The cryptocurrency sector faced unprecedented turmoil last week as Bybit—the world's second-largest exchange—suffered a historic $1.4 billion Ethereum heist during a routine cold-to-hot wallet transfer.

Attackers exploited a manipulated signing interface that displayed legitimate addresses while covertly rerouting funds through altered smart contract logic, with blockchain forensic analysts now attributing the breach to North Korea's Lazarus Group.

Amidst this security crisis, regulatory winds shifted dramatically as the SEC moved to dismiss longstanding charges against Coinbase and OpenSea—a stark reversal from Chair Gary Gensler's traditionally adversarial stance—signaling potential thaw in US crypto oversight.

We analyze how these tectonic developments reshape market dynamics and investor risk calculus. Follow along as we discuss the top crypto news stories you might have missed last week.

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TOP CRYPTO NEWS RECAP (February 16–February 22, 2024 2025)

●       Bybit's $1.4B Lazarus Heist Shakes Crypto Security Paradigm – Reserves Still Intact

●       SEC Closes OpenSea Probe: NFT Marketplace Avoids Securities Label in Major Win

●       FTX Excludes 163 Nations in Repayment Plan; Bankman-Fried Seeks Pardon

●       SEC Set to Officially Dismiss Its Case Against Coinbase

●       Alt Season Is Underway, Will be Powered by Stablecoins

●       SEC Accelerates Crypto ETF Review Wave – XRP, Solana Products Under Scrutiny

Bybit's $1.4B Lazarus Heist Shakes Crypto Security Paradigm – Reserves Still Intact

Bybit faced the largest crypto theft in history on Feb. 21, losing $1.4 billion in staked Ethereum and ERC-20 tokens, part of a $5.3 billion total asset drop. Despite the breach, independent auditor Hacken confirmed Bybit’s reserves still exceed liabilities, fully backing user funds. The hack, traced to North Korea’s Lazarus Group, exploited a deceptive smart contract targeting Bybit’s cold wallet. Bybit processed 350,000+ withdrawals swiftly post-attack, with support from major exchanges like Binance. This incident marks a major blow to crypto security in 2024.

SEC Closes OpenSea Probe: NFT Marketplace Avoids Securities Label in Major Win

The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into NFT marketplace OpenSea, a move hailed as a victory for the broader crypto community. OpenSea founder Devin Finzer celebrated the news, emphasizing that labeling NFTs as securities could have hindered industry innovation. The investigation, initiated in August 2024, focused on allegations of OpenSea operating as an unregistered securities marketplace. Industry leaders, including Magic Eden’s Chris Akhavan, welcomed the decision, viewing it as a positive step for the NFT space. The closure follows the SEC’s recent dismissal of its lawsuit against Coinbase.

FTX Excludes 163 Nations in Repayment Plan; Bankman-Fried Seeks Pardon

FTX, the bankrupt crypto exchange, has started repaying creditors but has excluded claims from 163 jurisdictions, including Russia, China, Egypt, Nigeria, and Ukraine. On Feb. 18, FTX initiated its first repayment round, fully compensating “Convenience Class” creditors (claims up to $50,000) with 9% annual interest. The next repayment, set for May 30, will cover larger claims, with creditors required to verify by April 11. Meanwhile, former CEO Sam Bankman-Fried’s parents are seeking a presidential pardon following his 25-year prison sentence.

SEC Set to Officially Dismiss Its Case Against Coinbase

⁠The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its 2023 lawsuit against Coinbase, a pivotal victory for the crypto exchange and the broader industry. The SEC had accused Coinbase of operating as an unregistered securities broker and failing to register its staking services. The dismissal, pending SEC commissioner approval, signals a shift in U.S. crypto regulation. Coinbase’s CEO, Brian Armstrong, hailed the decision as a win for 50 million American crypto holders. Coinbase’s advocacy efforts, including political lobbying, likely influenced this outcome.

Alt Season Is Underway, Will be Powered by Stablecoins

The latest altcoin season is underway, driven by stablecoin holders rather than the traditional Bitcoin profit rotation, according to CryptoQuant CEO Ki Young Ju. Altcoin trading volume has soared to 2.7 times that of Bitcoin, signaling a shift in market dynamics. However, this alt season is highly selective, with only a few coins surging amid limited fresh liquidity. Stablecoins now play a key role, with their market cap hitting $232 billion. Meanwhile, Bitcoin’s institutional adoption, including ETFs and corporate buys, is decoupling it from broader crypto trends.

SEC Accelerates Crypto ETF Review Wave – XRP, Solana Products Under Scrutiny

The U.S. Securities and Exchange Commission (SEC) has acknowledged multiple crypto ETF filings from Nasdaq ISE and Cboe BZX, signaling a shift toward faster reviews and potential approvals. The filings cover a range of products, including staking, options, and altcoin ETFs like XRP, Litecoin, and Solana. The SEC is actively seeking comments on these proposals, with particular focus on staking practices. With recent approvals of Bitcoin and Ether ETFs and new products like Franklin Templeton’s dual-asset ETF, analysts expect more crypto ETFs to gain approval in 2025.

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