Bybit Hack, ETH Fees, Tether Energy, and XRP ETF

February 24, 2025

Crypto World

Maciej Zerelik

Want the latest crypto updates? StealthEX and CryptoDaily have you covered! Each week, we bring you the biggest stories shaping the market. No fluff—just clear and concise insights. Stay informed and ahead of the trends with our easy-to-digest recap. Let’s get started!

Ethereum Fees Drop to Four-Year Low as Network Activity Slows

Ethereum transaction fees have plummeted to levels unseen since 2020, reflecting a steep decline in network activity. This sharp drop signals a notable shift in Ethereum’s onchain demand.

The decrease in fees comes alongside a significant fall in gas prices. Over the past week, the median gas price dropped to 1.61 Gwei, hitting a low of 1.19 Gwei on February 17. This marks the lowest gas costs recorded in over four years, apart from a brief dip in late 2024.

Onchain transaction volume has also taken a hit. Ethereum’s seven-day average transaction volume slumped to $4.19 billion, down 46% from the previous week. Instead of boosting network usage, the reduced costs appear to reflect waning interest in Ethereum transactions.

The decline in fees coincides with Ethereum’s struggle in the broader crypto market. ETH has lost 18% of its value since the start of the year, lagging behind other major altcoins. Analysts suggest that lower fees often indicate reduced speculative activity, potentially signaling a bearish trend for Ethereum.

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Tether Invest  $1.24 Billiob In Energy Sector

Tether is making headlines again, but this time, it’s not about cryptocurrencies. The company is acquiring a 51% stake in Adecoagro for $1.24 billion. This move suggests Tether is expanding beyond digital assets and into the energy sector.

Adecoagro is a key player in agriculture, bioenergy, and renewable power. By investing in the company, Tether is not just seeking profits—it’s also focusing on sustainability. The blockchain industry relies on vast amounts of energy, and Tether’s involvement in renewable solutions could help reshape the sector.

This investment could be a game changer. It positions Tether at the forefront of green energy innovation while addressing concerns over crypto’s high energy consumption. As one of the biggest names in digital finance, Tether is taking steps to align the industry with global sustainability efforts.

By integrating renewable energy into its business, Tether is pushing for broader acceptance of cryptocurrencies. Governments and institutions have long criticized crypto for its environmental impact. Now, with this shift, Tether aims to make digital assets more appealing to mainstream investors and regulators.

Brazil Approves World’s First XRP ETF

Brazil has taken a major step in cryptocurrency adoption by approving the world’s first XRP-based exchange-traded fund (ETF). Managed by Hashdex, the fund will be listed on the B3 stock exchange, offering investors direct exposure to XRP.

The ETF, officially named the Hashdex Nasdaq XRP Index Fund, is still in its pre-operational phase. A launch date has not been confirmed, but Brazilian brokerage firm Genial Investimentos will oversee its administration.

Ripple’s Latin America Managing Director, Silvio Pegado, praised Brazil’s regulatory approach. He emphasized that XRP’s real-world applications and increasing institutional interest make it well-suited for an ETF. Pegado believes Brazil’s forward-thinking stance will drive more groundbreaking advancements in the crypto sector.

This approval comes as Brazil’s crypto market sees rapid growth. A report by Chainalysis revealed that between July 2023 and June 2024, Brazilian users deposited around $90 billion in digital assets. Stablecoins accounted for nearly 60% of the volume, with Bitcoin, Ether, and other altcoins making up the rest. As adoption surges, Brazil continues to establish itself as a key player in the global crypto economy.

SafeMoon CTO Pleads Guilty in Multi-Million Dollar Crypto Fraud Case

Thomas Smith, the Chief Technology Officer of SafeMoon LLC, has admitted to his role in a massive cryptocurrency fraud scheme. He changed his plea to guilty on charges of securities and wire fraud conspiracy. The case involves misleading investors and misusing funds from SafeMoon’s liquidity pool.

Smith entered his guilty plea on February 20 in a Brooklyn federal court before Magistrate Judge Cheryl Pollak. The court has recommended that U.S. District Judge Eric Komitee formally accept the plea. The charges carry severe consequences, with wire fraud conspiracy punishable by up to 20 years in prison and securities fraud conspiracy carrying a maximum sentence of 25 years.

The case, filed by the U.S. Department of Justice and the SEC in November 2023, also includes SafeMoon CEO Braden John Karony and project founder Kyle Nagy. Prosecutors accuse them of deceiving investors by falsely claiming SafeMoon’s liquidity pool was locked while secretly accessing and misusing the funds.

