Today in crypto, a new report from Fireblocks shows 90% of institutional players are using or plan to use stablecoins, with banks prioritizing cross-border payments and speed as key benefits, the US Department of Justice (DOJ) added another 12 people to its list of defendants suspected of being involved in a major US crypto racketeering ring, and Coinbase has fired a group of contracted customer support agents allegedly involved in insider phishing attacks that could cost the company up to $400 million.
90% of institutions “taking action” on stablecoins
A report from enterprise-grade digital assets platform Fireblocks shows that 90% of institutional players are using or exploring the use of stablecoins in their operations.
The report, published May 15, surveyed 295 executives across traditional banks, financial institutions, fintech companies and payment gateways. Almost half of the respondents (49%) said they already use stablecoins in payments, while 23% are conducting pilot tests and another 18% are in the planning stage.
Only 10% of institutions surveyed said they were undecided about stablecoin adoption.
“The stablecoin race has become a matter of avoiding obsolescence as customer demand accelerates and use cases mature,” Fireblocks wrote.
As traditional cross-border systems are hampered by higher costs, delays and other inefficiencies, stablecoins have emerged as a strategic solution in emerging markets’ business-to-business (B2B) settings.
The report found that financial institutions, particularly traditional banks, cited cross-border payments as a top priority for using stablecoins. Banks use stablecoins for a competitive advantage, to reduce friction and meet customer expectations.
The report also found that 58% of traditional banks use stablecoins for cross-border payments, while 28% use the assets to accept payments. Twelve percent of banks use stablecoins to optimize their liquidity, while 9% use them in merchant settlements. Another 9% use them in B2B invoicing.
DOJ charges 12 more gamer-turned $263 million Bitcoin robbers
Another 12 people have been charged for their involvement in a $263 million crypto crime spree that stole 4,100 Bitcoin from a Genesis creditor last August, along with a string of break-ins and money laundering.
The 12 new names, included in a superseding indictment, add to charges originally brought against the main defendant in the case, Malone Lam, on Sept. 19, 2024, the Department of Justice noted in a May 15 statement.
Jeandiel Serrano was named a defendant in the initial indictment but was not included in the superseding one.
The DOJ said several defendants have been arrested, while two others are believed to be living in Dubai.
Many of the suspects, with aliases like “Goth Ferrrari” and “The Accountant,” come from California, mostly aged between 18 and 22.
The group allegedly began operating in October 2023, evolving from friends while playing online games to what the DOJ describes as participating in a “cyber-enabled racketeering conspiracy.”
Coinbase fires compromised agents in India — Report
Coinbase has reportedly fired a group of customer support agents following their alleged involvement in social engineering attacks on users. The contracted agents were based in India.
According to a May 15 Fortune interview, Coinbase’s chief security officer, Philip Martin, said the company flagged customer support contractors who allowed scammers access to user data, suggesting they could be Indian nationals. The CSO’s comments came after some crypto users reeled from attempted phishing attacks using their Coinbase data, which the exchange estimated could cost them between $180 million and $400 million in remediation and reimbursement.
Qiao Wang, a core contributor to Alliance DAO, said in a May 15 X post that he may have been a victim of one of these attacks. He said a scammer notified him his Coinbase account had been compromised, asked him to verify his personal information, to which the criminals likely had access through the compromised agents, and requested he withdraw all his funds to a “Coinbase self-custodial wallet.”
“I called them out at the end of the call telling them they need to step up their game […],” said Wang on X. “They told me that had made $7m that day.”
