<h1>Privacy coins surge and AI token presale raise legal risks under AML/KYC rules and securities law Rule 10b-5</h1> Privacy-focused cryptocurrencies reported substantial recent gains while a newly launched AI-based token presale raised over $520,000 and advertised outsized return potential. Legally, these developments raise regulatory and compliance issues: heightened anti-money-laundering and securities-law scrutiny for privacy tokens and token offerings, potential liability for promotional statements that could be deemed misleading, and obligations for proper investor disclosures, KYC/AML processes and custody/escrow safeguards for presale proceeds. Market hype increases investor risk, and secondary-market listing claims may trigger additional regulatory review. Participants should evaluate disclosures, seek independent financial and legal advice, and ensure the issuer complies with applicable securities and AML laws.