OpenSea investigation ends, Bybit hack, Ye | Weekly Recap

Today’s edition of the weekly recap spotlights controversial plans for Kanye West’s cryptocurrency launch, a major regulatory development for OpenSea, and what may be the largest crypto hack in history at Bybit.

SEC concludes OpenSea investigation

• OpenSea CEO Devin Finzer announced the SEC’s closure of its investigation into the leading NFT marketplace.
• “The SEC’s decision to close its investigation is more than just a win for OpenSea—it’s a win for the entire NFT ecosystem. Misclassifying NFTs on OpenSea as securities would have set a dangerous precedent, limiting opportunities for artists, collectors, and entrepreneurs alike. Instead, this outcome allows creators to continue shaping the future of digital ownership and innovation without unnecessary constraints,” Finzer said in a prepared statement sent to crypto.news.
• The development follows an August 2024 Wells notice that had suggested potential enforcement action against the platform for allegedly operating as an unregistered securities marketplace.

Coinbase settles with SEC

• Coinbase, a top cryptocurrency exchange, announced an agreement in principle with SEC staff to dismiss the regulator’s lawsuit with prejudice, preventing future refiling of the complaint.
• The resolution needs final approval from SEC commissioners, as detailed in Coinbase’s regulatory filing and blog post.
• Like OpenSea, Coinbase benefits from the Trump administration’s promise to loosen regulations in the crypto sector.

Bybit suffers largest crypto hack to date

• The exchange lost over $1.4 billion in Ethereum (ETH) and stETH through an attack on Friday, marking the largest cryptocurrency theft based on asset values. North Korea’s Lazarus Group is the alleged culprit.
• Bybit has offered a 10% bounty of recovered funds, up to $140 million, to security experts who assist in asset recovery.
• The breach involved manipulation of a transaction between the exchange’s multi-signature Ethereum cold wallet and hot wallet.

Pi Network token launch faces controversy

• The smartphone mining project’s PI token debuted at $1.70 before experiencing extreme volatility, rising to almost $2.00, then falling 50% to $0.97 within hours.
• Bybit CEO Ben Zhou publicly refused to list PI, citing a 2023 Chinese police warning about the project allegedly targeting elderly investors and compromising personal information.

Ye announces controversial token launch plans

• The artist formerly known as Kanye West indicated plans to launch “Swasticoin” next week.
• His announcement included inflammatory comments about the Jewish community; West’s meme coin plans mark a shift from his previous criticism that celebrity-backed coins that “prey” on fans.

Hong Kong considers staking services

• Hong Kong regulators are considering allowing staking services for crypto ETFs and derivatives trading as part of a new industry roadmap, signaling growing institutional acceptance.
• Major local cryptocurrency firms are engaged in active discussions with the region’s primary financial regulator about these potential expansions.

Ulbricht advocates for Roger Ver’s release

• Recently pardoned Silk Road founder Ross Ulbricht has publicly supported efforts to free Roger Ver, citing Ver’s previous assistance during his own difficulties.
• Ulbricht argued against life imprisonment for tax-related charges, using his platform to advocate for Ver’s release.

Strategy announces new Bitcoin purchase plan

• The company formerly known as MicroStrategy revealed plans to sell $2 billion in zero-coupon convertible bonds to fund additional Bitcoin (BTC) purchases.
• These specialized bonds offer no interest payments but can be converted into company stock.

Metaplanet expands Bitcoin treasury position

• The Japanese investment firm purchased an additional 68 BTC at an average price of $96,335, bringing its total holdings to 2,100 BTC valued at approximately $203 million.

Brazil advances in XRP ETF development

• Brazil’s Securities and Exchange Commission (CVM) approved Hashdex’s XRP (XRP) Index Fund, potentially creating the world’s first spot XRP exchange-traded fund.
• The development coincides with the U.S. SEC’s acknowledgment of Cboe BZX Exchange’s spot XRP ETF filing on behalf of Canary Capital.

Nigeria pursues legal action against Binance

• The Nigerian government is suing Binance for $81.5 billion, with lawyers seeking $79.5 billion in damages for alleged negative impacts on the country’s economy and currency.
• The lawsuit claims Binance’s operations have contributed to the depreciation of the Nigerian naira.

Argentine lawyers file charges over Libra token

• Legal action has been initiated against President Javier Milei over the weekend’s Libra token collapse, according to Associated Press reports.
• The plaintiffs argue that Milei’s withdrawal of supportive messages constituted fraud, directly causing the token’s value loss in what they characterize as a “rug pull.”
• Milei also spoke at the recent Conservative Political Action Conference (CPAC) event and discussed President Donald Trump’s stance on reciprocal tariffs. Both leaders are under scrutiny for hyping up meme coins that plummeted in value.