Key Points

• Terror attack survivors have petitioned a federal court in Manhattan to compel Tether to release $344 million in immobilized USDT
• The stablecoins are connected to Iran’s Islamic Revolutionary Guard Corps (IRGC), designated as sanctioned by U.S. Treasury officials
• Legal counsel Charles Gerstein is leveraging cryptocurrency platforms’ freezing capabilities to enforce decades-old terrorism judgments
• USDT’s centralized structure allows Tether to freeze, blacklist, and reallocate tokens — unlike decentralized cryptocurrencies like Bitcoin or Ether
• Gerstein has employed identical tactics in additional proceedings involving Arbitrum, the KelpDAO breach, and Railgun DAO privacy protocol

Individuals holding outstanding U.S. judicial awards connected to Iranian-sponsored terrorism have submitted a court filing requesting a Manhattan federal judge to compel Tether to release over $344 million in immobilized USDT.

The legal petition was lodged Thursday with the Southern District of New York. It focuses on stablecoins that Tether immobilized following the U.S. Treasury’s Office of Foreign Assets Control (OFAC) identification of two Tron blockchain addresses as property of Iran’s Islamic Revolutionary Guard Corps.

The petitioners represent survivors and relatives of those killed in attacks connected to Iranian-supported organizations. The group includes those who survived the 1997 Hamas suicide attack in Jerusalem. These individuals collectively possess billions of dollars in outstanding judicial awards against Iran.

The plaintiffs are requesting judicial intervention to compel Tether to immobilize the digital assets and redistribute an identical sum — 344,149,759 USDT — to a digital wallet managed by their attorneys.

Charles Gerstein, the attorney spearheading the litigation, has been developing a legal framework centered on utilizing cryptocurrency platforms’ integrated control mechanisms to obtain compensation for terrorism victims.

Why Tether’s Centralized Structure Creates Legal Opportunities

Unlike Bitcoin or Ether, USDT is controlled by a centralized entity. Tether possesses the technical capacity to immobilize wallet addresses, blocklist accounts, and under certain circumstances, eliminate balances and redistribute tokens to alternative addresses.

Gerstein’s legal position is direct: Tether has already immobilized the assets following OFAC sanctions. This demonstrates Tether possesses both the capability — and, according to the petitioners, the legal duty — to redirect those assets to the judgment holders.

This situation differs from proceedings involving stolen digital assets, where ownership legitimacy can be contested. In this instance, OFAC has already officially identified the wallets as IRGC property, an organization the U.S. government designates as a state terrorism sponsor.

The petitioners contend this identification renders the immobilized USDT “blocked property” of a terrorist entity, making it vulnerable to confiscation under federal statutes.

Broader Campaign Focused on Cryptocurrency Infrastructure

This represents not Gerstein’s initial effort to collect terrorism awards through cryptocurrency channels. He is simultaneously directing litigation concerning immobilized assets on Arbitrum connected to the KelpDAO security breach, which allegedly involves North Korea’s Lazarus Group.

In that proceeding, Gerstein contended that Ether immobilized following the breach represented North Korean assets. That position faces greater legal complexity, as the Aave platform disputed whether stolen assets ever legitimately became the perpetrators’ property.

The Tether proceeding, Gerstein maintains, presents fewer complications. The ownership matter has essentially been resolved through OFAC’s official designation.

He is simultaneously advancing another proceeding against Railgun DAO privacy protocol employing comparable methodology.

The underlying legal principle suggests that if cryptocurrency infrastructure can immobilize sanctioned holdings, judicial authorities may similarly possess authority to instruct those systems to reallocate the holdings to victims possessing enforceable awards.

As of the submission date, no judicial determination has been rendered. The proceeding remains active in the Southern District of New York.

Key Highlights

• Hana Bank acquires 6.55% ownership in Dunamu through $670M transaction with Kakao

• Major South Korean bank secures position in crypto infrastructure with Dunamu purchase

• Kakao reduces Dunamu ownership to 4.03% following the sale

• Transaction strengthens banking sector’s ties to South Korea’s leading crypto exchange platform

• Deal reflects accelerating convergence between traditional banking and digital asset markets

In a significant development for South Korea’s financial sector, Kakao has agreed to transfer a portion of its Dunamu ownership to Hana Bank for 1 trillion won, equivalent to approximately $670 million. This strategic move positions Hana Bank prominently within the nation’s rapidly expanding cryptocurrency ecosystem while establishing deeper connections between conventional banking institutions and digital asset infrastructure.

