The attack caused a sharp market decline, liquidating over $100 million in leveraged positions, before a quick rebound of Bitcoin and Ethereum.

Bybit assures its solvency and the security of client funds despite the loss, but the event renews the debate on the security of exchanges and the need to self-manage assets.

An Unprecedented Attack on Bybit’s Ethereum Funds

The cryptocurrency exchange platform Bybit became the target of a massive hack, resulting in the loss of $1.46 billion worth of ETH. According to on-chain analysis, 401,346 ETH, approximately $1.1 billion, was transferred to an unknown wallet, along with significant amounts of staked ether (stETH and mETH). These funds are gradually being swapped on decentralized platforms, causing slight panic and contributing to Ethereum’s drop below $2,700 before bouncing back.

Ben Zhou, CEO of Bybit, confirmed that the attack targeted a specific Ethereum cold wallet, while assuring that the rest of the exchange’s funds remain secure and that withdrawals are operating as usual.

A Market Shockwave

The attack immediately caused a price drop, with Bitcoin briefly falling below $97,000 and Ethereum declining by 4%. The event liquidated over $100 million in leveraged long positions, exacerbating selling pressure. However, the panic was short-lived: Bitcoin has already rebounded to $98,300, and Ethereum has risen to $2,750, indicating a rapid absorption by the market.

This hack stands as the largest in absolute value, surpassing historical attacks like those on Mt. Gox ($470 million), CoinCheck ($530 million), and the Ronin bridge ($650 million). It raises questions about the security management at Bybit and the need to reinforce exchange protections against sophisticated threats.

Bybit Assures Its Users: The Exchange Is Solvent

Bybit’s CEO, Ben Zhou, sought to reassure its users:

Bybit remains solvent even if the hack-related loss is not recovered. All client assets are covered 1:1; we can absorb the loss.

In fact, on-chain data shows significantly larger amounts held in Bybit‘s reserves, allowing the exchange to likely handle further operations. Nevertheless, it is crucial to prioritize the security of your funds. Therefore, Coin Academy advises you to always withdraw your funds from centralized platforms at the slightest sign of doubt.

The article Massive Hack at Bybit: $1.46 Billion in ETH Stolen appeared first on Coin Academy.

Kanye West, now known as Ye, is set to launch his own token, called YZY. According to several CoinDesk sources close to the project, this initiative aims to bypass traditional platforms like Shopify, which have cut ties with the artist due to his repeated hateful statements. This foray into the world of cryptocurrencies comes after years of scandals that have weakened his economic empire.

The YZY token, named after his brand Yeezy, adopts a controversial distribution: 70% of the tokens will be allocated directly to Ye, 20% will be reserved for investors, and only 10% will be used for liquidity. This concentration of power in the artist’s hands brings to mind other highly centralized projects, where creators ensure a dominant position from the start.

A Troubled Past and an Uncertain Future

Ye’s commercial influence collapsed after being abandoned by Adidas, Balenciaga, and his talent agency in 2022 following his anti-Semitic remarks, including live praises of Adolf Hitler. Recently, he self-proclaimed himself as a ‘Nazi’ and put a T-shirt adorned with a swastika up for sale, prompting Shopify to close his online store. Despite a sudden turnaround where he claimed not to be a Nazi anymore, this new crypto initiative is not without controversy.

Ye had publicly criticized celebrities launching their own tokens, stating that he had received several memecoin project proposals and declined them all.

According to an internal document, YZY is expected to be the official currency of Yeezy and will be accepted as a means of payment on its website. However, the credibility of the project is undermined by its chaotic announcement: after denying any interest in cryptos and criticizing their exploitation of fans, Ye now seems determined to capitalize on this trend.

A Model Inspired by Donald Trump’s TRUMP Token

Ye’s entourage claims that the artist is seeking to replicate former President Donald Trump’s strategy with his own memecoin, TRUMP, launched before his second term. Just like Trump, who controls 80% of his token through CIC Digital, Ye initially wanted to hold 80% of the YZY token, before being reduced to 70% after internal negotiations. If YZY achieves even a fraction of TRUMP’s success, Ye could pocket tens of millions of dollars.

