Crypto Security Under Pressure as Swiss and US Authorities Respond to Risks
Authorities in both the United States and Switzerland are taking decisive steps to address mounting concerns in the digital asset space. In Connecticut, Governor Ned Lamont has signed a bill into law prohibiting state agencies from accepting or holding cryptocurrency, marking a clear policy shift away from public sector crypto engagement.
Meanwhile, Swiss regulators have directed Swissquote, the parent company of the crypto-enabled Yuh app, to address a surge in phishing and impersonation scams, which have targeted users through hundreds of fraudulent websites.
Connecticut Draws a Line on State Crypto Holdings with New Law Signed by Governor Lamont
Connecticut Governor Ned Lamont has signed into law a bill that formally restricts the state government’s use and custody of digital assets. House Bill 7082, which was passed by both chambers of the state legislature earlier this year, was signed on Monday and is set to take effect on Oct. 1.
Draft of House Bill 7082 (Source: LegiScan)
The new law specifically prohibits Connecticut’s government from “accepting or requiring payment in the form of virtual currency” and from “purchasing, holding, investing in or establishing” any form of cryptocurrency reserve. In doing so, Connecticut becomes one of the first US states to formally enshrine such restrictions, even as the federal government and other states push forward with bold pro-crypto initiatives.
A Rebuff to the National Momentum
The legislation, introduced by state Representative Jason Doucette in February, effectively places a hard stop on the integration of digital assets into state operations. It arrives in sharp contrast to federal initiatives introduced by President Donald Trump, including an executive order earlier this year establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” These national-level directives seek to expand the federal government’s digital asset holdings through both purchases and seizures, positioning the US as a potential global leader in state-backed crypto reserves.
Connecticut’s decision to move against digital asset integration comes at a time when a political rift is emerging around cryptocurrency policy, both at the federal and state levels. President Trump’s close ties to crypto industry figures and his broader push to make the US a hub for blockchain innovation has amplified these divisions.
While Connecticut now stands firmly against state-level digital asset reserves, other states are moving in the opposite direction. Texas Governor Greg Abbott approved a bill in June to create a state-managed cryptocurrency reserve. Similarly, New Hampshire Governor Kelly Ayotte signed legislation in May to establish a state-held Bitcoin treasury, and similar proposals are being explored in states like Wyoming and Florida.
Meanwhile, several other states have attempted but failed to enact similar legislation in 2025. Legislative efforts in South Dakota, Montana, and Pennsylvania to create Bitcoin reserves were unsuccessful, reflecting ongoing concerns over volatility, regulatory uncertainty, and ideological opposition.
This divergence of strategy among the states suggests that digital asset policy is becoming a new axis of partisan and regional disagreement, akin to previous battles over cannabis legalization, environmental regulation, and healthcare.
Beyond banning crypto use in state transactions and reserves, HB 7082 also updates licensing rules for crypto-related businesses operating in Connecticut. The legislation includes additional compliance requirements for money transmission licensees dealing in digital assets, further tightening the regulatory framework in a state known for its cautious approach to fintech innovation.
These changes could have implications for crypto exchanges and fintech startups seeking to operate in Connecticut, potentially leading to an outflow of crypto-related business to more permissive jurisdictions.
A Fork in the Road for State-Level Crypto Policy
With the passage of HB 7082, Connecticut joins a minority of US states opting to explicitly restrict government engagement with digital assets. Whether this conservative posture becomes a model for other skeptical legislatures or a footnote in a larger wave of crypto adoption remains to be seen.
The disconnect between state and federal strategies, and between states themselves, highlights the current disjointed regulatory landscape of the US crypto ecosystem. As the industry continues to mature—and as political influence shapes its future—Connecticut’s stance may be viewed either as prudent risk management or as a missed opportunity to participate in the evolving digital economy.
With the bill set to take effect in October, Connecticut officials now face the task of enforcing this policy in an era where digital assets are increasingly embedded in commerce, finance, and even politics.
Swiss Regulators Crack Down on Phishing Surge Targeting Crypto Platform Yuh
Meanwhile, Swiss regulators have ordered Swissquote, the parent company of the crypto-friendly Yuh app, to take urgent action to reduce the rising tide of phishing and impersonation scams plaguing its trading platforms. The directive follows revelations that more than 600 fraudulent websites mimicking Swissquote's services were uncovered in the first half of 2025 alone.
The Swiss Financial Market Supervisory Authority (FINMA), which oversees the country's banking and financial services sector, issued the order after identifying a significant uptick in fake login portals and phishing attempts, particularly targeting users of the Yuh app—a platform known for its accessibility to digital asset trading alongside traditional financial services.
