House Democrats Propose Ban on Presidential Memecoins

The United States Congress is set to debate a new bill that would ban public officials from issuing or endorsing digital assets, including memecoins like the official Trump (TRUMP) token.

California Representative Sam Liccardo, a Democrat, told ABC News on 27 February that he is preparing to introduce the Modern Emoluments and Malfeasance Enforcement (MEME) Act. The legislation aims to prevent public officials from profiting from digital assets while in office.

The proposed law would apply to the president, vice president, members of Congress, senior executive branch officials, and their immediate family members. “Let’s make corruption criminal again,” said Liccardo, emphasising that public officials should not be allowed to exploit their political influence for financial gain.

SEC Ends Gemini Investigation Without Enforcement Action

The United States Securities and Exchange Commission (SEC) has concluded its investigation into cryptocurrency exchange Gemini without recommending any enforcement action, according to Gemini co-founder Cameron Winklevoss.

Winklevoss shared a notice from the SEC on 26 February stating that, based on the information available, the regulator will not take further action at this time. The SEC initially charged Gemini and crypto lending firm Genesis Global Capital in January 2023 for allegedly offering unregistered securities through Gemini’s “Earn” programme.

While the investigation has been closed, the SEC noted that this does not constitute an exoneration. The regulator retains the right to take action in the future if new information arises.

Bybit Hack Forensics Reveal Developer Credential Breach

A forensic investigation into the recent Bybit hack has revealed that compromised developer credentials led to more than $1.4 billion worth of Ethereum (ETH) being stolen.

On 26 February, Bybit confirmed that forensic reviews conducted by cybersecurity firms Sygnia and Verichains found that attackers exploited a security breach in SafeWallet, a digital asset custody solution. According to the findings, a SafeWallet developer’s credentials were compromised, allowing hackers to manipulate the wallet’s infrastructure and deceive signers into approving malicious transactions.

The attack originated from malicious JavaScript code injected into SafeWallet’s Amazon Web Services (AWS) infrastructure, according to Sygnia’s report. SafeWallet developers confirmed the breach and stated that they had implemented new security measures to prevent future attacks.

Bybit clarified that its own infrastructure was not affected by the exploit, and SafeWallet has since rebuilt and reconfigured its systems to eliminate the security vulnerability.