Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From Tether's spicy clapback at S&P Global and Pavel Durov's decentralized AI dreams to David Sacks' "nothing burger" drama and North Korean hackers leveling up with AI, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of stablecoin controversy, privacy tech, political intrigue, and cybersecurity nightmares!

INTEL BRIEF

🟧 Tether CEO Paolo Ardoino fired back at S&P Global's downgrade of USDt's peg stability rating, arguing the agency ignored billions in additional assets and revenue streams.

🟧 Telegram's Pavel Durov launched Cocoon, a decentralized AI network on TON blockchain that lets GPU owners earn Toncoin by renting computing power while preserving user privacy.

🟧 White House crypto czar David Sacks dismissed a New York Times investigation into potential conflicts of interest, calling it a "nothing burger" despite retaining 20 crypto investments while shaping policy.

🟧 North Korean hacker group Lazarus primarily used spear phishing attacks to steal funds in 2024, with AI expected to make these attacks even more sophisticated in 2026.

Tether CEO Slams S&P Global for Ignoring Billions in Assets and Monthly Profits

Tether CEO Paolo Ardoino came out swinging this week after S&P Global decided to slap USDt with their lowest rating for maintaining its dollar peg. And honestly? The man brought receipts.

S&P basically said "meh, we're not convinced" and downgraded USDt's peg-maintaining ability to "weak" – which, for context, is the ratings equivalent of getting a participation trophy. Their main beef? Tether's Bitcoin and gold reserves made them nervous. But Ardoino wasn't about to let that slide without a proper clapback.

According to the Tether boss, S&P essentially forgot how to read a balance sheet. Tether Group's total assets at the end of Q3 2025 clocked in at around $215 billion, while stablecoin liabilities sat at roughly $184.5 billion. That's about $7 billion in excess equity just vibing on top of reserves, plus another $23 billion in retained earnings. Oh, and let's not forget the $500 million in monthly profits from US Treasury yields alone that S&P apparently didn't notice. Oops?

Arthur Hayes, the BitMEX founder who never met a hot take he didn't like, speculated that Tether is buying massive amounts of gold and BTC to offset declining Treasury yields. His spicy prediction? A 30% correction in those assets could theoretically make USDt insolvent. Yikes.

But Joseph Ayoub, ex-Citi digital asset analyst, basically said "hold my coffee" and defended Tether after spending hundreds of hours researching them. He claims Tether has unreported excess assets, runs an extremely lucrative business with just 150 employees, and is actually better collateralized than traditional banks.

Drama? In my stablecoin market? More likely than you think!

S&P Global downgraded USDt to "weak" citing concerns over Bitcoin and gold reserves

Tether CEO fired back claiming S&P ignored $7B in excess equity, $23B in retained earnings, and $500M in monthly Treasury profits

Analysts are split – some warn of insolvency risks, others defend Tether's balance sheet as stronger than traditional banks

Telegram Unveils Cocoon Where GPU Owners Earn Toncoin for Renting Computing Power

Pavel Durov, the Telegram co-founder who apparently never stops building things, just flipped the switch on Cocoon, a decentralized AI network that's all about keeping your data private and your wallets happy.

Here's the deal: Cocoon is built on The Open Network (TON) – that's the layer-1 blockchain associated with Telegram for those keeping score at home. The platform went live on Sunday and is already processing user requests while GPU owners rake in Toncoin for renting out their hardware. It's basically Airbnb, but for your graphics card, and instead of tourists leaving passive-aggressive reviews, you get crypto. Win-win!

Durov didn't hold back when throwing shade at the big guys, calling out Amazon and Microsoft as "expensive intermediaries" that jack up prices and steamroll your privacy. Ouch. But he's got a point – Cocoon aims to solve both the economic and privacy problems that come with legacy AI compute providers. Translation: cheaper AI processing that doesn't feed your personal data to corporate overlords like it's an all-you-can-eat buffet.

The announcement dropped at Blockchain Life 2025 in Dubai back in October, positioning Cocoon as the answer to growing demand for AI platforms that actually respect user privacy. And honestly, the timing couldn't be better. Privacy advocates and cypherpunks have been sounding the alarm about centralized AI giving governments and corporations enormous leverage over individuals – think privacy violations, cybersecurity threats, and social conditioning that would make George Orwell sweat.

David Holtzman from Naoris Protocol pointed out that blockchain tech can help verify info sources, ensure tamper-proof records, and let distributed networks communicate without trust issues. Meanwhile, a Digital Currency Group poll showed 77% of respondents believe decentralized AI would benefit society more than centralized systems. The people have spoken!

GPU owners, start your engines – it's time to get paid!

Cocoon decentralized AI network launched on TON blockchain, letting GPU owners earn Toncoin for renting computing power

Pavel Durov claims it solves privacy and cost issues created by centralized providers like Amazon and Microsoft

77% of surveyed respondents believe decentralized AI benefits society more than centralized systems, per DCG poll

White House Crypto Czar David Sacks Calls Out New York Times Hit Piece on Investments

David Sacks, the White House AI and crypto czar who apparently moonlights as a venture capitalist (or is it the other way around?), is not happy with The New York Times. And honestly, can you blame him? The outlet just dropped a Sunday special examining how his government role might benefit his investment portfolio, and Sacks came out swinging harder than a degen trader on leverage.

