Bybit to Kanye Coin: 2025’s Biggest Crypto Scandals & How to Stay Safe 🚨
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Today we’re featuring Blockchained Sniper.
If you're in crypto, you know the game isn't just about picking winners—it's about dodging the landmines. Blockchained Sniper's Substack does the heavy lifting for you.
Exposing the biggest scams, security breaches, and rug pulls before they wreck your portfolio.
If you want to navigate crypto without getting burned, this is the newsletter to read.
I’ll let Blockchained Sniper take over from here…
From billion-dollar hacks to celebrity coin scams to uncover the biggest crypto scandals of 2025 and learn how to protect your assets from fraud, rug pulls, and cyber threats.
🌆 Introduction
The crypto market is booming—but so are the scams. From the record-breaking 💰 $1.5 billion Bybit hack to Argentina’s 🇦🇷 $LIBRA rug pull and the 🎤 Kanye Coin controversy, 2025 has been a wild ride. With hackers, fraudsters, and shady projects flooding the space, staying informed is your best defense.
In this article, we break down the biggest scandals shaking crypto right now, uncover how these scams happened, and share proven strategies to protect your investments. Whether you're a seasoned trader or a newcomer, this is a must-read to avoid getting caught in the chaos. 🚨
🔑 Key Takeaways
💰 Bybit Hack: The largest crypto hack ever—$1.5 billion in Ethereum stolen.
🇦🇷 Argentina's $LIBRA Scandal: A rug pull allegedly tied to President Javier Milei's endorsement.
🎤 Kanye West Coin Controversy: A potential scam involving a celebrity-backed token.
🐶 Solana Meme Coin Surge: A $1.5 billion market cap spike in a single day—bubble or boom?
🛡️ Protect Yourself: Essential tools and strategies to safeguard your crypto from scams, hacks, and rug pulls.
💸 The Bybit Hack: A $1.5 Billion Breach
⚡ What Happened?
On February 21, 2025, Bybit, a Dubai-based crypto exchange, suffered a massive security breach. Hackers stole 401,000 ETH (worth $1.5 billion) from an Ethereum cold wallet during a routine transfer. 😱
🕵️ How It Happened:
Attackers manipulated the transaction interface to gain control over the cold wallet, transferring its contents to an unknown address.
🎭 Suspected Culprit:
Blockchain analytics firms linked the hack to the Lazarus Group, a North Korean cybercrime organization notorious for past crypto heists. 🇰🇵
📉 Market Impact:
Ethereum's price dipped 4% post-hack, reflecting market sensitivity to security incidents. 📉
🏦 Bybit's Response:
CEO Ben Zhou assured users that the exchange remains solvent and offered a $140 million bounty for information leading to the recovery of stolen funds.
🛡️ How to Protect Yourself:
✅ Use Hardware Wallets: Store long-term holdings offline to prevent exposure to hacks. Recommended options include Ledger and Trezor.
✅ Enable 2FA: Activate Two-Factor Authentication (2FA) on all exchange accounts to add an extra layer of security.
✅ Monitor Transactions: Regularly review wallet activity for unauthorized transactions—tools like Etherscan can help.
✅ Stay Updated: Follow trusted news sources like CoinDesk, The Block, and Decrypt for real-time alerts.
✅ Use Multi-Signature Wallets: These wallets require multiple approvals for transactions, reducing the risk of hacks.
🌪️ Argentina's $LIBRA Scandal: Political & Financial Turmoil
⚡ What Happened?
In mid-February 2025, Argentine President Javier Milei endorsed $LIBRA, a Solana-based cryptocurrency, on social media. The token’s value skyrocketed, reaching a $4.6 billion market cap, before crashing—leaving investors with massive losses. 📉
🕵️ Rug Pull Allegations:
Investigations revealed that wallets associated with the project withdrew approximately $99 million from liquidity pools during the crash.
⚖️ Political Fallout:
The scandal triggered backlash against President Milei, sparking impeachment calls and a federal fraud investigation.
