$2B Crypto Thefts from Key & Front-End Hacks

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Tis’ conference week in Cannes and I hope those of you participating can touch some grass amidst this crabby market. I’m not in NYC and Cannes - back to the conference circuit in Q3. Hope y'all have fun and don't get mogged!

Check out our latest podcast episode with Christine from PSE Trading!

In Today's Email:

• What Matters: $2B Crypto Thefts from Key & Front-End Hacks 🥷 

• Product of the Week: Robinhood’s Micro Crypto Futures 🚀 

• Charts: Stablecoin Startups Smash VC Records 📈 

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WHAT MATTERS

$2B Crypto Thefts from Key & Front-End Hacks

State of play: In the first half of 2025, hackers stole $2.1B from the crypto industry, according to TRM Labs. Over 80% of the losses came from infrastructure attacks, mainly private-key thefts, seed-phrase exploits, and front-end hijacks.

• These breaches were often enabled by social engineering or insider compromise and averaged ten times larger than other attack types.

• One incident stood out: the $1.5B Bybit hack in February, attributed to North Korea, which alone accounted for 70% of total stolen funds.

• Other notable events included a $90M hack of Iran’s Nobitex exchange by Israel-linked actors.

• Smart contract vulnerabilities, such as flash loans and re-entrancy exploits, caused another 12% of losses.

• TRM called for stronger multi-factor authentication, enhanced cold storage practices, improved insider-threat defenses, and better international cooperation.

Our take: We’ll see large capital going towards the CeDeFi hybrid solutions as security becomes primary concern for institutional capital.

For builders and investors: Stay safe!

PRODUCT OF THE WEEK

Robinhood’s Micro Crypto Futures

Robinhood has launched micro futures contracts for Bitcoin, Solana, and XRP in the US, giving traders a lower-cost way to bet on or hedge crypto price moves.

• These contracts need much less collateral than full-size futures, making them accessible to a broader range of users.

• The launch extends Robinhood’s crypto futures lineup, which already included BTC and ETH products rolled out in January.

• It also follows the company’s recent $200M acquisition of Bitstamp and $179M deal for WonderFi.

Other cool products:

• Bidask, a native CLMM DEX on TON.

• Hydrex, a Base's frictionless liquidity hub.

• Merchant Moe, a DEX on the Mantle Network.

• Molecula, a permissionless asset management protocol.

• KTX.Finance, a Mantle's derivatives and social trading platform.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

CHARTS OF THE WEEK

Stablecoin Startups Smash VC Records

State of play: Stablecoin and payments startups have surpassed their 2021 venture capital peak, with record deal counts in late 2024 and strong momentum into 2025.

• In Q3 and Q4 of 2024 alone, there were 43 and 42 deals, exceeding any previous quarterly totals.

• The success of Circle’s IPO has drawn major institutional investors, showing that stablecoin infrastructure can deliver strong returns.

• Regulatory clarity, especially around the GENIUS Act in the US, has further boosted confidence and investment in the sector.

Our take: Are you even surprised?

Coinbase Soars 43% on Stablecoin Hopes

State of play: Coinbase shares jumped 43% in June, making it the S&P 500’s top performer.

• The rally was driven by optimism over the GENIUS Act, which could boost stablecoin-related revenue.

• Coinbase benefits from its close ties to Circle, earning substantial income from USDC balances.

• Despite the surge, trading volumes on the platform remain muted.

Our take: Equities is still a much better ownership structure vs token, as we can see that all Fintech stocks that are adopting crypto is also rallying hard alongside Circle and Coinbase.

QUICK BITES

• Bitvavo secures MiCA license.

• Ripple to drop cross-appeal against SEC.

• Gemini rolls out tokenized stocks in the EU.

• Coinbase outpaces S&P 500 with 43% June rise.

• Anchorage to phase out USDC, Agora USD citing risks.

• Hyperliquid perps volume tops $1.5T over the past year.

• Resupply proposes burning 6 million tokens after $10M exploit.

• Metaplanet buys 1,005 BTC, surpassing Galaxy and CleanSpark.

• Lido DAO votes to enable dual governance, giving stakers veto power.

• Robinhood launches micro Bitcoin, Solana, and XRP futures contracts.

• Bank of Korea pauses CBDC project as local stablecoin picks up speed.

NOTEWORTHY READS & MEME

• Thiccy’s read on life lessons from poker.

• Jin’s read on Katana and the biggest bet in DeFi.

• Blocmates’ read on why Hyperliquid will flip Binance.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.