In a post on its official X (formerly Twitter) newsroom account, OpenAI wrote:

“These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer. Please be careful.”

The statement follows Robinhood’s recent announcement of a tokenized stock product for EU customers, allowing them to trade digital tokens tied to both public and private companies—including OpenAI and SpaceX. According to Robinhood, these tokens represent fractional ownership through a special purpose vehicle (SPV), providing exposure to shares typically inaccessible to retail investors. The offering is positioned to align with European crypto regulations.

Unclear Ownership Rights and Investor Risks

While Robinhood claims the tokens are backed by underlying equity via legal agreements, OpenAI’s message indicates no formal relationship exists between the two companies. The firm emphasized that any legitimate equity transfer requires its explicit approval, which has not been given.

As of this writing, Robinhood has not responded publicly to OpenAI’s statement.

Tokenized stocks are gaining attention as a new asset class, especially in jurisdictions with flexible crypto regulation. However, analysts caution that such instruments—particularly those involving private firms—can create confusion around investor rights and legal standing.

Legal experts note that token holders may not receive the same benefits as traditional shareholders, such as voting rights or dividends, and that access to financial information in private companies remains limited.

OpenAI’s clarification appears to be a preemptive move to protect its brand and prevent potential investor misinterpretation. Investors are advised to review the structure and legitimacy of tokenized products carefully—especially when the underlying company has not publicly confirmed its involvement.

Edward R

Edward is a technology journalist at Blockiance who focuses on the intersection of AI and blockchain. With a degree in artificial intelligence, he excels at explaining complex innovations to a broad audience. Edward’s forward-thinking reporting has earned him a growing readership in the tech community.

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The February attack, believed to be orchestrated by North Korea’s Lazarus Group, resulted in the theft of approximately 500,000 ETH. Zhou explained that while around 68% of the stolen assets are still being tracked, and just under 4% have been frozen, the rest has effectively gone dark.

The stolen ETH was moved through a sophisticated network of mixers and cross-chain bridges. From there, it was funneled into peer-to-peer and over-the-counter platforms, making it nearly impossible to follow. Some of the tools used in the laundering process included Wasabi Wallet, Tornado Cash, Railgun, and CryptoMixer.

The attackers didn’t stop there. They carried out multiple swaps across different blockchains using platforms like Thorchain, Stargate, LiFi, SunSwap, eXch, and Lombard. This complex web of transactions allowed them to convert the stolen crypto into more liquid and harder-to-trace assets.

The breach itself was executed by gaining access to one of Bybit’s cold wallets, allowing the attackers to transfer its entire balance to an unknown address. Since then, forensic teams have been tracking the movement of the stolen funds.

So far, over 432,000 ETH, roughly 84% of the total has been converted into bitcoin via Thorchain. Of that, more than 342,000 ETH, valued at around $960 million, was turned into 10,003 BTC and dispersed across nearly 36,000 wallets. Each wallet holds just a fraction of bitcoin, making detection and seizure far more difficult.

Only a small portion, around 6,000 ETH or 1.17%, remains on the Ethereum network, spread across more than 12,000 wallets.

In an effort to track the hackers, Bybit launched the Lazarus Bounty program. Since its rollout, over 5,400 reports have been submitted, with 70 confirmed as valid leads. However, Zhou emphasized that the fight is far from over. He called for more blockchain experts to assist in decoding mixer activity, noting that continued help is essential in the months ahead.

Amelia White

Amelia is a senior writer at Blockiance, focusing on the cultural implications of NFTs and digital ownership. Holding a master’s in media studies, she combines her academic background with a passion for storytelling to explore how Web3 technologies reshape creative industries.

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Coinbase’s renewed push into India follows a history of challenges in the market. In contrast, Binance, the world’s largest crypto exchange, successfully restarted its Indian operations in August 2023 after registering with the FIU. Binance’s return set a precedent for global crypto platforms looking to comply with Indian regulations.

Coinbase’s Previous Attempt in India

Coinbase first entered the Indian market in April 2022, launching with support for the Unified Payments Interface (UPI), India’s most popular digital payment system. However, within three days, the company was forced to suspend UPI transactions after the National Payments Corporation of India (NPCI), which oversees UPI, publicly stated that it did not recognize Coinbase’s operations.

Following the abrupt halt, Coinbase CEO Brian Armstrong later revealed that the company had faced “informal pressure” from the Reserve Bank of India (RBI), which indirectly forced them to withdraw. While cryptocurrency trading is not explicitly illegal in India, most banks remain reluctant to provide financial services to crypto-related businesses, largely to avoid potential regulatory conflicts with the RBI. Many Indian entrepreneurs and investors have observed that banks fear repercussions from the central bank if they support crypto firms.