In a spicy X post, Sacks called the article a "nothing burger" after claiming he'd already "debunked in detail" the Times' reporting over the past five months. According to our crypto czar, the paper basically strung together anecdotes that don't support the headline – which is journalism speak for "they're reaching, your honor."

Here's where things get interesting. Before becoming crypto czar, Sacks and his venture firm Craft Ventures divested over $200 million in crypto and crypto-tied stocks (at least $85 million of which Sacks personally owned). But – and this is a big but – he retained interests in several illiquid private equity investments related to digital assets. The Times found that Sacks currently holds 708 tech investments, including 449 AI-related ones and 20 tied to crypto. All of which could theoretically benefit from policies he supports. Awkward.

One example? Craft Ventures invested in BitGo, a crypto infrastructure company offering stablecoin-as-a-service that filed to go public in September with Craft owning 7.8% of the company. Plot twist: Sacks was a major backer of the GENIUS Act (stablecoin regulation) that got signed into law this year and is believed to boost institutional adoption. Coincidence? The Times thinks not.

Senator Elizabeth Warren isn't buying Sacks' explanations either, saying back in May that he's "financially invested in the crypto industry, positioning him to potentially profit from crypto policy changes he makes at the White House." She's not wrong about the optics.

Sacks' legal team at Clare Locke fired back, accusing the Times of writing a "hit piece" with "clear marching orders" to find conflicts. His spokesperson Jessica Hoffman insists he's complied with all rules for special government employees, though his ethics waivers don't disclose when he sold certain assets or detail remaining investment values.

Oh, and Sacks' role is limited to 130 days as a special government employee, which he's believed to be carefully managing like someone watching their data plan on a road trip.

David Sacks dismissed NYT report on conflicts of interest as a "nothing burger" despite retaining 20 crypto investments

Craft Ventures owns 7.8% of BitGo, which could benefit from the GENIUS Act that Sacks heavily supported

Ethics waivers don't disclose when assets were sold or detail remaining investment values, fueling transparency concerns

Lazarus Group Dominates Crypto Hacks Using Spear Phishing and AI Deepfakes

North Korean state-backed hackers are really, really good at, it's sliding into your inbox like they belong there. According to South Korean cybersecurity firm AhnLab, the infamous Lazarus Group has been absolutely crushing the spear phishing game over the last year – and spoiler alert: things are about to get worse.

Spear phishing remains the group's weapon of choice, using fake emails disguised as totally innocent things like lecture invitations or interview requests. You know, the kind of stuff that makes you think "oh cool, someone wants to hear me talk about myself!" Right before they drain your crypto wallet faster than you can say "not your keys, not your coins."

The Lazarus Group is believed to be behind some absolutely massive heists, including the eye-watering $1.4 billion Bybit hack on February 21 and the more recent $30 million exploit of South Korean exchange Upbit just last Thursday. These guys don't mess around – they're basically the Ocean's Eleven of crypto theft, except with more malware and fewer George Clooney one-liners.

AhnLab's analysis showed Lazarus topped the charts with 31 mentions in post-hack analyses between October 2024 and September 2025. Their North Korean hacker buddies Kimsuky came in second with 27, followed by TA-RedAnt with 17. It's like a leaderboard, but for cybercrime. Fun!

So how do you protect yourself? Kaspersky recommends using a VPN to encrypt your online activity, not oversharing personal details online (sorry, Instagram influencers), verifying email sources through alternative channels, and enabling multifactor or biometric authentication wherever possible. For companies, AhnLab suggests a "multi-layered defense system" including regular security audits, keeping software patched, and educating staff about attack vectors.

But here's the kicker: AI is about to make everything worse. AhnLab warns that going into 2026, bad actors will leverage artificial intelligence to create phishing websites and emails that are nearly impossible to distinguish from legitimate ones. AI can generate modified code to evade detection and make spear phishing more efficient through deepfakes. Imagine getting a video call from your "boss" asking for company credentials, except it's actually a deepfake. Nightmare fuel, anyone?

The bottom line? Keep your security software updated, avoid clicking random URLs, download only from verified channels, and maybe trust nobody. It's 2025, and paranoia is just good cybersecurity hygiene.

Lazarus Group led all hacker groups with 31 mentions in post-hack analyses, primarily using spear phishing disguised as legitimate communications

Group is suspected behind the $1.4B Bybit hack and $30M Upbit exploit among other major crypto heists

AI will make attacks more sophisticated in 2026, creating nearly undetectable phishing sites and deepfake-powered spear phishing campaigns

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit more paranoid about your inbox (thanks, Lazarus Group). Remember to stay curious, stay informed, and enable that multifactor authentication already. Until next time, this is Mochi, signing off with a virtual high-five!

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