Lime co-founder Brad Bao named in $100M federal RICO lawsuit alleging "one of the largest crypto frauds in history"

Federal complaint draws parallels to DOJ's recent crypto enforcement wave, cites ties to convicted market manipulator Gotbit

Brad Bao, the co-founder and former CEO of electric scooter company Lime, has been named as a defendant in a federal racketeering lawsuit that plaintiffs describe as "one of the largest crypto frauds in history."

The complaint, filed in U.S. District Court for the Northern District of California (Case No. 3:26-cv-00857), invokes the same federal RICO statute that prosecutors have used to dismantle organized crime syndicates and, more recently, to pursue cryptocurrency fraudsters.

Plaintiffs Goopal Digital Limited and Vivian Liu are seeking $100 million in compensatory and punitive damages.

A familiar playbook for federal prosecutors

The lawsuit's allegations mirror patterns that have drawn aggressive enforcement from the U.S. Department of Justice and Securities and Exchange Commission in recent years.

Federal authorities have made cryptocurrency fraud a top priority. The DOJ's Southern District of New York—the same office that secured convictions against FTX founder Sam Bankman-Fried (sentenced to 25 years), Celsius CEO Alex Mashinsky, and Terraform Labs' Do Kwon—has prosecuted dozens of crypto executives for schemes strikingly similar to what's alleged in this complaint: pump-and-dump schemes, wash trading, misappropriation of investor funds, and false statements to investors.

The SEC has likewise ramped up enforcement, bringing actions against crypto projects for unregistered securities offerings and fraud. Under current SEC leadership, the agency has made clear that token offerings fall squarely within securities laws.

Gotbit connection raises red flags

Particularly notable is the complaint's allegation that defendants worked with Gotbit, a cryptocurrency firm whose founder, Alex Andryunin, was recently convicted of wire fraud and market manipulation by federal prosecutors.

According to the complaint, Gotbit used automated "bots" to conduct "wash trading"—creating fake trading volume to disguise the defendants' massive sell-off of tokens. The DOJ has called wash trading "a cornerstone of crypto market manipulation" and has aggressively pursued firms engaged in the practice.

Gotbit's conviction came as part of the DOJ's "Operation Token Mirrors," which resulted in charges against multiple crypto market makers. The complaint alleges the same firm was paid to help Jin and his associates liquidate over $41 million in tokens while concealing the sales from investors.

"One of the largest crypto frauds in history"

The complaint does not mince words, calling the scheme "one of the largest crypto frauds in history" and alleging a coordinated conspiracy involving Jin's family members, offshore shell companies, and complicit board members.

According to the filing, defendants raised approximately $42.96 million from over 5,000 retail investors—many of them U.S. citizens who purchased tokens through platforms like Republic under Regulation D, which requires accurate disclosures to accredited investors. This ICO was one of the largest U.S. public token sales on Republic's platform since 2021.

The complaint alleges Jin secretly liquidated $41.78 million in Cere tokens immediately after the November 2021 launch while publicly claiming insider tokens were "locked." The proceeds were allegedly routed through personal exchange accounts belonging to Jin's wife, Maren Schwarzer, and his brother, Xin Jin, then laundered through a network of shell companies spanning Delaware, the British Virgin Islands, Panama, and Germany.

An additional $16.6 million in investor funds was allegedly siphoned directly from company wallets and gambled away in failed DeFi investments, resulting in catastrophic losses.

The lawsuit highlights governance concerns, alleging that board oversight failures enabled insider transactions and conflicted dealings. Corporate governance experts note that board approval and fiduciary oversight are central to investor protection in venture-backed technology companies.

Brad Bao's alleged role

Bao, who gained prominence as co-founder of the $2.4 billion scooter startup Lime, allegedly served as a board member who "lent credibility" to the scheme while receiving director's fees and an early token allocation.

The complaint alleges Bao "approved many transactions that Jin designed to misappropriate funds for personal use" and later "turned a blind eye to the accounting fraud that Jin conducted to cover up the scheme."

The filing also notes that Bao and his companies have been involved in prior litigation, including a fraud action against the City of San Francisco and a lawsuit by venture fund Khosla Ventures alleging fraud and intentional interference over a collapsed $30 million acquisition.

