“As Predicted, Like the Rest of the SEC’s Crypto-Enforcement Program, the SEC Coinbase Case is Dead. The SEC Ripple Appeal is Obviously Next on the Chopping Block.”
With no allegations of fraud in the SEC v Coinbase, the SEC’s decision to drop the case highlighted the agency’s shifting priorities under Acting Chair Mark Uyeda and Commissioner Hester Peirce’s Crypto Task Force. Friday’s move also showed that Acting Chain Uyeda isn’t waiting for Paul Atkins’ confirmation to end the agency’s assault on cryptos.
Bybit Hack Overshadows Coinbase Dismissal
Despite the Coinbase victory, the broader crypto market remained under pressure due to a major security breach at Bybit. The exchange announced the security breach on X (formerly Twitter):
“Bybit detected unauthorized activity involving one of our ETH cold wallets. The incident occurred when our ETH multisig cold wallet executed a transfer to our warm wallet. Unfortunately, this transaction was manipulated through a sophisticated attack that masked the signing interface, displaying the correct address while altering the underlying smart contract logic. As a result, the attacker was able to gain control of the affected ETH cold wallet and transfer its holdings to an unidentified address.”
Arkham Intelligence shared a list of the Bybit hacker’s wallets, which totaled 53 wallets, holding $1.37 billion of ETH. The crypto community can track the Bybit hacker on Arkham.
Arkham created and funded a bounty, in response to the hack, to help identify the hacker or hackers. Zachxbt submitted definitive evidence that North Korea’s Lazarus Group was behind the hack.
The Lazarus Group is linked to North Korea’s intelligence agency, the Reconnaissance General Bureau, infamous for some sizeable crypto exploits, hacks, and scams. North Korea funds its missile program with stolen crypto, potentially making Friday’s hack a US national security concern.
Bybit CEO Ben Zhou attempted to calm the crypto market, assuring that the exchange remains solvent and ‘all of clients assets are 1 to 1 backed, we can cover the loss.
News of the hack sent shockwaves across the crypto market, with XRP tumbling to a Friday low of $2.5072, reflecting investor fears of another crypto exchange collapse.
XRP Price Trends: SEC Appeal in Focus
On Friday, February 21, XRP slid by 4.40%, following Thursday’s 1.75% loss, closing at $2.5719. XRP saw heavier losses than the broader crypto market, which dropped 2.36% to a total market cap of $3.11 trillion
As the dust settles from the Bybit hack, traders must consider several key market drivers going into the weekend.
- Bybit Updates: Confirmation of solvency or the recovery of stolen assets could support a rebound, while concerns over withdrawal freezes may add downside pressure.
- SEC Appeal Decision: A withdrawal of the SEC’s appeal could push XRP beyond its all-time high of $3.5505, while a continued legal battle may keep prices below $1.50.
- ETF Developments: Approval of an XRP-spot ETF could drive institutional inflows, potentially propelling prices toward $5.
