Careers

Diversity

With 18 offices, from New York to Los Angeles and Seattle to Orlando, we live and work in communities all over the U.S., collaborating across locations, disciplines and even borders. Our experienced, highly ranked lawyers serve businesses wherever they are and wherever they want to go.

Offices

About Us

Pages

Professionals

Thought leadership: blogs, podcasts, videos, publications, events and news

Insights

Services

Pro Bono

Am Law 100 firm with practices in Business, Digital Assets and Data Management, Intellectual Property, Labor & Employment, Litigation and Tax.

Home | BakerHostetler

Jonathan Forster Talks About Death Taxes on Penn Mutual Podcast

Ann Caresani Speaks at 39th Annual Ohio Employee Ownership Conference

Ohio Clock

Hallway with a grandfather clock displayed

The Weekly Hill Update

Blockchain Monitor

Blockchain Monitor - Planet earth in outer space with network connection and sunlight.

Weekly Blockchain Blog – March 3, 2025

core/heading

<a href="#digital">Digital Asset Companies Continue New Product Launches</a>

core/list-item

<a href="#taskforce">SEC Seeks Public Input for Crypto Task Force, Closes Crypto Investigations</a>

<a href="#sec">SEC Division of Corporation Finance Publishes Statement on Meme Coins</a>

<a href="#congressional">Congressional Research Service Publishes Report on Banking and Crypto</a>

<a href="#doj">DOJ Crypto Enforcement Targets Unlicensed Exchanges, Market Makers, Scams</a>

<a href="#bybit">Bybit Exchange Suffers Largest Hack in Crypto History – Over $1.4B</a>

<a href="#crypto">Crypto Hacks Continue, 2025 Crypto Crime Report Published</a>

core/list

Digital Asset Companies Continue New Product Launches

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

core/paragraph

Decentralized finance (DeFi) startup Figure Markets recently announced that it has launched “the first interest-bearing transferable stablecoin native to a public blockchain, registered with the Securities and Exchange Commission.” According to a blog post by the company, “YLDS … is a fixed price, daily accrual public security native to the Provenance Blockchain.” The blog post further notes that “YLDS can be transferred peer-to-peer and is backed by the same securities that prime money market funds hold.”

In other news, two major digital asset custody providers, BitGo and Copper, recently announced “the launch of a first-of-its-kind trading and off-exchange settlement solution.” According to a BitGo blog post, the solution allows clients to trade on the <a href="https://www.deribit.com/" target="_blank" rel="noreferrer noopener">Deribit</a> derivatives exchange “while their assets are secured off-exchange in qualified custody with BitGo Trust” and trades are “automatically settled via Copper’s ClearLoop and BitGo’s <a href="https://www.bitgo.com/products/go-network/?utm_source=website&amp;utm_medium=blog&amp;utm_campaign=copperderibit">Go Network</a> infrastructure.”

In another recent development, Ripple, a U.S. payments and digital assets company, announced multiple new features on its XRP Ledger (XRPL) blockchain network. According to a company blog post, the newly announced features include an automated market maker, decentralized identity capabilities, integration with pricing oracles, a new “Multi-Purpose Token (MPT)” standard, an XRPL lending protocol and an XRPL EVM sidechain.

Finally, according to recent reports, the developers of the Avalanche blockchain network have launched a reloadable crypto debit card, the Avalanche Card, in partnership with a major credit card provider. The debit card reportedly allows users to spend crypto anywhere that accepts payments from the credit card provider’s network. The Avalanche card will reportedly be available initially in Latin America and the Caribbean.

