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25 Apr 2026, 09:07

Judge dismisses Elon Musk’s fraud claims against OpenAI and Sam Altman before trial

Sam Altman and OpenAI got a major pre-trial win on Friday after a federal judge cut Elon Musk’s fraud claims from his lawsuit over the company’s structure and mission. U.S. District Judge Yvonne Gonzalez Rogers made the ruling in Oakland, California, just before the fight went to a jury. The trial of course still goes ahead, but now it centers on breach of charitable trust and unjust enrichment, not fraud. Jury selection starts Monday, and opening statements are expected Tuesday. Now Elon’s lawsuit says OpenAI, Sam, Greg Brockman, and Microsoft (MSFT) misled him and the public after OpenAI created a profit-making arm in 2019, after Elon had already left the board. He says the company walked away from the nonprofit promise behind its 2015 launch. Elon had asked to drop the fraud and constructive fraud claims before trial because he said it would “streamline the case.” He also said jurors should focus on whether OpenAI still serves humanity or has turned into a “wealth machine.” A Reuters calculation puts Elon’s damages demand at $150 billion, with the money meant to go to OpenAI’s charitable arm. Judge cuts fraud claims as Elon keeps two core claims against OpenAI and Sam The lawsuit began much wider than the case now heading into court. Elon filed 26 claims in November 2024 against OpenAI, Sam, and Greg. Before Friday’s ruling, only four claims were still alive. Those were fraud, constructive fraud, unjust enrichment, and breach of charitable trust. Now the two fraud-based claims are gone, leaving the jury with the charitable trust and enrichment arguments. Elon says OpenAI was supposed to stay a nonprofit forever. His complaint says the people behind it promised to build artificial intelligence for public benefit, not private gain. OpenAI later changed its structure so it could run a for-profit subsidiary. That business is now valued at more than $850 billion, which is exactly why this courtroom fight is not some small tech grudge. There is real money, real control, and real market power sitting under every legal filing. The personal history makes it sharper. Elon Musk and Sam Altman helped start OpenAI in 2015 with other tech figures who worried about the power of artificial intelligence. Back then, they were on the same side. Now they are rivals. Elon started xAI in 2023 to compete with OpenAI. He also recently combined xAI with SpaceX in a deal that valued the merged business at $1.25 trillion. The trial starts in federal court in Oakland, across the Bay Bridge from San Francisco, where OpenAI is based. If Elon wins, he says he does not want the money for himself. He wants the court to send all “ill-gotten gains” back to OpenAI’s nonprofit side. He also wants Sam and Greg removed from their roles. On top of that, he wants the court to undo OpenAI’s profit-focused restructuring. OpenAI and Elon fight in court while both sides chase bigger market plans The timing is not quiet. Elon is preparing SpaceX for a public listing that could become a record IPO. OpenAI is also looking at a possible market debut in the fourth quarter. In investor papers sent out earlier this year, OpenAI named Elon’s lawsuit as a “risk to business.” OpenAI has called Elon’s lawsuit “baseless.” In an X post earlier in April, the company called it a “harassment campaign that’s driven by ego, jealousy and a desire to slow down a competitor.” Elon has fired back in the same public arena. In August, he wrote on X, “Scam Altman lies as easily as he breathes.” Sam answered in February with his own post: “Really excited to get Elon under oath in a few months, Christmas in April!” X, formerly Twitter, and xAI also actually sued OpenAI and Apple in 2025 over alleged anticompetitive conduct. A hearing in that case is set for May in Texas. In February, a federal judge in California also dismissed a separate xAI case that accused OpenAI of stealing trade secrets. There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance .

25 Apr 2026, 08:45

Crypto laundering mastermind handed 70 months prison time for role in $263M heist

Evan Tangeman, age 22, from Newport Beach, California, was sentenced to seventy months in prison on April 24, 2026. The court of the United States District in Washington, D.C., imposed the sentence. According to reports, Tangeman was involved in laundering millions of dollars obtained from a massive crypto fraud scheme. According to US Attorney Jeanine Ferris Pirro, the crime was committed through an operation based on greed that hit the level of absurdity. The case investigation was handled by the District of Columbia US Attorney’s Office, the Federal Bureau of Investigation, Washington Field Office, and the Internal Revenue Service-Criminal Investigation, Washington, DC Field Office. Evan Tangeman’s $263M social engineering scheme From the US Attorney’s Office , District of Columbia, it is reported that Evan Tangeman, alias “E,” “Tate,” “Evan|Exchanger,” was a money launderer for the group along with database hackers, organizers, identifier of targets, call makers, and residential burglary for hardware virtual currency wallets. The defendant turned the ill-gotten gains into fiat cash. Tangeman bought luxurious homes for his crime partners. The hacking group was awarded fancy cars and other rewards for their work. Tangeman’s team had a luxurious lifestyle that cost them millions of dollars. They went to clubs, where they paid hefty bills, which ran to $500,000 at one point. Luxury cars driven by the criminal group headed by Tangeman. Source: US Attorney’s Office, District of Columbia DOJ first apprehended co-defendants Malone Lam and Jeandiel Serrano. When the enormity of their scam became known, Evan Tangeman instructed his co-defendant, Tucker Desmond, to dispose of the electronic devices used by the members of the criminal group. Source: US Attorney’s Office, District of Columbia As stated in the report, the case is being handled by Assistant United States Attorney Will Hart from the Fraud, Public Corruption, and Civil Rights Division at the United States Attorney’s Office, District of Columbia. Rising government crackdowns on crypto crimes This case fits the increased law enforcement efforts in the region. US authorities arrested many hackers and money launderers in recent months. The FBI and the Department of Justice focus on social engineering groups hacking cryptocurrencies. On April 17, 2026, a British citizen, Tyler Robert Buchanan, was sentenced to prison. At the age of 24, he was charged with conspiracy to commit wire fraud and aggravated identity theft. Buchanan, along with others, hacked at least $8 million worth of cryptocurrencies from US organizations and individuals during the period 2021 to 2023. His methods included SMS phishing and SIM swapping. Police Scotland confiscated 20 devices from his residence in Dundee. From court documents, it is clear that Buchanan is facing up to 22 years’ imprisonment at his trial, set for 21 August 2026. His accomplice, Noah Urban, received a 10-year federal imprisonment sentence in August 2025 along with $13 million in fines. In early 2026, the FBI also arrested the son of a government contractor in Saint Martin, who was suspected of stealing more than $46 million worth of crypto that was impounded by US Marshals. Other criminal cases against individuals resulted in a 20-year jail sentence in a global crypto investment fraud case worth $73 million. According to the FBI’s Internet Crime Report for 2025, cryptocurrency losses totaled $11 billion. Your keys, your card. Spend without giving up custody and earn 8%+ yield on your balance with Ether.fi Cash.

