Coinpedia Digest: This Week’s Crypto News Highlights | 24 May, 2025

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Folks, I’m back with your weekly crypto round-up and trust me, you’re going to want to pay attention to this one. 

This week has been a wild ride for investors and enthusiasts. Big headlines. Big consequences. We’ve seen it all – from political power plays to million-dollar scandals. All of these are powerful signals hinting at where the industry is really heading. So, if you blinked, you’ve missed a lot. 

We’ll dive into what happened these past few days and why it matters for you. Let’s go! 

#1 Trump’s $TRUMP Crypto Dinner Drama 

Justin Sun, the crypto billionaire who once dodged the US spotlight fearing arrest, stepped back into the limelight – this time as a VIP at Donald Trump’s exclusive gala dinner. Sun, proudly holding the biggest stash of Trump’s $TRUMP memecoin, showed up amid protests shouting “shame.” Trump himself took the stage, blaming the previous administration for making life miserable for crypto insiders, calling it a “disgrace.” 

Sun flashed over $1.3 million in $TRUMP holdings and a flashy “Trump Golden Tourbillion” watch. Predictably, Democrats like Senator Elizabeth Warren called it “an orgy of corruption”. Phew.

#2 Sui’s $260M Crypto Heist: What Went Down?

Sui’s largest decentralized exchange, Cetus Protocol, was hit with a $260 million hack that sent shockwaves through the SUI ecosystem. The attacker exploited fake tokens like BULLA to mess with liquidity pools and drain assets, including 12.9 million SUI and $60 million in USDC. 

They then tried laundering the loot by swapping a big chunk of USDC for 21,938 ETH. Cetus jumped on damage control, pausing smart contracts and launching a full probe. 

Meanwhile, SUI’s price took a hit, dropping about 15% to $3.90. The scramble is on to recover funds and shore up security.

#3 GENIUS Act (Finally) Breaks Ground in Stablecoin Law

The U.S. Senate just cleared a major hurdle by advancing the GENIUS Act with a 66-32 vote – the first stablecoin bill to make it this far. This bipartisan win came after last-minute tweaks and pressure from crypto advocates like Stand With Crypto. 

The bill lets private firms issue stablecoins and demands full backing with dollars or Treasury bills. While it bars foreign stablecoins on U.S. centralized exchanges, decentralized platforms remain untouched. 

Critics say the revisions are mostly cosmetic, leaving loopholes like weak data safeguards and possible regulatory capture. Big moves, but is it enough?

#4 Pi Network’s $8M Scam: Pump, Dump, and Investor Fury!

Pi Network is under fire with explosive $8 billion scam allegations after insiders reportedly dumped 12 million PI tokens. Blockchain sleuth Atlas points to a classic pump-and-dump move – sharp price surges followed by a brutal 50% crash post-May 14. 

Despite a bullish spike fueled by an 86 million token withdrawal from OKX (hinting at strong holder confidence), the price has since slumped to $0.79. The project also battles criticism over exchange listings, token distribution, and node centralization, raising serious questions about its future. Is it the end of the road for Pi? I hope not. 

#5 Blum Co-Founder Detained in Russia

Big news out of Russia – Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum and former head of Binance Russia, has been arrested in Moscow on large-scale fraud suspicions. The heat comes from his previous ventures, The Token Fund and Tokenbox, where investors reportedly lost around $15 million. 

While the investigation is ongoing and no formal charges are out yet, Russian courts have approved his detention. Blum quickly clarified that Smerkis resigned and is no longer connected to the project, distancing themselves from the scandal.

#6 Cardano CEO Fires Back at $600M Allegations

Charles Hoskinson is pushing back hard against claims he misused $600 million worth of ADA tokens. The drama centers on accusations that during Cardano’s 2021 Allegra hard fork, Hoskinson used a “genesis key” to control 619 million ADA. 

But he says most of the 350 million ADA involved were already redeemed over seven years, with the leftovers donated to Intersect, a Cardano-affiliated org. 

Feeling “deeply hurt” by the distrust, Hoskinson plans to release an audit report and might hand over his social channels to a media team to clear the air.

