23/02/2025. Weekly CryptoNews Digest (February, 17 – February, 23)

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Let’s get on with this week’s edition of the MNO Weekly CryptoNews Digest, covering the period from February 17th to February 23rd, 2025, and diving into the most important topics and emerging trends shaking up the crypto market. Get ready for an enlightening journey into the future of finance, and enjoy the ride!

JACK DORSEY: THE MYSTERIOUS MASTERMIND BEHIND BITCOIN?

The identity of Bitcoin’s creator, Satoshi Nakamoto, has long been one of the most intriguing mysteries in the world of cryptocurrency. Recently, speculation has emerged linking Jack Dorsey, the co-founder of Twitter and Block (formerly Square), to the pseudonymous figure. This theory is fueled by connections between Dorsey’s past activities and key Bitcoin milestones. For instance, Dorsey’s history with cryptography, pseudonyms, and digital privacy aligns with Bitcoin’s development timeline and the original source code.

One of the most compelling pieces of evidence comes from a detailed post by Sean Murray, a popular user on X (formerly Twitter). Murray outlined numerous coincidences and evidence linking Dorsey to Bitcoin’s early days. He noted that Dorsey was an active member of the cypherpunk community as early as 1996 and was known for his cryptographic interests. Additionally, the earliest Bitcoin documentation timestamps align with Dorsey’s known habit of late-night work.

Further adding to the speculation, Murray highlighted significant dates in Dorsey’s personal life that coincide with key Bitcoin milestones. For example, Bitcoin’s first transaction took place on Dorsey’s mother’s birthday, and the last block mined by Satoshi supposedly happened on his father’s birthday. Murray also pointed out that Dorsey has consistently advocated for Bitcoin’s decentralization principles, describing it as his “masterpiece”.

Despite the compelling circumstantial evidence, critics caution against jumping to conclusions. They argue that the theory violates privacy and fuels unnecessary risks. Moreover, Dorsey himself has denied being Satoshi Nakamoto in a 2020 interview, stating, “No, and if I were, would I tell you?”. As the debate continues, the true identity of Bitcoin’s creator remains an ongoing mystery, leaving the crypto community to ponder the possibilities.

SAUDI PRINCE DUPED BY FAKE MEMECOIN: ROYAL SCAM EXPOSED

In a shocking turn of events, a Saudi Prince has reportedly fallen victim to a memecoin scam, raising concerns about the security and legitimacy of cryptocurrency investments. The fraudulent scheme involved scammers impersonating Saudi Arabia’s Crown Prince Mohammed bin Salman, launching a fake memecoin under the guise of an official endorsement. The scam was promoted through a hijacked X (formerly Twitter) account, misleading investors into believing the token had royal backing. This incident highlights the growing trend of exploiting high-profile figures to lend credibility to fraudulent cryptocurrency projects.

The fake memecoin, dubbed the “Official” Saudi Arabia memecoin (KSA), was introduced on February 17th through the compromised X account. The scammers capitalized on the retail frenzy surrounding celebrity-backed tokens, attracting unsuspecting investors with promises of high returns. However, the absence of any official government communication and the lack of transparency regarding the token’s underlying utility and tokenomics quickly raised suspicions. The original owners of the X account, the Saudi Law Conference, confirmed the hack and disavowed any association with the fraudulent project.

This scam follows a similar pattern seen in other recent memecoin controversies, such as the rapid rise and fall of the Libra token endorsed by Argentine President Javier Milei. In that case, insider wallets cashed out millions of dollars, causing the token’s value to plummet. The Saudi Prince memecoin scam underscores the importance of conducting thorough due diligence before investing in any cryptocurrency project. Investors are urged to verify the legitimacy of a project’s team, scrutinize its tokenomics, and seek advice from trusted sources within the cryptocurrency community.

As the cryptocurrency market continues to evolve, scams and fraudulent activities are becoming increasingly common. This incident serves as a stark reminder of the risks associated with investing in digital assets, particularly those that claim affiliation with prominent individuals or institutions. By staying informed and exercising caution, investors can protect themselves from falling prey to such schemes. The Saudi Prince memecoin scam is a cautionary tale that underscores the need for vigilance and skepticism in the ever-changing world of cryptocurrency.

MILLIONS OF DOLLARS IN ETH BURNED: CRYPTO PROTEST OR CRY FOR HELP?

In a dramatic and unprecedented move, a significant amount of Ethereum (ETH) was burned as a form of protest by a Chinese programmer named Hu Lezhi. Lezhi, who identifies as an ordinary programmer and entrepreneur, claimed to have been monitored and manipulated by a “brain-control organization” since birth. To draw attention to his plight, Lezhi burned approximately $1.65 million worth of ETH by sending it to a burn address, effectively removing it from circulation. Additionally, he donated around $2 million worth of ETH to various entities, including WikiLeaks, to further amplify his message.

