Crypto Foundations in Cayman Surge 70% Amid Liability Concerns
Cayman Islands foundation formations for crypto entities surged over 70% year-over-year, surpassing 1,300 by end-2024. The trend reflects a flight to offshore structures following a California court ruling that exposed DAO tokenholders to personal liability risks.
Samuels v. Lido DAO's treatment of unincorporated DAOs as general partnerships accelerated adoption of Cayman foundations, which offer legal separation between contributors and protocol activities. Early 2025 data shows 400+ additional registrations despite U.S. efforts to attract digital asset firms.
"We're punching above our weight," said Cayman Finance's Haymon Rankin, noting the jurisdiction hosts 30,000 funds—second only to Delaware. Major crypto players like OpenSea Foundation have established Cayman entities, cementing the islands' role as a hub for DAO legal wrappers.
