Your Weekend Crypto Roundup | February 2025 (Week 3)

Hello! 

It is the end of another week and another rollercoaster in the crypto world. This time, it is a mix of legal battles, a high-stake memecoin scandal, and important regulatory shifts globally. 

Whether you’re here for the memecoin chaos or the latest DeFi breakthroughs, we’ve got all the top stories you need to know.  

So grab your popcorn, and let’s get into it.

Biggest Story

Bybit Ex-Payroll Manager Sentenced to Nearly 10 Years for $4.2M Fraud

Ho Kai Xin, a former payroll manager at Bybit, has been sentenced to nine years and 11 months in prison for embezzling approximately $4.2 million from the crypto exchange. She was convicted of cheating, money laundering, and providing false information to authorities. 

Her fraud began in May 2022 when she stole $87,417 from Wechain, the company handling Bybit’s payroll. Encouraged by her success, she escalated the scheme, tricking Bybit into transferring millions in USDT across eight separate transactions between May and August 2022. She laundered the stolen funds through six bank accounts and four crypto wallets, converting them into fiat currency to avoid detection.

Ho allegedly used the money to fund a lavish lifestyle, splurging on designer bags, jewellery, and a $2.7 million penthouse, for which she placed a $560,388 down payment. 

Her scheme unravelled in September 2022 when a Wechain finance director detected irregular payroll transactions, prompting Bybit to launch an internal investigation. She was arrested in April 2023 and will serve her sentence after completing a six-week jail term for violating court orders. 

Other Stories Making Waves

Vitalik Buterin Criticizes Crypto’s Shift Toward Gambling: Vitalik Buterin warns of a “moral reversal” in crypto, criticizing backlash against Ethereum for not fully embracing gambling. Despite his concerns, he remains committed to shaping Ethereum’s future with a more selective funding strategy.

Milei Denies Promoting LIBRA Memecoin: Argentina’s President Javier Milei has shut down claims that he promoted the LIBRA memecoin, which saw a massive surge and a brutal crash. He insists he only shared info and never advised anyone to invest.

Jupiter Team Denies Insider Trading in LIBRA Launch: The Jupiter team admitted they knew about the LIBRA token before its launch but denied any insider trading. They claim they never received tokens or compensation, but the drama continues as their official X account was hacked to promote another fake coin.

Bubblemaps Links LIBRA to Other Pump-and-Dump Scams: Blockchain analysts have uncovered links between LIBRA’s creators and the team behind the Melania token, revealing a pattern of pump-and-dump schemes. The suspected group has allegedly raked in over $100 million by sniping token launches and manipulating the market.

Cyprus Police Warn of Binance SMS Scams: Scammers are sending fake Binance security alerts, tricking victims into revealing login details over the phone. Authorities warn crypto users to stay alert, enable two-factor authentication (2FA), and report suspicious messages before they lose their funds.

Scammers Impersonate Saudi Crown Prince for Fake Crypto: Fraudsters launched a “Saudi Arabia official memecoin” (KSA) under a hacked X account pretending to be Crown Prince Mohammed bin Salman. The real account owners quickly debunked the scam, but not before some investors got duped.

Dave Portnoy Caught in Memecoin Drama Again: Barstool’s Dave Portnoy launched $GREED, dumped his entire holding hours later for $258K, and then immediately launched $GREED2. He claims he warned investors and even lost money himself, but critics are calling for tighter regulations on memecoins.

South Korea’s Supreme Court Says Terra Isn’t a Security: The court ruled that Terraform Labs’ Terra (LUNA) and USTC stablecoin aren’t investment products, blocking prosecutors from seizing co-founder Shin Hyun-seong’s assets. However, fraud charges remain, and Do Kwon is now facing trial in the U.S.

Coinbase Faces Lawsuit Over Bankruptcy Risks: A Coinbase shareholder is suing the exchange for allegedly misleading investors about bankruptcy risks and engaging in secretive trading. The lawsuit also accuses executives of insider selling, piling onto Coinbase’s growing legal troubles.

Around the World: Bold Moves and Crypto Regulations

Montana Moves Forward with Bitcoin Reserve Bill: Montana advances a bill to invest in Bitcoin as part of a state reserve strategy, allowing up to $50M in funding. If passed, it would join Arizona, Utah, and Oklahoma in pioneering state-level Bitcoin reserves.

Hong Kong’s SFC Unveiled ASPIRe Roadmap: Hong Kong’s Securities and Futures Commission (SFC) just rolled out the ASPIRe initiative to boost its crypto industry. The plan focuses on smoother market entry, better compliance, and making the city a global digital asset hub.

China’s CBDC Expansion Shakes Up Global Trade: China’s digital yuan is making waves, and Australia is caught in the middle of a financial tug-of-war between Beijing and Washington. With the U.S. lagging in the CBDC race, global trade dynamics are shifting fast.

El Salvador’s Library Now Has a Bitcoin Section: El Salvador is doubling down on Bitcoin education by launching a dedicated Bitcoin section in its national library. Meanwhile, President Bukele had a cosy Bitcoin chat with Michael Saylor while the country quietly stacked another BTC.

Europe Cracks Down on Crypto Advisors with New Training Rules: The EU wants crypto advisors actually to know their stuff. The latest ESMA guidelines will require crypto professionals to undergo strict training to ensure they can properly guide investors under MiCA regulations.

South Korea’s Biggest Crypto Exchange Faces Huge Trouble: Upbit is in hot water after failing customer identity verification over 700,000 times—yes, you read that right! The South Korean government is now weighing massive fines and potential business restrictions.

Australia Gets Serious About Crypto Exchange Compliance: AUSTRAC is on a crackdown spree, investigating 50+ crypto exchanges for shady reporting practices. Some exchanges have already been shut down, and regulators are tightening their grip to fight financial crime.

Standard Chartered and Animoca Team Up for a Hong Kong Stablecoin: A new Hong Kong dollar-backed stablecoin is in the works, thanks to a partnership between Standard Chartered, Animoca Brands, and telecom giant HKT. The project aims to boost Web3 adoption and digital payments in the region.

Market Trends: Winners and Losers

Top 5 Gainers

According to data from CoinGecko, these are the five biggest gainers of the week:

• Scotcoin soared 162.77%, from $1.88 to $4.94
• Undeads Games surged 359.72%, from $0.1015 to $0.4667
• Shadow skyrocketed 199.08%, from $41.73 to $124.82
• Sundog gained 78.52%, from $0.0334 to $0.0597
• Tokenbot spiked 122.85%, from $30.10 to $67.04

Top 5 Losers

According to data from CoinGecko, the five biggest losers of the week are:

• Vine dropped 50.13%, from $0.0642 to $0.0320
• GRIFFAIN fell 43.47%, from $0.1524 to $0.0861
• Litentry decreased 33.00%, from $1.18 to $0.7905
• Test dipped 35.25%, from $0.1153 to $0.0747
• Ski Mask Dog slid 32.82%, from $0.0995 to $0.0669

Project Spotlight

Hyperliquid Launched HyperEVM On Its Testnet

Hyperliquid has launched HyperEVM on its testnet, introducing smart contract capabilities while maintaining low-latency trading. Announced on February 18, this upgrade uses HyperBFT consensus for fully on-chain execution. Key features include ERC-20 token transfers, WHYPE for DeFi applications, and a bug bounty program for security testing. 

Why It Matters

HyperEVM enhances decentralized trading efficiency, bridging DeFi and high-speed execution. As blockchain evolves, institutional adoption is shifting focus from censorship resistance to speed and compliance, reshaping the future of smart contracts.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 

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