The AI dip-buyers who hammered crypto last week came back overnight, just not for crypto.

MSCI’s Asia Pacific gauge rose 2.5%, South Korea’s Kospi climbed as much as 8% with SK Hynix up 11%, and the Nasdaq 100 added 1.6% as a semiconductor gauge gained more than 5%.

Crypto got none of that action. Bitcoin trades near $63,300, up about 0.8% over 24 hours, and ether near $1,691, up 1.8%, per CoinDesk data. BNB and Solana lead the majors at roughly 2.3%.

Every large token is still deep in the red on the week, with bitcoin off 10.8%, ether down 16%, Solana and Hyperliquid both off about 17%, and dogecoin down 14.7%.

Crypto sold off alongside AI shares last week when the rout was pinned on stretched chip valuations, and that beta has flipped on the way up.

Humanity Protocol’s H token crashed more than 80% on Tuesday after attackers stole the private keys behind the project and drained more than $30 million, the latest in a year of crypto thefts that go after keys rather than code.

About 17 wallets tied to the project were emptied, with losses topping $32 million and still climbing, per on-chain data assessed by CoinDesk.

The thief has been selling the stolen H for ether and minted another 100 million H, worth roughly $11 million, on the BNB Chain, blockchain data shows, pointing to more selling pressure ahead.

H fell from about $0.67 to near $0.13 and briefly touched $0.05, an intraday drop of about 90%.

Humanity confirmed the breach, with founder Terence Kwok saying attackers had compromised the private keys, the secret codes that control crypto wallets, of a member of the Humanity Foundation.

The project urged users to stop touching its bridge, the tool that moves tokens between blockchains, and its liquidity pools until the issue is contained, and said it was working with security firms and exchange partners.

Humanity Protocol is a decentralized identity project that uses palm-scan biometrics and zero-knowledge cryptography to let people prove they are human without revealing personal data, positioning itself as a rival to Sam Altman’s Worldcoin.

The hack fits the dominant pattern of 2026, in which the biggest losses have come from stolen keys rather than flawed code. Solana exchange Drift lost about $285 million in April after attackers seized an administrative key, and Kelp DAO lost roughly $292 million the same month through a single-validator bridge.

H last traded around $0.13, down about 82% on the day, with the theft still in progress.

IC3 researchers published a 155-page survey on June 8 examining how artificial intelligence and crypto can support each other. 

The study says meaningful integration remains early and calls for stronger evidence behind claims that blockchain can make AI agents autonomous, identify generated content, or remove model bias.

The paper does not dismiss crypto. It says zero-knowledge proofs, trusted computing, and blockchains can secure AI systems, preserve records, and support machine payments. Yet the researchers argue that these tools address narrower problems than many industry claims suggest.

Crypto wallets automate AI agents without creating autonomy

“AI systems do not become more intelligent by possessing a wallet,” the authors wrote. A wallet can let an agent trade, pay, and access services without approval for each action. Yet people can still change its rules, shut down servers, or block access to supporting systems.

The researchers also note that centralized financial systems can allow programmable payments. They say blockchain rails may offer neutrality and censorship resistance, but projects must show measurable benefits over centralized alternatives. 

“Automation should not be confused with autonomy,” the paper said.

As previously reported by crypto.news, MetaMask launched its early-access Agent Wallet on June 8. It lets AI systems make swaps and other on-chain transactions under user-defined rules. 

Moreover, Robinhood also introduced separate agentic trading and card accounts while keeping agents away from users’ main assets. These controls support IC3’s view that humans remain in charge.

Blockchain records cannot prove who created content

IC3 says blockchains can timestamp a file and preserve a claim about its origin. However, a network cannot inspect an off-chain image, video, or text and decide whether a human or model created it. An outside classifier must supply that judgment.

If the classifier is wrong, the blockchain preserves the wrong claim. Provenance tools may document registered files, but most online content is not cryptographically anchored. The researchers therefore say blockchains protect record integrity, not the truth of the initial statement.

Decentralization does not remove AI model bias

The survey also rejects the claim that decentralized training or governance automatically produces fairer AI. Bias often comes from training data, model design, and inference methods. Moving those processes onto a distributed network does not correct them.

Blockchain can still make selected records visible and broaden participation in governance decisions. Yet the paper says benefits for model quality remain unclear and need real case studies. It also warns that storing large datasets, checkpoints, and inference records on-chain creates cost and scale limits.

Recent product launches show why the debate matters. As previously reported by crypto.news, Solana and Google Cloud launched Pay.sh so AI agents can buy API access with stablecoins per request. IC3 sees promise in such uses but asks builders to prove that crypto offers better cost, access, or resilience than existing payment tools across real-world agent services.

Bitcoin BTC$63,275.43 can drop down to $30,000 but still won’t impact Strategy’s BTC plans.

That’s from Jiang Zhuoer, chief executive of BTC.TOP, one of China’s largest bitcoin mining pools, who shared on X that Strategy is unlikely to sell much of its bitcoin, pushing back on a week of speculation that the company offloaded coins to meet its obligations.

The talk built after an on-chain analyst estimated that about 45,000 bitcoin, worth roughly $3 billion, left a Fidelity custody wallet between May 28 and June 1, and suggested Strategy had sold the coins gradually at an average near $66,000.

That wallet also holds Fidelity’s bitcoin and ether exchange-traded funds, so tying the outflow to Strategy is an inference rather than a confirmed sale. Jiang, writing on Sunday (in Mandarin), called the speculation overblown.

His case rests on Strategy’s balance sheet. The company’s debt equals only about 5% of its assets, he said, and would climb to just 10% even if bitcoin fell to $30,000 from around $62,900 now. He sees little reason for the company to break the never-sell-bitcoin image that underpins its market story.

Jiang also defended the logic behind STRC, the preferred shares Strategy sells to raise cash, which pay an 11.5% annual dividend in monthly installments.

Selling its oldest and cheapest bitcoin lets Strategy book an accounting profit that can fund those payments, he argued, while money raised from new STRC sales buys fresh bitcoin.

As long as purchases outpace sales, Strategy stays a net buyer. The bigger point, he said, is that STRC holders’ main fear was that Strategy would refuse to sell bitcoin and default on the dividend, so signaling it is willing to sell actually removes that worry.

Others in the discussion were less convinced, arguing that a long bear market would swell Strategy’s interest bill and force larger bitcoin sales no matter what management intends.

Bitcoin traded near $63,400 on Monday, according to CoinDesk data, down nearly 10% in the past week after Strategy reported its first bitcoin sale since 2022.

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. 

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