💰 Economic Consequences:
Argentina’s stock index took a hit, shaking confidence in financial reforms and cryptocurrency investments.
🛡️ How to Protect Yourself:
🔍 Do Your Own Research (DYOR): Always verify a project's team, whitepaper, and roadmap before investing.
🚫 Avoid Hype & FOMO: Be cautious of celebrity or political endorsements—they don’t guarantee legitimacy.
➗ Diversify Investments: Avoid going all-in on one project—spread risk across multiple assets.
💧 Monitor Liquidity: Projects with low liquidity are more vulnerable to price manipulation and rug pulls.
🎤 Kanye West Coin Controversy: A Potential Scam?
⚡ What Happened?
A viral X thread by @StarPlatinumSOL raised red flags about a Kanye West-backed cryptocurrency which goes by the cashtag of $YZY. The post linked the project to Christian Barker (Barkmeta), an influencer with a history of shady ventures. 🚩
There are also other major red flags such as:
🚩Metadata indicates the coin was created using DexLab Mining Website
🚩The website was created just yesterday
🚩The support email is non-functional
🚩The funded wallet originated from a deposit of Photon Wallet
🚩No Multi-sig has been established
⚠️ How to Protect Yourself:
✅ Verify Celebrity Endorsements: Ensure the celebrity genuinely controls their account and is actively involved.
🙅 Avoid FOMO: Don’t invest based on hype or social media buzz.
👨💻 Follow Trusted Analysts: Get insights from reputable sources like @zachxbt and @benbybit.
🕵️ Check Project History: Research the team’s past projects for signs of rug pulls or scams using tools such as BubbleMaps and more and will provide more tutorials in the future for those.
🛡️ How to Stay Safe in Crypto
🔍 Conduct Thorough Research: Verify project team, audits, and security certifications.
🔒 Secure Your Wallets: Use hardware wallets and enable multi-signature approvals.
📜 Watch Out for Ponzi Schemes: Avoid projects promising guaranteed returns.
🚨 Use a VPN: Protect your IP address and encrypt your internet traffic.
🚫 Avoid Phishing Scams: Always double-check URLs and never click suspicious links.
🔦 Stay Informed: Follow reliable analysts and news outlets for real-time updates.
🔦 A Look Back at Crypto History: Lessons from the Past 🕰️
To further illustrate the importance of vigilance, here are some notable past crypto scams and hacks:
Mt. Gox (2014): The original crypto exchange hack, losing approximately 850,000 Bitcoins.
DAO Hack (2016): Exploited due to a vulnerability in its code, leading to a hard fork of Ethereum.
PlusToken (2019): A Ponzi scheme that defrauded investors out of billions.
Bitfinex Hack (2016): A major exchange hack resulting in the loss of 120,000 Bitcoins.
Additional Tips and Tricks for Staying Safe 💡
Use a VPN: Protect your IP address and encrypt your internet traffic.
Be Wary of Phishing Scams: Always double-check URLs and never click on suspicious links.
Keep Your Private Keys Safe: Never share them, and store them securely.
Consider Multi-Signature Wallets: They require multiple approvals for transactions.
Regularly Review Security Practices: Stay updated on the latest threats and best practices.
The Bigger Picture 🖼️
🖼️ The Bigger Picture
Crypto in 2025 remains a high-stakes battlefield where innovation meets exploitation. From the Bybit hack to the $LIBRA scandal and Kanye Coin controversy, the industry's dark side is undeniable. However, with vigilance and the right tools, you can protect yourself and seize opportunities.
Stay sharp and this space rewards the cautious. We’ll keep you informed so you’re never caught off guard. 🚀
📚 Sources
Twitter/X Accounts
News Resources
Bybit says $1.5 billion worth of crypto stolen in ether wallet hack
Javier Milei faces impeachment calls after Argentina cryptocurrency collapse
Kanye West Announces Coin Drop Next Week Following Weeks of Controversy
Nothing in this email is intended to serve as financial advice. Do your own research.