The lawsuit highlights governance concerns, alleging that board oversight failures enabled insider transactions and conflicted dealings. Corporate governance experts note that board approval and fiduciary oversight are central to investor protection in venture-backed technology companies.

Potential regulatory exposure

While the case is civil, similar allegations in other matters have drawn regulatory scrutiny from federal authorities. The DOJ has demonstrated a willingness to bring criminal charges following civil RICO findings, particularly in cases involving:

• Wire fraud (the complaint cites multiple instances of allegedly fraudulent communications)

• Securities fraud (tokens sold to U.S. investors under Reg D)

• Money laundering (the complaint traces funds through multiple jurisdictions)

• Market manipulation (the alleged Gotbit arrangement)

The U.S. Attorney's Office for the Southern District of New York and the DOJ's Criminal Division have active crypto enforcement units that regularly coordinate with civil plaintiffs' attorneys and SEC investigators.

The filing comes amid heightened scrutiny of digital asset markets following a series of high-profile collapses and enforcement actions that have reshaped regulatory expectations across the industry.

Other defendants

In addition to Bao, the lawsuit names Fred Jin (CEO), Maren Schwarzer (Jin's wife), Xin Jin (Jin's brother), Martijn Broersma (CMO), Francois Granade (board member), and corporate entities Cerebellum Network Inc., Interdata Network Ltd., and CEF AI Inc.

The Cere token, which peaked at $0.47, now trades at approximately $0.0012—a decline of over 99%.

The full federal complaint is available here.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

* This article was originally published here

Altcoin Season Remains Distant as Capital Rotates from High-Risk Assets

The prospect of an altcoin season continues to fade as capital rotates defensively across the crypto market. The CMC Altcoin Season Index dropped to 29, confirming that leadership remains concentrated in Bitcoin rather than higher-beta assets. When the index trades below 50, it reflects Bitcoin dominance. At current levels, it signals clear risk aversion and reduced appetite for volatility.

At the same time, in a market where narrative and perception can move capital as decisively as price action, data-informed storytelling from firms like Outset PR is becoming an essential lever for projects seeking to maintain visibility and investor trust during expansion phases.

Extreme Fear Drives Defensive Shift

The broader market backdrop reinforces this trend. The crypto Fear & Greed Index reads 12, placing sentiment firmly in Extreme Fear territory.

In such environments, capital typically migrates toward liquidity and relative safety — either into Bitcoin, stablecoins, or out of crypto exposure entirely. Altcoins, due to their higher volatility and thinner liquidity, tend to underperform during these phases.

This dynamic is currently visible across major names such as Solana, XRP, and Cardano.

Solana Tests Structural Support

Solana is testing a critical support band between:

• The 200-day Simple Moving Average at $84,31

• The recent swing low at $84,58

Holding this narrow zone is essential for stabilization. Failure to defend it would expose lower supports. Resistance sits at the 50% Fibonacci retracement near $87,83.

The near-term direction depends heavily on Bitcoin’s next move. Without BTC stability, upside attempts remain fragile.

XRP Underperforms as Trend Weakens

XRP declined around 7%, compared to Bitcoin’s roughly 3% drop — an underperformance of approximately 2,5x.

Technically, XRP broke below its 30-day SMA at $1,67 and is testing the 61,8% Fibonacci retracement near $1,50. Meanwhile, 24-hour trading volume fell 15%, suggesting the decline followed a bearish structure rather than high-conviction liquidation.

Until XRP reclaims its moving average, rallies remain corrective.

ADA Holds Key Near-Term Support

Cardano trades below both its 30-day SMA at $0,314 and daily pivot at $0,287, confirming a bearish near-term structure.

The 7-day SMA at $0,272 now acts as immediate support. If Bitcoin stabilizes and ADA holds above this level, consolidation is possible. A break below would likely trigger a retest of recent local lows.

Why Market Context Shapes Narrative Relevance

In risk-off environments, attention compresses around capital flows, macro signals, and Bitcoin dominance. Narratives tied to speculative upside tend to lose traction, while data-driven positioning gains relevance.

This makes timing and structural alignment essential for visibility.

