Preface

This report summarizes several security incidents that occurred in the blockchain and cryptocurrency sectors between February 22 and February 27, 2025. Project teams must prioritize and strengthen their security management measures to effectively combat potential security threats.

Abstract

• Gate.io launchpool debuted Rivalz Network (RIZ)
• Bybit experienced a major security breach with approximately $1.5 billion in ETH stolen
• Infini promptly addressed an internal error that led to a $49.5M abnormal fund transfer and guaranteed full user compensation
• Ethereum’s Pectra upgrade encountered obstacles on Holesky Testnet, failed to achieve finality which may impact mainnet deployment
• SEC officially ended investigation into Uniswap
• Ondo Finance announced joining the Mastercard network

Key Developments and Updates

2/21 Gate.io Launchpool Debuted Rivalz Network (RIZ)

Gate.io launched Rivalz Network (RIZ) spot trading on February 21, 2025, at 21:00 (UTC+8). Users can stake USDT, BTC, RIZ, and GT to participate in the Launchpool and share 20,000,000 RIZ tokens. Rivalz Network is building a world abstraction layer to unlock AI agents’ access to the real world, bridging the gap between artificial intelligence and reality. By leveraging decentralized infrastructure, Rivalz enables AI agents to utilize labor, data, and DePIN resources—from digital assets to smart homes. The project offers privacy-centered AI infrastructure and a comprehensive suite of five core modules designed to overcome barriers in connectivity, data management, and resource orchestration, fostering a new era of collaborative intelligence between AI and humans. [1]

2/21 Bybit Experienced A Major Security Breach with Approximately $1.5B in ETH Stolen

On the evening of February 21, 2025, cryptocurrency exchange Bybit suffered one of the largest hacking incidents in history. The exchange was allegedly targeted by the North Korean hacker group Lazarus Group, which employed methods such as forging signature interfaces and implanting malicious smart contracts to steal approximately 499,000 ETH (worth about $1.5 billion). This hacking incident not only set a record for the largest theft in crypto industry history but also had far-reaching impacts on the entire market.

Following the news, ETH prices plummeted by over 7%, reaching a low of $2,618, while market panic spread rapidly with panic withdrawals totaling $2.4 billion within 24 hours. After the incident, the exchange quickly implemented response measures and collaborated with other exchanges. Gate.io actively provided support, assisting with tracking and intercepting stolen funds and offering other assistance. Market sentiment gradually stabilized, with ETH prices recovering to above $2,700 within 24 hours. Currently, the exchange is actively working to restore its ETH reserves to compensate for losses caused by the hack attack. [2]

2/24 Infini Promptly Addressed Internal Error Leading to $49.5M Fund Transfer, Guaranteed Full User Compensation

On February 24, 2025, the Infini platform was mistakenly thought to have suffered a hacker attack, resulting in abnormal transfers of approximately $49.5 million. However, founder Christian later clarified that the situation was not a hacking intrusion, but rather due to employee negligence during a permission transfer process. Christian emphasized that personal private keys were not compromised, and the platform’s withdrawal functionality remained operational for users. He promised full compensation to users in the worst-case scenario. The team is currently working to thoroughly investigate the specific causes of the incident and has taken measures to strengthen internal management and permission controls to prevent similar accidents from recurring. Users can continue to use the Infini platform with confidence, as the platform will continuously enhance its security capabilities to ensure the safety of every user’s assets. [3]

This incident reflects management deficiencies in the platform’s permission handover and internal operational processes. There is a need to strengthen internal controls and employee training, improve operational procedures, and prevent similar issues from occurring again. The incident serves as a reminder to the entire crypto industry that even without external attacks, internal operational errors can lead to significant losses. All platforms should establish sound internal audits and risk control mechanisms to ensure the safety of user assets.

2/25 Ethereum’s Pectra Upgrade Encountered Obstacles on Holesky Testnet, Failed to Achieve Finality Which May Impact Mainnet Deployment

Ethereum’s important Pectra upgrade was launched on the Holesky testnet but failed to achieve finality as blocks could not gather sufficient validator votes within the preset timeframe. As a “stress test simulator” for the Ethereum mainnet, the anomalies on Holesky exposed technical vulnerabilities in the upgrade plan, primarily involving compatibility issues between node synchronization mechanisms and new staking validation logic.

