Key facts
- Hackers stole over $31.6 million in two separate crypto bridge exploits within seven hours.
- The CLARITY Act, a proposed Senate bill, includes ethics restrictions on federal officials' crypto ventures.
- Trading volumes on South Korea's major crypto exchanges have slumped as retail investors shift to stocks.
- The AFX bridge exploit resulted in a loss of $24.15 million, while the Verus Protocol bridge lost $7.5 million.
Hackers have stolen over $31.6 million in two separate cryptocurrency bridge exploits within a seven-hour period. The first exploit targeted AFX, a decentralized perpetual exchange operating on Arbitrum, resulting in a loss of $24.15 million. Hours later, the Verus Ethereum Bridge was exploited, with approximately $7.5 million in crypto stolen. These incidents underscore the persistent security risks associated with cross-chain bridges, which are often targeted due to the large pools of assets they manage.
In parallel, the U.S. Senate has proposed the CLARITY Act, a 616-page bill that includes significant ethics restrictions for federal officials regarding cryptocurrency ventures. The proposed rules would prohibit officials, including President Donald Trump, from issuing or sponsoring digital assets until January 20, 2029. The bill also aims to prevent crypto platforms from listing tokens issued or sponsored by federal officials, with enforcement primarily assigned to the Department of Justice.
Meanwhile, South Korea's major cryptocurrency exchanges have experienced a substantial decline in trading volumes over the past year. Analysis of data from Upbit, Bithumb, Coinone, Korbit, and Gopax shows an average daily volume drop of about 77%, with combined volumes falling 89% to $305 million from $2.82 billion in the comparable July periods of 2025 and 2026. This trend suggests a shift in retail speculative interest towards the surging stock market, as evidenced by the Korea Composite Stock Price Index (KOSPI) more than doubling. Some platforms, like Korbit, have resorted to selling crypto holdings to offset weaker fee income.