How Outset PR Aligns Messaging With Market Structure

Outset PR applies a data-driven communications strategy designed to synchronize crypto narratives with real-time market conditions. The agency builds campaigns around measurable capital rotation, volatility cycles, and sentiment shifts rather than static messaging.

Through its proprietary Outset Data Pulse intelligence, Outset PR tracks media trendlines and traffic distribution to determine when audiences are most focused on defensive positioning, liquidity conditions, or sector divergence.

A core component of its workflow is the Syndication Map, an internal analytics system that identifies publications capable of generating strong downstream visibility across platforms such as CoinMarketCap and Binance Square. This approach ensures campaigns gain amplification when attention is concentrated on structural market shifts.

By aligning narrative timing with observable market structure, Outset PR helps projects remain relevant even during capital rotation phases.

Outlook

The altcoin season remains distant as capital favors liquidity and relative safety. Major altcoins are testing support or trading below key moving averages, reinforcing a defensive structure.

Until the Altcoin Season Index rises above neutral levels, fear subsides, and Bitcoin establishes directional stability, capital rotation into higher-risk assets is unlikely to resume. For now, the market remains defensive — and Bitcoin continues to anchor the cycle.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

* This article was originally published here

LBank Launches 16th BoostHub Campaign Featuring Ethereum with 30 ETH in Rewards

Singapore, Singapore, February 14th, 2026, Chainwire

LBank, the leading global crypto exchange, today announced the launch of the 16th BoostHub initiative, featuring Ethereum with a total reward pool of 30 ETH. The campaign will run from February 14, 09:00 to February 21, 09:00 (UTC), offering eligible users worldwide the opportunity to share ETH rewards through a fair, transparent, and low-barrier participation model.

The campaign features two participation pools tailored to different user profiles. The Smart Pool offers a total allocation of 6 ETH, with an individual hard cap of 0.015 ETH, and is open to users who maintain a minimum holding of 1,000 USDT and complete at least one spot or futures trade during the event period. Complementing this, the Futures Pool provides a larger allocation of 24 ETH, with an individual hard cap of 0.03 ETH, and is available to users meeting a minimum holding requirement of 1,000 USDT.

“We believe meaningful incentives should be accessible, not exclusive,” said Eric He, Community Angel Officer & Risk Control Advisor of LBank. “Through the 16th BoostHub and its 30 ETH reward pool, we are focused on delivering tangible benefits to our users while maintaining a fair and transparent participation framework.”

Designed to broaden access to high-quality crypto opportunities, BoostHub continues to lower entry thresholds while ensuring equitable distribution. Since its inception, LBank has rolled out 15 BoostHub projects, with notable performers such as AIAV surging by as much as 6,900% and CODEX achieving gains of 4,910%, highlighting the platform’s strong track record in identifying and delivering early-stage growth opportunities.

Looking forward, LBank will continue to evolve as a key gateway for early-stage Web3 discovery. The platform plans to introduce more high-quality campaigns, expand user incentives, and further refine product features — delivering smoother participation experiences, more attractive reward structures, and greater overall accessibility for users worldwide navigating the rapidly growing crypto and Web3 ecosystem.

About LBank

Founded in 2015, LBank is a leading global cryptocurrency exchange serving over 20 million registered users in 160 countries and regions. With a daily trading volume exceeding $10.5 billion and 10 years of safety with zero security incidents, LBank is dedicated to providing a comprehensive and user-friendly trading experience. Through innovative trading solutions, the platform has enabled users to achieve average returns of over 130% on newly listed assets.

LBank has listed over 300 mainstream coins and more than 50 high-potential gems. Ranked No. 1 in 100x Gems, Highest Gains, and Meme Share, LBank leads the market with the fastest altcoin listings, unmatched liquidity, and industry-first trading guarantees, making it the go-to platform for crypto investors worldwide.

Users Can Follow LBank for Updates:

Website: https://www.lbank.com/

Twitter: https://twitter.com/LBank_Exchange

Telegram: https://t.me/LBank_en

Instagram: https://www.instagram.com/lbank_exchange

LinkedIn: https://www.linkedin.com/company/lbank

For media requests, users can contact:

Email: press@lbank.com

ContactPR & Communications teamLBankpress@lbank.com

Disclaimer: This is a sponsored press release and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.

