Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From BitMine's wild share expansion proposal and a billion-dollar Bitcoin hacker walking free to Coinbase defending regulatory delays and India putting Elon's Grok AI on blast, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets!

INTEL BRIEF

🟧 BitMine's chairman Tom Lee wants to increase the company's authorized shares by 1,000x to 50 billion to prepare for potential stock splits if ETH hits astronomical prices, but shareholders aren't exactly thrilled about it.

🟧 Ilya Lichtenstein, the hacker who stole nearly 120,000 Bitcoin from Bitfinex in 2016, just walked out of prison early thanks to Trump's First Step Act – after serving barely a year of his five-year sentence.

🟧 Coinbase exec John D'Agostino defends the CLARITY Act's slow progress, explaining it's more complex than the stablecoin-focused Genius Act and needs time to get right – even as the crypto industry taps its feet impatiently.

🟧 India's IT ministry has ordered Elon Musk's X to immediately fix Grok after the AI chatbot generated obscene and sexually explicit content, including AI-altered images of women, giving the platform 72 hours to comply or risk losing legal protections.

BitMine Wants to Multiply Its Shares by 1,000 and Nobody's Buying the Excuse

Tom Lee, the chairman of BitMine (that publicly listed Ether treasury company you might've heard of), just dropped a proposal that's got crypto Twitter in a full-blown meltdown. Lee wants to pump up the company's authorized share count from 50 million to a whopping 50 billion. Yes, you read that right – a 1,000x increase.

Now, before you start screaming "dilution!" into the void, Lee's got his reasons. He's essentially playing 4D chess with hypothetical ETH prices. According to his models, if Bitcoin hits $1 million, then ETH could rocket to $250,000 (based on the ETH/BTC ratio). In that wild scenario, BitMine's share price would allegedly hit around $5,000 per share – which, let's be honest, is a bit steep for your average retail investor trying to buy in.

Lee's solution? Prepare for massive stock splits. He explained that if ETH actually reaches those dizzying heights, BitMine would need to do a 100:1 stock split to keep shares at a friendly $25 price point. That split would create about 43 billion shares outstanding, which is why he's asking for the 50 billion authorized share ceiling now.

But here's where it gets spicy: the crypto community on X (formerly Twitter) is not buying it. The reactions have been, shall we say, overwhelmingly negative. One user perfectly captured the mood, writing: "Tom, this looks fishy and ridiculous to authorize a higher share count because the stock might go to $500. You can do this next year when it isn't in the gutter." Ouch.

Meanwhile, BitMine continues its ETH shopping spree, having just scooped up 32,938 ETH (worth over $102 million) on Tuesday. The company's treasury now boasts over 4 million ETH, valued at more than $12 billion, and they've even started staking their ETH to earn yield – because why let all that crypto just sit there doing nothing?

Tom Lee proposes increasing BitMine's authorized shares from 50M to 50B to prepare for potential stock splits if ETH prices skyrocket

If ETH hits $250,000, BitMine shares could reach $5,000 – way too pricey for retail investors, according to Lee

BitMine continues buying ETH, crossing 4 million ETH ($12B+) and now staking for yield

The Bitfinex Hacker Just Got Out of Prison Early and He's Thanking Donald Trump

Bitcoin bandit himself walking free! Ilya Lichtenstein, the mastermind behind one of crypto's most notorious heists, has been released from prison just over a year into his five-year sentence. And who does he have to thank? None other than former President Donald Trump and his First Step Act from 2018.

"Thanks to President Trump's First Step Act, I have been released from prison early," Lichtenstein posted on X this Friday, casually announcing his freedom like he just got out of a particularly long Zoom meeting. He added that he's "committed to making a positive impact in cybersecurity" – which is, frankly, a bold career pivot for a guy who literally hacked an exchange and stole nearly 120,000 Bitcoin back in 2016.

For those keeping score at home, the First Step Act is a criminal justice reform law that expanded eligibility for sentence reductions through earned time credits and rehabilitation measures. Apparently, Lichtenstein earned enough gold stars to get out early. His wife, Heather Morgan (better known by her rapper alter ego "Razzlekhan" – yes, really), also got released early back in October 2024 after serving her 18-month sentence for helping launder the stolen funds. She called Lichtenstein's release the "best New Year's present" after years apart. Romance isn't dead, folks – just occasionally incarcerated.

The dynamic duo was arrested in 2022 following a federal investigation that resulted in the seizure of a significant portion of the stolen Bitcoin. Their wild story even scored them a Netflix docuseries and an upcoming film, because apparently nothing says "Hollywood potential" quite like crypto crime. During sentencing, Lichtenstein insisted his wife wasn't involved in the actual hack and didn't even know about it for years – chivalry in the age of blockchain, if you will.

Meanwhile, Trump's apparently on a crypto-pardon spree. He's said he'll review the case of Samourai Wallet co-founder Keonne Rodriguez, potentially signaling another pardon. And let's not forget, Trump already granted Ross Ulbricht (Silk Road founder) a presidential pardon shortly after taking office, and pardoned Binance founder CZ in October. At this rate, crypto criminals might want to start drafting their pardon applications now.