Kakao Reduces Dunamu Position to Raise Capital

Through its investment arm, Kakao Investment will transfer a 6.55% equity position in Dunamu to Hana Bank via an all-cash deal. Following the completion of this transaction, Kakao’s ownership will decline from 10.58% down to 4.03%. According to company statements, the divestment will provide capital resources for upcoming investment opportunities.

Upon closing in June, Hana Bank will emerge as the fourth-largest stakeholder in Dunamu. Bank representatives indicated the acquisition aligns with their strategic initiative to expand into innovative financial services. The deal provides Hana Bank with immediate access to the parent organization behind Upbit, South Korea’s dominant cryptocurrency trading platform.

Kakao’s relationship with Dunamu dates back to 2013, when the company initially operated as a content aggregation platform. The firm pivoted toward financial technology with the introduction of StockPlus in 2014, eventually launching Upbit in 2017, which quickly established itself as the country’s premier crypto exchange.

Hana Bank Accelerates Blockchain and Crypto Initiatives

Hana Bank has demonstrated growing commitment to cryptocurrency solutions and distributed ledger technology. The institution previously formed an alliance with Crypto.com this past March focused on facilitating stablecoin transactions for international tourists. The Dunamu acquisition represents a continuation of this comprehensive digital asset strategy.

The partnership extends beyond equity investment to include collaborative development of a Korean won-pegged stablecoin infrastructure. This initiative aims to enable payment processing, transaction settlement mechanisms, and various digital financial products. Furthermore, the deal positions Hana Bank alongside a cornerstone entity in South Korea’s crypto framework.

Traditional financial institutions across South Korea have accelerated their digital asset initiatives. Woori Bank announced a collaboration with MoonPay in April targeting a won-backed stablecoin initiative. Consequently, Hana Bank’s investment in Dunamu underscores intensifying rivalry among the country’s leading financial institutions.

Dunamu Strengthens Banking Partnerships Amid Expansion

Dunamu maintains a dominant position within South Korea’s cryptocurrency landscape through its operation of Upbit. The platform commands the largest share of domestic trading activity by volume. This success has transformed co-founders Song Chi-hyung and Kim Hyoung-nyon into billionaires.

This equity transfer comes as Dunamu prepares for a planned combination with Naver Financial. The all-stock merger arrangement values the resulting entity at approximately $13.6 billion. If completed, the consolidation would establish a comprehensive fintech powerhouse spanning payment systems, insurance products, securities services, and cryptocurrency operations.

Regulatory changes in South Korea have recently liberalized corporate cryptocurrency investment policies. Publicly traded corporations can now allocate up to 5% of their equity capital toward digital assets. Therefore, the Dunamu transaction exemplifies growing mainstream acceptance of cryptocurrency within Korea’s established financial infrastructure.

Gemini’s first-quarter 2026 results underscore a pivotal shift for the crypto platform as it continues diversifying from a pure digital-asset exchange into a broader financial services company. The Winklevoss twins’ firm posted a 42% year-over-year revenue increase to $50.3 million in Q1, driven by a surge in non-crypto revenue, even as crypto trading activity cooled and overall trading volume contracted.

Key takeaways

• Total revenue rose 42% year over year to $50.3 million, signaling meaningful diversification beyond core exchange fees.
• Crypto exchange revenue declined 27% YoY to $17.2 million amid softer spot trading and lower market volumes, with total trading volume dropping to $6.3 billion from $13.5 billion a year earlier.
• Credit card revenue surged nearly 300% to $14.7 million as Gemini’s consumer finance products gained traction, reflecting the company’s ongoing push into broader financial services.
• Total operating expenses jumped 73% to $144.5 million, driven by hiring, marketing, and credit-card-related costs tied to expansion, resulting in an adjusted EBITDA loss of just under $60 million.
• A $100 million strategic investment from Winklevoss Capital, funded in Bitcoin, was disclosed alongside a pivotal regulatory milestone: Gemini received a Derivatives Clearing Organization license from the US CFTC, advancing its goal of becoming a full-stack marketplace for crypto and related financial products.