Regulatory Compliance and Market Re-Entry

Coinbase’s potential comeback hinges on securing an FIU license and meeting India’s compliance requirements. The FIU had previously deemed several foreign exchanges, including Binance and Kraken, as “illegally” operating in the country without registration. Since then, many of these firms have adjusted their operations to align with FIU’s requirements, which mandate stricter disclosures on user activities and financial transactions.

A Coinbase spokesperson, in a statement to TechCrunch, said the company remains optimistic about opportunities in India and is committed to adhering to regulatory guidelines. However, the spokesperson did not disclose any updates regarding the FIU registration process.

Also Read: Czech Republic Eliminates Capital Gains Tax on Long-Term Bitcoin Holdings

Coinbase’s renewed interest in India aligns with its broader global expansion strategy. At a recent Goldman Sachs conference, Coinbase CFO Alesia Haas emphasized the exchange’s focus on international growth. Additionally, Paul Grewal, Coinbase’s Chief Legal Officer, recently joined the board of directors at the U.S.-India Business Council (USIBC), a division of the U.S. Chamber of Commerce.

“I’m honored to join the USIBC Board to help strengthen the bridge between India and the U.S. in shaping the future of finance,” Grewal said in a statement shared by USIBC. He also highlighted India’s rapid growth in the Web3 space, pointing out that the country’s share of global Web3 developers has quadrupled since 2018 to reach 12%—the highest growth rate among emerging markets.

Challenges in the Indian Crypto Market

Although India is a major market for global tech companies, its crypto industry faces regulatory hurdles. A major obstacle has been India’s stringent tax policies, introduced in 2022, which include a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on every crypto transaction. These regulations have significantly reduced trading volumes, discouraging many investors from participating in the market.

Coinbase’s re-entry could also help fill the void left by WazirX, an Indian exchange that suffered a major security breach, losing nearly half of its reserves. Currently, CoinDCX and CoinSwitch dominate India’s crypto market, both of which have received investment from Coinbase Ventures.

While Coinbase remains eager to return, the timeline for its relaunch will depend on how quickly it can navigate India’s regulatory framework. The exchange’s ability to secure approvals and comply with local laws will determine whether it can successfully regain a foothold in one of the world’s largest and most complex crypto markets.

(Original report by TechCrunch: Coinbase Eyes Re-Entry Into India.)

Charlotte H

Charlotte H is a senior journalist at Blockiance, specializing in the socioeconomic impacts of blockchain technology. With a degree in journalism, she has built a reputation for her in-depth analyses of decentralized systems and their influence on global markets. Charlotte’s meticulous research and eloquent writing have earned her recognition as a thought leader in the Web3 space.

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The hack was initially flagged by crypto security firm Cyvers, which identified unusual transactions originating from Phemex’s hot wallet. Blockchain analytics platform Lookonchain later confirmed the breach, detailing that stolen assets include:

• 3.48M USDC
• 3.42M USDT
• 841 ETH (~$2.7M)
• 110,701 LINK (~$2.69M)
• 142B PEPE (~$2.12M)
• 1.19M FET (~$1.45M)
• 29,509 AVAX (~$1.04M)

Phemex CEO Federico Variola addressed the situation on X (formerly Twitter), reassuring users that their cold wallets remain secure. “As we look into a report on one of our hot wallets, rest assured our cold wallets remain safe and can be checked by everyone here. More updates will be posted shortly,” he stated.

While withdrawals remain temporarily suspended, Phemex emphasized that the breach’s impact is minimal and that the exchange continues to operate normally. The company also reiterated its commitment to user security, noting that Phemex was among the first exchanges to publish proof-of-reserves and proof-of-solvency, allowing users to verify the status of cold wallets independently.

Phemex is reportedly working on a compensation plan for affected users, with further updates expected soon. The company has pledged to maintain transparency throughout the investigation and ensure that impacted customers are adequately supported.

Also Read: U.S. Launches $500 Billion AI Infrastructure Project Stargate, with Leading Tech Firms

This incident highlights the persistent vulnerabilities faced by cryptocurrency exchanges and the importance of robust security measures to protect user assets. As Phemex works to resolve the situation, users are encouraged to remain vigilant and monitor updates from the exchange.

Amelia White

Amelia is a senior writer at Blockiance, focusing on the cultural implications of NFTs and digital ownership. Holding a master’s in media studies, she combines her academic background with a passion for storytelling to explore how Web3 technologies reshape creative industries.

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