Laws move slower than markets. But they hit harder. This is issue #51 of The Bitcoin Act — your Tuesday and Sunday briefing on the legal and regulatory moves that actually shape Bitcoin.

Now for today’s top stories:

🏛️ SEC Sues Over Fake AI Bot Scheme
The SEC sued Nathan Fuller on May 28 for raising $12.3 million by promising AI bots for high-return digital asset trading.

🏧 Bitcoin Depot Sued Over ATM Scam
An Idaho couple sued Bitcoin Depot after losing $76,000 to scammers directing cash deposits at its ATMs.

🇺🇸 Trump Calls for Fort Knox Audit
President Trump posted May 31 demanding a physical audit of Fort Knox gold reserves, last fully reviewed in 1953.

The Securities and Exchange Commission filed a civil complaint on May 28, 2026, in the U.S. District Court for the Southern District of Texas against Nathan Fuller of Cypress, Texas, and Privvy Investments LLC. Fuller allegedly raised about $12.3 million from roughly 150 investors between October 2022 and mid-2024 by promising proprietary AI bots would run high-frequency arbitrage trading in digital assets and deliver 40% to 50% returns in 30 to 45 days, with some told of guaranteed profits over 100% in as little as 21 days. Only about $380,000 actually purchased digital assets and generated no profits. He diverted at least $6.2 million for personal use and routed about $5.5 million to earlier investors in Ponzi-like payments while falsely claiming a Texas money transmitter license, FDIC insurance, and professional liability coverage.

This episode demonstrates the total loss risk from any promoter promising automated high returns through trading strategies in the broader digital asset market. As a Bitcoin-only holder who values self-custody, reject every such offer without exception. These vehicles expose you to misappropriation, fabricated safeguards, and irreversible transfers with no recourse. Verify nothing on faith and never move capital based on performance claims or third-party assurances.

The Block

A retired Idaho couple filed a federal class action lawsuit on May 11, 2026, against Bitcoin Depot Inc. in the U.S. District Court for the District of Idaho. Scammers impersonating Norton support and FBI agents convinced them their accounts were under investigation and directed them to deposit their entire $76,000 in retirement savings at Bitcoin Depot ATMs over five days in August 2025. The suit alleges the company processed large first-time transactions without intervention despite obvious red flags and charged fees up to 50%. Bitcoin Depot filed for Chapter 11 bankruptcy on May 18 and shut down its network of more than 9,000 ATMs. Plaintiffs seek damages and restitution.

This case shows the concrete dangers of routing meaningful Bitcoin amounts through ATMs that operate as irreversible on-ramps. Scammers exploit urgency, authority impersonation, and the finality of on-chain transfers while operators may lack effective real-time controls. With Bitcoin Depot now in bankruptcy, recovery paths narrow further. Never deposit large sums or act on any unsolicited call demanding immediate Bitcoin movement, regardless of claimed government involvement. Independently verify every claim using contact details you obtain yourself from official sources.

Bitcoin Magazine

President Trump posted on Truth Social on May 31, 2026, that it is time to physically audit Fort Knox. The last independent physical audit of the gold reserves there, involving weighing and testing of bars, occurred in 1953 under President Eisenhower. A limited congressional inspection took place in 1974. The Treasury Department conducts ongoing internal audits, but no full public physical verification by independent parties has occurred since. The renewed call follows the arrest of a former senior CIA official found in possession of stolen gold bars.

Persistent questions remain about whether reported reserves match actual bars present and accounted for. Full independent audits with published results are required for any claim of transparency. The same transparency standard must apply to any strategic Bitcoin reserve: the addresses should either be made public so anyone can independently verify the balance on-chain at any time, or the holdings must undergo regular, independent audits with published results. This is the approach advocated by Pierre Rochard and others who prioritize on-chain accountability over internal government assurances.

Cointelegraph

🇦🇷 Argentina Seizes $8M USDT in Fraud Raids
Buenos Aires prosecutors arrested 24 people and froze over 8 million USDT in 90 raids on May 31 targeting fake trading apps, WhatsApp hijacks, and malware schemes that caused nearly 3 billion pesos in losses.

🇬🇧 Swan Bitcoin Drops US Lawsuit Against Proton After UK Concession
A federal judge dismissed Swan Bitcoin’s entire lawsuit against Proton Management on June 1, 2026, after Swan admitted in UK court that it never owned the mining assets and trade secrets at the center of its claims. The case is now fully closed with Swan permanently barred from refiling those claims.

🇦🇺 Australia Warns of Messaging App Scams
Australia’s securities regulator alerted Australians about scammers using social media and messaging apps to push fake digital asset trading platforms that show fabricated profits then block withdrawals.

🇪🇺 ECB’s Schnabel Backs Digital Euro Against Stablecoin Risks
Isabel Schnabel stated central banks should regulate stablecoins tightly and advance the digital euro to preserve monetary control and public money access. The push targets dollar-pegged stablecoins and non-European systems.

🇬🇧 UK Olympian CJ Ujah Charged in Wallet-Draining Fraud
CJ Ujah and nine others appeared in Chelmsford Crown Court on May 28 charged with an organized scheme that posed as police or crypto firms to trick victims into revealing seed phrases and drain wallets, including one £300,000 loss.

🇪🇺 EU Locks In 2027 AMLR Rules: ID Checks, Privacy Coin Bans
The EU’s AMLR takes effect July 2027, requiring ID verification above €1,000 on crypto transactions, banning privacy coins from platforms, and capping large cash deals.

🇻🇳 Vietnam Proposes Virtual Assets as Bank Loan Collateral
Vietnam's Ministry of Finance released draft amendments for public consultation allowing small and medium enterprises to pledge digital assets as collateral for bank loans, with possible implementation by mid-2027.

🏛 Coinbase Seeks MiCA Reforms in Europe
Coinbase has called for adjustments to the EU's Markets in Crypto-Assets rules, arguing for clearer and more competitive standards after obtaining authorizations in multiple member states.

🥷 Northern Ireland Woman Loses £250k to Digital Asset Scammers
Police Service of Northern Ireland reported that a woman from Newry contacted them after losing upwards of £250,000 to scammers who convinced her to make repeated "investments" in a cryptocurrency scheme advertised online, then used malware to seize further control of her devices and accounts.

🇧🇷 Brazil Requires Independent Audits for Virtual Asset Providers
On May 30 the Central Bank of Brazil published Normative Instruction 739 mandating that virtual asset service providers obtain independent audits from CVM-registered firms before receiving operating licenses.

Every week I drop one concrete, actionable answer to a legal or political question that actually affects your life as a Bitcoiner, focused on a specific, real-world action you can take. No theory. No fluff. Just the move.

This week: If a CBDC is rolled out in your country, how can you protect yourself?

A Central Bank Digital Currency (CBDC) is programmable government money, every transaction visible, every wallet freezable, every dollar expirable on a government timer. Trump's January 2025 executive order paused US CBDC development, but executive orders get reversed by the next administration, the EU's digital euro is advancing on schedule, and China is actively pushing its digital yuan on global trading partners. The architecture gets built regardless of who's in office. Your window is now.

Got a legal or regulatory question you want answered next Tuesday? Hit reply and send it.

📊 US national Bitcoin reserve in 2026? — 22.99% Predyx

📊 Trump pardons Samourai Wallet developer before Dec 31, 2026? — 22.14% Predyx

📊 Will Javier Milei be reelected for a second term as the President of Argentina? — 84.26% Predyx

📊 Will crypto market structure legislation become law? Before 2027 — 37% Kalshi

📊 Will crypto market structure legislation become law? Before August — 27% Kalshi

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