According to Fox News, Michael Avenatti, the former attorney known for representing Stormy Daniels against President Trump, has had his prison sentence for financial fraud reduced from 14 years to just under eight after a resentencing hearing on Thursday (source: Fox News, June 12, 2025). This high-profile legal development is being closely watched by crypto traders because legal enforcement and sentencing trends can influence regulatory sentiment and risk appetite in both traditional and cryptocurrency markets. Increased regulatory action against financial crimes has historically led to short-term volatility and increased compliance scrutiny for crypto exchanges and token issuers.