* This article was originally published here

How to Earn Yield in a Crypto Winter: Adjusting Crypto Savings Strategies for 2026

When a crypto winter comes the market loses momentum for an extended time. Prices stay compressed, trading activity thins out, and confidence declines. It is usually not a sharp crash, but a long pause where upside is limited and volatility offers little reward.

Early 2026 fits this pattern. Both Bitcoin and Ethereum trade far below their cycle highs, moving sideways rather than breaking out. Analysts continue to warn about downside risk, citing the absence of strong bullish catalysts and weak technical structure. Institutional capital is leaving the market as BTC ETFs outflows exceeded $130M in mid-February. 

As a result, the market behaves like previous winters: reduced liquidity, lower trading volumes, limited speculative participation, and a preference for defensive positioning. In this environment, capital preservation and stable yield matter more than short-term price chasing.

However, there are strategies for the crypto winter survival when decisions follow a clear framework rather than emotion.  

Core Strategies for Navigating a Crypto Winter

Preserve Capital

Market downturns test portfolio durability. Reducing exposure to fragile assets strengthens resilience. Concentrating on BTC, ETH, or stablecoins limits severe drawdowns. Preservation ensures that capital remains intact for future opportunities.

Maintain a Stablecoin Reserve

A stablecoin buffer of 20–30% protects purchasing power and provides liquidity for unexpected market moves. It also prevents forced selling in stressful environments. During a winter, liquidity is equivalent to optionality.

Use Dollar-Cost Averaging

Predicting exact bottoms is unreliable. Systematic accumulation removes guesswork and reduces timing pressure. DCA creates smoother entry prices and keeps investors engaged in a controlled way.

Manage Behavioral Risk

Emotional decision-making intensifies during slow markets. Frequent price checking leads to reactive trades. A predefined strategy removes noise and supports consistent execution.

These strategies set the foundation. The missing component is yield — a mechanism to ensure capital grows even when prices don’t.

Crypto Savings Strategies with Clapp

A flat market punishes idle capital. Savings tools that offer controlled yield restore efficiency. Clapp provides two frameworks that fit the requirements of a crypto winter: liquidity for optionality and fixed rates for predictable returns.

Flexible Savings: Liquidity That Earns Daily

Flexible Savings addresses the need for access without sacrificing yield. It fits capital that must remain available while still working in the background.

• Up to 5.2% APY

• No lock-up

• Instant deposits and withdrawals

• Daily payouts that compound automatically

• Minimum entry of 10 EUR/USD

Daily compounding is the key here. Each day’s interest becomes part of the next day’s principal, creating steady incremental growth. This structure suits emergency funds, short-term reserves, and stablecoin buffers.

Fixed Savings: Predictable Returns for Committed Capital

Some capital does not need immediate access. Fixed Savings optimizes these allocations by offering guaranteed returns across set terms.

• Up to 8.2% APR

• Rates remain fixed through the entire period

• Terms of 1, 3, 6, or 12 months

• Auto-renewal available

• Minimum deposit around 250 USD

• Early withdrawal forfeits interest

Locked rates eliminate uncertainty. When markets move sideways, the majority of a portfolio’s growth can come from yield rather than price action. Fixed terms allow long-term holders to turn static exposure into predictable income.

How to Survive Crypto Winter 2026?

Crypto winters reward discipline. Early 2026 reflects an extended consolidation phase where speculation delivers uneven results. Yield, structure, and risk control matter more than prediction.

Clapp’s Flexible and Fixed Savings products support this shift by making capital productive through daily compounding or guaranteed rates. In winter conditions, these mechanisms provide steady progress while the broader market recalibrates. When momentum eventually returns, capital that earned consistently through the winter enters the next cycle stronger.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

* This article was originally published here

Best Licensed Web3 Sportsbooks for Premier League and European Football Markets

European football has always been the beating heart of global sports wagering, but the rise of Web3 technology has pushed the industry into a completely new era. Bettors who follow the Premier League, La Liga, Serie A, Bundesliga or the Champions League now expect something faster, smoother, and far more flexible than traditional bookmakers could ever deliver.

