Humanity Protocol’s H token lost more than 80% of its value on June 9 after attackers drained wallets linked to the project. 

The team confirmed that a private key belonging to a Humanity Foundation member had been compromised.

Humanity Protocol runs a zkEVM-based identity network that uses zero-knowledge proofs and palm biometrics to verify unique users without exposing their full personal data to large centralized identity databases.

Humanity founder confirms private key compromise

“We’ve detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation,” founder and CEO Terence Kwok said. He did not identify the affected member or explain how the keys were exposed.

Kwok told users to avoid the Humanity bridge and all liquidity pools until the team confirms they are safe. He said Humanity was working with security specialists and exchange partners. No recovery plan, reimbursement terms, or full technical report had been published at the time of writing.

On-chain analyst Specter first reported that more than 17 wallets holding H had been drained. The analyst said the wallets were linked to, or had interacted with, Humanity Protocol. Early estimates placed losses near $19 million before later trackers raised the total above $30 million.

Arkham-linked tracking and other on-chain reports showed the attacker selling H and converting part of the proceeds into Ethereum. Specter wrote on his Telegram that about $23.7 million had been swapped into ETH, while roughly $7.9 million remained in H. 

Blockaid monitoring later claimed the attacker gained proxy administrator rights over H on BNB Smart Chain and minted 100 million tokens. Humanity had not confirmed that report.

H price wipes out its June rally

According to crypto.news data, the Humanity Protocol (H) traded near $0.123, down about 83% over 24 hours. The token traded between roughly $0.073 and $0.731, while daily volume climbed above $605 million. Its market value fell to about $222 million during the sell-off.

H reached a record high near $0.844 on June 2 before the breach erased most of that advance. The drop also came before a scheduled June 25 token release under Humanity Foundation’s revised investor vesting plan. 

As previously reported by crypto.news, some early backers chose a discounted immediate unlock instead of a longer vesting schedule. There is no public evidence linking that planned release to the attack.

The incident adds to a series of private key and privileged-access failures across crypto projects in 2026. Separate crypto.news reporting found that a suspected key compromise allowed an attacker to mint StablR tokens and extract about $2.8 million in May. Humanity’s team has asked users to wait for further confirmation before using affected services.

U.S. lawmakers have reopened debate on digital asset taxation through seven separate crypto tax proposals while Senate negotiators continue work on the CLARITY Act ahead of a possible floor vote before August.

According to the House Ways and Means Committee, lawmakers are set to hear testimony Tuesday from representatives of Fidelity, Coinbase, Coin Center and New York University as Congress examines a package of tax measures covering key areas of the crypto industry.

The hearing arrives during a busy legislative week in Washington. House leaders are also trying to secure enough support for a $70 billion immigration funding package that cleared the Senate by a 52-47 vote last week and could reach the House floor as early as Tuesday.

The legislation would fund Immigration and Customs Enforcement and Customs and Border Protection through the remainder of President Donald Trump’s term.

Congress separates crypto tax proposals into targeted bills

Rather than advancing a single comprehensive tax package, lawmakers have divided provisions from the Digital Asset PARITY Act into seven standalone discussion drafts.

The proposals address taxation of stablecoin transactions, crypto mining and staking rewards, digital asset lending, wash sale rules, charitable donations involving crypto, and taxpayer disclosure requirements.

Several lawmakers have previously introduced related legislation, including Senator Cynthia Lummis and Representatives Max Miller and Steven Horsford.

Support for the effort has come from a number of industry advocacy organizations. The Digital Chamber, the Blockchain Association and the Crypto Council for Innovation welcomed the committee’s decision to move forward with the proposals.

The Digital Sovereignty Alliance described the initiative as one of the most significant developments in U.S. crypto tax policy to date:

“Breaking the PARITY Act into seven standalone drafts on staking, mining, lending, and wash sales gives lawmakers a clearer path to get the details right rather than rushing an omnibus.”

Not everyone in the industry is fully aligned behind the package. Ahead of the hearing, some market participants have raised concerns about specific provisions under discussion, although details of those objections have not been publicly outlined.

At the state level, tax debates are also expanding. Illinois lawmakers are considering a $56 billion budget proposal that would apply a 0.2% tax to certain digital asset transactions.

Speaking to Crypto In America, Illinois Blockchain Association Executive Director Olta Andoni argued that the proposed 0.2% tax could make Illinois less attractive for crypto businesses, warning that the measure may encourage companies and investment to leave the state.

Separate calls for tax reform have also emerged from industry figures such as Strive CEO Matthew Cole, who has advocated eliminating capital gains taxes on Bitcoin transactions.

Senate works to finalize CLARITY Act framework

While House lawmakers focus on tax legislation, Senate committees continue negotiations on the CLARITY Act, one of the most closely watched crypto market structure bills in Congress.

