dakota, Montana, and Wyoming, which also failed to pass Bitcoin reserve bills. However, states like Florida, Arizona, and Kentucky are still considering legislation related to Bitcoin investments. These efforts reflect a broader trend among U.S. states exploring digital assets as part of their financial strategies.

The push for state-level Bitcoin reserves gained momentum following U.S. President Donald Trump’s proposal to establish a national Bitcoin stockpile. In a recent executive order, Trump suggested forming a working group to study the feasibility of such a reserve. However, legal challenges have emerged regarding the constitutionality of many of his executive actions, casting uncertainty over their implementation.

With the SEC recently closing investigations into some crypto firms, regulatory sentiment in the U.S. appears to be shifting. While South Dakota’s bill failed, the broader discussion on Bitcoin as a state-held asset continues across the country. The increasing interest from lawmakers indicates that digital assets could still play a role in state-level financial strategies in the coming years.

A crypto analyst has expressed strong bullish sentiment on Ethereum (ETH), citing a highly favorable risk-reward ratio. The analysis highlights that ETH is only 18% above its 200-week exponential moving average (EMA), a level historically associated with price rebounds. The potential upside for ETH is estimated at 200%, with a worst-case drawdown of just 20%. Additionally, technical indicators, including an ascending channel and a liquidity cluster above $4,000, suggest that the price could be gearing up for a significant breakout.

Further on-chain data from Glassnode supports this outlook, revealing strong accumulation at key price levels. Investors have been purchasing ETH heavily around $2,632, with a larger cluster at $3,150, indicating confidence in further price appreciation. This trend suggests that rather than exiting positions, market participants are averaging down, reinforcing the bullish narrative.

Meanwhile, analysts point to Ethereum’s increasing buy pressure compared to Bitcoin. On-chain data from CryptoQuant shows ETH’s taker buy-sell ratio rising while BTC’s declines, signaling stronger buying momentum for ETH. Historically, such trends have allowed ETH to outperform Bitcoin in the short term. However, technical risks remain, with a need to maintain support above $2,600 to avoid a shift in market sentiment.

Despite short-term volatility, ETH’s overall market structure appears robust, with analysts predicting new highs in the coming months. The current accumulation phase and liquidity positioning indicate that Ethereum may see a significant upward move if key resistance levels are broken. However, investors remain cautious, monitoring broader market conditions and potential bearish signals.