North Korean hackers stole $1.4 billion from Bybit

The FBI has confirmed that North Korean hackers were behind the massive $1.4 billion theft from cryptocurrency exchange Bybit last week. The agency labeled the operation “Trader Traitor” and identified 48 Ethereum addresses linked to the stolen funds, urging exchanges to block transactions with them.

Security firm SlowMist revealed that the attack was executed by compromising a developer’s machine and injecting malicious code into the front end. The breach allowed hackers to access Bybit’s Ferium Cold Wallet during a routine transfer.

So far, recovery efforts have retrieved around $43 million, but over $140 million has already been laundered through accounts linked to North Korea’s Lazarus Group. Despite the loss, Bybit CEO Ben Zhao assured users that the exchange remains solvent and is offering a 10% bounty to those who help recover the funds.

Nvidia’s record-breaking quarter fuels AI boom

Chipmaker Nvidia has once again exceeded analyst expectations, posting a record-breaking $39.3 billion in revenue for the fourth quarter. That’s a 78% year-over-year increase, driven by skyrocketing demand for its AI chips.

Earnings per share rose to $0.89, beating estimates, while the company’s data center unit brought in $35.6 billion—nearly double last year’s figure. Nvidia’s continued dominance in AI computing sent its stock price up 3.67% during regular trading and another 2.32% after hours.

Despite concerns about growing competition from AMD, Intel, and tech giants developing their own AI chips, Nvidia remains at the forefront of the AI revolution. CEO Jensen Huang noted that demand for the company’s Blackwell AI chips is “extraordinary.”

Bitcoin ETFs hit record outflows as prices drop

Bitcoin exchange-traded funds (ETFs) have suffered their worst day on record, with investors pulling out over $1.1 billion in a single day. Tuesday’s withdrawals surpassed the previous day’s $539 million, making it the highest daily outflow in nearly 14 months.

Bitcoin itself dropped below $84,000 for the first time since November, marking a 12% weekly decline. Other cryptocurrencies, including Ethereum, XRP, and Solana, have also faced double-digit losses.

Despite the sell-off, analysts say ETF fluctuations are normal in volatile markets. Bloomberg’s James Seyffart noted that ETFs typically grow in a “two steps forward, one step back” fashion. Even with February’s $2 billion in outflows, total assets under management remain above $100 billion.

US crypto regulations face delays

US lawmakers are scaling back expectations for rapid cryptocurrency regulation. During a Senate Banking Committee meeting on Wednesday, Senator Cynthia Lummis acknowledged that comprehensive legislation is now expected by the end of the year—much later than previously anticipated.

This revised timeline contrasts with statements from crypto czar David Sacks, who had vowed to push for major reforms within Trump’s first 100 days. Key crypto-friendly initiatives, such as establishing a Bitcoin stockpile in the US Treasury, have also lost momentum.

The shift comes as the market struggles with macroeconomic concerns, including inflation, potential trade wars, and geopolitical instability. While the Trump administration has made some pro-crypto moves—such as pardoning Silk Road creator Ross Ulbricht—investors remain cautious about the pace of regulatory change.

Crypto markets face growing pains

Between major exchange hacks, shifting investor sentiment, and regulatory uncertainty, the crypto industry is facing a reality check. The market is adjusting after post-election euphoria led to high expectations for regulatory support and institutional adoption.

While pullbacks are painful, they force market participants to focus on fundamentals rather than speculation. Security, infrastructure, and real-world utility will become even more critical as the industry matures.

For long-term investors, the current market turbulence could be an opportunity to separate solid projects from hype-driven assets. The road to mainstream adoption continues—just at a more measured pace than many had hoped.