From Sui’s Cetus Protocol Hack to Pi Network Scam allegations, here is a roundup of the top crypto stories you may have missed.
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.
Cardano CEO Denies $600M ADA Misuse Allegations
Charles Hoskinson, founder of Cardano and CEO of Input Output Global (IOG), denied allegations that he misappropriated $600 million worth of ADA tokens. The controversy stems from claims that Hoskinson used a “genesis key” during the 2021 Allegra hard fork to manipulate the Cardano ledger and gain control over 619 million ADA.
In response, Hoskinson stated that the vast majority of the 350 million ADA in question had already been redeemed by original buyers over a seven-year period, and 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, promising that IOG will release an audit report to clarify the situation. He noted that the accusations lack strong evidence and signaled a shift in how he engages with the community, including possibly handing over control of his social media accounts to a media team.
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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