Gemini’s revenue mix: growth where it counts

In its Q1 2026 earnings release, Gemini disclosed that total revenue reached $50.3 million, up 42% year over year. Transaction revenue remained stable at $24 million, while crypto-exchange revenue slipped to $17.2 million, reflecting a moderation in spot trading activity and a broader slowdown in crypto market volumes. The reported trading volume for the quarter was $6.3 billion, down from $13.5 billion in Q1 2025, illustrating a weaker trading environment even as the company broadens its revenue streams.

The standout driver of the quarter was Gemini’s rapidly expanding credit card business. Credit-card revenue climbed to $14.7 million, an increase of nearly 300% year over year, as the user base for Gemini’s consumer finance products grew. The company has long signaled that consumer credit facilities would be a central pillar of its strategy, and the Q1 results demonstrate the meaningful contribution of this segment to overall profitability and scale.

As Gemini matures, the composition of revenue has shifted markedly. Five years after the company’s 2021 pivot into consumer finance—introducing Gemini-branded credit cards and related services—services income and credit-card interest revenue now constitute a substantial portion of total revenue. In a statement, Gemini president Cameron Winklevoss framed the results as evidence of sustained momentum in the company’s diversification efforts, noting that the platform’s repositioning is a durable, long-term facet of its business plan.

From the investor-relations angle, the shift matters because it signals a potential path for resilience beyond volatile crypto trading. If the credit-card and other financial-services revenues prove robust through market cycles, Gemini’s earnings may become less tethered to crypto-price swings and liquidity conditions in digital assets.

Costs rise as Gemini moves toward a full-stack marketplace

Alongside top-line expansion, Gemini’s expense base expanded meaningfully. Total operating expenses rose 73% to $144.5 million in the quarter, reflecting higher compensation costs, expanded marketing efforts, and credit-card-related expenses linked to the company’s aggressive expansion plan. The result was an adjusted EBITDA loss of just under $60 million for the quarter, underscoring the short-term profit headwinds associated with building out a broader financial-services platform.

The company’s management stressed that the expense trajectory aligns with a deliberate growth strategy rather than a misstep in cost control. In contexts where crypto markets have cooled and exchange margins tighten, investing in consumer finance, risk management, and regulatory compliance is often viewed as positioning for longer-term scale and resilience. Gemini’s upcoming quarters will be watched for how this investment translates into sustainable cash flow and profitability.

Strategic investment and regulatory strides

Gemini disclosed a significant capital infusion: a $100 million strategic investment from Winklevoss Capital in exchange for 7.1 million shares of common stock. The investment was funded in Bitcoin, a detail that aligns with Gemini’s crypto-first ethos while highlighting the founders’ confidence in the company’s broader blueprint for a regulated, full-stack platform.

Beyond capital, Gemini marked a notable regulatory milestone in April by obtaining a Derivatives Clearing Organization (DCO) license from the U.S. Commodity Futures Trading Commission (CFTC). The license makes Gemini one of the relatively small cadre of crypto-native platforms that can operate in the United States as both a Designated Contract Market and a DCO in-house. In practical terms, the license supports Gemini’s ambition to offer a wide array of products—ranging from crypto trading to futures, options, predictions, and beyond—from a single, regulated platform.

In its public communications, Gemini framed the licensing achievement as a stepping-stone toward becoming a “full-stack, end-to-end marketplace for crypto trading, predictions, futures, options, and more.” The move also aligns with broader industry trends where exchanges seek to diversify revenue and deepen regulatory compliance to broaden user trust and open new product verticals. The same week, Gemini’s stock sensitivity registered in after-hours trading as investors weighed the growth story against the company’s loss profile.

