South Korea's Financial Supervisory Service said customers who sold tokens from Bithumb's accidental distribution of over $40 billion in Bitcoin on Feb. 9 are legally obliged to return the assets, Reuters reports. The FSS chief said the crypto sector has structural vulnerabilities and urgently needs stronger oversight. The watchdog added it would take a cautious stance on "ghost tokens" and Bitcoin spot ETF launches, and plans to expand its remit through a second phase of the Digital Asset Basic Act.

Rosen Law Firm opened a probe on Feb. 9 into potential securities claims for BAL investors over allegedly misleading business information, BlockBeats reports. The investigation follows a Nov. 3 attack reported by Bloomberg, with PeckShield and Cyvers estimating losses near $128 million. The firm is preparing a class action.

The Federal Deposit Insurance Corporation agreed to pay Coinbase $188,440 in legal expenses and overhaul its Freedom of Information Act policy following a court ruling that found the agency violated federal disclosure rules, BlockBeats reports. Under the February 9 settlement, the FDIC will release previously withheld crypto-related "pause letters," add training guidance instructing staff to interpret FOIA requests broadly, and stop applying blanket confidentiality to all bank supervisory documents under FOIA Exemption 8.

The Commodity Futures Trading Commission authorized national trust banks to issue USD-pegged tokens under the GENIUS Act framework on Feb. 8, Cointelegraph reports. The decision expands stablecoin issuance rules for national trust banks.

The White House will hold its second staff-level crypto meeting next Tuesday, centering on stablecoin yield payments and including senior policy representatives from major U.S. banks for the first time, crypto journalist Eleanor Terrett reported on Feb. 8. Bank of America, JPMorgan and Wells Fargo have received invitations, with PNC Bank, Citibank and U.S. Bank also possibly attending alongside industry groups including the Bank Policy Institute, American Bankers Association and Independent Community Bankers of America, people familiar with the matter said. Banks are seeking limits on stablecoin interest offerings by crypto firms, arguing high-yield crypto accounts could divert deposits, constrain lending capacity and create financial instability, while crypto companies counter this stance protects banks' regulatory advantages and suppresses competition. Treasury Secretary Scott Bessent on Thursday expressed support for smaller banks and said authorities will work to ensure stablecoin yield payments do not trigger deposit volatility, with committee executive director Patrick Witt urging stakeholders to reach an agreement by month-end.

US Treasury Secretary Janet Yellen said on Feb. 4 that neither the Treasury Department nor the Financial Stability Oversight Council has authority to bail out Bitcoin or require banks to purchase it as reserves, BlockBeats reports. Yellen stressed that US taxpayer funds will not be invested in crypto assets. She added that Bitcoin currently held by the US government comes from law enforcement seizures and is separate from funds managed on behalf of taxpayers.

Tether froze over $544 million in crypto assets on Feb. 7 at Turkey's request, targeting funds linked to an alleged illegal online gambling and money laundering network, BlockBeats reports. The company said it implemented the freeze after law enforcement provided case information, with CEO Paolo Ardoino emphasizing Tether's cooperation with official actions as part of its global compliance work, according to Cointelegraph. Elliptic data show that as of end-2024, Tether and Circle had blacklisted about 5,700 wallets across their platforms, with frozen funds totaling around $2.5 billion, roughly two-thirds of which were associated with USDT. Ardoino added that Tether has previously worked with the U.S. Department of Justice and the FBI, framing such collaboration as integral to the company's compliance approach.