Crypto Prosecution: When Governments Target Cryptocurrency Users

When you hear crypto prosecution, legal action taken against individuals or businesses for cryptocurrency-related activities. Also known as cryptocurrency enforcement, it’s no longer just about shady exchanges—it’s about everyday users, miners, and even people who just held Bitcoin during a price surge. This isn’t science fiction. In 2025, the IRS is auditing crypto traders using blockchain analytics. The EU is forcing exchanges to report every tiny transfer under the zero-threshold Travel Rule. And in Myanmar, people are losing their bank accounts just for trading USDT.

Crypto regulation, the set of laws and rules governments impose on digital asset use. Also known as cryptocurrency compliance, it’s the engine behind most crypto prosecutions. Countries like the U.S. use the BitLicense in New York to lock down who can operate legally. The EU’s MiCA regulation banned USDT outright. Meanwhile, Colombia lets crypto fly under the radar—until someone gets caught on the wrong side of tax rules. These aren’t just policies—they’re traps. If you didn’t report a $50 trade on Form 8949, you’re already in the IRS’s crosshairs. If you used a non-KYC exchange like DEx.top and sent funds to a sanctioned country, you could be flagged for sanctions evasion.

Crypto legal risks, the potential consequences of violating crypto laws, including fines, asset seizures, and jail time. They’re not theoretical. In Iran, people mine Bitcoin to survive inflation—but the government still punishes them. In Indonesia, you can trade crypto legally, but using it to pay for coffee gets you fined. In Myanmar, trading Bitcoin can mean your bank account is shut down overnight. Even meme coins like LOCKIN or HOLD aren’t safe. If you promoted one without a license, you could be charged with securities fraud. The line between speculation and crime is thinner than ever.

What you’ll find below isn’t a list of news stories—it’s a map of where the legal landmines are. From the BitLicense requirements in New York to the FATF blacklist targeting Iran and North Korea, these posts show exactly how governments are turning crypto into a legal hazard. You’ll see how exchanges like Bitwired got shut down for being unregulated, how Tether lost its EU license, and why even airdrops like HAPPY vanished under regulatory pressure. This isn’t about fear. It’s about awareness. If you’re holding, trading, or building with crypto, you need to know where the lines are drawn—before someone draws them for you.