The token launch, initially scheduled for Thursday, has been postponed to this Friday. A team member indicated that this delay was due to concerns related to the recent scandal involving Argentine President Javier Milei. Indeed, a memecoin backed by Milei, LIBRA, turned out to be a pump-and-dump, causing hundreds of millions of dollars in losses and sparking a national outcry and calls for his impeachment. Faced with this event, the YZY team is hesitant to move forward immediately, fearing that public opinion will associate the project with a new fraud.

YZY: Innovation or Disguised Scam?

The crypto market is replete with projects initiated by celebrities, often launched for the sake of buzz before seeing their value plummet, leaving ordinary investors abandoned. With such a concentration of tokens in Ye’s hands, the risk of price manipulation is real, and the project’s vesting structure, which limits the sale of a portion of the tokens over 12 months, does not guarantee the absence of dumping.

As Ye attempts to rebuild his financial empire, YZY emerges as an attempt to divert his audience towards a new source of income. It remains to be seen whether this token will revolutionize the fashion and music industry or end up on the long list of ephemeral shitcoins that only serve to enrich their creators.

The article Kanye West Launches YZY Token to Bypass Traditional Platforms and Monetize His Community appeared first on Coin Academy.

Exaion, already registered as a Digital Asset Service Provider (PSAN) with the French Financial Markets Authority (AMF), positions itself as a European alternative to foreign players such as Fireblocks and Coinbase.

Set to launch in 2025, this service focuses on cybersecurity, digital sovereignty, and decarbonized energy to attract major financial institutions.

A strategic turning point for Exaion and the EDF Group

The EDF Group, wholly owned by the French State, is taking a new step in its foray into the crypto ecosystem. Its subsidiary Exaion, specializing in blockchain infrastructure, has just announced the launch of a digital asset custody service aimed at financial institutions. This initiative, primarily targeting banks and investment funds, comes in the context of growing demand for secure and sovereign solutions.

Already registered as a Digital Asset Service Provider (PSAN) with the French Financial Markets Authority (AMF), Exaion discreetly obtained enhanced registration in December, allowing it to offer both digital asset exchange and custody services. Today, EDF’s subsidiary confirms its ambitions with an ultra-secure digital safe, as stated by its CEO, Fatih Balyeli, in an interview with The Big Whale.

The idea is to support major financial players in their crypto activities by offering sovereign and secure infrastructure.

Fatih Balyeli, CEO of Exaion

A service designed for major financial institutions

The Exaion digital asset custody service will be available in the second half of 2025, with additional features such as staking and exchange solutions between cryptocurrency and traditional currencies. This announcement comes as the financial sector increasingly opens up to cryptocurrencies. The approval of Bitcoin and Ethereum ETFs in the United States has prompted a massive influx of institutional players, such as BlackRock, who are preparing a similar launch in Europe.

In this context, the custody of digital assets becomes a central issue for banks and investment funds. Exaion targets these major players, who cannot afford to rely on unregulated service providers.

We are addressing major institutions that cannot afford to work with unregulated startups.

Giants like BlackRock or JP Morgan could therefore be among the future clients of EDF’s subsidiary.

A strategic asset for European digital sovereignty

In a market largely dominated by foreign players such as Fireblocks (Israeli-American custodian technology) and Coinbase (American digital asset custodian), Exaion emphasizes the argument of European sovereignty. Its infrastructure is based on an internally developed Hardware Security Module (HSM), guaranteeing full control over asset security.

This approach particularly appeals to French and European institutions, subject to strict regulations and often reluctant to entrust their assets to foreign solutions. The affiliation of Exaion with the EDF Group further strengthens this attractiveness, offering investors a guarantee of reliability and compliance with European standards.

Security, green energy, and strategic positioning

Exaion does not settle for a robust regulatory framework alone. The subsidiary aims for the highest standards of cybersecurity, with certifications such as ISO 27001 and SOC 2. Its connection with EDF also gives it a unique advantage: access to decarbonized energy and critical infrastructure. This ability to provide clean and stable electricity is a major asset for future data centers and digital services.

Exaion is no stranger to the crypto world. The subsidiary already operates blockchain nodes on Ethereum and other major protocols, although it still refuses to mine Bitcoin for environmental reasons. This decision sparks debates but also illustrates Exaion’s commitment to a more sustainable approach to digitization.

Towards the consolidation of the crypto offering in France?

