A Seattle-based e-sport betting startup is facing a class action lawsuit for alleged violations of U.S. securities laws. The company's ICO occurred in late 2017 and raised an amount worth $31 million at the time. Since then, the price of the company's blockchain-based tokens has declined from about $2 to $0.05. The lead plaintiff alleges that the company intentionally mischaracterized the securities as tokens to avoid the reach of U.S. securities laws. In related news, last week a federal court entered a default judgement against a blockchain startup after finding that the plaintiffs were defrauded out of approximately $1 million in cryptocurrencies. The judge plans to hold a hearing this week to confirm the calculation of damages.

On Thursday, a Chinese regulator announced plans to step up efforts to block internet access to cryptocurrency trading platforms. The agency has identified and seeks to shut down more than 100 trading platforms with overseas IP addresses that are still available domestically. Chinese police are also increasing efforts to prosecute individuals for cryptocurrency cybercrimes. Last week, the police tracked down three suspects responsible for stealing about $87 million in crypto assets. In related international news, one of the promoters behind a cryptocurrency platform was arrested earlier this week in India. When the cryptocurrency platform suddenly shut down earlier this year, many investors lost their money because they were no longer able to trade their tokens or coins. The platform promoters are facing charges for extorting cryptocurrency and defrauding investors.

An international fiat and cryptocurrency exchange platform that recently initiated new Know Your Customer (KYC) checks in an effort to improve anti-money laundering practices has locked many of its users' accounts without notice. According to reports, the platform is currently dealing with backlash from many customers who use it as a main payment option while traveling abroad, and who lack access to key identification documents required by the new KYC procedures.

Earlier this week, several global cryptocurrency exchanges announced plans to join a self-regulatory organization that will police virtual commodity marketplaces. The self-regulatory organization, The Virtual Commodity Association Working Group, plans to establish industry standards and work with regulators to prevent fraud and manipulation in the virtual commodity markets. The goal of the working group is to protect consumers while increasing the adoption of cryptocurrency trading platforms by improving transparency, accountability and security across the various platforms.

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