Phishing and impersonation schemes have long been a thorn in the side of fintech and crypto firms. However, the sophistication and frequency of these attacks have sharply increased in 2025, driven in part by artificial intelligence tools that enable scammers to generate more convincing fraudulent content at scale.
Swissquote CEO Marc Buerki confirmed that while none of the company’s internal systems had been breached, the rise in external impersonation and spoof websites poses a serious threat to user trust and platform integrity.
Yuh App in the Crosshairs
The Yuh platform has become one of the most targeted crypto-enabled applications in Switzerland, according to FINMA. Launched as a joint venture between Swissquote and PostFinance, Yuh allows users to invest in both cryptocurrencies and stocks, making it a popular gateway for newcomers to the crypto space.
Its growing user base and digital footprint have also made it an attractive target for cybercriminals, who replicate the app’s branding and user interface to lure unsuspecting users into handing over their login credentials.
Bloomberg reports that many of the fake sites detected so far used social media promotions and spam emails to redirect users to phishing pages designed to look like official Swissquote and Yuh login portals.
Swissquote is far from alone in facing this digital onslaught. According to cybersecurity firm CertiK, phishing, social engineering, and other scam vectors have accounted for approximately $2.1 billion in crypto losses so far in 2025.
The majority of these losses stem not from technical flaws in blockchain code but from users being tricked into giving up sensitive information.
Crypto losses in Q3 2025 by scam vector (Source: CertiK)
CertiK's Q3 2025 report reveals that address poisoning, fake support messages, and deepfake videos are also becoming increasingly popular with scammers. A particularly alarming case occurred in April, when a $330 million theft—one of the largest in crypto history—was carried out against an elderly investor through a targeted social engineering campaign.
Even experienced professionals are not immune. In June, Mehdi Farooq, a venture partner at crypto investment firm Hypersphere, admitted that he had lost most of his life savings to a highly convincing phishing scam. Farooq’s public disclosure sparked widespread discussion in the crypto community about improving security awareness and incident response.
FINMA’s Expectations
In its notice to Swissquote, FINMA emphasized that financial institutions operating in the digital asset space must go beyond securing internal systems—they must actively monitor and respond to external impersonation threats that could harm users and damage trust in the financial system.
The regulator expects Swissquote to enhance its threat detection capabilities, improve user awareness programs, and cooperate with cybersecurity firms and international watchdogs to take down malicious websites more quickly. Failure to comply could result in penalties or further regulatory scrutiny.
Crypto Security Under Pressure as Swiss and US Authorities Respond to Risks
Authorities in both the United States and Switzerland are taking decisive steps to address mounting concerns in the digital asset space. In Connecticut, Governor Ned Lamont has signed a bill into law prohibiting state agencies from accepting or holding cryptocurrency, marking a clear policy shift away from public sector crypto engagement.
Meanwhile, Swiss regulators have directed Swissquote, the parent company of the crypto-enabled Yuh app, to address a surge in phishing and impersonation scams, which have targeted users through hundreds of fraudulent websites.
Connecticut Draws a Line on State Crypto Holdings with New Law Signed by Governor Lamont
Connecticut Governor Ned Lamont has signed into law a bill that formally restricts the state government’s use and custody of digital assets. House Bill 7082, which was passed by both chambers of the state legislature earlier this year, was signed on Monday and is set to take effect on Oct. 1.
Draft of House Bill 7082 (Source: LegiScan)
The new law specifically prohibits Connecticut’s government from “accepting or requiring payment in the form of virtual currency” and from “purchasing, holding, investing in or establishing” any form of cryptocurrency reserve. In doing so, Connecticut becomes one of the first US states to formally enshrine such restrictions, even as the federal government and other states push forward with bold pro-crypto initiatives.
A Rebuff to the National Momentum
The legislation, introduced by state Representative Jason Doucette in February, effectively places a hard stop on the integration of digital assets into state operations. It arrives in sharp contrast to federal initiatives introduced by President Donald Trump, including an executive order earlier this year establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile.” These national-level directives seek to expand the federal government’s digital asset holdings through both purchases and seizures, positioning the US as a potential global leader in state-backed crypto reserves.
Connecticut’s decision to move against digital asset integration comes at a time when a political rift is emerging around cryptocurrency policy, both at the federal and state levels. President Trump’s close ties to crypto industry figures and his broader push to make the US a hub for blockchain innovation has amplified these divisions.
While Connecticut now stands firmly against state-level digital asset reserves, other states are moving in the opposite direction. Texas Governor Greg Abbott approved a bill in June to create a state-managed cryptocurrency reserve. Similarly, New Hampshire Governor Kelly Ayotte signed legislation in May to establish a state-held Bitcoin treasury, and similar proposals are being explored in states like Wyoming and Florida.
