$45 Million Stolen from Coinbase Users in Just One Week⁉️
Crypto Faces Turmoil and Transformation: SafeMoon trial begins, $45M Coinbase scam exposed, Robinhood eyes tokenized stocks in Europe, and lawmakers target Trump-linked memecoins.
Because Bitcoin
May 7, 2025
SafeMoon Founder Braden Karony Denies Fraud in Criminal Trial Amid Crypto Controversy
Braden John Karony, former CEO of SafeMoon, declared his innocence in a public statement on May 6, as his criminal trial began in New York. Karony, alongside SafeMoon creator Kyle Nagy and ex-CTO Thomas Smith, faced charges for allegedly misappropriating millions of dollars’ worth of the platform’s SFM token. Karony denied all charges, including securities fraud, wire fraud, and money laundering, and suggested Nagy, who has fled to Russia, was partly responsible for the alleged fraud. The trial, expected to conclude by May 26, has garnered less attention than other major crypto fraud cases like those of Sam Bankman-Fried and Changpeng Zhao. Despite this, Karony’s public statements could have an impact on the proceedings, as many crypto figures avoid commenting during trials.
$45 Million Stolen from Coinbase Users in Just One Week Through Social Engineering Scams, ZackXBT Reveals
Onchain detective ZackXBT has uncovered an additional $45 million in funds stolen from Coinbase users via social engineering scams over the past week. This brings the total reported losses to $330 million annually, a problem ZackXBT claims is unique to Coinbase among major crypto exchanges. The scams have become increasingly sophisticated, targeting users through various deceptive tactics, including fake support staff and phishing schemes. Despite efforts by the FBI to warn against such scams, the issue continues to grow. Coinbase’s chief security officer has called for a more unified approach to reporting and combating these scams.
Robinhood Developing Blockchain Network for Tokenized US Securities Trading in Europe
Robinhood is reportedly building a blockchain network to enable retail investors in Europe to trade tokenized US securities, such as stocks. The initiative aims to expand its presence in Europe by offering advantages like lower costs, faster settlements, and improved accessibility. Two crypto firms, Arbitrum and the Solana Foundation, are competing for a partnership in the project. Robinhood has already secured a brokerage license in Lithuania and purchased crypto exchange Bitstamp in 2024. The company is exploring asset tokenization as more brokerages embrace blockchain technology. Despite no finalized deal with Arbitrum or Solana, Robinhood’s stock rose 2.7% on May 7, even amid a revenue dip in Q1 2025.
Rep. Ritchie Torres Proposes Ban on Trump and Lawmakers Profiting from Memecoins and Stablecoins
Rep. Ritchie Torres (D-N.Y.) plans to introduce the Stop Presidential Profiteering from Digital Assets Act, which would prohibit current and former U.S. presidents, members of Congress, and other top officials from creating, promoting, or profiting off digital assets using their name or likeness. The bill is a response to Donald Trump’s growing involvement in crypto, including memecoins and a recently launched stablecoin by his venture, World Liberty Financial. Democrats have raised concerns about potential conflicts of interest, with Sen. Richard Blumenthal launching inquiries into Trump-affiliated crypto firms. While Torres has generally supported crypto innovation, the bill seeks to draw ethical boundaries for political figures in the digital asset space.
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