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- 🥜 Phase 2 confirmed
🥜 Phase 2 confirmed
PLUS: Coinbase targeted in breach
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GM to all of you nutcases. It’s Crypto Nutshell #622 wakin’ up… ☕🥜
We're the crypto newsletter that's more chaotic than a pair of brothers speeding through a mushroom kingdom to save the day... 🍄🚗
What we’ve cooked up for you today…
😡 Coinbase flips the script
🍌 Banana Zone confirmed
📈 Closing in
💰 And more…
Prices as at 4:05am ET
COINBASE FLIPS THE SCRIPT 😡
BREAKING: Coinbase offers $20 million bounty on data thieves who tried to extort exchange
Coinbase just flipped the script on cybercriminals.
Hackers stole sensitive user data in an insider-led phishing attack — then tried to extort $20 million in Bitcoin to keep it quiet.
Coinbase’s response?
“We are not going to pay your ransom.”
Instead, the exchange offered a $20 million bounty for information leading to the attackers' arrest and conviction.
Check out Brian Armstrong’s response below:
What Happened?
Overseas support contractors were bribed and used to leak sensitive data from internal systems.
Exposed info includes:
Names, addresses, and contact details
Government ID documents
Masked bank and Social Security data (Last four digits)
User transaction history
Coinbase confirmed that no passwords, private keys, funds or Prime accounts were compromised.
Still, the stolen data was used to impersonate Coinbase staff and execute targeted social engineering scams, tricking some users into handing over their crypto.
Fallout and Remediation
Less than 1% of monthly users affected - but losses are real
Estimated cost to Coinbase: $180M to $400M
Affected users will be fully reimbursed
New U.S.-based support hub and tighter access controls incoming
All rogue contractors have been terminated
Coinbase has reported the incident to the SEC and is working with law enforcement.
Bounty Hunt Begins
As we explained earlier, Coinbase isn’t playing around…
“For these would-be extortionists… we will prosecute you and bring you to justice.”
They’ve teamed up with law enforcement, tagged the attacker wallets, and put out a $20M bounty — the exact sum demanded by the hackers.
According to blockchain investigator ZachXBT, the same criminal network may be behind $300M+ in annual losses via impersonation and phishing schemes targeting Coinbase users.
Let this be a reminder…
Exchanges will NEVER ask you to transfer funds
They’ll never request passwords or private keys
And if you want real security, use a cold wallet
The breach was ugly and it’s never good seeing things like this happen…
But Coinbase isn’t backing down.
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BANANA ZONE CONFIRMED 🍌
Yesterday, Julien Bittel posted the updated chart.
Now, Raoul Pal’s confirmed it.
The banana zone is back. 🍌
Following the latest crypto rally, Raoul dropped this tweet:
Translation?
Phase 2 of the banana zone is confirmed.
What’s the Banana Zone?
It’s the parabolic phase of every Bitcoin cycle — when price action goes vertical, fuelled by liquidity and momentum.
Raoul believes we are now in phase to of the Banana Zone, which could run hard until August, with some shakeouts along the way.
And Yet… No One’s Watching
Right now, Bitcoin is closing in on all-time highs.
But interest?
Look at this:
Google searches for: Bitcoin
This isn’t retail FOMO.
This is what stealth accumulation looks like.
Prices are running.
Attention is lagging.
And Raoul’s calling it:
Banana Zone Phase 2 confirmed. 🍌🫡
CLOSING IN 📈
Today we’ll be taking a look at the amount of wallets that hold at least some Bitcoin. (anything greater than 0)
This metric offers a bird’s-eye view of user activity and adoption across the Bitcoin network.
But there’s a slight catch…
One wallet does not equal one user. A user can have many wallets.
What matters here is the trend of the chart.
Increasing number of addresses: increasing adoption levels 📈
Decreasing number of addresses: indicates users are selling their entire balance or consolidating wallets 📉
As of today, 52,941,501 addresses now hold some Bitcoin.
That’s +26,376 in the past two weeks alone.
Since January? +417,964 new wallets added. 😳
We’re now closing in on a new all-time high in holder addresses.
The message is clear:
The network is growing.
Adoption is accelerating.
And momentum is building fast.
CRACKING CRYPTO 🥜
Central Bank of Russia rates Bitcoin the top global investment since 2022. The Central Bank of Russia recognizes Bitcoin's evolution into a global portfolio staple amid unprecedented institutional interest.
FTX estate to start distributing more than $5B on May 30. Not all FTX account holders will be reimbursed in the second distribution of assets, but the trust said it will send more than $5 billion “within 1 to 3 business days” of May 30.
‘Really Great Example’: Coinbase Praised for Hack Response Amid $400M Crisis. At a panel at Consensus 2025, TRM Labs' Ari Redbord discussed Coinbase’s response to their recent hack.
State of Wisconsin unloads over $300 million worth of BlackRock's Bitcoin ETF. BlackRock’s IBIT fund recently experienced a 20-day streak of net inflows, bringing in over $5 billion.
WHAT WE’RE READING 📚
Want to get even smarter? Check these out.
p.s. all completely FREE (one click subscribe link)
Raremints (link) - Daily crypto news
Bitcoin Breakdown (link) - Daily Bitcoin news
Techpresso (link) - Daily tech news and insights
The Hustle (link) - Get Smarter on Business and Tech
Your Next Breakthrough (link) - Personal growth with Mark Manson
The Neuron (link) - AI trends and tools to keep you ahead
CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
As of 2025, which firm manages the largest U.S. spot Bitcoin ETF by assets under management (AUM)? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: BlackRock 🥳
BlackRock’s IBIT quickly surged ahead of the competition in both inflows and AUM, solidifying its position as the institutional gateway to Bitcoin.
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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