Licensed Web3 sportsbooks fill that gap. They offer transparency, rapid settlement times, and a modern approach to bankroll management—something especially useful for high-velocity markets like live football betting. At the same time, strict licensing ensures stability and fair play, which is crucial for users accustomed to well-regulated football ecosystems.

Many players now look specifically for a cryptocurrency football betting sportsbook that preserves the reliability of traditional platforms while upgrading the experience with Web3 features. It’s this combination of innovation and trust that has positioned licensed Web3 sportsbooks as the future of football wagering.

Why Licensing Matters in Web3 Sports Betting

Before diving into platforms, it's important to understand why licensing plays such a central role. Web3 betting can feel decentralized and borderless, but users still need safeguards—especially when real money and volatile football markets intersect.

A licensed sportsbook provides a few immediate advantages:

• Regulatory oversight ensures fair odds, consistent payouts, and dispute resolution.

• Audited operational standards help maintain platform stability, even during high-traffic matches.

• Compliance requirements reduce the risk of sudden shutdowns or frozen balances.

Football bettors—particularly those who wager on Premier League or major European leagues—tend to value structure. They need a framework they can trust when placing live wagers during rapid shifts in momentum, injuries, red cards, or late-match VAR decisions.

Here is a quick comparison of common licensing jurisdictions you’ll encounter:

Jurisdiction

Strength

Common Use

UKGC

Very strong

Traditional sportsbooks like bet365

MGA (Malta)

Strong

Hybrid platforms operating across Europe

Curacao / Anjouan

Moderate

Many Web3 sportsbooks

US State Licensing

Very strong

DraftKings, BetMGM

Licensing does not diminish the benefits of Web3. Instead, it adds a layer of reliability on top of the already powerful features blockchain-based betting provides.

Top Licensed Platforms for Premier League & European Football Markets

This section highlights platforms that combine regulatory reliability with Web3-driven performance. Each sportsbook offers strong coverage of football markets, including Premier League, Champions League, Bundesliga, and other top European leagues.

Dexsport

Dexsport blends full blockchain transparency with a fast, intuitive football betting interface. The platform supports dozens of coins and logs every wager on-chain, giving bettors a trustless environment for both live and prematch football markets.

Strengths:

• Deep multi-league coverage, including Premier League, Serie A, and La Liga

• Instant crypto transactions across 20+ networks

• Powerful live betting tools with cash-out and low-latency odds

  

Cloudbet

Cloudbet has operated since 2013 and remains one of the most established crypto-native bookmakers in the world. Its football lines are extensive, and limits are high, making it popular among experienced bettors and data-driven punters.

Strengths:

• Supports 30+ cryptocurrencies with automated withdrawals

• Large football selection with advanced markets and Asian handicaps

• Strong reputation and long-standing licensing

BetOnline

A long-running global bookmaker that successfully integrates crypto support while maintaining extensive football coverage. BetOnline is known for early lines, prop depth, and consistent liquidity during major European fixtures.

Strengths:

• Fast crypto payouts and worldwide accessibility

• Big market selection for Premier League and Champions League

• Wide range of football props and live betting options

Bet365

Although fully centralized, bet365 remains one of the most comprehensive licensed football sportsbooks globally. Its Web3 relevance comes from its structural depth, market liquidity, and unmatched live betting suite.

Strengths:

• The most detailed real-time football interface in the industry

• Huge market variety: corners, bookings, player props, intervals

• Multiple top-tier licenses, including the UKGC

DraftKings

DraftKings serves regulated U.S. and Canadian markets and offers a polished, analytics-oriented interface. For international competitions like Champions League or Premier League, it delivers a modern, data-heavy experience.

Strengths:

• Advanced mobile experience with same-game parlays

• Strong regulatory compliance

• Deep statistical integration for match insights

BetMGM

Backed by MGM Resorts and Entain, BetMGM provides a robust football betting environment with wide coverage of European leagues. The sportsbook balances clear regulation with modern betting tools.

Strengths:

• Reliable payouts and strict licensing

• High-quality live betting and competitive odds

• Unified wallet across sportsbook and casino

How Web3 Enhances Football Betting Experience

Web3 doesn’t just modernize the interface—it changes how bettors interact with football itself. The shift from traditional operators to blockchain-backed systems introduces new layers of speed, transparency, and flexibility. These improvements become especially noticeable during Premier League and Champions League matches, where timing and liquidity matter most.