As a reference point for market positioning, Coinbase’s latest quarterly results illustrate the broader market context. Coinbase reported $1.41 billion in total Q1 revenue, down 31% YoY, and a net loss of $394 million. While Coinbase’s scale dwarfs Gemini’s, its strategy has emphasized diversification into derivatives, prediction markets, and stablecoins to offset declines in core trading activity. The contrast highlights two potential paths for crypto incumbents: a large-scale diversified footprint (Coinbase) versus a sharper emphasis on controlled growth with targeted product bets (Gemini).

Market response and implications for investors

Gemini’s stock reaction in after-hours trading reflected a mixed read on the quarter’s mix. Gemini’s shares rose about 6.9% to roughly $4.92, yet the stock remains well below its pre-2022 highs and is down significantly on the year. From an investor perspective, the results underscore a growing appetite among market participants for regulated, diversified revenue streams within crypto firms—especially as public-market scrutiny intensifies and risk control remains a priority for operators handling consumer cash flows and payments-related services.

The broader implication for the sector is a potential rebalancing of expectations among traders and institutions. If Gemini can sustain the growth in credit-card and other financial-services revenue while gradually improving profitability, it may become a more credible contender in a market where regulatory compliance and consumer protection increasingly influence product design and user adoption. Still, the Q1 metrics also remind observers that the path to profitability in the near term remains narrow given the substantial operating-investment required to scale a multi-product platform in a still-evolving regulatory landscape.

What to watch next

Several factors will determine whether Gemini’s growth strategy can translate into durable earnings. Key questions include how credit-card and other financial-services revenue progresses in the upcoming quarters, whether investment in growth moderates as market volumes recover, and how the company’s regulatory framework translates into a broader product ecosystem that attracts both retail and institutional users. Investors will also be monitoring the impact of macro crypto-market conditions on trading volumes and whether the company can leverage its DCO license to expand into regulated derivatives markets amid a changing U.S. policy environment.

As the industry digests Gemini’s Q1 performance, observers should watch for further operational updates, additional strategic collaborations, and potential capital-market events that could shape Gemini’s ability to execute its end-to-end marketplace vision in the months ahead. With the foundation of a regulated platform and a diversified revenue mix, Gemini’s trajectory now hinges on converting early-stage investments into sustainable, long-term growth while navigating an evolving regulatory and competitive landscape.

Crypto company Gemini reported a 42% year-over-year increase in revenue in Q1 2026 as it continued its growth from a pure crypto exchange to a financial services company.

Total revenue for the Winklevoss twins’ company grew 42% year over year to $50.3 million in the first quarter, while transaction revenue remained stable at $24 million, the company reported Thursday.

However, its crypto exchange revenue decreased 27% year-over-year to $17.2 million, “reflecting lower spot trading activity and a moderation in crypto market volumes,” while total trading volume declined to $6.3 billion from $13.5 billion in Q1 2025. 

The biggest increase was in credit card revenue, which surged nearly 300% to $14.7 million, driven by significant growth in the Gemini Credit Card user base, the company said. 

The expansion from crypto into broader financial services began in early 2021, when the company announced consumer finance products such as credit cards. Five years later, services and interest income, driven heavily by credit cards, made up almost half of total revenue, showing how pivotal the expansion has become. 

“As Gemini continues to evolve, we expect that the momentum we have built in diversifying our revenue will only accelerate,” said Gemini president Cameron Winklevoss. 

Gemini’s revenue increased, but so did operating expenses. Source: Gemini

Other crypto exchanges have been eyeing business outside of digital assets, Coinbase has aggressively expanded into stock and ETF trading in a goal to become an “everything exchange,” while Kraken has made recent acquisitions enabling it to expand into regulated derivatives markets. 

Total operating expenses increased  

Alongside revenue growth, Gemini also reported a 73% increase in total operating expenses to $144.5 million in the quarter. This was driven primarily by “compensation, marketing and credit card-related costs associated with the significant business expansion,” the company said. 

Gemini reported an adjusted EBITDA loss of just under $60 million. 

Related: Gemini sued over post-IPO strategy shift, declining stock price

Gemini also disclosed Thursday that it closed a $100 million strategic investment from Winklevoss Capital in exchange for 7.1 million shares of common stock, with the investment funded in Bitcoin.

