Tokenized equity offerings for OpenAI being offered to Robinhood users in Europe are not officially authorized by the company, the AI giant said in a social media post.

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

Earlier this week, Robinhood announced it was launching tokenized stock trading based on the Arbitrum blockchain to its users in Europe. As CoinDesk reported earlier, users will have access to 200 equities and ETFs, as well as a secondary market for equity in hot startups like OpenAI and SpaceX.

The idea of tokenized equity in not-yet public companies is nothing new.

In 2018, a blockchain startup called Swarm said it would soon be offering tokenized shares in startups — including Robinhood.

CoinDesk reported at the time that many of the companies Swarm claimed it would be offering equity in pushed back and said such a sale would be unauthorized but Swarm said everything came from “approved secondary market transactions.”

Looking at Robinhood’s current tokenized offering, it’s unclear where the source of equity is. There is some speculation that the equity represents interest in OpenAI shares that have been already acquired via authorized channels, based on comments made by Robinhood’s CEO.

Others have warned that OpenAI — and other startups — would be well within their rights not to honor the sale.

“I expect this natural tension to result in more private companies just cancelling equity sales altogether for those who violate their shareholders’ agreements,” Dragonfly General Partner Rob Hadick posted on X.

Robinhood did not respond to a request for comment from CoinDesk.

A top 100 US bank just disclosed a data breach affecting the personal and confidential information of thousands of customers.

In a filing with the Office of the Maine Attorney General, Arkansas-based Arvest Bank says it’s warning 7,537 people after a technical glitch enabled unauthorized account access.

“We recently experienced a brief technical issue during routine system updates late on Thursday, April 24. This issue temporarily allowed a limited number of customer accounts to be viewable by another customer during online banking…

Our team quickly detected and resolved the matter, temporarily disabling some online functions until everything was fixed. We were able to fully restore online banking and Arvest Go by the afternoon of Friday, April 25, 2025.”

The lender says the sensitive information includes names, account numbers, account balances and account activity.

Arvest Bank is offering credit monitoring and identity theft recovery services to affected customers.

The bank also says customers who are very concerned about becoming a victim of fraud or identity theft can place a security freeze on their credit files at no cost by contacting any of the three major nationwide credit reporting companies – Equifax, Experian or TransUnion.

As of December 2024, Arvest Bank had nearly $27 billion in total assets, making it the 72nd-largest bank in the US, according to the Federal Reserve.

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Wells Fargo is on the hook for hundreds of millions of dollars after a jury in Florida found the bank charged unauthorized fees and mishandled a trust fund established for minors.

The law firm representing the Seminole Minors Per Capita Payment Trust, a trust fund set up by the Seminole Tribe of Florida to safeguard the financial futures of around 2,000 children, says Wells Fargo is set to pay $825 million in damages and over $7 million compensation for the unauthorized fees charged.

The lawsuit accused Wells Fargo and eight of its executives of breaching fiduciary duty to the tribe and its children. The eight Wells Fargo executives were ordered to individually pay token damages of between $50 to $500.

According to the plaintiffs’ lawyer, Wells Fargo relationship manager Kim Scott confessed to the bank’s wrongdoing during cross-examination

“…Scott admitted Wells Fargo knowingly mismanaged funds, maintained inadequate records, and collected millions in unauthorized fees. Scott also revealed he had never fully reviewed the Trust’s governing documents, despite managing one of the bank’s largest accounts.”

Wells Fargo was fired as the trust fund’s trustee in 2016 after officials of the Seminole Tribe conducted a review of the rate of returns. Wells Fargo’s investment strategy reportedly resulted in returns that barely kept pace with inflation. The leaders of the Seminole Tribe also questioned illegal fees amounting to $7.6 million that Wells Fargo had charged the trust.

Following the jury verdict, Wells Fargo says it will appeal. A spokesperson for Wells Fargo’s Wealth and Investment Management department, Meghan McDonald, says.

“We followed the [Seminole] Tribal Government’s clear and repeated instructions about the management of the trust, abided by our fiduciary duty, and delivered financial results consistent with the Trust’s mandate for the children of the Tribe during our time as Trustee. Our goal for the appeal is to address multiple courtroom rulings that we believe prevented us from sharing the full story with the jury.”