For more information, please refer to the following links:

<a href="https://www.figuremarkets.com/resources/figure-markets-announces-ylds-first-yield-bearing-stablecoin/">Figure Markets Launched Industry First Yield-Bearing Stablecoin as an SEC Registered Public Security</a>

<a href="https://www.bitgo.com/resources/blog/bitgo-and-copper-launch-first-trading-model-with-off-exchange-settlement/">BitGo and Copper Launch First Trading Model with Off-Exchange Settlement from Qualified Custody, Featuring Deribit</a>

<a href="https://ripple.com/insights/institutional-defi-xrp-ledger/">Institutional DeFi on the XRP Ledger: What's Live and What's Next</a>

<a href="https://news.bitcoin.com/avalanche-unleashes-a-new-way-to-spend-crypto-meet-the-avalanche-visa-card/">Avalanche Unleashes a New Way to Spend Crypto: Meet the Avalanche Visa Card</a>

SEC Seeks Public Input for Crypto Task Force, Closes Crypto Investigations

On Feb. 21, Commissioner Hester M. Peirce of the U.S. Securities and Exchange Commission (SEC) published a statement requesting public input for the SEC’s Crypto Task Force. The request for public input asks for comments on 48 specific questions that broadly fall into the following categories: security status of crypto assets, crypto assets that are not securities, registered token offerings, safe harbors from registration, secondary market trading of crypto assets, crypto asset custody (including by broker-dealers, investment advisers and investment companies), crypto lending, crypto exchange-traded products, tokenized securities and innovation sandbox issues. The statement provides links to a written submission form for providing input and a form for submitting a request to meet with the SEC’s Crypto Task Force.

Separately, according to various company announcements and news reports, the SEC has recently closed its investigations into multiple major U.S. digital asset companies. The closed investigations include those related to the software company that developed the protocol for the world’s largest decentralized exchange (DEX), the OpenSea nonfungible token (NFT) marketplace, two major U.S. cryptocurrency trading platforms and a major U.S. Ethereum development company.

<a href="https://www.sec.gov/newsroom/speeches-statements/peirce-statement-rfi-022125?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener">There Must Be Some Way Out of Here</a>

<a href="https://blog.uniswap.org/a-win-for-defi" target="_blank" rel="noreferrer noopener">A Win for DeFi ‒ SEC Closes Investigation into Uniswap Labs</a>

<a href="https://cointelegraph.com/news/sec-closes-investigation-nft-platform-opensea" target="_blank" rel="noreferrer noopener">SEC drops investigation into NFT marketplace OpenSea</a>

<a href="https://newsroom.aboutrobinhood.com/sec-closes-investigation-into-robinhood-crypto-with-no-action/">SEC Closes Investigation Into Robinhood Crypto with No Action</a>

<a href="https://cointelegraph.com/news/sec-closes-investigation-gemini-no-enforcement-action">SEC closed investigation into Gemini with no action, says Winklevoss</a>

<a href="https://consensys.io/blog/sec-to-drop-all-claims-against-consensys">SEC to drop all claims against Consensys</a>

SEC Division of Corporation Finance Publishes Statement on Meme Coins

On Feb. 27, the U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance (the Division) published a <a href="https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins?utm_medium=email&amp;utm_source=govdelivery">Staff Statement on Meme Coins</a> (the Statement). The following are key takeaways from the Statement:

Meme Coins Are Not Securities. According to the Statement, “It is the Division’s view that transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.”

Definition of Meme Coin. The Statement defines a “meme coin” as “a type of crypto asset inspired by internet memes, characters, current events, or trends for which the promoter seeks to attract an enthusiastic online community to purchase the meme coin and engage in its trading.” The Statement notes that “[m]eme coins also typically have limited or no use or functionality.”

Akin to Collectibles. According to the Statement, meme coins are “akin to collectibles” because they “typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation.”

Investment Contract Analysis. The Statement analyzes meme coins under the “investment contract” test set forth in SEC v. W.J. Howey Co. and finds that “[t]he offer and sale of meme coins does not involve an investment in an enterprise nor is it undertaken with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.”

Caution – Disguised Securities. The Statement cautions that its guidance “does not extend to the offer and sale of meme coins … that are labeled ‘meme coins’ in an effort to evade the application of the federal securities laws by disguising a product that otherwise would constitute a security.”

Caution – Other Laws. The Statement also cautions that “although the offer and sale of meme coins may not be subject to the federal securities laws, fraudulent conduct related to the offer and sale of meme coins may be subject to enforcement action or prosecution by other federal or state agencies under other federal and state laws.”