With this custody service, EDF and Exaion aim to position France at the heart of global digital transformation. This strategic positioning, combined with sovereign infrastructure and expertise in cybersecurity, could attract many institutional players looking for an alternative to American solutions.

The planned launch in 2025 will be a decisive test for France’s ability to establish itself as a major player in digital finance. Exaion could become an essential pillar for financial institutions looking to secure their digital assets while complying with European regulatory requirements.

The article EDF Launches Digital Asset Custody Service for Financial Institutions appeared first on Coin Academy.

The Securities and Exchange Commission (SEC) is set to drop its lawsuit against Coinbase, marking a major legal victory for the crypto industry against the US regulator. This decision, pending confirmation from the agency’s commissioners, would put an end to allegations that Coinbase operated as an unregistered exchange and listed unregistered securities.

“It’s a great day for Coinbase and crypto in America.”

According to Coinbase’s Chief Legal Officer, Paul Grewal, the negotiated agreement would prevent the SEC from reopening the case in the future.

The COIN stock immediately gained over 4% in pre-market trading.

A Strategic Retreat by SEC That Impacts the Entire Industry

The dropping of this case could have a ripple effect on other ongoing cases. Previously, under Gary Gensler’s leadership, the SEC had been aggressively pursuing the crypto industry, arguing that most tokens were securities subject to its regulation. Dropping the case against Coinbase sends a strong signal: the legal battle is giving way to the need for clear legislative frameworks.

In the US, the future of crypto regulation may now be determined in Congress rather than the courtroom. Coinbase, which has already made significant political investments through the Fairshake PAC, hopes to influence the creation of new laws regarding market structure and stablecoins.

The SEC commissioners have not yet responded to CoinAcademy’s questions.

A Changed SEC Under Uyeda’s Leadership

The SEC’s decision coincides with an internal overhaul. Acting Chair Mark Uyeda and Commissioner Hester Peirce, who are supportive of the crypto industry, appear to be turning the page on blanket enforcement actions. The agency recently restructured its enforcement unit, expanding its role to cover “emerging technologies” and reducing its focus on cryptocurrencies.

This shift has already been reflected in several decisions, including withdrawing an appeal regarding the definition of “dealers” under SEC surveillance, and requesting the suspension of the Binance case, which carried similar allegations to those against Coinbase but was also tainted with fraud suspicions.

With Paul Atkins, a former SEC commissioner and the future chairman pending Senate confirmation, the trend may continue. Atkins, a mentor to Peirce and Uyeda, is seen as an advocate for a more pragmatic approach to the crypto industry.

The End of an Era: Priority Shifts to Legislation

The SEC commissioners’ vote on dropping the Coinbase lawsuit will be closely watched by the industry. If confirmed, it will force the regulator to abandon other similar cases. Grewal stated, “We hope this case will serve as a model for resolving others.”

Now, attention turns to Congress, where new regulations could emerge within the first 100 days of the next legislative session. It’s time for Coinbase and the entire sector to shift from legal defense to political offense.

The article SEC Drops Lawsuit Against Coinbase, Signaling Shift Towards Legislative Regulation appeared first on Coin Academy.

The European Central Bank (ECB) is accelerating its efforts in Distributed Ledger Technology (DLT) with the goal of integrating a fiat settlement system. This initiative is part of an innovative approach aimed at modernizing European financial infrastructures and improving market efficiency.

Piero Cipollone, a member of the ECB executive board and project leader, emphasizes the significance of this initiative:

This is a critical contribution to enhancing the efficiency of European financial markets through innovation.

Two-Step Approach for Controlled Transition

The ECB plans to implement this technology gradually, starting with integration into its existing settlement system, Target. Target plays a crucial role in the smooth flow of money, securities, and collateral throughout Europe. The goal is to enable DLT transactions to be settled in central bank fiat, ensuring the stability and security of the financial system.

In the second phase, the ECB aims to develop a more extensive solution that can support a wider range of operations, including settlement of foreign exchange transactions through DLT-based platforms.

In-Depth Exploration of the Potential of Distributed Ledgers

The ECB’s interest in DLT is not new. Since 2023, it has been conducting extensive studies on the application of this technology to institutional financial transactions. As part of these research efforts, market participants have been invited to experiment with central bank fiat transactions on DLT-based infrastructures.

