Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another juicy serving of digital disruption! 🔍In this Newsletter is packed with more twists and turns than a blockchain algorithm. We're diving deep into Coinbase's cybersecurity rollercoaster, Ukraine's bold Bitcoin dreams, Tether's network showdown, and a crypto crime spree that reads like a digital thriller.

INTEL BRIEF

🟧 Coinbase faces a double digital disaster with a customer data breach and ongoing SEC investigation into past user number claims.

🟧 Tether mints $1 billion of USDT on Tron, potentially overtaking Ethereum in stablecoin supply dominance.

🟧 Ukraine explores establishing a national Bitcoin reserve amid ongoing challenges and geopolitical tensions.

🟧 A whirlwind day in crypto featuring DOJ charges, Coinbase's massive data breach, and phishing shenanigans.

Coinbase Cyber Chaos Data Breach Rocks the Crypto World

The crypto exchange giant just got hit with a one-two punch that's sending shockwaves through the digital finance world. On May 15, Coinbase's stock took a nosedive, dropping 7% in after-hours trading following two major revelations that would make even the most zen tech executive break a sweat.

First up, the Securities and Exchange Commission (SEC) is digging deep into Coinbase's 2021 user number claims. Remember when Coinbase proudly proclaimed having over 100 million "verified users"? The SEC is raising its metaphorical eyebrow, questioning the accuracy of those numbers. Coinbase's chief legal officer, Paul Grewal, isn't sweating it too much, calling it a "hold-over investigation from the prior administration" about a metric they stopped reporting two and a half years ago.

Cybercriminals decided to crash the party with a $20 million extortion attempt. These digital desperados recruited overseas support agents to leak user data, targeting a small subset of Coinbase customers. The good news? No passwords, private keys, or funds were compromised. The bad news? Less than 1% of monthly transacting users got caught in the crossfire.

Coinbase's response? A resounding "NO" to the ransom demand. Instead of paying up, they've thrown down the gauntlet with a $20 million reward for information leading to the arrest of these digital troublemakers.

The potential financial fallout is no joke – Coinbase is looking at a potential $180 million to $400 million in remediation and reimbursement expenses. They've even brought in the big guns, hiring law firm Davis Polk & Wardwell to handle the SEC investigation.

SEC investigating Coinbase's 2021 user number claims

Cyber breach exposed data for less than 1% of users

Coinbase refuses $20 million ransom, offers reward instead

USDT Network Showdown Tron Challenges Ethereum's Stablecoin Supremacy

Tether just dropped a financial bombshell by minting $1 billion in USDT on the Tron network, setting the stage for an epic stablecoin showdown. As of May 15, the crypto world is witnessing a neck-and-neck race between Tron and Ethereum for USDT supremacy.

Let's break down the numbers that'll make your inner math nerd tingle: With the new $1 billion mint, Tron is poised to snatch the crown from Ethereum's head. In fact, when it comes to circulating supply, Tron's already leading with $73.6 billion compared to Ethereum's $71.8 billion.

Tether's CEO Paolo Ardoino explains this isn't just random token creation – it's strategic inventory management. Think of it like a digital warehouse restocking shelves before a big sale. The mints ensure Tether can smoothly handle future issuance requests and blockchain swaps.

This isn't just a one-time thing. Tron has been playing the long game, leading USDT circulation between July 2022 and November 2024. An $18 billion Ethereum mint briefly changed the game in 2025, but Tron's quick to bounce back.

Tether mints $1B USDT on Tron

Tron nearly overtakes Ethereum in USDT supply

Tether controls 61% of USD stablecoin market

Ukraine Gambles Big on Bitcoin National Reserve Strategy

Ukraine is inching closer to potentially becoming the next country to adopt Bitcoin as a national reserve asset. This isn't just another crypto pipe dream – it's a serious legislative effort that could reshape the country's financial strategy.

Parliamentary member Yaroslav Zhelezniak dropped this bombshell at the CRYPTO 2025 conference in Kyiv, announcing they're crafting a draft bill that's now in its final stages. The goal? Create a strategic Bitcoin reserve that could provide financial resilience during the ongoing conflict with Russia.

The international crypto landscape is definitely shifting. President Donald Trump's March 7 executive order to establish a national Bitcoin reserve has already set a precedent, using BTC seized from criminal cases. Even Sweden is exploring the crypto-reserve concept, with MP Rickard Nordin pushing for Bitcoin consideration as an inflation hedge.

Michael Chobanian, founder of Kuna exchange, is brutally frank: "The country is broke. More than 50% of the budget comes from EU grants and loans. Men are being sent to the army against their will. What Bitcoin reserves?"

Binance's regional head Kyrylo Khomiakov offers a more measured perspective. "Implementing such a reserve would require significant legal changes," he notes, suggesting this won't be a quick process. The potential silver lining? Greater regulatory clarity for Ukraine's crypto ecosystem.

Ukraine was planning to legalize cryptocurrencies in early 2025, coordinating with the National Bank of Ukraine and the IMF. They've already proposed taxing certain crypto transactions at up to 23% – showing a nuanced approach to digital assets.

Ukraine drafting national Bitcoin reserve bill

Proposal aims to boost financial resilience. Significant legal changes required

Crypto Crackdown Exposes Shocking Scammer Tactics

The Department of Justice just dropped the digital hammer, charging 12 more suspects in a jaw-dropping $263 million crypto crime spree. These aren't your typical cybercriminals – we're talking young gamers-turned-hackers with aliases like "Goth Ferrrai" and "The Accountant". Most are California-based 18-22-year-olds who transformed from online gaming buddies to a full-blown "cyber-enabled racketeering conspiracy".

Coinbase is playing cyber whack-a-mole with a massive data breach that's sending shockwaves through the crypto community. The exchange uncovered a shocking insider attack involving customer support agents in India who allegedly helped scammers access user data. The price tag? A mind-blowing $180 million to $400 million in potential remediation costs.

The attack's ripple effects are real. Crypto entrepreneur Qiao Wang shared his personal encounter with these digital desperados. A scammer called, claiming his Coinbase account was compromised, and tried to trick him into withdrawing funds. When confronted, the scammer casually mentioned making $7 million that day.

Coinbase isn't taking this lying down. They've flatly rejected the $20 million extortion attempt and promised to reimburse users who fall victim to phishing attacks. No passwords, private keys, or funds were directly compromised, but the potential damage is substantial.

DOJ charges 12 more in $263M crypto crime case

Coinbase faces massive data breach. Potential $400M in remediation costs

And that's a wrap, my lovely PoI readers! 🔍 I hope this edition left you feeling informed, entertained, and maybe even a little bit wiser in the wild world of web3 and cryptocurrency. Remember to stay curious, stay sharp, and keep your crypto compass pointing true. Until next time, this is Mochi, signing off with a digital fist bump! Until next time, this is Mochi, signing off with a digital fist bump!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

🍨📰 Catch you in the next issue! 📰🍨