Ilya Lichtenstein released early from his five-year sentence after just over a year, thanks to Trump's First Step Act

Hacked Bitfinex in 2016, stealing nearly 120,000 Bitcoin – one of the largest crypto thefts ever

Trump may review more crypto cases, including Samourai Wallet co-founder, continuing his crypto-pardon trend

Why the CLARITY Act Is Taking Forever According to Coinbase's Top Strategist

CLARITY Act is taking longer to pass than a DAO vote with low quorum, Coinbase has some thoughts. John D'Agostino, head of strategy at Coinbase Institutional, hopped on CNBC Friday to essentially tell the crypto industry: "I completely understand why this is taking longer" – which is executive speak for "please stop blowing up our mentions."

According to D'Agostino, the CLARITY Act is basically the foundational blueprint for crypto's future in the US, and unlike your average bill, this one's got layers. He compared it to the Genius Act (the stablecoin legislation that actually passed into US law in July), calling that one "transformative" but noting it "dealt with structurally simpler things than market structure bills." In other words: the Genius Act was the appetizer, and the CLARITY Act is the full five-course meal that needs time to cook properly.

But here's the kicker – the crypto world is getting antsy. White House AI and crypto czar David Sacks said back in December that the CLARITY Act might get the greenlight in January, declaring "We are closer than ever to passing the landmark crypto market structure legislation." So naturally, everyone's been staring at their calendars like kids waiting for Christmas morning.

D'Agostino is confident the bill will pass soon, pointing to the global regulatory momentum happening elsewhere. Europe's got MiCA, the UAE is crushing it with regulatory clarity, and the US? Well, we're still here debating. Meanwhile, there's been a "massive flight of talent" from the US to other crypto-friendly countries, which D'Agostino believes will light a fire under lawmakers. "Part of the rush to get Genius done was to stem that bleeding," he explained, suggesting that once everyone's back in session and realizes how far behind the US is falling, they'll feel the heat.

CoinShares isn't exactly thrilled about the delays either. They recently blamed $952 million in outflows from crypto investment products (during the week ending Dec. 19) on the CLARITY Act dragging its feet, citing "regulatory uncertainty" as a major buzzkill. However, veteran trader Peter Brandt threw some cold water on the hype, saying the Act's passage is "unlikely to have a significant impact on Bitcoin's price." His take? "Needed for sure, but not something that should redefine value." Ouch – even the good news comes with a reality check.

Coinbase exec defends CLARITY Act delays, saying it's more complex than the Genius Act and needs proper time

David Sacks previously suggested January passage for the landmark crypto market structure legislation

CoinShares blamed $952M in outflows on CLARITY Act delays and regulatory uncertainty

India Gives Elon Musk 72 Hours to Fix Grok's Obscene Content Problem

Elon Musk's X (formerly Twitter) is in hot water down in India, and this time it's not about blue checkmarks or algorithm drama. India's IT ministry just dropped the hammer on Friday, ordering X to make immediate changes to its AI chatbot Grok after users and lawmakers discovered it was generating some seriously "obscene" content – including AI-altered images of women that, shall we say, weren't exactly family-friendly.

The ministry's order is crystal clear: X needs to restrict Grok from creating content involving "nudity, sexualization, sexually explicit, or otherwise unlawful" material. Oh, and they've got 72 hours to submit a detailed action report explaining what they're doing to prevent this content from spreading. No pressure, right? The kicker? Failure to comply could strip X of its "safe harbor" protections – that's the legal immunity that shields platforms from liability for user-generated content under Indian law. In other words, this is not a suggestion.

So what sparked this regulatory smackdown? Users started sharing examples of Grok being prompted to alter images of individuals (primarily women) to make them appear to be wearing bikinis. Indian parliamentarian Priyanka Chaturvedi filed a formal complaint, and things escalated quickly when reports surfaced that Grok had also generated sexualized images involving minors. X acknowledged the issue earlier on Friday, admitting there were "lapses in safeguards" (understatement of the year, perhaps?), and those images were eventually taken down. However, at the time of publication, TechCrunch found that bikini-altered images were still accessible on X. Yikes.

This order follows a broader advisory issued by India's IT ministry on Monday, reminding social media platforms that compliance with local laws on obscene and sexually explicit content is non-negotiable if they want to keep their legal immunity. The government warned that noncompliance could result in "strict legal consequences" against X, its officers, and users who violate the law – without any further notice. That's bureaucrat speak for "we're not kidding around."

India, being one of the world's biggest digital markets, has essentially become a test case for how governments handle AI-generated content accountability. Any enforcement tightening here could have ripple effects for tech companies worldwide. Meanwhile, X is already challenging aspects of India's content regulation rules in court, arguing that government takedown powers risk overreach – even though the platform has complied with most blocking directives. Talk about timing.

India orders X to fix Grok immediately after the AI generated obscene content, including AI-altered images of women

Grok generated sexualized images involving minors, which X acknowledged and removed (though other problematic content remained accessible)

India's enforcement could set global precedent for AI-generated content accountability across tech platforms

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From questionable stock proposals to early prison releases and AI chatbots gone rogue, today's crypto world certainly didn't disappoint on the drama front. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

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