The objective is twofold: to assess the benefits and challenges of this integration while ensuring monetary sovereignty and the resilience of the financial system in the face of technological changes.

Towards a Strategic Modernization of Financial Settlement

By pursuing this path, the ECB seeks to align the evolution of financial markets with emerging technological innovations. The integration of distributed ledgers within European monetary infrastructures could offer faster, more transparent, and secure transactions while preserving the stability of the financial system.

The article BCE Develops Fiat Settlement System Based on DLT to Modernize Financial Infrastructure appeared first on Coin Academy.

Vitalik Buterin, co-founder of Ethereum, has expressed concern about what he sees as a worrying trend in the crypto sector: the widespread acceptance of blockchain casinos. During an Ask Me Anything (AMA) session, he talked about his growing frustration with the criticism aimed at Ethereum for its reluctance to wholeheartedly embrace gambling platforms.

Peut-être que la chose la plus décevante pour moi récemment, c’est d’entendre quelqu’un dire qu’Ethereum est mauvais et intolérant parce que nous ne respectons pas assez les ‘casinos’ sur la blockchain, alors que d’autres blockchains acceptent toutes les applications et sont donc meilleures.

Vitalik sees this trend as a “moral reversal” in the sector. He even hinted that if this mindset became the norm, he would no longer be motivated to continue his involvement in the industry.

A crypto community that remains committed to its values

Despite his concerns, Vitalik nuance his remarks by pointing out that face-to-face interactions with members of the crypto community have given him a different perspective. Unlike online critics who condemn Ethereum for its lack of openness to gambling platforms, he observes that the sector’s fundamental values remain intact in physical exchanges.

J’ai une responsabilité envers cette communauté et je ne peux pas l’abandonner.

He encourages Ethereum actors to build together the ecosystem they want to see emerge, even if it means redefining the role of the Ethereum Foundation in supporting projects.

The Ethereum Foundation seeks to reconnect with its community

For several months, frustration has been building among Ethereum users, who criticize the Ethereum Foundation (EF) for drifting away from its community base. In response to this growing criticism, the non-profit organization is trying to improve its image and re-establish dialogue with its ecosystem. One of its most recent initiatives is the recruitment of a social media manager, a decision announced by Josh Stark, a long-time EF member.

A strategic position to rebuild communication

The role of the future social media manager will not be limited to managing the EF’s X, Facebook, and LinkedIn accounts. They will also need to be active on web3 platforms like Farcaster and Lens, while managing the official @ethereum account. The goal? To better communicate about protocol developments and re-engage the community. This is a significant challenge as the EF struggles to establish itself as an influential voice within its own network.

In its job posting, the EF emphasizes that it does not control Ethereum and that it is not the only entity funding its development.

Nous faisons partie d’un large écosystème d’organisations, d’individus et d’entreprises qui soutiennent Ethereum. Notre mission est de faire ce qui est le mieux pour le succès à long terme d’Ethereum.

The Ethereum Foundation adapting its strategy

Vitalik’s statements come as the Ethereum Foundation adjusts its funding policy. Recently criticized for selling Ether to fund its operations, it responded to community concerns by reinvesting 45,000 ETH (120 million dollars) in DeFi protocols like Aave, Spark, and Compound.

This shift has been well received, with many members seeing it as strengthening Ethereum’s position within the DeFi ecosystem. The Foundation also announced that it is exploring other strategies, including staking, and solicited the community’s input on the best ways to use its funds.

The article Vitalik Buterin Warns of Moral Reversal in Crypto Sector appeared first on Coin Academy.

The launch of the native token of Pi Network made a explosive debut in the market, reaching a diluted valuation of $195 billion within minutes. This briefly placed PI ahead of giants like Solana, before experiencing a steep drop of over 50% in less than two hours.

Introduced at $1.70 this morning, the token quickly climbed above $2 before falling to around $0.93 currently. With a reported circulating supply of 6.3 billion tokens, PI’s actual market capitalization is now around $6 billion.

A controversial economic model: Viral marketing or pyramid scheme?

Pi Network, which claims to have 60 million users, has often been compared to previous viral projects like SafeMoon, known for its aggressive marketing tactics and incentivized referral systems.

To start mining PI tokens, a user must be invited by an existing member and can then go on to refer other users, generating additional rewards. This mechanism closely resembles multi-level marketing (MLM) or even pyramid schemes, where early adopters benefit disproportionately compared to newcomers.