Meanwhile, several other states have attempted but failed to enact similar legislation in 2025. Legislative efforts in South Dakota, Montana, and Pennsylvania to create Bitcoin reserves were unsuccessful, reflecting ongoing concerns over volatility, regulatory uncertainty, and ideological opposition.
This divergence of strategy among the states suggests that digital asset policy is becoming a new axis of partisan and regional disagreement, akin to previous battles over cannabis legalization, environmental regulation, and healthcare.
Beyond banning crypto use in state transactions and reserves, HB 7082 also updates licensing rules for crypto-related businesses operating in Connecticut. The legislation includes additional compliance requirements for money transmission licensees dealing in digital assets, further tightening the regulatory framework in a state known for its cautious approach to fintech innovation.
These changes could have implications for crypto exchanges and fintech startups seeking to operate in Connecticut, potentially leading to an outflow of crypto-related business to more permissive jurisdictions.
A Fork in the Road for State-Level Crypto Policy
With the passage of HB 7082, Connecticut joins a minority of US states opting to explicitly restrict government engagement with digital assets. Whether this conservative posture becomes a model for other skeptical legislatures or a footnote in a larger wave of crypto adoption remains to be seen.
The disconnect between state and federal strategies, and between states themselves, highlights the current disjointed regulatory landscape of the US crypto ecosystem. As the industry continues to mature—and as political influence shapes its future—Connecticut’s stance may be viewed either as prudent risk management or as a missed opportunity to participate in the evolving digital economy.
With the bill set to take effect in October, Connecticut officials now face the task of enforcing this policy in an era where digital assets are increasingly embedded in commerce, finance, and even politics.
Swiss Regulators Crack Down on Phishing Surge Targeting Crypto Platform Yuh
Meanwhile, Swiss regulators have ordered Swissquote, the parent company of the crypto-friendly Yuh app, to take urgent action to reduce the rising tide of phishing and impersonation scams plaguing its trading platforms. The directive follows revelations that more than 600 fraudulent websites mimicking Swissquote's services were uncovered in the first half of 2025 alone.
The Swiss Financial Market Supervisory Authority (FINMA), which oversees the country's banking and financial services sector, issued the order after identifying a significant uptick in fake login portals and phishing attempts, particularly targeting users of the Yuh app—a platform known for its accessibility to digital asset trading alongside traditional financial services.
Phishing and impersonation schemes have long been a thorn in the side of fintech and crypto firms. However, the sophistication and frequency of these attacks have sharply increased in 2025, driven in part by artificial intelligence tools that enable scammers to generate more convincing fraudulent content at scale.
Swissquote CEO Marc Buerki confirmed that while none of the company’s internal systems had been breached, the rise in external impersonation and spoof websites poses a serious threat to user trust and platform integrity.
Yuh App in the Crosshairs
The Yuh platform has become one of the most targeted crypto-enabled applications in Switzerland, according to FINMA. Launched as a joint venture between Swissquote and PostFinance, Yuh allows users to invest in both cryptocurrencies and stocks, making it a popular gateway for newcomers to the crypto space.
Its growing user base and digital footprint have also made it an attractive target for cybercriminals, who replicate the app’s branding and user interface to lure unsuspecting users into handing over their login credentials.
Bloomberg reports that many of the fake sites detected so far used social media promotions and spam emails to redirect users to phishing pages designed to look like official Swissquote and Yuh login portals.
Swissquote is far from alone in facing this digital onslaught. According to cybersecurity firm CertiK, phishing, social engineering, and other scam vectors have accounted for approximately $2.1 billion in crypto losses so far in 2025.
The majority of these losses stem not from technical flaws in blockchain code but from users being tricked into giving up sensitive information.
Crypto losses in Q3 2025 by scam vector (Source: CertiK)
CertiK's Q3 2025 report reveals that address poisoning, fake support messages, and deepfake videos are also becoming increasingly popular with scammers. A particularly alarming case occurred in April, when a $330 million theft—one of the largest in crypto history—was carried out against an elderly investor through a targeted social engineering campaign.
Even experienced professionals are not immune. In June, Mehdi Farooq, a venture partner at crypto investment firm Hypersphere, admitted that he had lost most of his life savings to a highly convincing phishing scam. Farooq’s public disclosure sparked widespread discussion in the crypto community about improving security awareness and incident response.
FINMA’s Expectations
In its notice to Swissquote, FINMA emphasized that financial institutions operating in the digital asset space must go beyond securing internal systems—they must actively monitor and respond to external impersonation threats that could harm users and damage trust in the financial system.
The regulator expects Swissquote to enhance its threat detection capabilities, improve user awareness programs, and cooperate with cybersecurity firms and international watchdogs to take down malicious websites more quickly. Failure to comply could result in penalties or further regulatory scrutiny.