Path to becoming a full-stack, end-to-end marketplace

In April, the company received a Derivatives Clearing Organization license from the US Commodity Futures Trading Commission, making Gemini one of only a handful of crypto-native platforms in the country to hold both a Designated Contract Market and a DCO license in-house.

“This all represents the next step towards Gemini becoming a full-stack, end-to-end marketplace for crypto trading, predictions, futures, options, and more,” the firm stated. 

Gemini’s stock (GEMI) gained 6.9% on Thursday to reach $4.92 in after-hours trading; however, it remains down 47% year-to-date, according to Google Finance. 

Last week, Coinbase reported $1.41 billion in total Q1 revenue, down 31% year over year, but it posted a net loss of $394 million. It is much larger than Gemini and also saw strong diversification into derivatives, prediction markets, and stablecoins, which helped offset the decline. 

Magazine: eToro founder timed Bitcoin top perfectly due to belief in 4 year cycles

Hana Bank will buy 2.28 million shares in Dunamu, the parent company of Upbit, from Kakao Investments for about 1.003 trillion won, or nearly $670 million. 

The deal gives Hana Bank a 6.55% stake in Dunamu and makes it the company’s fourth-largest shareholder. Reuters reported the deal as a 1 trillion won transaction based on regulatory filings.

The transaction is expected to close on June 15. Kakao Investments will keep 1.4 million Dunamu shares after the sale, equal to a 4.03% stake. The sale changes Dunamu’s investor structure as major Korean finance and technology groups move closer to crypto businesses.

Banking groups move closer to crypto

Hana said the investment aims to “secure competitiveness in the new financial landscape.” The wording shows the bank is treating digital assets as part of its wider financial services plan, rather than a short-term market trade.

The purchase also follows earlier moves by Hana-linked units. Hana Card signed a USDC-related marketing deal with Circle and Crypto.com in March, while Hana Bank and SK Telecom partnered with BitGo in 2024 to set up BitGo Korea, where Hana owns 25%.

Dunamu is already part of a wider corporate process involving Naver Financial. Crypto.news reported in April that South Korea’s Financial Supervisory Service ordered Dunamu to correct major omissions in filings linked to its stock swap with Naver Financial.

The same report said the deal would make Dunamu a wholly owned Naver Financial subsidiary, but regulatory, competition and legislative reviews remain part of the process. Earlier coverage placed Dunamu’s implied value near $10 billion and the broader merger around $14.5 billion.

Upbit dominates Korea’s exchange market

Upbit remains South Korea’s largest crypto trading platform. Reuters reported that the exchange handles more than 80% of the country’s virtual asset trading volume, making Dunamu one of the most watched crypto firms in Asia.

Recent market updates show Upbit still drives activity in Korean crypto trading. Crypto.news reported fresh Upbit actions this week, including a Cosmos ATOM transfer pause for a network upgrade and the planned delisting of NKN’s BTC market in June.

Korea’s rules add to the timing

The Hana-Dunamu deal comes as South Korea works on the Digital Asset Basic Act. Crypto.news reported that the law was delayed into 2026 as regulators debated stablecoin oversight and the role of banks in issuance.

Separate coverage said the ruling party’s draft law includes tighter stablecoin rules, including a 5 billion won capital bar. That makes Hana’s Dunamu stake part of a larger shift, as banks, exchanges and technology groups prepare for clearer digital asset rules.

In crypto, timing matters — but sometimes, simply holding or participating at the right moment matters even more. That’s where crypto snapshots come in.

A crypto snapshot is a recorded capture of blockchain data at a specific moment in time. It’s like taking a “photo” of a network to see who owns what, who participated, or who qualifies for rewards.

Projects use snapshots for many reasons, especially for:

• Airdrop eligibility 🎁
• Governance voting 🗳️
• Reward tracking 📊

Even though snapshots happen quietly in the background, they often decide who receives valuable tokens and who gets left out.

How Does a Crypto Snapshot Work?

A blockchain constantly changes every second as users buy, sell, stake, and transfer tokens.

