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The scale of the staggering $1.4 billion hack on crypto exchange Bybit will undoubtedly unfold in coming days and weeks. However, as Bybit, industry players such as other exchanges and blockchain sleuths work out on unmasking the hacker, on-chain data shows the perpetrator immediately got busy trying to move their Ethereum ( ETH ) loot. According to Nansen, a multi-chain artificial intelligence analytics platform, the total amount stolen in the heist stood at $1.44 billion at the time of the breach. The on-chain trail of the funds showed the hacker drained Bybit’s wallet of 401,347 ETH worth about $1.12 billion and another $320 million in staked ETH tokens. It includes 90,376 Lido staked ETH ( stETH ) worth $253.16 million and 15,000 Mantle restaked ETH (cmETH) worth $44.13 million. The attacker also made away with 8,000 Mantle staked ETH (mETH) worth $23 million. The hacker’s main wallet, according to on-chain data shared by Nansen, was 0x47666fab8bd0ac7003bce3f5c3585383f09486e2. After executing the deception that tricked Bybit multisig signers, the hacker immediately started moving the stolen funds. First, the hacker or hackers converted the stETH, cmETH, and mETH tokens to Ether, then offloaded these in chunks of $27 million. Funds from the primary wallet used in the attack were split across more than 40 wallets. Most of these wallets still hold the distributed ETH. The crypto market has reacted to the hack negatively, with the total market cap dipping more than 4% as most altcoins slipped. Although the declines are minor compared to recent downturns, Ethereum is down more than 4%. Bitcoin is also down nearly 3%, with the two trading around $95,500 for BTC and $2,630 for ETH. Further clarity on how markets react to the incident will likely follow what happens next. However, some analysts opine that with the hacker unlikely to cash out via stablecoins – which Tether or Circle can freeze – the hack may have just taken a $1.4 billion worth of selling pressure off ETH.

The SEC without Gary Gensler is taking a new direction. The American agency, once perceived as hesitant towards cryptocurrencies, seems to want to calm things down. Since the beginning of the year, reforms have multiplied and industry players have stepped up their efforts to ensure that the momentum continues. An expectation that the regulator seems to have understood well, evidenced by the numerous recently recognized crypto ETF applications. A turning point? Possible. Because if the Securities and Exchange Commission is finally letting up, it might be to better prepare the ground for a regulatory revolution. Since the reelection of Donald Trump , the SEC seems to have awakened from a long sleep. In just two days, the agency has validated the review of several crypto ETF applications , covering staking, options, and even some altcoins. A flood of submissions following Gensler’s departure, a coincidence? Not sure! On February 19, Nasdaq submitted a request to set exercise limits on options for BlackRock’s iShares Bitcoin Trust (IBIT), a behemoth with $57 billion in assets. For its part, Cboe wants to introduce options on Grayscale and Bitwise Ethereum ETFs, as well as XRP ETFs for Canary and WisdomTree. Add to this a request to allow staking on 21Shares’ Ether ETF, and you have an explosive cocktail for investors. Does this sudden easing of the SEC indicate a genuine desire for normalization, or is it merely a strategy to not lose control? The answer should not be long in coming. Another sign that the tide is turning: the SEC is closely interested in staking. Far from demonizing this practice, the regulator has asked market participants to provide a memo detailing its mechanisms and benefits. As revealed by Eleanor Terrett, a journalist at Fox Business: “The agency is very, very interested in staking.” An understatement that speaks volumes about the change in tone. This turnaround is not limited to staking. The SEC is also exploring creations and in-kind redemptions for crypto ETFs. This method, favored by issuers and investors for its tax benefits, is currently prohibited in the United States. But the agency’s recent openness on the subject suggests a possible evolution. The authorization of options on Bitcoin ETFs has paved the way for similar requests for Ethereum. But how far will the agency go? In January, Cointelegraph reported that numerous ETF applications had been filed following Gensler’s resignation . Simple coincidence or a desire to accelerate ahead of the arrival of a stricter regulator? Moreover, Elon Musk did not hesitate to fire at the SEC , demanding an audit of the agency’s spending via DOGE. A strategic pressure move? As the SEC seems to soften its position on crypto ETFs, is this to better avoid future sanctions? A matter to follow.

