FBI Directs Crypto Exchanges To Block Transactions Tied To Bybit Hack

The United States’ Federal Bureau of Investigation (FBI) has directed crypto exchanges, node operators, and other private sector entities to block the laundering of stolen funds from the $1.4 billion Bybit hack of February 21, 2025.

In a statement on February 26, the FBI verified North Korea’s Lazarus Group, aka TraderTraitor, as the perpetrators of the hack. The agency released 51 Ethereum addresses associated with the attackers, and asked industry players to block interactions with them.

The hackers laundered more than 135,000 ETH, leaving another 363,900 ETH worth approximately $825 million unspent. Blockchain analytics company Chainalysis has reported that the stolen funds are being exchanged into Bitcoin, Stablecoins, and other cryptocurrencies on decentralised exchanges and cross-chain bridges. The FBI has asked persons with information pertinent to the issue to report any development to its Internet Crime Complaint Center, reports Cointelegraph.com.

XRP Ledger’s Institutional DeFi Roadmap Targets Growth

Ripple Labs has released a strategic plan to create an institutional decentralised finance (DeFi) ecosystem on the XRP Ledger. The project is aimed at establishing a secure and scalable Layer 1 Blockchain for financial institutions, which will include a permissioned decentralised exchange (DEX), a credit-based lending protocol, and a new multi-purpose token (MPT) standard. The aforementioned functionalities will incorporate compliance checks with the use of XRP Ledger’s decentralised identifiers.

Even as XRP’s price has risen more than 300 per cent since November 2024, the network remains behind rivals, such as Ethereum in terms of user activity and total value locked (TVL). Institutional DeFi and real-world asset (RWA) tokenisation is estimated to be a $30 trillion market, and Ripple views this as an opportunity for growth. The company is also hopeful about possible regulatory changes under a crypto-friendly US administration that could open the door to an XRP exchange-traded fund (ETF).

SEC Shuts Gemini Investigation Without Action To Enforce

The US Securities and Exchange Commission (SEC) has closed its investigation into crypto exchange Gemini and has deciding against pursuing any enforcement action.

The probe was centred on Gemini’s “Earn” program, which was accused of offering unregistered securities in collaboration with Genesis Global Capital. The SEC clarified that while it is not taking action now, this decision does not exonerate Gemini or prevent future scrutiny.

Gemini co-founder Cameron Winklevoss has slammed the SEC, saying that the battle for regulation has caused serious financial and operational harm to the exchange and the wider crypto sector.

The action is being seen as part of a larger shift in SEC’s strategy towards the crypto industry, with more recent cases against Coinbase, OpenSea, and Uniswap Labs also getting shut down. The crypto sector is interpreting these moves as indicative of shifting regulatory attitudes, particularly in light of the new US government’s crypto-friendly stance.