For more information, please refer to the following link:

<a href="https://www.sec.gov/newsroom/speeches-statements/staff-statement-meme-coins?utm_medium=email&amp;utm_source=govdelivery" target="_blank" rel="noreferrer noopener">Staff Statement on Meme Coins</a>

Congressional Research Service Publishes Report on Banking and Crypto

The U.S. Congressional Research Service recently published a report titled “Banking and Cryptocurrency: Policy Issues.” According to the report, bank involvement with crypto can fall into three categories: (1) banks can provide traditional banking services, such as lending and deposit taking to crypto firms; (2) banks can provide crypto services, such as payment applications and tokenization; and (3) crypto firms can seek to acquire banks or bank charters. Among other things, the report provides details on each of these categories, discusses related policy issues and provides an overview of relevant legislative action in the 118th Congress. In its concluding observations, the report discusses policy concerns related to banking crypto, anti-money laundering challenges, financial stability risks, safety and soundness issues, state charter options, and potential actions by Congress to impact the relationship between crypto and banking.

<a href="https://crsreports.congress.gov/product/pdf/R/R48430" target="_blank" rel="noreferrer noopener">Congressional Research Service: Banking and Cryptocurrency: Policy Issues</a>

DOJ Crypto Enforcement Targets Unlicensed Exchanges, Market Makers, Scams

The U.S. Department of Justice (DOJ) recently announced that the OKX cryptocurrency exchange has pled guilty to operating an unlicensed money transmitting business. According to a DOJ press release, as part of the guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million. Among other things, the press release noted that while OKX has had an “official policy” preventing U.S. persons from transacting on the exchange, from 2018 to 2024 “OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX.”

Another recent DOJ press release announced that a Russian national residing in Portugal “has been extradited to the United States for his role in a wide-ranging conspiracy to allegedly manipulate cryptocurrency markets on behalf of client cryptocurrency companies.” According to the press release, the defendant is the founder of Gotbit, a well-known cryptocurrency “market maker.”

In a third press release, the DOJ announced that a Montana man has been found guilty of participating in a cryptocurrency money laundering conspiracy. According to the press release, the defendant “conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency,” including “romance scams, business email compromises, real estate scams, and other fraudulent schemes.”

<a href="https://www.justice.gov/usao-sdny/pr/okx-pleads-guilty-violating-us-anti-money-laundering-laws-and-agrees-pay-penalties" target="_blank" rel="noreferrer noopener">OKX Pleads Guilty To Violating U.S. Anti-Money Laundering Laws And Agrees To Pay Penalties Totaling More Than $500 Million</a>

<a href="https://www.justice.gov/usao-ma/pr/founder-cryptocurrency-financial-services-firm-gotbit-extradited-united-states-face" target="_blank" rel="noreferrer noopener">Founder of Cryptocurrency Financial Services Firm “Gotbit” Extradited to the United States to Face Charges of Market Manipulation and Fraud Conspiracy</a>

<a href="https://www.justice.gov/usao-edtx/pr/montana-man-convicted-cryptocurrency-money-laundering-conspiracy" target="_blank" rel="noreferrer noopener">Montana man convicted in cryptocurrency money laundering conspiracy</a>

Bybit Exchange Suffers Largest Hack in Crypto History – Over $1.4B

By <a href="https://www.bakerlaw.com/LaurenBass">Lauren Bass</a>

Last week, hackers reportedly stole over $1.4 billion worth of Ether and other digital assets from the Dubai-based Bybit cryptocurrency exchange by hijacking a “routine transfer” of assets between digital wallets and manipulating the smart contract code to divert the funds.

The exchange and related asset protocols mounted a swift response. According to statements immediately issued by Bybit’s CEO, user assets were backed one to one and the exchange would cover any loss incurred. Within days of the attack, the mETH Protocol reportedly coordinated efforts among security professionals, partners and ecosystem players to recover $42 million in stolen assets, and the exchange received an influx of loans, whale deposits and ETH purchases that helped “close the gap” created by the massive theft.