A few core upgrades stand out immediately:

1. Faster transaction speedDeposits and withdrawals using digital assets often clear in seconds. This means bettors can join live markets—or cash out winnings—without delays that might influence odds availability.

2. Verifiable on-chain bet trackingSome Web3 sportsbooks allow users to verify wagers on the blockchain. It eliminates doubt, creating a trustless betting environment where every stake is provably fair.

3. More control during live matchesWith Web3 architecture, cash-out tools, micro-bets, and dynamic odds updates tend to refresh faster, which is crucial when the match’s tempo changes suddenly.

A short comparison makes this transition clearer:

Feature

Traditional Bookmakers

Licensed Web3 Sportsbooks

Withdrawal Speed

Hours–Days

Seconds–Minutes

Transparency

Operator-controlled

Blockchain verifiable

Live Betting Stability

High but server-dependent

Distributed, faster

Privacy Level

Low–Medium

High

Payment Methods

Fiat only

Crypto + fiat hybrid

In essence, Web3 enhances football betting not by replacing classic features but by making them smarter, faster, and more user-centric.

What Football Markets Are Available? (EPL, Serie A, La Liga, Bundesliga)

Football bettors want options—not just match-winner lines. Licensed Web3 sportsbooks typically offer dozens or even hundreds of markets for every major fixture.

Below is an overview of common markets available across Premier League and European matches:

Match Result Markets

• Full-Time Result (1X2)

• Double Chance

• Draw No Bet

Performance & Momentum Betting

• Corners (total, race to X, handicaps)

• Cards (player bookings, total cards, first card)

• Fouls, offsides, and shot on target props

Player-Focused Markets

• Anytime/first/last goalscorer

• Assist markets

• Shots on target

Live & Micro-Betting

• Next team to score

• Next 10-minute interval result

• Over/Under lines that update every possession

A compact table makes the segmentation clearer:

Category

Examples

Availability

Match Result

1X2, DNB, HT/FT

Universal

Player Props

Goals, shots, assists

High

Team Stats

Corners, cards, offsides

High

Micro Bets

Next goal, next play

Premium sportsbooks

Futures

EPL winner, UCL qualifiers

Seasonal

Web3 infrastructure enhances these markets by making cash-outs quicker, bet settlement more transparent, and micro-betting more responsive during fast-paced matches.

How to Start Betting on Football Using Web3

Getting started with Web3 football betting doesn’t require technical knowledge. Most users launch their first wager in under five minutes. Still, a structured path makes the onboarding smoother:

1. Pick a licensed Web3 sportsbookChoose one with strong football coverage—Dexsport, Cloudbet, BetOnline, or others depending on your region.

2. Create an account (or connect a wallet)Some platforms require email sign-ups, while others allow Web3 wallet connections for faster onboarding.

3. Deposit using your preferred altcoinETH, SOL, USDT, and BNB are the most widely supported across football markets.

4. Navigate to the football sectionPremier League, La Liga, Champions League, Bundesliga—pick your match and explore markets.

5. Place your wager and track it liveWeb3 sportsbooks typically offer fast cash-outs, real-time odds, and transparent bet settlement.

For users who want a smoother experience, here are three practical tips:

• Use USDT when placing long-term futures.

• Use SOL for rapid live markets with constant odds changes.

• Maintain a separate wallet just for betting funds for better control.

Conclusion

Licensed Web3 sportsbooks are redefining how players engage with Premier League and European football markets. Faster settlement times, transparent bet tracking, and flexible altcoin support give bettors more control than ever before. Whether you prefer Ethereum’s reliability, Solana’s blazing speed, or USDT’s price stability, each asset enhances a different style of football betting.

As regulators adopt clearer frameworks and more operators embrace blockchain technology, the ecosystem becomes even more attractive. For football fans who want a modern, efficient, and secure way to bet, licensed Web3 sportsbooks represent the most future-ready option on the market.