A snapshot freezes the data at one exact block or timestamp. Once recorded, the project can analyze:

• Wallet balances
• Token holdings
• Staking activity
• Governance participation
• Trading behavior

For example:

If a project announces:
“A snapshot will occur on May 20,”

Then only wallets meeting the requirements at that specific moment will qualify.

It doesn’t matter what happens after the snapshot is taken.

Why Are Snapshots Important?

Snapshots help crypto projects distribute rewards fairly and organize communities efficiently.

Instead of manually tracking thousands of wallets, projects simply record blockchain data at a specific time and use it as an official reference point.

Think of it as a digital attendance sheet for the blockchain.

1. Airdrop Eligibility

One of the biggest reasons snapshots are used is for airdrops.

Projects reward users who:

• Hold a token
• Use a protocol
• Stake assets
• Provide liquidity
• Participate early

The snapshot determines exactly who qualifies.

Example

Imagine a new blockchain wants to reward loyal users.

They may announce:

• Hold at least 100 tokens
• Before Block #25,000,000
• Snapshot date: June 1

Anyone meeting the requirements during the snapshot may receive free tokens later.

This is why many traders closely monitor snapshot announcements 👀

Some of the largest crypto airdrops in history used snapshots to distribute millions of dollars worth of tokens.

2. Governance Voting

Snapshots are also widely used in decentralized governance.

Many DAOs and crypto protocols allow token holders to vote on:

• Protocol upgrades
• Treasury spending
• Partnerships
• Tokenomics changes

But voting power needs to be measured fairly.

Instead of allowing users to buy tokens after voting starts, projects often take a snapshot beforehand.

This prevents manipulation.

Example

If you held:

• 1,000 governance tokens at the snapshot moment,

then your voting power is based on those 1,000 tokens — even if you later sell them.

This creates a more stable and fair governance system.

3. Reward Tracking

Snapshots are also useful for tracking ongoing rewards.

Projects may use snapshots to calculate:

• Staking rewards
• Yield farming incentives
• Loyalty bonuses
• Ecosystem participation rewards

Rather than checking balances every second, protocols can periodically take snapshots to simplify reward distribution.

This helps reduce:

• Network load
• Calculation complexity
• Reward abuse

Different Types of Snapshots

Not all snapshots work the same way.

Manual Snapshots

Projects announce a specific date and time publicly.

These are common for:

• Airdrops
• Governance votes
• Community rewards

Random or Hidden Snapshots

Some projects intentionally keep snapshot timing secret.

Why?

To prevent users from temporarily buying tokens just to qualify.

This encourages genuine long-term participation instead of short-term farming.

Continuous Snapshots

Some protocols continuously monitor activity over time instead of using a single moment.

This creates more accurate reward systems based on long-term behavior.

Risks and Misunderstandings

Snapshots are powerful, but they can also confuse beginners.

Buying Too Late

A common mistake is purchasing tokens after the snapshot has already happened.

At that point, eligibility may already be locked.

Fake Snapshot Announcements

Scammers often create fake airdrop campaigns.

Always verify announcements through official project channels.

Snapshot Doesn’t Guarantee Rewards

Just because your wallet appears in a snapshot doesn’t always guarantee an airdrop or payout.

Projects still decide:

• Distribution amounts
• Vesting rules
• Eligibility filters

Why Snapshots Are Becoming More Important

As crypto ecosystems grow, snapshots are becoming essential infrastructure.

They help projects:

• Reward loyal users fairly
• Build decentralized governance
• Track participation efficiently
• Prevent exploitation

With the rise of:

• DAOs
• Layer 2 ecosystems
• DeFi incentives
• Community-driven protocols

…snapshot systems are becoming increasingly important across Web3.

And because major airdrops can sometimes be worth thousands of dollars, interest in crypto snapshots continues to grow rapidly 🚀

Final Thoughts

Crypto snapshots may sound technical, but the idea is simple:

A snapshot records blockchain activity at a specific moment in time.

That single moment can determine:

• Who receives an airdrop
• Who can vote
• Who earns rewards

For anyone active in crypto, understanding snapshots is becoming an essential skill.

Because in Web3, being early is important — but being present at the right snapshot can matter even more.

REQUEST AN ARTICLE