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  • Your Password Might Be in There. 16 Billion Just Leaked

Your Password Might Be in There. 16 Billion Just Leaked

PLUS: Top Web3 Events of the Week • Tether’s PearPass takes on Big Cloud • Bitcoin enters ghost mode • Arizona wants its own BTC treasury

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Cryptopolitan News
June 20, 2025 • Estimated Reading Time: 12 minutes

📬 Today’s Byte

• The Biggest Password Leak in History Just Happened and Web3 Should Take Notes

•The Rise of Bitcoin Scarcity: Ancient Whales Now Outpace Miners

• Arizona Reignites Effort to Build a State-Backed Bitcoin Reserve

• This Week in Crypto: Top Events

🔓 The Biggest Password Leak in History Just Happened and Web3 Should Take Notes

A record-breaking 16 billion passwords have been leaked in what cybersecurity researchers are calling the largest data breach ever recorded.

And this isn’t old data. It’s fresh, structured, and pulled from platforms like Apple, Google, Facebook, Telegram, and even government services, a hacker’s dream, ready for mass exploitation.

But this time, the Web3 world is watching too. And Tether’s CEO says the cloud is to blame.

The Breach

Researchers from Cybernews identified 30 unique datasets, some with up to 3.5 billion entries, containing real-time login credentials, password hashes, and even authentication cookies and tokens.

Many of the credentials were stolen using infostealer malware and neatly organized in a plug-and-play format for credential-stuffing attacks.

“This isn’t just a leak. This is a blueprint for mass account hijacking,” said Vilius Petkauskas, the lead researcher.

Enter PearPass: Tether’s Answer to Cloud Failure

Shortly after the breach was exposed, Tether CEO Paolo Ardoino unveiled plans for PearPass, a fully local, open-source password manager:

❝

The cloud has failed us. Again. It’s time to ditch the cloud.

– Paolo Ardoino, CEO, Tether

PearPass will store all passwords and encryption keys locally on user devices, with no reliance on cloud infrastructure. Ardoino says this is in line with Tether’s broader philosophy: building tools that work offline, survive worst-case scenarios, and put the user first.

Web3 Implications: A Wake-Up Call?

The breach reveals a fundamental weakness in today’s digital stack: centralized security systems fail at scale.

Web3 advocates have long preached self-custody, encryption, and decentralization, but are these values reflected in how most Web3 users and builders handle data today?

  • Are your seed phrases stored securely?

  • Do your apps rely too much on centralized cloud tools?

  • Could an infostealer hit your dev environment or backend?

These questions need to be addressed. PearPass, along with Tether AI and HolePunch, is a nudge toward a future where privacy tools are built like blockchains: open, resilient, and local-first.

Telegram’s founder and billionaire, Pavel Durov, is reportedly leaving his $13.9 billion fortune to over 100 children he’s fathered, some he raised while others were conceived through sperm donation.

📊 Market Watch:

A new chapter in Bitcoin’s monetary evolution is unfolding and it’s not driven by price, but by patience.

For the first time ever, the daily growth in long-term held Bitcoin (older than 10 years) has overtaken newly mined BTC. According to Fidelity Digital Assets, roughly 566 BTC per day is transitioning into “ancient supply,” while just 450 BTC are being mined daily.

This quiet accumulation isn’t just rare, it’s irreversible. These old wallets rarely, if ever, move again.

Key figures:

  •  17% of all BTC supply, around 3.5 million coins, now sits untouched for over a decade.

  •  93 wallets hold over 10,000 BTC each. Yet, large holders increasingly split coins across multiple addresses.

  •  Daily on-chain activity is near a 12-month low, with just 440K transactions. Most market activity is now happening via derivatives and off-chain platforms.

Why this matters:

The data suggests that Bitcoin is entering a new scarcity regime, where actual liquid supply continues to shrink, even as institutional demand rises.

BTC is no longer just held, it's vanishing from circulation.

In effect, every day, more coins become permanently inaccessible than are added to circulation. This flips Bitcoin’s original monetary model on its head.

And this has serious market implications.

Corporate treasury buyers are now competing for a diminishing pool of available BTC. Major wallets, both old and new, are increasingly using BTC as collateral or reserve—not for trade. Some have even turned to staking, lending, or borrowing against holdings, without ever selling a single satoshi.

The ‘Satoshi’ Effect:

Bitcoin may have started as digital cash, but its creator, Satoshi Nakamoto, was also its first whale. Today, Satoshi’s untouched coins symbolize more than mystery—they represent a growing cultural shift.

HODLing is no longer a meme. It’s the prevailing strategy. And it’s forcing the market to adapt.

When long-term supply becomes structurally dominant, the asset becomes not just scarce, but untradeable at scale.