#7 Nasdaq Welcomes First Ever XRP Futures ETF

The wait is over – XRP stepped into the ETF spotlight with the launch of Volatility Shares’ XRPI ETF, trading on Nasdaq. This 1x XRP futures ETF offers a safer, measured way to access Ripple’s price action without holding the token directly. Analyst Eric Balchunas called it a “good signal” of growing demand for crypto investment vehicles. 

With leveraged XRP ETFs already firing up interest and CME’s recent XRP futures rollout, XRPI marks a new phase in XRP’s journey. I’m loving this one! 

#8 MSTR Holdings Surge as States Seek Bitcoin Proxy

14 US states revealed a collective $632 million stake in MicroStrategy (MSTR) during Q1 2025, marking a 42% jump from the previous quarter. California leads with $276 million, followed by Florida and North Carolina. Utah’s holdings skyrocketed 184%, while Wisconsin sold its $300 million Bitcoin ETF stake, increasing MSTR instead. 

This shows states prefer indirect Bitcoin exposure through MicroStrategy’s massive 576,230 BTC stash, avoiding direct crypto ownership complexities. 

#9 Who’s Buying USDC? Circle’s Next Move

Circle, the powerhouse behind USDC, is stirring the pot with a $5 billion valuation price tag as it entertains acquisition talks. Ripple and Coinbase have both stepped into the ring, but Circle shot down Ripple’s XRP-heavy bid, citing concerns over liquidity and valuation mechanics. 

Meanwhile, talks with Coinbase are reportedly friendlier – “If Coinbase wanted to buy them, Circle would sell in a second,” insiders say. Despite these moves, Circle’s IPO ambitions remain alive but shaky, as broader market volatility and trade policies push the company to rethink timing.

Big questions loom over USDC’s future path.

#10 Texas Bitcoin Reserve Bill Passed

Texas just got one step closer to becoming America’s Bitcoin bull state. Senate Bill 21 – which would establish a state-run Bitcoin Reserve – passed its final House vote, clearing 101-42. All that’s left is Governor Abbott’s signature, and the signs are strong. 

He even shared the proposal on X, and crypto voices like Kyle Chassé are already calling it: “It’s happening.” If Abbott signs before the June 2 deadline, Texas will follow New Hampshire as the second U.S. state with its own BTC stash. Trump’s vision is shaping up quite well. 

In the Spotlight 

Here’s a few quick hits you shouldn’t miss! 

HSBC Goes Live with Tokenized Deposits: HSBC has officially launched its Tokenised Deposit Service in Hong Kong, enabling 24/7 fund transfers using blockchain tech. Ant International led the charge as the first client to go live.

A Wall Street Stablecoin? Yep, It’s Being Discussed: Some of the biggest U.S. banks – including JPMorgan, Citi, and Wells Fargo – are reportedly discussing a joint stablecoin venture, according to WSJ. Early talks, but major implications if it lands.

Crypto Meets Stocks, Powered by USDT: Bybit just launched stock trading with USDT via Metatrader 5, giving users access to Apple, Tesla, gold, forex, and crypto from one account. Multi-market action at its best.

CZ Slams Trump Crypto Allegations: CZ has slammed the Wall Street Journal for linking him to Trump-backed crypto dealings, calling the report a “hit piece.” He flatly denied acting as a “fixer” or brokering any WLF meetings.

Semler Bets the House on Bitcoin: Semler Scientific just dropped $50M on Bitcoin, boosting its stash to over 4,264 BTC. With losses mounting and a crypto-first strategy now official, this healthcare firm is betting big again.

What’s Next for Crypto?

Major shifts to expect ahead 

• With Texas and other U.S. states doubling down on MicroStrategy and BTC reserves, expect a growing wave of state-led crypto strategies. A formal Bitcoin reserve could become a blueprint for other red states, especially under pro-crypto leadership.
• The launch of the XRPI ETF on Nasdaq signals that altcoin futures ETFs are gaining traction. With CME backing XRP and Ethereum products next in line, this could bring mainstream capital to major alts fast.
• The GENIUS Act may have passed its Senate hurdle, but its foreign token ban and loose guardrails could trigger lawsuits, revisions, or even state-level pushback. Keep an eye on regulation updates to predict how the market might react. 

Crypto never sleeps, and neither do we – catch you next week with the hottest moves and biggest surprises. Stay sharp!