25 Apr 2026, 07:42

NC Industry Group pushes Clarity Act forward, warning stablecoin yield ban could drive capital offshore

Industry group NC Blockchain is urging Senator Thom Tillis to push the Clarity Act forward, warning that a ban on stablecoin yield could drive capital abroad. The Clarity Act is facing intense lobbying from the North Carolina Bankers Association (NCBA), which is pushing for a total ban on stablecoin yields. The North Carolina Blockchain & AI Initiative argues that NCBA’s position does not reflect the views of all local financial institutions, noting that some are in favor of the ongoing technological advancements. However, the NCBA campaign specifically targets Sen. Tillis because he is a key Republican negotiator and represents the state where many concerned community banks are headquartered. Meanwhile, the current draft, brokered by Senators Tillis and Angela Alsobrooks, bans passive yields but permits activity-based rewards, such as those tied to transactions or loyalty programs. Consequently, the NCBA is urging banks to call Sen. Tillis’s office to oppose the current compromise. The association argues that even “activity-based” rewards permitted in the current draft of the Clarity Act will cause deposit flight to stablecoins. Notably, Senator Tillis has caved in to intense lobbying from the banks. He recommends that the Senate Banking Committee delay the markup of the Clarity until May 2026. However, the Digital Chamber is demanding immediate legislative action, citing that failure to pass the bill by the end of May could indefinitely shelve the legislation. Digital Chamber argues that legislative clarity is overdue The Digital Chamber, crypto advocacy groups, and firms like Coinbase are arguing that legislative clarity is overdue. The Digital Chamber specifically notes that it has been over 270 days since the House passed its version of the bill. The Clarity Act’s markup was originally scheduled for late April but was postponed until May 2026 to allow time for negotiations. Lawmakers like Senator Cynthia Lummis have also warned that further delays could push the bill past the 2026 legislative window, potentially shelving the federal crypto market structure rules for years. Senator Bernie Moreno (R-Ohio) also delivered an ultimatum at a Washington event on April 22, declaring that the Clarity Act must clear Congress by the end of May. He argues that this deadline is Congress’s last real chance to deliver long-awaited regulatory certainty to the U.S. crypto industry. A 21-page report from the White House Council of Economic Advisers further criticizes the continued bank lobbying as “greed or ignorance.” It cites economic reports suggesting that stablecoin yield would displace only a marginal 0.02% (~$2.1B) of total bank loans, which challenges the banking industry’s position that imposing an estimated $800 million in costs on consumers is justified. The NC Blockchain initiative suggests that bank fears of “deposit flight” are overstated. Industry group frames the yield ban as counterproductive The Industry group frames the yield ban on stablecoins as counterproductive and redundant given the existing framework. NC Blockchain argues that “shadow banking” concerns are already solved by the GENIUS Act, which brought stablecoin issuers under federal oversight with strict reserve, capital, and risk management requirements. The industry group further emphasizes that a ban on stablecoin yield risks pushing capital offshore or into opaque structures beyond U.S. regulatory reach, rather than reducing systemic risk. It argues that banning yield would cede leadership to other jurisdictions (such as the UAE and the EU) that are developing frameworks for yield-bearing digital assets. Treasury Secretary Scott Bessent has also warned that regulatory delays could push digital asset innovation toward Singapore and Dubai, which are courting U.S. crypto capital. That capital still moves even without the Clarity Act, just without U.S. legal protection, institutional guardrails, or the U.S. SEC and CFTC’s clarity. The NC Blockchain initiative says moving the bill to markup under Scott’s leadership is the only way to provide the legislative “greenlight” that North Carolina’s tech and banking sectors need to collaborate effectively. Meanwhile, Polymarket odds of the Clarity Act passing in 2026 moved from 38% to 46% following Moreno’s statement on April 22. Encouraging, but nowhere near confident. However, the FDIC and the OCC are already moving forward with rules to operationalize the GENIUS Act’s framework for issuers. There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance .

25 Apr 2026, 07:39

JPMorgan cites DeFi hacks and flat ETH TVL limiting institutions

JPMorgan’s latest research warns that repeated DeFi exploits and flat ETH-denominated total value locked are holding back large investors. The bank links ongoing security incidents and stagnant TVL to weaker institutional adoption.