That scarcity is already being felt. Retail has largely sold off during past corrections. Institutional inflows are mounting. OTC desks and exchanges are thinning their reserves. And a new wave of wallet cohorts aged 5–10 years is also entering deep dormancy.

Looking Ahead:

If this trend continues, Bitcoin could soon reach a point where available supply is nearly flat, while demand remains cyclical and global. Even small shifts in buying pressure may spark outsized price volatility.

The World Bank has asked developing countries to fully disclose their debts and thus steer clear of any future crises. In a Friday report, the bank called for “radical” transparency among developing countries, aiming to expand the scope and clarity of disclosures around new loans.

🏛️ Regulation Watch

In a move that could position Arizona as one of the most crypto-forward states in the U.S., the state Senate has voted to revive a previously defeated bill, House Bill 2324, which proposes creating a state-managed Bitcoin and Digital Assets Reserve Fund.

Initially rejected by the House in early May, the bill made a comeback through a narrow 16-14 Senate vote, breathing new life into Arizona’s ambitious crypto legislative push.

What’s in HB 2324?

  • Establishes a Bitcoin and Digital Assets Reserve Fund, funded through criminal forfeitures.

  • The first $300K of seized digital assets goes to the Attorney General’s Office.

  •  Amounts above that are split: 50% to the AG, 25% to the general fund, 25% to the reserve fund.

  •  Updates forfeiture laws to allow custody and seizure of digital assets in specific legal cases.

A Mixed Bag from the Governor

While Governor Katie Hobbs has vetoed two major crypto bills this year over volatility concerns, she signed HB 2749 into law on May 7. That bill:

  • Allows Arizona to retain unclaimed cryptocurrency.

  • Enables the state to stake assets and participate in airdrops.

  • Avoids using general fund dollars, satisfying fiscal conservatives.

Her stance? No taxpayer exposure, but cautious crypto engagement.

“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” Hobbs wrote in her veto of a separate bill.

Why it matters:

If HB 2324 passes the House and is signed into law, Arizona would:

  • Be among the first states to formalize a state crypto reserve.

  • Set precedent for public-sector crypto management through seized funds.

  • Signal growing Republican-led interest in integrating Bitcoin into state policy—without risking taxpayer funds.

A House vote is expected soon. If passed, the bill will land on Hobbs’ desk, potentially sparking a wave of similar bills across other U.S. states exploring crypto treasury strategies.

U.S. national debt has surpassed $37 trillion for the first time in history. The debt has surged as policymakers increased government spending and implemented stimulus measures.

This Week in Crypto: Top Events

From AI agents redefining DeFi to state-backed reserve strategies and Ethereum’s next evolution, the global crypto calendar is heating up. Whether you're building protocols, shaping policy, or scouting the next investment frontier, these are the events you don’t want to miss:

1. Crypto AML – Turning a Threat into an Opportunity

Date: June 26, 2025 | Location: Online
Focus: Crypto compliance, MiCA, AMLD6
Why attend: Learn how to turn rising regulation into business leverage with real-world demos and compliance strategies for crypto institutions.

2. Money Expo Colombia 2025

Date: June 25–26, 2025 | Location: Bogotá, Colombia
Focus: Forex, fintech, crypto, online trading
Why attend: 3,500+ professionals gather at this regional hub to debate, demo, and decode the next phase of digital finance.

3. CDAO Government 2025

Date: June 25–26, 2025 | Location: Washington, D.C.
Focus: AI, data, analytics, public sector
Why attend: The epicenter of data-driven governance — where AI policy meets practice for the U.S. government.

4. ETHCluj

Date: June 26–28, 2025 | Location: Cluj-Napoca, Romania
Focus: Ethereum, DAOs, DeFi, UX
Why attend: A deep dive into the Ethereum frontier — from DeFi UX to AI-integrated dApps.

5. DefaiCon Istanbul 2025

Date: June 26, 2025 | Location: Hilton Istanbul
Focus: DeFi, Web3, AI agents
Why attend: Explore the agentic economy and how AI-powered smart contracts are reshaping financial autonomy.

Want to explore more events and register?
👉 Browse the full list here

Market-moving headlines 🔥

Thailand’s Securities and Exchange Commission (SEC) has launched a public consultation on a proposed rule change on digital asset listing, which could allow licensed centralized exchanges (CEXs) to issue and list their own utility tokens.

Africa’s ambition to reduce reliance on the US dollar for cross-border trade is still far from bearing fruit, but more countries are now adopting local currency payment systems.

A Telegram scam has been exposed, offering trending altcoins at discounted prices. Over $50M has been taken through Telegram deals, promising a discounted price against a vesting schedule.

Bitcoin Cash (BCH) extended its three-month rally, now doubling in price since the lows in April. BCH remains close to $500, with increasing social media mentions. 

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