Somnia launches Shannon testnet to enhance blockchain scalability Layer-1 blockchain Somnia announced via X that it has launched its Shannon testnet, providing developers and users with a faster, more scalable and cost-efficient environment for blockchain application testing.…

Laser Digital, the digital assets subsidiary of Japanese financial services giant Nomura, has launched a new investment fund targeting institutional adoption of NEAR. The Laser Digital NEAR Adoption Fund will offer long-term exposure to NEAR ( NEAR ), the native token of the artificial intelligence-focused blockchain, NEAR Protocol. Laser launched a Bitcoin ( BTC ) adoption fund in Sept. 2023. According to Laser Digital, the new fund will be powered by TruStake, an institutional-grade staking solution developed by the crypto platform TruFin. The fund will allow ecosystem participants to engage in blockchain consensus and earn rewards from staking. Laser Digitalb CEO Jez Mohideen commented : “The Fund gives Investors a seamless way to gain exposure to digital assets through a long orientated exposure to the NEAR protocol that combines two major investment themes of digital assets and AI, alongside a carry overlay via the staking.” This initiative provides institutional investors with an opportunity to leverage NEAR Protocol for economic returns while supporting its growth and adoption. With NEAR a top AI token focused on the future of decentralized AI, the fund may be the gateway that brings this future into reality. Growth for AI and web3 includes the explosion of AI agents and NEAR stands at this intersection with crypto and blockchain. The outlook is down to NEAR Protocol’s key features, including user-owned AI, Chain Abstraction, sharded blockchain and intents, the new transaction model also championed by the Ethereum Foundation. According to Laser Digital, the NEAR Adoption Fund will be available to eligible institutional and professional investors in selected jurisdictions, but it will not be available to investors in the U.S. Laser Digital and TruFin plan to offer the fund in both traditional formats and via wealth management platforms. The Fund will be available in traditional format, after registration, in selected jurisdictions (with the exclusion of the US) to eligible institutional and professional investors. The Fund will also be available through various wealth management platforms.

OpenSea has staged a dramatic comeback, reclaiming 71.5% of the Ethereum NFT market share in the past week. Just four weeks ago, its share stood at 25.5%, with Blur dominating the space. The Block reports that this surge coincides with OpenSea’s long-awaited announcement of its native token, SEA, on Feb. 13. Since the token reveal, OpenSea’s daily trading volume has skyrocketed, averaging $17.4 million, nearly five times its pre-announcement average of $3.47 million. The number of daily transactions also more than doubled, jumping from 6,100 to 14,700 trades. The bulk of this growth came in the past week, as OpenSea’s market share spiked from 42.4% to 71.5%, largely at Blur’s expense . OpenSea has encountered obstacles in its incentive rollout, despite the momentum. After users accused the platform of promoting wash trading and giving fee production precedence over actual ecosystem engagement, it recently suspended its XP-based incentives system. Devin Finzer, CEO of OpenSea, recognized the criticism and said the team is reassessing its strategy even though liquidity incentives are still crucial. In place of the XP system, OpenSea has introduced “XP shipments,” a new rewards model targeting early adopters of its OS2 marketplace . Users who provided feedback via Discord have already received the first batch of XP rewards, while a second round is being distributed to those who have purchased NFTs on OS2. In addition, XP multipliers are available for those who’ve held top-volume NFT collections for more than three months. Although information about the SEA token is still limited, OpenSea has stated that U.S. users are eligible for the airdrop and that allocation will be based on past platform activity, which could potentially compensate traders who were active during the 2021 NFT bull run.