Crypto News: Bybit Hack, SEC Drops Case Against Coinbase, and Utah’s Bitcoin Reserve Bill

In today’s crypto news, the industry faces a significant breach with Bybit falling victim to one of the largest hacks in crypto history, while the US Securities and Exchange Commission (SEC) moves toward dismissing its lawsuit against Coinbase. Additionally, Utah’s state government continues to make strides toward adopting a Bitcoin reserve bill. Here’s the latest on these developing stories impacting Bitcoin, DeFi, Web3, and crypto regulation.

Bybit Hack: Over $1.4 Billion in Assets Stolen

Bybit, one of the prominent cryptocurrency exchanges, has been targeted in a major security breach resulting in the theft of over $1.4 billion in assets. The stolen funds primarily include liquid-staked Ether (stETH), Mantle Staked ETH (mETH), and other ERC-20 tokens. According to on-chain security analyst ZachXBT, the attack was carried out by North Korea's Lazarus Group, a notorious hacker organization.

Following the exploit, Bybit CEO Ben Zhou confirmed the breach and provided updates. Zhou explained that a transfer from the exchange’s multisignature wallet to a warm wallet occurred about an hour before the hack, with the transaction masked to appear legitimate. However, it contained malicious code that altered the smart contract logic, enabling the hackers to siphon funds.

Zhou reassured users that no other Bybit wallets were compromised, and that all cold wallets remain secure. He also emphasized that withdrawals were still operational, with 70% of pending transactions already processed, despite network congestion. He mentioned that the exchange is securing a bridge loan to continue operations while it resolves the issue fully.

SEC to Drop Enforcement Case Against Coinbase

In a positive development for the crypto industry, the US Securities and Exchange Commission (SEC) has agreed in principle to dismiss its lawsuit against Coinbase, the leading US-based cryptocurrency exchange. The lawsuit, filed in June 2023, accused Coinbase of operating as an unregistered securities broker, a case that would have had major implications for the broader crypto sector.

The dismissal is still subject to approval by an SEC commissioner before it is officially withdrawn. Coinbase CEO Brian Armstrong celebrated the news, calling it a pivotal moment not just for Coinbase, but for the entire cryptocurrency industry. Armstrong noted that the potential dismissal would send a positive signal to the 50 million Americans who hold crypto and could have global implications for the industry’s regulatory future.

This case was part of a wider regulatory crackdown against crypto firms, with the SEC attempting to classify various digital assets as securities, putting additional pressure on the market. The dismissal signals a possible shift in regulatory attitudes toward crypto exchanges.

Utah’s Bitcoin Reserve Bill Moving Forward

Utah is making significant strides toward becoming the first state in the US to establish a Bitcoin reserve. On February 20, the Utah Senate Revenue and Taxation Committee passed a bill known as HB 230, which would grant Utah’s state treasurer the authority to invest public funds in digital assets that meet certain market capitalization requirements.

The bill, which passed the state House earlier this month, will now head to the Senate for a second and third reading, followed by a final vote. If approved, it will be sent to Republican Governor Spencer Cox’s desk for his signature. The bill stipulates that only digital assets with an average market capitalization of $500 billion or more in the previous year would qualify for investment, making Bitcoin the sole cryptocurrency meeting this criterion.

This legislation marks a major step for Utah, which is leading the charge in crypto adoption at the state level. The potential for Utah to become the first state with a Bitcoin reserve has garnered attention, with Satoshi Action Fund CEO Dennis Porter predicting that the state will be the first to make a Bitcoin reserve official, citing the state’s shorter legislative calendar and political momentum.

Conclusion

Today’s crypto news brings both challenges and opportunities. Bybit’s hack, allegedly orchestrated by North Korean hackers, has raised concerns about security within the industry, but the exchange is actively working to resolve the situation. On the regulatory front, Coinbase’s lawsuit with the SEC appears to be winding down, signaling a potential shift in how regulators approach the cryptocurrency space. Meanwhile, Utah’s Bitcoin reserve bill continues to move forward, potentially setting a groundbreaking precedent for other states looking to embrace digital assets.

As the crypto industry faces these important developments, it’s clear that the landscape is rapidly evolving, with both hurdles and new opportunities on the horizon.