Current discussions involve combining separate versions of the legislation developed by the Senate Banking Committee and the Senate Agriculture Committee. Lawmakers are also reviewing ethics provisions and potential amendments connected to the GENIUS Act.

Providing an update on the process, Senator Cynthia Lummis said lawmakers are still working through several components before the legislation can advance.

“We have to wrap the Banking Committee bill with the Ag Committee’s bill, with the ethics provisions, with some changes to the Genius Act.”

Lummis added that she expects the CLARITY Act to reach the Senate floor before lawmakers leave Washington for the August recess, potentially setting up another major crypto policy vote later this year.

The Humanity Protocol, dubbed the “Chinese Worldcoin,” has been exploited for more than $30 million through a private key compromise, sending the price of H tokens plummeting on Tuesday. 

“We’ve detected a security incident involving the compromise of private keys belonging to a member of the Humanity Foundation,” said Terence Kwok, founder and CEO of Humanity Protocol, on Tuesday.

Kwok advised users not to interact with the bridge or any liquidity pools until it has been deemed safe and added that the team was working with security experts, but did not provide any further details at the time. 

Humanity is a zkEVM blockchain-based decentralized identity project focused on Proof of Humanity and uses privacy-preserving palm biometrics. 

Prices for the H token have collapsed over the past 12 hours, falling 85% from around $0.70 to $0.08 at the time of writing, according to CoinGecko.

Onchain investigator “Specter” said it appears that wallets linked to, or that have interacted with Humanity Protocol, are being compromised in an ongoing attack that has drained as much as $30 million in the project’s native H token. 

Arkham Intelligence also reported that the exploiter had stolen more than $30 million and was swapping H tokens through Kyber Network and PancakeSwap, among other DEXes. 

Source: Arkham Intelligence

Private key compromises continue to increase

There have been several high-profile private key compromises this year, one of the largest being the Drift Protocol exploit in April. Attackers affiliated with the North Korean Lazarus Group gained control of the security council admin keys, resulting in the loss of $280 million.

Related: ZEC drops 30% as Shielded Labs reveals more about infinite counterfeit bug

Others include Step Finance, Resolv, Volo Vault, Echo Bridge, Bankr, Polymarket, StablR, Stake DAO, Gravity Bridge, and Aelphium Bridge.

Wallet or private key compromises were the second-most costly attack vector in May, with $13.7 million stolen, CertiK reported. 

Magazine: Korea probes Polymarket users, crypto PACs sweep primaries: Hodler’s Digest

OpenAI has confidentially filed for a U.S. initial public offering as major AI companies move toward public markets. The ChatGPT maker did not disclose the size or terms of the planned listing.

Reports said the company may seek a valuation of up to $1 trillion. The filing comes as Anthropic and SpaceX also pursue large stock market debuts.

OpenAI targets major public market debut

According to the report, OpenAI could complete its market debut as early as September. A $1 trillion valuation would place the company among the largest IPO candidates in recent years. The filing follows a period of rapid revenue growth and rising demand for AI tools. Investors have continued seeking public exposure to artificial intelligence companies. OpenAI has become one of the most closely tracked firms in the sector.

OpenAI said earlier this year that it was raising $110 billion at an $840 billion valuation. Its backers included SoftBank, Amazon, and Nvidia, according to the report. The company also disclosed more than 900 million weekly ChatGPT users. It said ChatGPT had more than 50 million consumer subscribers. Those figures came before the confidential IPO filing.

In March, OpenAI said it generated $2 billion in monthly revenue. The company also said its growth rate exceeded earlier internet and mobile-era companies. At the end of 2024, OpenAI generated about $1 billion in quarterly revenue. The latest revenue figures show a sharp increase from that level. The company has not released new IPO terms.

Anthropic and SpaceX join IPO race

Anthropic also confidentially filed for a U.S. IPO on Monday. The company has become one of OpenAI’s largest competitors through its Claude AI products. Its Claude Code tool has gained demand from software developers. Anthropic also markets advanced models for code review and vulnerability research. The company recently raised $65 billion at a $965 billion valuation.

SpaceX has also filed for an IPO that could become the largest in history. Reports said Elon Musk’s company seeks a $75 billion offering. The deal would value SpaceX at about $1.75 trillion if completed. Prediction markets had expected OpenAI to file before Anthropic. Both AI filings now add pressure to the U.S. IPO calendar.

Bankers cited in the report said large AI offerings could affect smaller listings. They said major deals may absorb capital from other planned IPOs. However, the filings could also increase activity in the U.S. IPO market. Investors are now weighing large private AI companies against public market demand. The offerings will test appetite for high-growth technology stocks.