Lezhi’s protest was not just about the financial loss but also about the disturbing allegations he made against Chinese corporations. He accused the hedge fund WizardQuant of using brain-computer weapons to control its employees, turning them into “puppets or complete slaves to the digital machine.” Lezhi’s on-chain messages detailed his experiences of surveillance and manipulation, claiming that the organization intensified its actions after he became aware of their influence. These messages, permanently recorded on the blockchain, serve as a chilling testament to his claims.

The Ethereum burn strategy has gained attention as an unconventional way to draw public scrutiny. By destroying a large amount of cryptocurrency, Lezhi ensured that his message would be permanently recorded on the blockchain, making it impossible to ignore. This method of protest highlights the unique capabilities of blockchain technology, where transactions and messages are immutable and transparent. However, it also raises questions about the mental state of individuals who resort to such extreme measures to make their voices heard.

As the crypto community grapples with the implications of Lezhi’s actions, the incident serves as a stark reminder of the potential for misuse of technology. While blockchain offers unparalleled transparency and security, it can also be a platform for individuals to broadcast their grievances in ways that are both impactful and irreversible. The burning of millions of dollars worth of ETH in protest underscores the need for vigilance and skepticism in the ever-evolving world of cryptocurrency.

ELON MUSK’S GROK 3: THE AI THAT COULD DISRUPT CRYPTO MARKETS

Elon Musk‘s latest AI innovation, Grok 3, has taken the tech world by storm with its advanced capabilities and potential to disrupt various industries, including cryptocurrency. Grok 3, developed by Musk’s xAI, is designed to provide more intelligent, personalized, and engaging interactions. Integrated directly into X (formerly Twitter), Grok 3 boasts features like deep search, advanced reasoning, and real-time data analysis, making it a powerful tool for both users and businesses. This AI model is not just a chatbot; it represents a significant leap in AI technology, capable of handling complex queries and generating insightful responses.

One of the most intriguing aspects of Grok 3 is its potential impact on the cryptocurrency market. With its ability to analyze real-time data and recognize patterns, Grok 3 could provide valuable insights for crypto traders and investors. The AI’s deep search functionality allows it to process vast amounts of information quickly, offering users up-to-date market trends and predictions. This could revolutionize the way people approach crypto trading, making it more accessible and informed. However, the introduction of such a powerful tool also raises concerns about market manipulation and the ethical implications of AI-driven trading.

Grok 3’s advanced reasoning models set it apart from its predecessors and competitors. These models enable the AI to process information with high accuracy, providing nuanced and contextually relevant responses. This makes Grok 3 an invaluable tool for users seeking deeper interactions and more meaningful conversations. The AI’s ability to handle complex queries and engage in insightful discussions could significantly enhance user experience on social media platforms and beyond. Additionally, Grok 3’s integration with Deep Search, a next-generation AI-powered search engine, further enhances its capabilities, making it a highly effective tool for various applications.

Despite its impressive features, Grok 3 has not been without controversy. The AI made headlines when it listed Elon Musk himself among the top three individuals causing harm to America. This unexpected response raised questions about the reliability and biases of AI models. Critics argue that while Grok 3’s real-time data analysis is a significant advancement, it also highlights the potential for AI to produce inconsistent or biased results. As the debate continues, the introduction of Grok 3 serves as a reminder of the need for transparency and ethical considerations in the development and deployment of AI technologies.

FTX’S REFUND SCHEME: A DESPERATE ATTEMPT TO REGAIN TRUST?

In a significant move, FTX has begun refunding claims under $50,000, marking the first phase of its reorganization plan. This initiative, which started on February 18, 2025, aims to address the grievances of smaller creditors who have been waiting for restitution since the exchange’s collapse in November 2022. The refunds are part of FTX’s broader strategy to regain trust and credibility in the cryptocurrency community. By prioritizing smaller claims, FTX hopes to provide immediate relief to those most affected by the fallout.

The refund process involves a meticulous verification system to ensure that eligible creditors receive their due payments. Creditors must complete Know Your Customer (KYC) verification and submit necessary tax forms to qualify for the refunds. FTX has partnered with BitGo and Kraken to facilitate the distribution of funds, ensuring a secure and efficient process. The initial phase of refunds is expected to be completed within one to three business days, providing much-needed financial relief to the affected parties.

However, the move has not been without controversy. Critics argue that FTX’s focus on smaller claims is a strategic attempt to garner positive publicity while larger creditors remain in limbo. The exchange has announced that creditors with claims exceeding $50,000 will start receiving payments in the second quarter of 2025. This delay has raised concerns about the fairness and transparency of the refund process, with some questioning whether FTX is genuinely committed to addressing all claims equitably.

As FTX navigates its reorganization plan, the cryptocurrency community remains divided on the effectiveness of the refund scheme. While the initiative provides a glimmer of hope for smaller creditors, the broader implications for the exchange’s reputation and future operations are still uncertain. The success of FTX’s refund strategy will ultimately depend on its ability to deliver on its promises and restore confidence among its user base. The coming months will be crucial in determining whether FTX can emerge from this crisis and rebuild its standing in the crypto world.