Authorities allege more than $200 million was taken from SafeMoon’s liquidity pool. Reports suggest the money was spent on luxury properties and high-end vehicles. At its peak, SafeMoon’s market cap was between $5.7 billion and $8 billion. However, in April 2021, its value crashed nearly 50% after news broke that the liquidity pool was never locked.

Strategy Raises $2 Billion to Expand Bitcoin Holdings

Michael Saylor’s company, Strategy (formerly MicroStrategy), is securing $2 billion through a convertible debt offering to increase its Bitcoin reserves. This move reinforces the firm’s aggressive approach to cryptocurrency investments.

The offering, announced on February 18, involves private sales of convertible senior notes due in 2030. These notes will be offered to institutional investors under Rule 144A of the Securities Act. Market conditions will determine final terms, but the company has made its intentions clear—funds will be used for general corporate purposes, including buying more Bitcoin.

The convertible notes will be unsecured and carry a 0% interest rate. Investors can convert them into cash, Strategy’s Class A shares, or a combination of both. The company has also granted an option for initial buyers to purchase an additional $300 million in notes. Starting in 2027, Strategy may redeem the notes for cash if its stock price surpasses 130% of the conversion price. Investors also have the right to request repayment in case of major corporate changes or on March 1, 2028.

Bybit Hit by Historic $1.4 Billion Crypto Hack

Bybit has suffered the largest crypto hack in history, losing a staggering $1.4 billion in digital assets. The breach has sent shockwaves through the crypto community, with experts calling it the biggest theft ever recorded in the industry.

On-chain investigator ZachXBT first spotted the suspicious outflows, flagging multiple addresses receiving massive amounts of funds. Bybit later confirmed an unauthorized Ethereum transfer from its cold wallets, blaming the breach on a masked UI spoofing attack. Despite the massive loss, the exchange assured users that other wallets remained secure.

Bybit CEO Ben Zhou addressed the incident, explaining that hackers manipulated the transaction interface. The compromised UI displayed a legitimate address, tricking signers into approving a transfer. However, the actual signing message altered the smart contract logic of Bybit’s ETH cold wallet, allowing hackers to seize control and move funds to an unknown address.

Zhou reassured customers that withdrawals remained unaffected and called on blockchain experts to help track the stolen funds. The crypto community has since rallied to investigate the breach and assist in recovery efforts.

Sam Bankman-Fried Claims Political Bias in Fraud Conviction

Sam Bankman-Fried, the disgraced founder of FTX, is alleging that his 25-year prison sentence was influenced by politics. Speaking from the Metropolitan Detention Center in Brooklyn, he criticized the judge overseeing his case, the Department of Justice, and the Biden administration’s stance on cryptocurrency.

In an interview with The New York Sun, Bankman-Fried expressed frustration with U.S. District Judge Lewis Kaplan, arguing that his rulings were politically motivated. He echoed sentiments similar to those of former President Donald Trump, who has also accused Kaplan of bias.

Bankman-Fried further claimed that former FTX executives who cooperated with prosecutors received favorable treatment due to their Democratic ties. He suggested that his prosecution was part of a broader pattern of political influence within the DOJ under President Joe Biden.

Once a major donor to Democratic campaigns, he has since distanced himself from the party. He criticized the Biden administration’s regulatory approach to crypto, calling it harmful to the industry. Bankman-Fried also claimed his past financial support for Biden was an effort to counter progressive influences, but he no longer aligns with those views.

Argentine President Denies Involvement in $LIBRA Crypto Collapse

Javier Milei, Argentina’s president, has dismissed allegations of wrongdoing following the collapse of $LIBRA, a cryptocurrency that surged and then crashed after he mentioned it on social media. He insists his post was not an endorsement and accuses political opponents of using the incident for their own gain.

On Friday, Milei shared a message on X (formerly Twitter) about $LIBRA, stating that the project aimed to boost Argentina’s economy by supporting small businesses. His post linked to a website selling the token and included his signature phrase, “Long live freedom.” The cryptocurrency quickly soared in value before plunging, leaving investors with significant losses. Soon after, Milei deleted the post, saying he was unsure about the project’s legitimacy.

Speaking on Todo Noticias, an Argentine news channel, Milei defended himself, saying he had acted in “good faith.” He compared the situation to gambling, arguing that investors understood the risks. He insisted that merely sharing information does not equate to endorsing a financial product.

His administration also clarified that Milei had no role in $LIBRA’s creation or promotion. The post was removed to avoid further confusion, but the controversy has fueled criticism from his political rivals, who accuse him of irresponsibility.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.