Microsoft deal and Musk lawsuit shape backdrop

OpenAI’s IPO filing follows changes to its partnership with Microsoft. Microsoft has invested about $13 billion in OpenAI since 2019. That relationship helped support OpenAI’s growth and Azure cloud demand. OpenAI later renegotiated the partnership to pursue deals with Amazon and Google. The company has continued seeking capital for advanced AI development.

OpenAI began in 2015 as a nonprofit research organization. It created a for-profit arm in 2019 to fund expensive AI development. Its structure drew scrutiny in 2023 after CEO Sam Altman briefly lost his role. Employees pushed back, and Altman returned days later. In December 2024, OpenAI proposed a public benefit corporation structure.

Elon Musk later sued OpenAI and accused the company of moving away from its original mission. A U.S. jury ruled against Musk in May. The verdict found OpenAI not liable to Musk over those claims. The ruling removed a legal issue before the IPO filing. OpenAI has not publicly commented on final listing timing.

Bitcoin has remained under pressure throughout 2026, but analysts at Bernstein have argued that the cryptocurrency’s weaker performance is helping create a more institution-focused market rather than signaling a long-term problem.

According to a research note released Monday by Bernstein’s Global Digital Assets team, capital flows into Bitcoin have slowed sharply this year as retail investors increasingly pursue opportunities in artificial intelligence-related stocks.

The report said net inflows from spot Bitcoin exchange-traded funds and corporate treasury buyers have reached roughly $12 billion so far in 2026, down from about $60 billion during all of 2025. Bernstein also noted that Bitcoin ETFs have recorded net outflows of approximately $2.6 billion despite collectively managing around $75 billion in assets.

Rather than viewing the decline as a warning sign, Bernstein analysts said the changing investor mix could improve market stability. The firm said pension funds, sovereign wealth funds, institutional asset managers and corporate treasury companies now make up a larger share of Bitcoin ownership than in previous cycles, when retail speculation played a much bigger role.

“We believe this maturation phase of Bitcoin is less appreciated, and the criticism has largely come from its lack of retail momentum—which may not be a bad thing considering retail has crowded into AI.”

Strategy continues accumulating Bitcoin

Among the largest institutional buyers, Strategy has continued expanding its Bitcoin holdings despite the market downturn.

Bernstein noted that the company raised approximately $7.5 billion through its STRC preferred stock offering this year and used the proceeds to acquire around 100,000 BTC. The world’s corporate BTC holder now owns more than 845,000 BTC valued at roughly $53.6 billion.

Elsewhere in the digital asset sector, several publicly traded mining companies have increased their exposure to artificial intelligence infrastructure. Bernstein highlighted firms such as IREN and Cipher Digital, which have benefited from growing demand for AI data center capacity.

At the same time, the firm pointed out that the entire cryptocurrency market remains relatively small compared with traditional asset classes. Total crypto market capitalization currently stands near $2.25 trillion, far below the size of global equity and commodity markets that continue to attract most investor attention.

Technical weakness contrasts with Bernstein’s outlook

Even as Bernstein maintains a constructive long-term view, Bitcoin’s chart structure remains under pressure.

At press time, Bitcoin (BTC) traded near $63,800 after recovering from a recent drop toward the $59,000 area. Daily chart data shows the asset rebounding from oversold conditions, though it remains below key Fibonacci retracement levels.

The Relative Strength Index has started to recover from deeply oversold territory while Chaikin Money Flow remains below zero, indicating capital outflows have yet to fully reverse.

Shorter-term charts also show Bitcoin trading within a bearish flag pattern following a sharp decline from the $74,000 region. The pattern’s upper boundary and Supertrend resistance converge near the $64,800 area, creating an important level for bulls to reclaim.

Despite those technical challenges and Bitcoin’s decline of roughly 27% this year, Bernstein maintained its year-end price target of $150,000. The analysts argued that a lack of retail enthusiasm should not undermine Bitcoin’s long-standing role as a store of value.

“Bitcoin being boring this cycle should not be held against it, and does not take away from the long-term ‘store of value’ thesis, in our view.”

Meta has announced a $115 million training program for data center technician jobs as it expands AI infrastructure. The company said America’s Workforce Academy will offer cost-free training and guaranteed job offers to graduates.

The program comes as Meta builds more data centers to support its AI systems. It also forms part of the company’s larger U.S. infrastructure and jobs plan.

Meta launches America’s Workforce Academy

According to Meta, the new program will train workers for data center technician roles. A Meta spokesperson said the training will cover general skills used by data center technicians. The spokesperson said graduates will receive full-time job offers with general contractors. Those contractors will work on Meta’s data center construction projects. Meta did not identify the contractors involved in the program.

