{"id":129411,"date":"2025-05-16T18:15:51","date_gmt":"2025-05-16T18:15:51","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129411"},"modified":"2025-05-16T18:15:51","modified_gmt":"2025-05-16T18:15:51","slug":"bitcoin-breaks-out-while-coinbase-breaks-down-finance-redefined","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129411","title":{"rendered":"Bitcoin breaks out while Coinbase breaks down: Finance Redefined"},"content":{"rendered":"

Source: Cointelegraph.com NewsNews broke on May 15 that Coinbase was the target of a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data for social engineering scams.
\nWhile less than 1% of Coinbase\u2019s active monthly users were reportedly affected, the expected remediation and reimbursement expenses range from $180 million to $400 million, as the exchange pledged to repay all phishing attack victims.
\nDespite the attack on the world\u2019s third-largest cryptocurrency exchange, investor sentiment remains optimistic, with the Fear & Greed Index remaining firmly in the \u201cGreed\u201d zone above 69, according to CoinMarketCap data.
\nFear & Greed Index, 30-day chart. Source: CoinMarketCapAdding to investor optimism, Coinbase saw over $1 billion worth of Bitcoin withdrawn on May 9, marking the highest net outflow recorded in 2025 so far, triggering analyst predictions of a supply-shock driven Bitcoin rally.
\nCoinbase faces $400 million bill after insider phishing attack
\nCoinbase was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said on May 15.
\nCoinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data.
\n\u201cThese insiders abused their access to customer support systems to steal the account data for a small subset of customers,\u201d Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected.
\nLess than 1% of Coinbase\u2019s monthly transacting users\u2019 data was affected by the attack, the company said.
\nSource: CoinbaseAfter stealing the data, the attackers attempted to extort $20 million worth of Bitcoin (BTC) from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand.
\nInstead, the company offered a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme.
\nContinue reading
\n$1 billion Bitcoin exits Coinbase in a day as analysts warn of supply shock
\nInstitutional demand for Bitcoin is growing, as Coinbase, the world\u2019s third-largest cryptocurrency exchange, recorded its highest daily outflows of Bitcoin in 2025 on May 9.
\nOn May 9, Coinbase saw 9,739 Bitcoin, worth more than $1 billion, withdrawn from the exchange, the highest net outflow recorded in 2025, according to Bitwise head of European research Andr\u00e9 Dragosch.
\n\u201cInstitutional appetite for Bitcoin is accelerating,\u201d Dragosch added in a May 13 X post.
\nSource: Andr\u00e9 DragoschThe outflow occurred as Bitcoin traded above $103,600 and just days after the White House announced a 90-day reduction in reciprocal tariffs between the US and China, easing market concerns and lifting broader investor sentiment.
\nJoint statement on US-China meeting in Geneva. Source: The White HouseThe 90-day suspension of additional tariffs removed the risk of \u201csudden re-escalation,\u201d which may help Bitcoin, altcoins and the wider stock market rally due to improved risk appetite, Nansen\u2019s principal research analyst, Aurelie Barthere, told Cointelegraph.
\nContinue reading
\nDeFi lender Aave reaches $40 billion in value locked onchain
\nAave, a decentralized finance (DeFi) protocol, has reached a new record of funds onchain, according to data from DefiLlama.
\nIn an X post, Aave said it topped $40.3 billion in total value locked (TVL) on May 12. Onchain data reveals that Aave v3, the latest version of the protocol, has about $40 billion in TVL.
\nAave is a DeFi lending protocol that lets users borrow cryptocurrency by depositing other types of cryptocurrency as collateral. Meanwhile, lenders earn yield from borrowers.\u00a0
\n\u201cWith these milestones, Aave is proving its dominance in the Lending Space,\u201d DeFi analyst Jonaso said in a May 12 X post. TVL represents the total value of cryptocurrency deposited into a protocol\u2019s smart contracts.\u00a0
\nAave v3\u2019s TVL over time. Source: DefiLlamaContinue reading
\nSEC delays Solana ETF as decisions for Polkadot, XRP loom
\nThe US Securities and Exchange Commission (SEC) pushed back its decision on a proposed spot Solana exchange-traded fund (ETF), with the cryptocurrency industry now looking to the deadlines for the Polkadot and XRP-based ETFs in June.
\nThe SEC delayed its decision on listing Grayscale\u2019s spot Solana (SOL) Trust ETF on the New York Stock Exchange (NYSE) to October 2025, according to a May 13 filing by the securities regulator.
\nDelay on Grayscale\u2019s Solana ETF. Source: SECThe decision came the week after the SEC delayed its ruling on Canary Capital\u2019s Litecoin (LTC) ETF, Bloomberg Intelligence analyst James Seyffart wrote in a May 5 X post.
\nSource: James SeyffartSpot ETFs are key drivers of liquidity and institutional adoption for digital assets. For Bitcoin, the US spot Bitcoin ETFs accounted for an estimated 75% of new investment after launching, which helped BTC recapture the $50,000 mark in February 2024, a month after the ETFs debuted for trading.
\nWhile a Solana ETF may generate only a fraction of the inflows of Bitcoin ETFs, it could increase Solana\u2019s institutional adoption in the long term by offering investors a \u201cregulated investment vehicle\u201d that may still attract billions of dollars in capital, Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.
\nContinue reading
\nStarknet hits \u201cStage 1\u201d decentralization, tops ZK-rollups for value locked
\nEthereum layer-2 scaling platform Starknet has reached a decentralization milestone laid out by Ethereum co-founder Vitalik Buterin and is now the largest zero-knowledge rollup-based network by total value locked.
\nStarknet said in a news release shared with Cointelegraph that it has hit \u201cStage 1\u201d decentralization, according to a framework Buterin laid out in 2022, which means the network operates with limited oversight or \u201ctraining wheels.\u201d
\nStarknet added that the framework was the \u201cgold standard onchain tool for analyzing Ethereum scaling solutions,\u201d and said it achieved the milestone through changes such as creating a security council and censorship-avoidance mechanisms.\u00a0
\nWhile the system still allows intervention from a security council, it has implemented a fully functional validity proof system governed by smart contracts.
\nStarknet is now the only layer-2 ZK-rollup network to have reached Stage 1 and has grown to be the largest ZK-rollup blockchain with a total value locked of $629 million, just ahead of ZKsync\u2019s $610 million, according to L2beat.\u00a0
\nStarknet is the fifth-largest layer-2 network by value locked, with the top four all Optimistic rollup-based, having reached Stage 1 decentralization using fraud proofs.\u00a0
\nContinue reading
\nDeFi market overview
\nAccording to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the green.
\nSolana-based memecoin Dogwifhat (WIF) rose over 43% as the week\u2019s biggest gainer, followed by decentralized exchange Raydium\u2019s (RAY) token, up nearly 19% over the past week.
\nTotal value locked in DeFi. Source: DefiLlamaThanks for reading our summary of this week\u2019s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsNews broke on May 15 that Coinbase was the target of a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data for social… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129411"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129411"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129411\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129411"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}