Web3🌑Friday Buzz: SEC’s Meme Coin Ruling, $1.4B Bybit Hack, and Vitalik’s Call for Smarter Wallets

The Web3 world is buzzing with big news this week! From the SEC’s game-changing announcement on meme coins to a staggering $1.4 billion Bybit hack pushing crypto thefts to new heights, there’s plenty to unpack. Ethereum co-founder Vitalik Buterin is calling for smarter wallet solutions to prevent both loss and theft, while Pi Network fires back at Bybit CEO’s scam allegations. As the crypto space evolves at lightning speed, these stories highlight the need for better security, clearer regulations, and innovative solutions. Let’s dive into the details and explore what’s shaping the future of Web3!

1. The SEC confirms meme coins aren’t securities

The SEC has officially declared that meme coins are no longer classified as securities, marking a major shift in crypto regulation. In its statement, the Commission described meme coins as collectibles driven by market demand and speculation, not traditional financial instruments. While the SEC is stepping back from enforcement, it warned that other federal or state agencies could still prosecute fraudulent activities in the space. This decision could open the door to more innovation — but also more scams — as meme coins continue to dominate headlines. As the market reacts, the future of meme coin regulation remains uncertain and unpredictable.

SEC Announces that Meme Coins Are Not Securities

The SEC stops regulating meme coins, citing collectible-like status. Looser rules may boost innovation but risk encouraging scams.

BeInCryptoLandon Manning

2. $1.4B Bybit Hack Pushes 2024 Crypto Theft to New Highs

The crypto world is off to a rocky start in 2025, with losses from hacks already reaching $1.6 billion — closing in on last year’s $2.2 billion total, according to data from blockchain security firm Immunefi. The biggest blow came from the record-breaking Bybit exploit, where hackers stole over $1.4 billion in Ethereum and related assets. U.S. authorities have linked the attack to North Korea’s state-sponsored Lazarus Group. With centralized platforms like Bybit and Infini facing massive breaches, it’s clear that even traditional exchanges once considered safe are now prime targets for increasingly sophisticated cybercriminals.

Crypto Hacks Nearly Match 2024 Total Thanks to $1.4 Billion Bybit Theft - Decrypt

It’s only February but hackers have already stolen $1.6 billion in exploits, blockchain security firm Immunefi has said.

DecryptMat Di Salvo

3. Vitalik Buterin Calls for Smarter Wallet Solutions

Ethereum co-founder Vitalik Buterin is calling for better wallet solutions to tackle not just theft but accidental crypto loss, which is often overlooked. He highlighted how people frequently lose large amounts of cryptocurrency due to forgotten passwords, lost devices, and software bugs — issues just as damaging as theft. Buterin’s call comes amid stories like James Howells, who lost a hard drive containing 8,000 Bitcoin, now worth millions, and Stefan Thomas, who spent 11 years unable to access his Bitcoin wallet. Buterin urges the crypto industry to prioritize comprehensive security measures that address both hacking and human error.

Vitalik Buterin calls for wallet solutions to address crypto loss, not just theft

While theft is often discussed in crypto security, many people also lose significant amounts of crypto due to negligence and accidents, and wallet solutions must address these risks as well

crypto.newsDarya Nassedkina

4. Pi Network Claps Back at Bybit CEO’s Scam Claims

Pi Network has pushed back against allegations made by Bybit CEO Ben Zhou, who accused the project of being a scam. The controversy began after an unofficial Pi Network X account claimed the project rejected a listing offer from Bybit, which Zhou denied, stating no such request was made. Zhou cited a 2023 Chinese police report warning about fraudulent actors targeting the elderly, but Pi Network clarified that the report referred to bad actors impersonating them, not the company itself. Despite the backlash, Pi Network’s token surged, hitting a new all-time high, and the company reaffirmed its legitimacy and user base size.

Pi Network responds to Bybit CEO’s scam allegations

Pi Network told Cointelegraph that the 60 million users it advertises are application users, while the 10 million shown in the blockchain are those who created wallets.

CointelegraphEzra Reguerra

As Web3 continues to evolve, stories like these remind us of the rapid changes and challenges shaping the crypto landscape. From regulatory clarity on meme coins to the urgent need for better security after the Bybit hack, the industry is at a turning point. Vitalik Buterin’s push for smarter wallet solutions and Pi Network’s strong response to scam allegations show how innovation and accountability are more important than ever. Stay tuned for more updates as we watch Web3’s transformation unfold — and don’t forget to stay informed, stay secure, and stay ahead!

WEB3 AI ML