Hours after Coinbase said the S.E.C. was dropping a lawsuit against it, another major cryptocurrency exchange reported a potentially record-setting theft.The New York Times reports that just hours after Coinbase announced the Securities and Exchange Commission (S.E.C.) was dropping a lawsuit against it, another major cryptocurrency exchange, Bybit, reported a potentially record-setting theft. The news of the lawsuit dismissal was a relief for cryptocurrency investors, but the hack at Bybit, estimated to be worth $1.5 billion, caused a sharp decline in the prices of Bitcoin, Ether, and other major cryptocurrencies. Even Coinbase’s share price dropped by 8% by the end of the day.
This contrast highlights the current state of the cryptocurrency market in 2025. Despite President Trump’s support for the industry, it remains a volatile and unregulated market, susceptible to scams, thefts, and sudden market crashes. With new policies in Washington encouraging more people to invest in crypto, the industry’s struggles to prevent criminal activity are becoming more apparent. The recent hack serves as a reminder that even experienced investors can suffer significant losses in this chaotic market.
Corey Frayer, who previously worked on crypto policy at the S.E.C. during the Biden administration, commented on the hack, saying, “These guys, whose whole business is crypto and are smart about these issues, just lost $1.5 billion. So how can we expect regular Americans who just want their debit card to work to safely use these products?” The incident raises concerns about the safety and security of cryptocurrency for everyday users.
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