Last Week in Crypto (Feb 24-Mar 2, 2025)
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The crypto industry was rocked by the largest exchange hack in history, with Bybit losing $1.5 billion in Ethereum due to a compromised multi-sig system. Meanwhile, Bitcoin and Ethereum ETF outflows hit a record $3.2 billion, contributing to BTC’s decline below $85K, while Ethereum followed suit. On the regulatory front, the SEC dropped lawsuits against Coinbase, MetaMask, and Uniswap, marking a major shift in enforcement policy.
The markets are moving fast—let’s break it all down. 🚀
📊 7-Day Market Recap
Bitcoin $BTC — 🔴 $93,517.23 -2.43% ⬇
Ethereum $ETH — 🔴 $2,478.61 -12.2% ⬇
Ripple $XRP — 🟢 $2.83 +10.43% ⬆
BNB $BNB — 🔴 $629.61 -3.74.% ⬇
Solana $SOL — 🟢 $169.24 +0.42% ⬆
📰 The Big Story: Bybit’s $1.5 Billion Hack
Crypto got a harsh reminder this week: security is only as strong as the weakest link. The largest crypto hack in history hit Bybit, with $1.5 billion drained from its ETH cold wallet due to a compromised multi-sig system (Safe/Gnosis). While Bybit’s CEO handled the crisis well, the attack exposed critical flaws in CEX security models.
📉 What Happened?
Attack Vector: The ByBit breach occurred on 21 Feb, during a routine transfer from the exchange's cold (offline) wallet to its hot (online) wallet. The incident has been traced to a supply chain attack on Safe (formerly Gnosis Safe).
The Damage: Over 400,000 ETH and stETH worth more than $1.5 billion was siphoned off by the hackers to a collection of unidentified addresses.
Immediate Response: Bybit's CEO, Ben Zhou, promptly addressed the situation, assuring clients that all assets are backed one-to-one. The exchange then secured bridge loans to cover any unrecovered funds, emphasizing its commitment to safeguarding user assets.
Usual Suspects: North Korea’s notorious hacking unit, Lazarus Group, is responsible for orchestrating the attack, continuing their pattern of high-profile crypto heists, including the ones on Phemex, WazirX, and BingX.
🔍 Key Market Trends
SEC Drops Lawsuits: The SEC dropped its lawsuits against Coinbase, Uniswap, and MetaMask’s developer, Consensys, signaling a policy shift toward less aggressive crypto regulation.
US States Reject Bitcoin Reserve Bills: Six US States — Montana, South Dakota, North Dakota, Pennsylvania, Wyoming, and Mississippi voted against state-backed BTC reserves.
ETF Outflows Drive Down BTC & ETH: Bitcoin and Ethereum extended their losing streak as ETF outflows hit $3.2 billion, compounding broader market weakness.
BitMEX Looks for a Buyer: The exchange is seeking new ownership after being fined $100M for Bank Secrecy Act violations.
Trump-Zelensky Fallout: Tensions escalated between President Trump and Ukrainian President Zelensky, as Trump reportedly withheld further US military aid, citing concerns over Ukraine’s financial transparency.
📅 Events to Watch
Mar 4: Tariffs on Canada, Mexico, and China kicks in, escalating trade tensions.
Mar 7: U.S. Jobs Report arrives revealing key employment data that could influence inflation expectations and TradFi correlations.
🎬 And that's a wrap on this week's digest! Stay tuned, and we'll meet in the next one! Until then, take care, and stay well!
Cheers!
Kevin