News Roundup — Ethereum Falls as Crypto Exchange Bybit Confirms $1.4 Billion Hack

Major news stories this week;

1. Ethereum Falls as Crypto Exchange Bybit Confirms $1.4 Billion Hack‍
2. Argentina’s Crypto Adoption Hopes Dim After Milei’s LIBRA Memecoin Scandal‍
3. SEC Agrees to Drop Enforcement Case Against Coinbase‍
4. UAE Saw 41% Increase in Crypto App Downloads in 2024 — AppsFlyer‍
5. Stripe, PayPal Are ‘Primary Catalysts’ for Stablecoin Growth — Polygon Labs

Story Summaries;

1. Bybit, a major centralized crypto exchange, was hacked on Friday with over $1.4 billion worth of Ethereum (ETH) and stETH stolen. The attacker manipulated a transfer to gain control of Bybit’s ETH cold wallet, stealing the funds. The stolen ETH is being sold via decentralized exchanges and split across 39 addresses to obscure the flow. Bybit's CEO, Ben Zhou, confirmed the hack, assuring that other wallets remain secure and customer assets are backed 1-to-1. Despite the loss, Bybit remains solvent.
2. Argentina’s hopes for pro-crypto regulation under President Javier Milei have been severely damaged by a scandal involving the memecoin LIBRA. Milei endorsed the token, which quickly crashed in value, sparking allegations of a rug pull scam and causing public backlash. The incident has led to political turmoil, with some opposition figures calling for impeachment. The scandal has disillusioned Argentina’s crypto community, undermining Milei's crypto-friendly reputation and potentially derailing regulatory progress in the sector.
3. The SEC has agreed to dismiss its lawsuit against Coinbase, which accused the exchange of operating as an unregistered securities broker. This legal victory for Coinbase could mark a turning point for U.S. crypto regulation. Filed in June 2023, the SEC's lawsuit claimed Coinbase failed to register its staking services. Coinbase pushed back, criticizing the SEC’s overreach and advocating for clearer regulations. The dismissal is pending SEC commissioner approval, but if finalized, it would signal progress for the crypto industry.
4. Crypto app downloads in the UAE reached 15 million in 2024, a 41% increase from 2023, with December seeing a record 2.8 million installs. This growth was driven by market trends, including Donald Trump's pro-crypto stance and memecoin launch. Despite retention challenges, aggressive marketing contributed to strong adoption, with January 2025 installs continuing to show significant potential for the sector.
5. The stablecoin industry has surged to a $230 billion market, driven by major payment providers like PayPal and Stripe integrating stablecoins for easier transactions. PayPal’s PYUSD and Stripe's Pay with Crypto feature have contributed to this growth, making stablecoins more accessible to businesses. The industry is expanding further with innovations like yield-bearing stablecoins, offering new opportunities for both developed and emerging economies.
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And that’s all for last week’s news! Wishing you a great week ahead!