* This article was originally published here

Lime co-founder Brad Bao named in $100M federal RICO lawsuit alleging "one of the largest crypto frauds in history"

Federal complaint draws parallels to DOJ's recent crypto enforcement wave, cites ties to convicted market manipulator Gotbit

Brad Bao, the co-founder and former CEO of electric scooter company Lime, has been named as a defendant in a federal racketeering lawsuit that plaintiffs describe as "one of the largest crypto frauds in history."

The complaint, filed in U.S. District Court for the Northern District of California (Case No. 3:26-cv-00857), invokes the same federal RICO statute that prosecutors have used to dismantle organized crime syndicates and, more recently, to pursue cryptocurrency fraudsters.

Plaintiffs Goopal Digital Limited and Vivian Liu are seeking $100 million in compensatory and punitive damages.

A familiar playbook for federal prosecutors

The lawsuit's allegations mirror patterns that have drawn aggressive enforcement from the U.S. Department of Justice and Securities and Exchange Commission in recent years.

Federal authorities have made cryptocurrency fraud a top priority. The DOJ's Southern District of New York—the same office that secured convictions against FTX founder Sam Bankman-Fried (sentenced to 25 years), Celsius CEO Alex Mashinsky, and Terraform Labs' Do Kwon—has prosecuted dozens of crypto executives for schemes strikingly similar to what's alleged in this complaint: pump-and-dump schemes, wash trading, misappropriation of investor funds, and false statements to investors.

The SEC has likewise ramped up enforcement, bringing actions against crypto projects for unregistered securities offerings and fraud. Under current SEC leadership, the agency has made clear that token offerings fall squarely within securities laws.

Gotbit connection raises red flags

Particularly notable is the complaint's allegation that defendants worked with Gotbit, a cryptocurrency firm whose founder, Alex Andryunin, was recently convicted of wire fraud and market manipulation by federal prosecutors.

According to the complaint, Gotbit used automated "bots" to conduct "wash trading"—creating fake trading volume to disguise the defendants' massive sell-off of tokens. The DOJ has called wash trading "a cornerstone of crypto market manipulation" and has aggressively pursued firms engaged in the practice.

Gotbit's conviction came as part of the DOJ's "Operation Token Mirrors," which resulted in charges against multiple crypto market makers. The complaint alleges the same firm was paid to help Jin and his associates liquidate over $41 million in tokens while concealing the sales from investors.

"One of the largest crypto frauds in history"

The complaint does not mince words, calling the scheme "one of the largest crypto frauds in history" and alleging a coordinated conspiracy involving Jin's family members, offshore shell companies, and complicit board members.

According to the filing, defendants raised approximately $42.96 million from over 5,000 retail investors—many of them U.S. citizens who purchased tokens through platforms like Republic under Regulation D, which requires accurate disclosures to accredited investors. This ICO was one of the largest U.S. public token sales on Republic's platform since 2021.

The complaint alleges Jin secretly liquidated $41.78 million in Cere tokens immediately after the November 2021 launch while publicly claiming insider tokens were "locked." The proceeds were allegedly routed through personal exchange accounts belonging to Jin's wife, Maren Schwarzer, and his brother, Xin Jin, then laundered through a network of shell companies spanning Delaware, the British Virgin Islands, Panama, and Germany.

An additional $16.6 million in investor funds was allegedly siphoned directly from company wallets and gambled away in failed DeFi investments, resulting in catastrophic losses.

The lawsuit highlights governance concerns, alleging that board oversight failures enabled insider transactions and conflicted dealings. Corporate governance experts note that board approval and fiduciary oversight are central to investor protection in venture-backed technology companies.

Brad Bao's alleged role

Bao, who gained prominence as co-founder of the $2.4 billion scooter startup Lime, allegedly served as a board member who "lent credibility" to the scheme while receiving director's fees and an early token allocation.

The complaint alleges Bao "approved many transactions that Jin designed to misappropriate funds for personal use" and later "turned a blind eye to the accounting fraud that Jin conducted to cover up the scheme."

The filing also notes that Bao and his companies have been involved in prior litigation, including a fraud action against the City of San Francisco and a lawsuit by venture fund Khosla Ventures alleging fraud and intentional interference over a collapsed $30 million acquisition.