Insufficient liquidity to absorb token volume

Despite its massive market capitalization, PI suffers from a glaring lack of liquidity on exchanges. The 2% market depth, a key indicator of market liquidity, fluctuates between $33,000 and $60,000 on OKX, the most liquid platform for this token. In other words, a simple transaction of tens of thousands of dollars would be enough to cause significant price fluctuations, making the market extremely volatile.

With a $6 billion market capitalization, a 2% price variation represents a $140 million change in market value, further adding to the project’s instability.

A risky token locking strategy

In an attempt to stabilize its market amid tensions between buyers and sellers, Pi Network proposes a token lock-up period of up to three years. Users who agree to lock-up their tokens benefit from a higher mining rate.

This model is reminiscent of Richard Heart’s HEX, which incentivized holders to lock their tokens in exchange for future returns. However, when HEX collapsed by 99% between 2021 and 2024, many investors saw their locked tokens become practically worthless.

Users verifying their peers’ KYC?

The KYC validation system of Pi Network raises serious concerns regarding reliability and data protection. By entrusting identity verification to users who have simply validated their own KYC, without any real expertise or strict oversight, the project exposes its users to major risks.

Firstly, the accuracy and integrity of the process become questionable: individuals without specific training are judging the authenticity of documents and faces, opening the door to errors and abuses. Secondly, the confidentiality of personal data is endangered. These verifications involve displaying videos or photos of faces in fullscreen, as well as excerpts from identification documents (the data on these documents should not be visible). This rudimentary approach contrasts with the high standards of traditional KYC solutions, which rely on advanced technologies and certified professionals to minimize the risks of fraud and privacy violations.

An uncertain future amidst volatility and liquidity challenges

The launch of PI highlights the risks of an overvalued yet thinly liquid token. The project’s impressive market capitalization contrasts with the lack of sufficient liquidity, exposing traders to abrupt price movements. Furthermore, its controversial economic model, based on sponsorship and incentivized token lock-ups, poses a risk of forced deflation and long-term collapse.

The essential question remains: can Pi Network surpass the buzz and prove its long-term viability, or will it end up like other viral projects with empty promises?

The article Is Pi Network’s Token Facing Volatility and Liquidity Challenges? appeared first on Coin Academy.

The US Securities and Exchange Commission (SEC) announces the creation of a new unit dedicated to combatting fraud in the cryptocurrency and artificial intelligence sectors. The Cyber and Emerging Technologies Unit (CETU) replaces the former Crypto Assets and Cyber Unit established in 2022 under the Biden administration. This strategic shift reflects the new Trump administration’s vision for financial market regulation.

Laura D’Allaird Takes the Helm

Laura D’Allaird, a key figure in the SEC and former co-director of the crypto-cyber unit, has been appointed as the head of CETU. With her expertise in regulating new technologies, she will play a crucial role in this new mission.

Striking a Balance between Investor Protection and Innovation Support

CETU’s role goes beyond identifying and penalizing fraud. According to Mark Uyeda, the SEC’s interim chairman, CETU will also aim to “facilitate capital formation and market efficiency while embracing innovation.” The goal is to find a balance between regulating emerging sectors and encouraging technological development.

A New Regulatory Framework under the Trump Administration

The launch of CETU is part of the SEC’s broader transformation under the new administration. The era of Gary Gensler’s strict approach to cryptocurrencies, classifying many tokens as securities, appears to be coming to an end. Now, the emphasis is on a regulation that is “reasonable and respectful of legal boundaries,” according to the SEC’s official statement.

This announcement also follows the LIBRA scandal, a memecoin promoted by the Argentine president that cost investors hundreds of millions of dollars.

Collaboration with Hester Peirce’s Crypto Task Force

CETU will work in synergy with the Crypto Task Force established by Republican Commissioner Hester Peirce. Peirce aims to clarify the status of digital assets and exempt some of them from the strict securities regime. This approach could provide a breather for industry players after years of regulatory uncertainty.

The article SEC Establishes CETU to Combat Crypto Fraud appeared first on Coin Academy.

The KAITO token has been launched on Base with a total supply of one billion tokens, including 10% allocated for an airdrop to early members, NFT holders, and partners.