COINBASE’S LEGAL VICTORY: A TEMPORARY REPRIEVE OR THE CALM BEFORE THE STORM?

In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has agreed to drop its lawsuit against Coinbase, marking a significant victory for the cryptocurrency exchange. The lawsuit, which had been ongoing since June 2023, accused Coinbase of operating as an unregistered securities broker. This decision comes as a relief to Coinbase, which has been embroiled in legal battles with the SEC for nearly two years. The dismissal of the case is seen as a turning point for the crypto industry, signaling a potential shift in regulatory attitudes towards digital assets.

Despite this victory, Coinbase is not out of the woods yet. The company still faces several ongoing lawsuits, including class-action suits from investors who claim they were misled about the risks associated with trading on the platform. These lawsuits allege that Coinbase failed to adequately disclose the potential for significant losses, leading to substantial financial harm for many users. The outcome of these cases could have far-reaching implications for the company’s reputation and financial stability.

Additionally, Coinbase is under scrutiny from other regulatory bodies, both in the United States and internationally. The Commodity Futures Trading Commission (CFTC) is investigating the exchange for potential violations of commodities laws, while the Financial Conduct Authority (FCA) in the UK has raised concerns about its compliance with anti-money laundering regulations. These ongoing investigations highlight the complex and often contentious relationship between cryptocurrency exchanges and regulatory authorities.

As Coinbase navigates these legal challenges, the broader cryptocurrency community is watching closely. The company’s ability to successfully defend itself against these lawsuits and regulatory inquiries will likely set a precedent for the industry as a whole. While the dismissal of the SEC lawsuit is a significant win, the road ahead remains uncertain, and Coinbase must continue to demonstrate its commitment to transparency and compliance in order to regain the trust of investors and regulators alike.

ETHEREUM ROLLBACK: BYBIT CEO’S CONTROVERSIAL PROPOSAL SPARKS DEBATE

In the wake of the Lazarus Group’s massive $1.4 billion hack on Bybit, the cryptocurrency community is abuzz with discussions about the possibility of rolling back the Ethereum blockchain to invalidate the stolen funds. Bybit CEO Ben Zhou has been at the center of this debate, suggesting that the decision to roll back the blockchain should be left to the community to vote on. This proposal has sparked a heated debate, with some arguing that it could undermine the principles of decentralization and immutability that are fundamental to blockchain technology.

The Lazarus Group, a North Korean state-sponsored hacking organization, has a notorious history of cyberattacks. They have been active since at least 2009 and are believed to be affiliated with North Korea’s Reconnaissance General Bureau. The group gained international notoriety with the 2014 Sony Pictures hack, which was a response to the release of the film “The Interview.” They were also behind the 2017 WannaCry ransomware attack, which caused billions of dollars in damages worldwide. More recently, the Lazarus Group has targeted the cryptocurrency sector, including the $600 million Ronin Network hack in 2022 and the $230 million WazirX hack.

The idea of a blockchain rollback is not entirely unprecedented. In 2016, the Ethereum blockchain was rolled back following the DAO hack, which resulted in the loss of approximately $60 million worth of ETH. This rollback led to the creation of Ethereum Classic (ETC) and the current Ethereum (ETH) network. However, the current situation is far more complex, with the stolen funds amounting to a staggering $1.4 billion. The potential rollback would require a consensus among the Ethereum community, which is known for its diverse and often conflicting viewpoints.

Critics of the rollback proposal argue that it sets a dangerous precedent and could erode trust in the Ethereum network. They contend that the immutability of the blockchain is one of its core strengths, and reversing transactions could undermine this principle. Additionally, there are concerns about the technical challenges and potential disruptions that a rollback could cause. On the other hand, proponents of the rollback believe that it is a necessary step to protect the integrity of the network and prevent the stolen funds from being laundered and used for illicit activities.

As the debate continues, the Ethereum community faces a difficult decision. The outcome of this discussion could have far-reaching implications for the future of blockchain technology and the principles that underpin it. Bybit’s CEO has emphasized the importance of transparency and community involvement in the decision-making process, highlighting the need for a careful and considered approach. Whether the Ethereum blockchain will be rolled back remains to be seen, but the controversy surrounding this proposal underscores the challenges and complexities of managing a decentralized network in the face of unprecedented threats.

That’s a wrap on another wild week in the crypto world! The pace of change just keeps cranking up, doesn’t it? Huge thanks for your constant support and for being part of the MNO family.

With the weekend here, I hope you’ve snagged some downtime. Don’t forget to hit up our MNO TalkBack poll—your feedback keeps me on point and helps keep the content fresh and fun.

Can’t wait to catch up with you next Sunday for another Weekly CryptoNews Digest. Keep those coins stacking, and remember, I’m here to back you up on your financial journey. Thanks for being a crucial part of MNO—For Money Lovers!

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