According to CoinMeta, Wu said that the U.S. Securities and Exchange Commission (SEC) has filed civil lawsuits against 38 entities, accusing them of making material false statements in the filings submitted between 2025 and 2026, in order to portray themselves as legitimate U.S. investment advisors and attract retail investors. The defendants include several entities involved in crypto business, such as Cryptoorbit, FTAExchange, Pinnacle Crypto Exchange, Quantum Financial Institute, RBH Infinity Exchange, etc. SEC has removed the relevant filings of these 38 entities from its website and is seeking a permanent ban as well as civil fines.