The spokesperson also declined to say how many jobs will become available. Meta did not confirm whether the roles would include union positions. Associated Builders and Contractors, a construction trade group, expects to train thousands of people. The group said the program will run across the course of the initiative. Meta described the investment as part of its AI infrastructure workforce plan.

Dina Powell McCormick, Meta president and vice-chairman, linked the program to changing labor needs. “The AI revolution is bringing change but also historic opportunities,” she said. Meta said the academy will help prepare workers for technical roles tied to data centers. The company also said the program will remove training costs for participants. Graduates will then move into jobs connected to Meta’s buildout.

AI infrastructure spending drives hiring plan

Meta has pledged to invest $600 billion in U.S. infrastructure and jobs over three years. The $115 million training plan represents one part of that commitment. The company continues building large data centers to support CEO Mark Zuckerberg’s AI plans. Zuckerberg has described AI agents that can perform tasks for users. Those tasks include creating apps, booking appointments, and completing transactions.

Last year, Zuckerberg hired AI researchers from rival companies, including OpenAI. Reports said some offers included $100 million signing bonuses. More recently, Meta changed parts of its internal AI organization. The company cut about 10% of its workforce, or around 8,000 employees. It also reassigned many workers to units focused on AI models and tools.

The training plan comes as Meta needs workers for construction and technical support. Data center projects require large workforces during construction. They often create fewer permanent jobs after operations begin. Meta’s program focuses on technician training rather than software roles. The company said contractors will employ graduates in full-time positions.

Data center projects show job split

Meta’s Texas data center shows the difference between construction and operating jobs. The company broke ground on the site last year. The project could have more than 1,800 workers on-site during peak construction. However, the site expects about 100 permanent jobs once operational. The project ranks among the largest planned data centers in the United States.

Another Meta data center project in Oklahoma follows a similar pattern. The site expects more than 1,000 construction jobs at peak activity. It also expects about 100 operational jobs after completion. Those figures show how data center labor needs change after construction ends. Meta’s new academy focuses on preparing workers for roles tied to that expansion.

Meta did not provide a launch date for America’s Workforce Academy in the provided statement. The company also did not disclose the locations where training will begin. Associated Builders and Contractors said it expects thousands of trainees in the program. Meta said graduates will receive guaranteed job offers after completing training. The company has not named the general contractors that will hire them.

Saif Faiq has pleaded guilty to a federal conspiracy charge tied to a bitcoin-related kidnapping plot and now faces up to 20 years in prison.

According to the U.S. Department of Justice, Faiq entered his guilty plea on June 9 in federal court in Hartford, Connecticut, admitting to conspiracy to interfere with commerce by robbery. Prosecutors said he is scheduled to be sentenced on Aug. 28 and has remained in custody since his arrest on Nov. 12, 2025.

Court documents cited by the DOJ state that Faiq and his brother, Adam Iza, organized a plan in 2024 to abduct the parents of a crypto millionaire in an attempt to extort digital assets. 

Investigators said Faiq recruited six men from Florida, arranged their travel to Connecticut, and helped coordinate surveillance of the intended victims before the attack.

Authorities said the scheme unfolded in Danbury, Connecticut, where the group targeted Sushil and Radhika Chetal. Local reports cited by the DOJ said the attackers deliberately rear-ended the couple’s Lamborghini Urus before surrounding the vehicle with a van in broad daylight.

After forcing the occupants out of the SUV, the assailants allegedly assaulted them with a baseball bat and briefly held them captive. Federal prosecutors said the six men involved in the operation were charged separately and later pleaded guilty to kidnapping and carjacking offenses.

The plot was linked to a major bitcoin theft

The victims were the parents of Veer Chetal, who prosecutors identified as a participant in a large-scale cryptocurrency theft involving roughly 4,100 Bitcoin.

According to previously reported court proceedings, Chetal and two accomplices used social-engineering tactics to steal the funds. Prosecutors said he later displayed the proceeds publicly, including during visits to a Miami nightclub, where he came into contact with one of Faiq’s alleged co-conspirators.

Federal records show Chetal pleaded guilty to charges connected to the bitcoin theft in November 2025 and is awaiting sentencing.

Meanwhile, the DOJ said Adam Iza also pleaded guilty to conspiracy to interfere with commerce by robbery on June 1. Both brothers admitted their roles in organizing the kidnapping operation, according to court filings.

Crypto-linked kidnapping cases continue to surface

Elsewhere, authorities in France are investigating another crypto-linked kidnapping attempt.

As previously reported by crypto.news, the wife of The Sandbox co-founder and chief operating officer Sebastien Borget was targeted outside the couple’s home in Villenoy in May after a suspect posing as a delivery worker gained access to the property.

The attempt failed when neighbors intervened, prompting the attackers to flee. French police later arrested two suspects and recovered a fake handgun, zip-tie restraints, and balaclavas, while four other suspects remained at large.