The Seminole Minors Per Capita Payment Trust was set up two decades ago with the sole trustee being Wachovia Bank, which Wells Fargo acquired in 2008. The trust derived its resources primarily from the Tribe’s gaming enterprises. Currently, estimates place the trust’s assets at nearly $3 billion.

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The allegations center around an unauthorized liquidation of Dohrnii’s DHN tokens, which resulted in a significant financial loss for the company.

Promised Loan Trigger Conflict

According to Dohrnii Labs, Blynex failed to deliver a promised loan, illegally liquidated their collateral, and blocked access to their remaining tokens.

On March 23, Dohrnii Labs deposited 12,649.99 DHN tokens, valued at over $500,000, with Blynex.

The company claims it used 8,650 DHN tokens as collateral for a 30-day loan in exchange for 80,000 USDT.

However, Dohrnii Labs states that they never received the loan. Despite this, Blynex allegedly liquidated the collateral, selling it on Uniswap for 149,151 USDT, which caused a drop in DHN’s market value.

Furthermore, Dohrnii Labs has been unable to withdraw its remaining 4,000 DHN tokens, prompting them to take legal action.

Dohrnii Labs has made its stance clear, stating It demands the immediate return of its 4,000 DHN tokens and full reimbursement of the USDT generated from its collateral.

The company has also announced that it is contacting local regulators, including the Virtual Assets Regulatory Authority (VARA) and Abu Dhabi Global Market (ADGM), to escalate the matter.

Blynex’s Response: Claims of Risk Management

Blynex has responded to the accusations by asserting that the liquidation was part of their “automated risk management system.”

According to a statement, Co-founder Mike Baskes stated that their system identified a high-risk scenario in which the liquidity of the DHN token was too limited to sustain collateral in case of a market downturn.

He further claimed that when the liquidation occurred, Blynex only generated 145,000 USDT from the sale instead of the expected amount, reinforcing their decision to act swiftly.

Baskes explained that the available liquidity for DHN was approximately $315,000 at the time, making it difficult to sell the tokens without impacting the price.

The company insists that the decision to liquidate was made to prevent further losses.

Dohrnii Labs has refuted Blynex’s justification, labeling it as misleading. They argue that the liquidation was unnecessary since the collateral was nearly double the value of the loan that was never even issued.

According to Dohrnii Labs, Blynex’s actions were not about mitigating risk but rather an unjustified seizure of assets.

Blynex has reportedly attempted to settle the dispute by offering Dohrnii Labs 80,000 USDT and the release of 4,000 DHN tokens on the condition that all legal proceedings are dropped.

Dohrnii Labs has rejected this offer, stating that the 4,000 DHN tokens belong to their users and are not negotiable assets. They maintain that the right to withdraw these funds should not be up for discussion.

Vitalik Buterin’s Involvement and Market Impact

The Dohrnii Labs dispute with Blynex follows another significant event impacting DHN’s market performance as Ethereum co-founder Vitalik Buterin’s unexpected liquidation of DHN tokens he received for free.

In January 2025, Buterin was sent 10,000 DHN tokens without his consent. On March 18, Buterin sold 5,000 DHN tokens, netting 65 ETH (approximately $124,000).

His sale triggered a mass liquidation event, causing a “flash crash” in DHN’s price. In minutes, it dropped from $38.50 to $20.69, a staggering 50% decline. Despite a partial recovery to $39.75, the token remains down 11% for the week.

Dohrnii Labs has since proposed an over-the-counter (OTC) sale for Buterin’s remaining 5,000 DHN tokens to mitigate further market instability should he decide to sell the rest.

As of now, Blynex has yet to provide any official statements beyond their initial defense of the liquidation.

Meanwhile, Dohrnii Labs remains firm in its pursuit of legal recourse, seeking justice through regulatory channels and potentially collaborating with other affected parties for a joint lawsuit.

The post Dohrnii Labs Files Police Report Against Blynex Over Unauthorized Liquidation appeared first on Cryptonews.