Scenius Sync (Issue #141)
Bybit Back to 1:1 Backing After Biggest Crypto Heist Ever, SEC Drops Cases & Probes Against Coinbase, Robinhood + OpenSea, Binance Resumes USD Service for US Customers & Citadel To Make Crypto Markets
Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.
Welcome to The Scenius Sync.
Our mission with this concise publication is twofold:
Share the essential stories driving the crypto industry and markets.
Highlight innovative applications and mainstream adoption of crypto and blockchain technology.
If you find this newsletter valuable, please subscribe and share The Scenius Sync with your network 💪
Essential News 🗞
Bybit Closes 'ETH Gap' as Exchange Replenishes $1.4B Hole After Hack
Days after being hit by the biggest crypto heist ever, Bybit has returned to a 1:1 backing of client assets and has fully closed the “ETH gap” it faced after an unprecedented $1.4 billion hack hit the exchange. Address activity suggests more than $400 million were purchased through over-the-counter trading, with another $300 million brought directly from exchanges.
For an interesting write up from Elliptic, see here: The Largest Theft in History - Following the Money Trail from the Bybit Hack
More coverage here: North Korea's Lazarus Group responsible for Bybit hack resulting in losses of over $1.5 billion: Arkham
SEC agrees to dismiss case against Coinbase in principle, subject to Commissioner approval
The SEC has agreed in principle to dismiss its case against Coinbase, according to an announcement from the crypto exchange on Friday. "SEC staff has agreed in principle to dismiss its unlawful enforcement case against Coinbase, subject to Commissioner approval — righting a major wrong," Coinbase Chief Legal Officer Paul Grewal wrote in the blog post.
The SEC is dropping its investigation into Robinhood’s crypto arm with no intention of moving forward with an enforcement action, the company said Monday. In May 2024, Robinhood received a notice warning that it could be charged for potential violation of securities law. The SEC’s dismissal of the Robinhood’s case, and Coinbase’s three days earlier, is an early sign of the regulatory sea change for the crypto industry promised by President Donald Trump.
In addition related news: SEC ends OpenSea probe, weeks after NFT platform confirms SEA token airdrop: Bloomberg
Binance resumes USD deposit, withdrawal services for US customers
Binance.US, the US-based affiliate of global cryptocurrency exchange Binance, has resumed US dollar deposits and withdrawals following nearly 18 months of restrictions, citing regulatory clarity. US dollar services are back on Binance.US for US customers, including deposits and withdrawals via bank transfer (ACH), according to a Feb. 19 announcement from Binance. “This means you can deposit and withdraw USD by linking a bank account, buy crypto via bank transfer (ACH), and enjoy trading on USD pairs,” the company stated. The services will “gradually roll out to all eligible customers in the coming days,” the announcement added.
The FTX founder criticized the “incredibly destructive” politicization of the judicial system under the Biden administration as he angled for a pardon from President Trump. Sam Bankman-Fried attempted to find common ground with the sitting president, in his first interview from prison on Feb. 18, the day customer repayments began. In the wide-ranging interview with the New York Sun, Bankman-Fried reiterated claims that FTX was solvent but illiquid and that law firm Sullivan & Cromwell mishandled the bankruptcy process.
Innovation & Adoption 💡📈
Citadel Securities Plots Jump Into Crypto Trading After Trump’s Embrace
Ken Griffin’s market-making giant Citadel Securities is looking to become a liquidity provider for cryptocurrencies, betting President Donald Trump’s embrace of the industry will usher in a boom for the asset class. It’s a clear pivot from the firm’s previously cautious stance on crypto market-making. Citadel Securities has had a limited presence in crypto trading, having steered clear of exchanges frequented by retail investors due to a lack of regulations around it in the US.
InfoFi network Kaito's native token crosses $1.9 billion FDV following airdrop to 'yappers'
The KAITO token reached a fully diluted market capitalization of $1.9 billion following initial selling pressure after Thursday’s airdrop claims and exchange listings. Kaito is a platform that tracks posts from popular crypto individuals on X in order to give an overview of what's being talked about in the community. Over the last three months it has rewarded such individuals with yaps for making posts that received what it saw as valuable engagement among this crowd. Yesterday's airdrop primarily rewarded those 'yappers' with KAITO tokens.
Arkham Exchange to offer spot trading to users in 17 U.S. states starting March 1
Crypto exchange and data analytics firm Arkham Intelligence will begin offering spot crypto trading to users in seventeen U.S. states starting March 1, the company announced on Saturday. The move follows through on Arkham's announcement from November of last year, and follows the launch of its USDT-based perpetuals exchange. Spot trading will be available to users in Colorado, Hawaii, Indiana, Iowa, Kansas, Michigan, New Hampshire, New Jersey, South Carolina, Tennessee, Utah, Virginia, Wyoming, Wisconsin, California, Massachusetts, and Montana.
The WalletConnect Foundation, steward of the communications protocol WalletConnect, has raised a total of $10 million from four consecutive oversubscribed public and private token sales. The fundraising took place this month on Bitget's LaunchX platform, CoinList, Echo and a further private sale, attracting tens of thousands of participants and generating significantly more interest than the target amounts. "The strong demand for the WalletConnect Token (WCT) underscores the growing need for seamless onchain connectivity and proven product market fit centric token with real fundamentals," the foundation said in a statement shared with The Block.
Monad Testnet Launches with 10,000 TPS and 5,000 NFT Whitelist Spots
Monad, a high-speed Ethereum Virtual Machine (EVM) layer-1 blockchain, launched its testnet on February 19, 2025. The blockchain processes over 10,000 transactions per second through parallel execution while maintaining compatibility with Ethereum's ecosystem. Users can interact with Monad's testnet using EVM-compatible wallets such as MetaMask, Phantom, and Backpack. Testnet tokens, which have no economic value, can be acquired via the Monad faucet or through pre-distributed tokens sent to 8.8 million EVM addresses based on prior blockchain activity.