Hey there, PoI readers! 💫

It's your favorite ice-cream-named crypto connoisseur, Mochi, serving up today's scoop of digital drama! From Bybit's billion-dollar breach and SEC's surprising surrender to Solana's memecoin meltdown and Montana's Bitcoin ambitions, we've got a buffet of breaking news that's fresher than mint chip! So grab your favorite snack, settle in, and let's dive into the crypto chaos together!

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INTEL BRIEF

🟧 Bybit exchange suffered a massive $1.4 billion hack through a sophisticated smart contract manipulation of their ETH cold wallet.

🟧 The SEC has tentatively agreed to dismiss its groundbreaking lawsuit against Coinbase that had accused the exchange of operating as an unregistered securities broker.

🟧 Solana's ecosystem is experiencing a significant downturn with a 40% drop in user activity and negative capital flows, largely attributed to memecoin scams and rug pulls.

🟧 Montana's House Business and Labor Committee has passed a bill that could enable Bitcoin to become a state reserve asset, making it the fourth US state to advance such legislation to the House level.

Hackers Empty Bybit Wallet In Shocking 1.4 Billion Dollar Midnight Raid

Bybit exchange just got hit with a whopping $1.4 billion hack of their ETH-related tokens. The drama unfolded on February 21st when a mysterious hacker pulled off what's believed to be one of the largest crypto heists in recent memory. Talk about a Wednesday that went completely wrong!

The technical tea (as spilled by our friends at SlowMist) reveals this wasn't just some random "oopsie" moment. The attacker reportedly deployed their master plan on February 19th, carefully orchestrating a complex dance of malicious smart contracts. They basically pulled the old switcheroo on Bybit's implementation contract, and before anyone could say "blockchain," they were in control of the cold wallet.

But here's where it gets interesting - Bybit's CEO Ben Zhou confirmed, this has absolutely happened, but also assuring everyone that the sky isn't falling. In fact, he stated that Bybit remains solvent even if these funds pull a Houdini and never return. That's what I call having a backup plan for your backup plan!

The market reacted about as well as you'd expect to this news, with ETH dropping over 3%. However, Bybit has been adamant that all other cold wallets are secure and client funds are safe.

The hack appears to be part of a larger trend of security incidents in February 2025, joining the likes of ZkLend's $9.5 million oopsie and Jupiter's social media mishaps.

$1.4 billion in ETH-related tokens were stolen from Bybit through a sophisticated smart contract manipulatio

Bybit remains solvent and claims all client funds are safe despite the massive hack

The hack was executed through a complex multi-day setup involving malicious contract deployment and implementation swapping

Game Over For SEC As Coinbase Forces Complete Lawsuit Surrender

The SEC has agreed to dismiss its lawsuit against Coinbase. Yes, you read that right - the same SEC that was breathing fire at crypto companies.

This isn't just any ordinary legal win, folks. We're talking about the landmark case from June 2023 where the SEC, under Gary "Crypto-Skeptic-in-Chief" Gensler, went after Coinbase for allegedly being an unregistered securities broker. They had their sights set on everything from Solana to Cardano's ADA, treating cryptocurrencies.

Coinbase didn't just roll over and play dead. They launched a counter-offensive that would make Sun Tzu proud. The exchange mobilized, creating the Fairshake PAC and backing the Stand With Crypto advocacy group. They basically said, "Hold my crypto wallet" and showed the SEC that the industry wasn't going down without a fight.

Brian Armstrong, Coinbase's CEO (and apparently part-time regulatory chess master), dropped this truth bomb: "If this goes through, it's a really big deal" - which might be the understatement of 2025.

What makes this extra sweet is that Coinbase had been publicly listed since 2021 with the SEC's blessing, making the whole lawsuit feel about as logical as using a blockchain to record your grandma's cookie recipes.

SEC has agreed to dismiss its major lawsuit against Coinbase, pending commissioner approval

Coinbase's aggressive political and legal strategy, including PAC formation and advocacy efforts, appears to have paid off

This decision could set a precedent for how crypto companies interact with US regulators moving forward

Solana Users Flee In Mass Exodus After Brutal Memecoin Rug Pulls

Memecoin party has turned into quite the cleanup situation, and folks are leaving. We're talking about a whopping 40% decline in user activity, dropping from 15.6 million active addresses to just 9.5 million.

Speaking of rug pulls (and oh boy, there have been some doozies), the Libra token fiasco takes the cake - and not the good kind. This particularly nasty piece of work, which somehow got tangled up with Argentine President Javier Milei's name, saw insiders allegedly pulling a $107 million disappearing act, leading to a stomach-churning 94% price collapse.

The numbers are about as pretty as my attempt at making mochi (trust me, you don't want to see it). Monthly capital inflow has turned negative at -5.9%.

Solana's price has taken a 29% nosedive, which is like watching your ice cream melt in fast forward. Meanwhile, Bitcoin only dropped 7%.

Some analysts are saying this might actually be... good news? 🤔 I know, I know, stick with me here. According to blockchain researcher Aylo, this "washout will end up being a very good thing long term.

Currently, we're seeing a mass exodus of capital, with over $7.7 million moving to Arbitrum and $6.9 million to Ethereum.

Solana network activity plummeted 40% due to memecoin rug pulls and scams

The Libra token rug pull obliterated $4 billion in investor capital

Analysts suggest this "cleansing period" might actually strengthen Solana's ecosystem long-term

Montana Makes Power Move To Fill State Treasury With Bitcoin

Montana just passed a Bitcoin reserve bill through its House Business and Labor Committee.

In a vote that split cleaner than a Bitcoin fork (12-8, with Republicans saying "yay" and Democrats saying "nay"), House Bill No. 429 is now strutting its way to the House floor. This makes Montana the fourth state to reach this level of "we should probably own some Bitcoin" enlightenment, joining the cool kids' club with Utah, Arizona, and Oklahoma.

The bill is pickier than a toddler at dinner time about what qualifies as a reserve asset. We're talking precious metals, stablecoins, and digital assets that have maintained a market cap above $750 billion over the past year. Spoiler alert: Bitcoin is currently the only crypto sitting at this exclusive table!

If this bill gets the thumbs up, come July 1st, Montana's treasurer could be playing with up to $50 million in a special "digital piggy bank." And get this - they've even removed the requirement for a qualified custodian or ETF, because apparently, Montana likes to live dangerously!

Meanwhile, ten other states are trying to hop on the Bitcoin bandwagon, with Utah leading the pack like a crypto-savvy mountain goat. As Satoshi Action Fund CEO Dennis Porter puts it, Utah's got the political momentum of a snowball rolling downhill. And let's not forget Senator Cynthia Lummis, still pushing for that federal-level Bitcoin reserve bill.

Montana becomes the fourth US state to advance a Bitcoin reserve bill to House level

Bill could allow up to $50 million in state funds to be invested in qualifying digital assets

Currently, Bitcoin is the only cryptocurrency that meets the bill's $750 billion market cap requirement

And that's all the scoops for today, my wonderful PoI community! 🍨 From massive hacks to regulatory victories, memecoin mayhem to state-level adoption, we've covered quite the spread. Remember, in this wild world of web3, staying informed is your best defense against becoming someone else's exit liquidity!

Until tomorrow, this is your favorite dessert-themed crypto analyst, Mochi, reminding you to DYOR and never invest more than you can afford to lose!

This is your friendly neighborhood Mochi, signing off with a sprinkle of digital optimism!.

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

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