The cryptocurrency market experienced a roller-coaster of events on Friday as Coinbase, the largest crypto marketplace in the U.S., reached a deal with regulators to dismiss a lawsuit, providing relief for investors. However, just hours later, Bybit, another major exchange, reported a massive hack resulting in losses estimated at nearly $1.5 billion, the largest in crypto history. This led to a market meltdown, with prices of Bitcoin, Ether, and other major cryptocurrencies plunging, including an 8 percent drop in Coinbase’s share price.
The recent events highlight the wild nature of the crypto industry in 2025, despite President Trump’s support for the sector. The industry remains susceptible to scams, thefts, and sudden market crises. Policy changes in Washington are expected to draw millions of new investors into crypto, even as concerns persist about criminal activities within the market.
The rise of memecoins, fueled by internet jokes and celebrity mascots, has led to widespread complaints about scams. This has caused financial losses for investors, with warnings from industry experts that memecoins could undermine progress made in engaging with lawmakers. The recent crackdown on crypto under the Biden administration saw lawsuits against major companies, including Coinbase.
However, the regulatory landscape shifted with Mr. Trump coming into office, resulting in a more positive outlook towards the industry. The settlement of the lawsuit against Coinbase without financial penalties indicated a newfound approach to crypto regulation. Despite the optimism generated by the settlement, Bybit’s hacking incident cast a shadow over the market, causing substantial losses and contributing to price drops across different cryptocurrencies. The theft, possibly orchestrated by North Korean hackers, further emphasized the risks associated with the cryptocurrency industry.
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