By the end of the week, the FBI released an alert identifying North Korea’s “TraderTraitors” as the party responsible for the hack. The FBI also provided over 50 Ethereum wallets believed to be connected to the theft and asked for private-sector assistance in blocking the transfer (and further laundering) of any assets to/from the wallets.

According to cyber analysts, this attack mirrors earlier attacks on other networks in which bad actors use “sophisticated” social engineering techniques to deceive wallet holders into unknowingly approving transactions containing malicious code. The thieves then employ “intricate” methods to launder and move the stolen assets.

<a href="https://apnews.com/article/bybit-exchange-crypto-hack-88256366c723a9de8327ef3d4071057e" target="_blank" rel="noreferrer noopener">Cryptocurrency exchange says it was victim of $1.5 billion hack</a>

<a href="https://cointelegraph.com/news/bybit-exchange-hacked" target="_blank" rel="noreferrer noopener">Bybit exchange hacked, over $1.4 billion in ETH-related tokens drained</a>

<a href="https://cointelegraph.com/news/bybit-purchases-742-million-ether-days-after-hack" target="_blank" rel="noreferrer noopener">Bybit has ‘fully closed the ETH gap’ CEO says after $1.4B Lazarus hack</a>

<a href="https://www.ic3.gov/PSA/2025/PSA250226">North Korea Responsible for $1.5 Billion Bybit Hack</a>

<a href="https://cointelegraph.com/news/bybit-hack-centralized-exchange-security-flaws">Bybit exploit exposes security flaws in centralized crypto exchanges</a>

<a href="https://www.certik.com/resources/blog/3wI26AFKF1UtSDjJEXNEDM-bybit-incident-technical-analysis">Bybit Incident Technical Analysis</a>

<a href="https://www.elliptic.co/blog/bybit-hack-largest-in-history">The Largest Theft in History - Following the Money Trail from the Bybit Hack</a>

<a href="https://www.chainalysis.com/blog/bybit-exchange-hack-february-2025-crypto-security-dprk/">Leveraging Transparency for Collaboration in the Wake of Record-Breaking Bybit Theft</a>

<a href="https://group.mantle.xyz/blog/reviews/real-time-blockchain-agility-insights-from-industry-toughest-test">Real-Time Blockchain Agility: Insights From the Industry's Toughest Test</a>

Crypto Hacks Continue, 2025 Crypto Crime Report Published

The $1.4 billion Bybit hack was not the only threat faced by blockchain-based platforms this past week. In another hack, a Hong Kong-based stablecoin neobank, Infini, reportedly suffered $50 million in losses when a contract developer improperly retained administrative rights, which it later used to siphon USD Coin (USDC) from the platform. Statements issued by the platform founder suggest that platform users will be fully compensated for their losses. Separately, a California-based developer platform reportedly suffered a malware attack that siphoned users’ personal data, banking records and over $485,000 worth of bitcoin.

In the wake of these recent attacks, Chainalysis, a blockchain analytics firm, released its “2025 Crypto Crime Report,” which estimates that the total value of illicit blockchain activity in 2024 was approximately $51 billion – a projected increase from 2023’s $46.1 billion but less than 2022’s $54.3 billion. The report provides an in-depth analysis of 2024 crypto crimes in the areas of ransomware, darknet markets, market manipulation, scams, stolen funds, sanctions, extremism and organized crime.

<a href="https://cointelegraph.com/news/infini-loses-50-m-in-exploit-developer-deception-suspected" target="_blank" rel="noreferrer noopener">Infini loses $50M in exploit; developer deception suspected</a>

<a href="https://www.kaspersky.com/about/press-releases/kaspersky-exposes-hidden-malware-on-github-stealing-personal-data-and-485000-in-bitcoin" target="_blank" rel="noreferrer noopener">Kaspersky exposes hidden malware on GitHub stealing personal data and $485,000 in Bitcoin</a>

<a href="https://go.chainalysis.com/2025-Crypto-Crime-Report.html" target="_blank" rel="noreferrer noopener">The Chainalysis 2025 Crypto Crime Report</a>

Related Services

Featured Insights