KAITO is used for governance and incentive alignment, with a distribution that includes 32.2% for growth, 7.5% for content creators, and 25% for key contributors.

Kaito: A Strategic Launch on Base

The KAITO token is now available on Base with a total supply of 1 billion tokens and approximately 24% in circulation, including 10% dedicated to the initial airdrop.

The beneficiaries of this airdrop include the first members of the Kaito Yapper community, Genesis NFT holders, as well as certain partners and ecosystem contributors. Additionally, 2% of the supply is reserved for a specific airdrop to Binance users through the Hodler program.

Tokenomics of KAITO

The rest of the supply is allocated as follows:

• 32.2% for ecosystem and network growth,
• 7.5% for content creator incentives,
• 5% for liquidity,
• 10% for the Kaito Foundation,
• 25% for key contributors,
• 8.3% for early investors.

Kaito: An AI-Powered Search Engine for Crypto

Kaito is an AI-based data analytics platform and search engine designed to optimize research and trend monitoring in the crypto space. Through its “InfoFi” network, it aims to redistribute attention and capital more fairly and transparently in the blockchain ecosystem.

Its native token, KAITO, plays a central role in this economy by enabling decentralized governance, facilitating market alignment, and rewarding content creators on social networks known as “Yappers.”

The Rise of the Yapper Phenomenon

In recent months, Kaito Yaps has gained momentum on Crypto Twitter, using AI algorithms to measure the attention value generated by posts. This system allows Kaito to sell engagement data to crypto projects seeking trend analysis while rewarding creators based on their influence.

The “Yapper Leaderboard,” a public dashboard, ranks the most influential users in real time. According to initial estimates, points earned on the platform could be worth between $5 and $20, depending on the fully diluted valuation (FDV) of the token. KAITO is currently trading at around $1, with a FDV of one billion dollars.

Between Enthusiasm and Skepticism

While the project is generating excitement, especially among content creators and SocialFi enthusiasts, it is not without criticism. Some have criticized the rushed launch, particularly the late release of tokenomics details.

Influential figures accuse Kaito of degrading the quality of Crypto Twitter by pushing users to perform for the algorithm. Others consider Kaito an overvalued project with no real utility and predict its collapse within the next six months.

The article KAITO Token Launches on Base: A Strategic Move in the Crypto Space appeared first on Coin Academy.

Nigeria is suing Binance for an astronomical amount of $81 billion, including $79 billion in alleged economic losses and $2 billion in unpaid taxes. The complaint, filed by the Federal Inland Revenue Service (FIRS), accuses the exchange of operating illegally in Nigeria, adding to the long list of global disputes the platform is facing.

The FIRS is also demanding an interest rate of 26.75% on the unpaid taxes, based on the debit interest rate of the Central Bank of Nigeria.

An Escalating Legal Offensive

This legal action comes after FIRS already charged Binance in March 2024 for tax evasion, including non-payment of corporate tax and failure to file tax returns. Two executives of the firm, Tigran Gambaryan and Nadeem Anjarwalla, were detained in Nigeria and are among the accused in this case. These developments reflect the Nigerian authorities’ firm determination to regulate the crypto industry within their territory as the government tightens its approach towards non-compliant companies.

Binance Under Pressure on Multiple Fronts

Binance has faced scrutiny from authorities before. In the United States, the Department of Justice demanded $4 billion in penalties in late 2023 to settle its investigation into the platform, which faced accusations of violating the Bank Secrecy Act, money laundering, and fraud. Its founder, Changpeng “CZ” Zhao, pleaded guilty and agreed to pay a $50 million fine, in addition to stepping down from the company’s leadership. He also served a four-month prison sentence before being released in September 2024.

In France, the prosecutor’s office recently opened an investigation against the exchange for aggravated money laundering, tax fraud, illegal exercise of the PSAN profession between 2019 and 2024, as well as accusations related to drug trafficking.

Binance Still the Leader Despite the Storm

Despite these legal obstacles, Binance remains the unquestionable market leader in crypto. In January 2025, the platform recorded a spot trading volume of $801 billion, representing nearly 35% of global exchanges. However, this dominance does not absolve it from growing regulatory challenges, particularly in jurisdictions where cryptocurrencies remain a significant political and economic issue.

The article Nigeria Files Colossal $81 Billion Lawsuit Against Binance appeared first on Coin Academy.