The lawsuit highlights governance concerns, alleging that board oversight failures enabled insider transactions and conflicted dealings. Corporate governance experts note that board approval and fiduciary oversight are central to investor protection in venture-backed technology companies.

Potential regulatory exposure

While the case is civil, similar allegations in other matters have drawn regulatory scrutiny from federal authorities. The DOJ has demonstrated a willingness to bring criminal charges following civil RICO findings, particularly in cases involving:

• Wire fraud (the complaint cites multiple instances of allegedly fraudulent communications)

• Securities fraud (tokens sold to U.S. investors under Reg D)

• Money laundering (the complaint traces funds through multiple jurisdictions)

• Market manipulation (the alleged Gotbit arrangement)

The U.S. Attorney's Office for the Southern District of New York and the DOJ's Criminal Division have active crypto enforcement units that regularly coordinate with civil plaintiffs' attorneys and SEC investigators.

The filing comes amid heightened scrutiny of digital asset markets following a series of high-profile collapses and enforcement actions that have reshaped regulatory expectations across the industry.

Other defendants

In addition to Bao, the lawsuit names Fred Jin (CEO), Maren Schwarzer (Jin's wife), Xin Jin (Jin's brother), Martijn Broersma (CMO), Francois Granade (board member), and corporate entities Cerebellum Network Inc., Interdata Network Ltd., and CEF AI Inc.

The Cere token, which peaked at $0.47, now trades at approximately $0.0012—a decline of over 99%.

The full federal complaint is available here.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

* This article was originally published here

BASIS Secures $35 Million in Strategic Capital to Bring Institutional HFT Tech to Retail Staking Markets

• New platform backed by Base58 Labs creates a 'Liquidity Layer' model, rejecting typical operational burn rates.

• Proprietary 'Base58 Hyper-Latency Engine (BHLE)' and compliance systems transferred to ensure zero-slippage execution.

• Targeting H2 2026 launch to redefine safety standards for individual investors.

ZURICH – February 18, 2026 – A new standard for digital asset infrastructure is set to emerge as BASIS, the strategic arm of renowned blockchain research firm Base58 Labs, confirmed a massive $35 million Pre-Series A capital injection today. Unlike traditional startup funding used for expansion or marketing, this capital is designated entirely as a 'Strategic Liquidity Reserve,' aiming to guarantee institutional-grade solvency from day one.

The move signifies a major shift in the European fintech sector, as Base58 Labs moves to commercialize its high-performance research. Known for its foundational work on Bitcoin protocols and security since the industry's early days, Base58 Labs is now bridging the gap between professional trading desks and the retail market.

Commercializing 'High-Precision' R&D While many platforms focus on user acquisition, BASIS is built on a foundation of proprietary technology. The company revealed that the $35 million valuation is supported by the direct transfer of Base58 Labs’ 'Base58 Hyper-Latency Engine (BHLE).'

Originally designed for institutional HFT architectures, BHLE captures micro-price discrepancies with nanosecond-level precision. Crucially, it incorporates a 'Market Neutral' algorithm to eliminate directional risk, a capability proven through thousands of high-intensity stress tests.

"We are not treating this as a standard spin-off," a company representative explained. "This is the deployment of a proven, deterministic infrastructure. Our 'High-Precision Testing' has verified that we can offer retail users the same execution quality specifically zero slippage and instant liquidity that institutions demand. The $35 million is our commitment to maintaining that market depth."

Safety Over Speculation In alignment with stringent global regulations like MiCA, BASIS has integrated an 'Enterprise-Grade Risk Management System.' This system is designed to eliminate the common security pitfalls of traditional DeFi services.

The CEO of BASIS emphasized the platform's unique starting position:

"Most competitors start from zero and build up. With Base58 Labs' technological heritage and a $35 million liquidity buffer, BASIS starts at the finish line. We are effectively democratizing access to the safest, most profitable staking infrastructure previously locked behind institutional doors."

BASIS is currently in the final stages of Tier-1 security audits and plans to open its services to the public in the second half of 2026.

About Base58 Labs Base58 Labs specializes in advanced blockchain infrastructure and algorithmic trading research. By solving critical challenges in protocol security and execution latency, the group continues to bridge the divide between traditional finance and the decentralized economy.

 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

* This article was originally published here