This failure indicates that Ethereum faces imbalanced code complexity management when bundling 11 improvement proposals in one upgrade, increasing the risk of unexpected interactions. Additionally, despite Holesky being three times the scale of the mainnet, the testing failed to cover extreme staking scenarios, showing insufficient stress testing of the validator ecosystem. The failure to achieve finality suggests that the upgrade plan could affect block consensus and transaction security on the mainnet. The development team needs to optimize their module separation strategy before the Sepolia testnet deployment on March 5 to ensure stable implementation of Pectra. [4]

2/26 SEC Officially Ended Investigation Into Uniswap

The U.S. Securities and Exchange Commission (SEC) announced the termination of its investigation into Uniswap Labs, withdrawing all charges. Previously, the SEC had accused Uniswap of operating as an unregistered securities broker, exchange, and clearing agency, as well as allegedly issuing unregistered securities (UNI token). Uniswap maintained that its protocol was decentralized technology, that UNI was not a security, and that the company did not control the protocol’s operations. After three years of investigation, the SEC finally dropped the case and took no enforcement action against Uniswap. This decision is viewed as a significant victory for the DeFi sector, with Uniswap’s co-founder criticizing the SEC for suppressing DeFi innovation through ambiguous rules. [5]

The SEC’s dismissal of the Uniswap investigation represents a significant development for Uniswap Labs and a landmark event for the entire industry. DeFi protocols fundamentally differ from traditional financial systems, requiring decentralized technology and self-custodied funds to be regulated differently than centralized markets. This event highlights the crypto industry’s strong demand for clear rules and reasonable regulation. Although this is a positive development for the DeFi community, the entire industry still faces an uncertain regulatory environment, and balancing innovation with compliance will be a significant challenge going forward. The SEC’s recent series of terminated investigations into crypto enterprises may reflect a reassessment of decentralized technology by new leadership, with greater focus on establishing clear and reasonable regulatory rules for the industry, bringing hope for the future development of the DeFi sector.

2/26 Ondo Finance Announced Joining the Mastercard Network

Institutional-grade financial protocol Ondo Finance, which focuses on the RWA (Real World Assets) sector, announced its integration with the Mastercard Multi-Token Network (MTN), incorporating its short-term US Treasury fund OUSG into the cross-border payment infrastructure. This partnership allows institutional users within the MTN ecosystem to automatically earn US Treasury yields while completing international trade settlements by holding OUSG shares on-chain. Currently, OUSG allocates 82.3% of its assets to BlackRock’s on-chain money market fund BUIDL, with underlying assets being US Treasury short-term bonds and reverse repurchase agreements. Mastercard MTN integrates blockchain settlement layers through standardized API interfaces, covering financial institutions across multiple countries/regions globally, enabling real-time cross-chain settlement between fiat and tokenized assets.[6]

Summary

During this week (February 22–28, 2025), several significant events occurred in the blockchain and cryptocurrency sectors. Bybit experienced the largest hack in its history, the Infini platform suffered abnormal fund transfers due to internal operational errors, and Ethereum’s Pectra upgrade encountered obstacles in the testnet. Additionally, the SEC dropped its investigation into Uniswap, and Ondo Finance announced its integration with the Mastercard network. These events highlight both challenges and opportunities for the industry in security management, technical upgrades, and regulatory compliance.


References:

1. Gate.io,https://www.gate.io/zh/announcements/article/43371?ch=GM_rizlunchpoolodaily_20240218&utm_campaign=TR_XKUOMTWo&utm_content=&utm_medium=Flash+News&utm_source=CH_mX1vZMFk&utm_term=
2. Coindesk,https://www.coindesk.com/markets/2025/02/21/bitcoin-ether-slumps-as-crypto-prices-crumble-on-report-of-massive-usd1-4b-bybit-security-incident
3. Techflow,https://www.techflowpost.com/newsletter/detail_75962.html
4. Dora the Explorer,https://dora.holesky.ethpandaops.io/
5. Coindesk,https://www.coindesk.com/policy/2025/02/25/sec-drops-investigation-into-uniswap-will-not-file-enforcement-action
6. Coindesk,https://www.coindesk.com/business/2025/02/26/ondo-finance-to-bring-rwas-to-mastercard-network?utm_content=editorial&utm_campaign=coindesk_main&utm_term=organic&utm_source=twitter&utm_medium=social

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