Weekly Update: 28th of February
What happened between the 21st and 28th of February?
- Digital assets exchange Bybit Experiences largest hack ever, losing $1.5 Billion in Ethereum. Read more
- Bitcoin undergoes a major correction to around $79K following Trump’s announced import tariffs on EU goods. Read more
- SEC drops lawsuits against crypto entities such as Gemini, Uniswap, OpenSea, and Coinbase. Read more
Digital assets exchange Bybit hacked for $1.5 Billion
On Friday, January 21, hackers managed to intercept a routine transaction between one of Bybit’s cold wallets and its hot wallets. It is suspected that they gained access via phishing, allowing them to compromise an account on the Safe platform and replicate its interface. This enabled the hackers to execute multiple transactions, transferring 401,000 Ethereum to their own wallets.
Bybit and Safe are currently discussing liability for the breach, with both conducting their own investigations. In the meantime, Bybit has fully covered the loss, and according to CEO Ben Zhou, all user funds are once again 1:1 backed.
The Lazarus Group, a North Korean hacking collective, is suspected to be behind the theft. Lazarus has previously targeted other crypto projects, banks, and even major corporations like Sony. It is believed that the $1.5 billion in Ethereum will be gradually laundered over the coming years to fund North Korea’s missile program.
This hack has no direct impact on the assets in Hodl funds. You can read more about the incident via the button below.
Bitcoin experiences major correction to $79K
Over the past week, the crypto market has faced a significant correction. The Bybit hack, combined with ongoing macroeconomic uncertainty, led to a further risk-off movement. On Wednesday, March 16, Donald Trump escalated concerns by announcing a 25% import tariff on European goods. This caused a sharp downturn in the markets, with the S&P 500, Bitcoin, and altcoins all experiencing further declines.
Bitcoin dropped 18% from Monday to Friday, reaching a low of $79,000. Altcoins fell by an average 19%, suggesting that selling pressure on altcoins is decreasing after previous declines. Both altcoins and Bitcoin are in heavily oversold territory, awaiting some relief.
SEC drops lawsuits against digital assets firms
A new direction at the SEC has brought relief to the crypto market. Within just one week, the agency dropped lawsuits against major crypto entities such as Gemini, Uniswap, Consensys, and OpenSea. It is also expected that the SEC will soon dismiss its lawsuit against Coinbase.
Under former SEC Chairman Gary Gensler, numerous legal actions were taken against crypto firms. However, when questioned about specific violations, the SEC failed to provide clear answers.
Currently, Mark T. Uyeda is serving as the interim chairman until the U.S. Senate votes on Gensler’s proposed successor, Paul Atkins. Atkins, who has been involved with the SEC since the 1990s, is widely regarded as crypto-friendly.
For the crypto industry, these case dismissals provide temporary relief. In the coming months, U.S. regulators will continue working on clearer legislation for the crypto sector, providing more regulatory certainty for market participants.
In other digital assets news
- Bank of America CEO hints at developing a stablecoin once regulations allow it.
- The Crypto Fear & Greed Index hit a historic low of 10 on Thursday, February 27—a level not seen since the Luna collapse.
Sign up for our newsletter to stay on top of the digital assets market.
