Bitcoin transfers below one BTC surged to 39,600 on Friday, the highest daily level since 2022. The spike followed the draining of $88.6 million in Bitcoin from Coldcard wallet users. Small holders fled to centralized exchanges and alternative custody methods.
The 39,600 BTC moved Friday sat just 300 BTC below the 39,900 BTC transferred on Nov. 16, 2022—a surge that came days after FTX filed for bankruptcy. The parallel signals the scale of fear now moving through the market.
Galaxy Research estimated losses of 1,367 BTC across 4,585 addresses from the ongoing attack. Alex Thorn, Galaxy Digital's head of firmwide research, said users should move funds immediately from Coldcard-generated addresses. The exploit targets a flaw in the Coldcard seed generation process, which did not use a genuinely random number generator.
Bitcoin trades at $63,485, up 1.1 percent over 24 hours. The Crypto Fear & Greed Index registers 28, indicating fear among investors.
The CLARITY Act faces a critical juncture, with only five days remaining for a potential Senate vote. Regulatory gridlock persists, driven by an ethics dispute over Donald Trump's crypto profits.
Trump is considering a revised ethics proposal for the CLARITY Act crafted by Sens. Thom Tillis and Ruben Gallego. The original proposal would have barred elected officials from endorsing crypto projects, with enforcement handled by the Department of Justice. Democrats distrust the DOJ and want state attorneys general to handle enforcement instead.
The compromise proposal allows state AGs to sue the DOJ if it fails to enforce the rules, sidestepping direct lawsuits against elected officials. Trump's $1.4 billion in crypto profits remain a sticking point in negotiations.
Senate Minority Leader Chuck Schumer introduced the Anti-Corruption Bureau Creation Act, targeting executive branch corruption. The bill has little chance of passing but reflects the depth of political divisions.
Ethics are not the only unresolved issue. Banks remain opposed to paying yield on stablecoins. Law enforcement groups are also split over the Blockchain Regulatory Certainty Act, which aims to protect blockchain developers. Some argue it would impede investigations into money laundering and fraud. Proposed changes from the National Association of Assistant U.S. Attorneys and the National District Attorneys Association are dead.
White House crypto advisor Patrick Witt dismissed the proposals, saying, "This is not even close."
Coinbase reported $1.2 billion in net revenue for the second quarter, a 19 percent decrease from a year earlier, and a net loss of $359 million—far wider than the $122 million loss analysts expected. Transaction revenue, subscription and services revenue and adjusted EBITDA all missed consensus estimates.
