Crypto News You May Have Missed This Week | May 24, 2025
Updated on May 25 to reflect a statement from IOHK regarding the topic: Cardano CEO Denies $600M ADA Misuse Allegations
From Sui’s Cetus Protocol Hack to Pi Network Scam allegations, here is a roundup of the top crypto stories you may have missed.
Table of Contents
Sui’s Cetus Protocol hacked for $260M
Sui’s largest decentralized exchange, Cetus Protocol, was hacked for $260 million, triggering a major crisis for the SUI ecosystem. The attacker exploited the platform using fake tokens like BULLA to manipulate liquidity pools and drain real assets, including 12.9 million SUI and $60 million in USDC.
The hacker later converted a large portion of the stolen USDC into 21,938 ETH, in an attempt to launder the funds. In response, Cetus immediately paused its smart contracts and launched a full investigation, while the SUI token price dropped roughly 15%, falling to around $3.90.
Cetus is now focused on damage control, recovering stolen assets, and reinforcing ecosystem security.
U.S. Senate Advances GENIUS Act
In a historic move, the U.S. Senate voted 66-32 to advance the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to the Senate floor, marking the first time stablecoin legislation has reached this stage.
This bipartisan breakthrough came after last-minute revisions and political pressure from pro-crypto groups like Stand With Crypto, which threatened to score the vote. While the revisions attracted enough support to clear the 60-vote threshold, critics argue the changes were largely superficial, designed more to provide political cover than address serious concerns.
The revised GENIUS Act introduces nominal oversight for Big Tech-issued stablecoins through a new review committee but leaves several loopholes intact, such as weak data protections and potential regulatory capture. The bill permits private firms to issue stablecoins, and while it restricts foreign issuers from operating on centralized exchanges, decentralized platforms remain unaffected.
Legislative features:
- Allows private firms to issue stablecoins
- Empowers states to charter stablecoin issuers
- Requires reserves to be fully backed by U.S. dollars and Treasury bills
- Mandates regular audits and compliance with AML standard
Tether, a major offshore stablecoin issuer, could face tighter restrictions. The legislation bars foreign stablecoins from operating on U.S.-based centralized exchanges unless they meet U.S. compliance requirements.
Blum Co-founder Arrested in Russia
Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum and former head of Binance Russia, has been arrested in Moscow on allegations of large-scale fraud, according to Russian state media TASS. The accusations reportedly stem from his earlier ventures, The Token Fund and Tokenbox, where investors allegedly lost around $15 million.
While Smerkis remains under investigation and no formal charges have been confirmed, the court has approved his detention. Blum has clarified that Smerkis resigned and is no longer involved with the project in any capacity.
Update: Cardano CEO Denies $600M ADA Misuse Allegations
Charles Hoskinson, founder of Cardano and CEO of Input Output Global (IOG), denied allegations that he misappropriated 619 million ADA tokens. The controversy arose from claims that Hoskinson used a “genesis key” during the 2021 Allegra hard fork to manipulate the Cardano ledger.
Key details:
- Hoskinson stated that most of the 350 million ADA in question had been redeemed by original buyers over seven years.
- The remaining unclaimed funds were donated to Intersect, a Cardano-related organization.
- Hoskinson expressed being “deeply hurt” by the community’s reaction and lack of trust.
- He announced plans for IOG to release an audit report to clarify the situation.
IOG clarified that between October 2015 and February 2017, ADA voucher sales occurred across Asia to fund Cardano’s early development. This pre-launch sale, conducted in four tranches, was the first in the crypto industry to implement Know Your Customer (KYC) guidelines and was independently audited.
Additional Details:
- Between 2021 and 2025, independent law and private investigation firms collaborated to locate and reunite remaining claimants with their ADA.
- Approximately 99% of vouchers were redeemed by their original buyers.
- Less than 1% of purchasers were never successfully located and did not redeem their ADA.
- The redemption process occurred via an on-chain mechanism through the Daedalus wallet between September 2017 and July 2020.
- For technical and security reasons, remaining outstanding voucher claims were moved to an off-chain process run by IOG in October 2021.
IOG emphasized that the off-chain process was conducted discreetly to protect claimants from potential exploitation. Record keeping was scrupulous throughout the process, and a closing report is being finalized.
Audit and legal actions:
- IOG engaged the law firm McDermott Will & Emery and the accounting and audit firm BDO to independently audit and prepare a public report of the ADA redemption.
- Both firms have begun their work, and all relevant documentation is being shared with them.
- IOG is evaluating legal avenues to pursue those who have knowingly made false and defamatory allegations.
A full history of the program, including all transactions and ADA flow, both on-chain and off-chain, will be published alongside the audit.
Pi Network Faces $8B Scam Allegations After Insider Token Dump
Pi Network is facing serious allegations of a potential $8 billion scam, following claims that over 12 million PI tokens were dumped by insiders from the Pi Core Team.
Blockchain investigator Atlas accused the team of orchestrating a pump-and-dump scheme, citing a sharp price increase followed by a dramatic 50% crash as evidence. The PI token, which had surged over 100% in early May 2025, began falling rapidly after May 14, coinciding with the alleged sell-off. This has led to widespread investor outrage and renewed concerns over the project’s transparency.
This article is published on BitPinas: Crypto News You May Have Missed This Week | May 24, 2025
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