Bitcoin Magazine

The White House is reviewing bipartisan ethics language for the Crypto Clarity Act as lawmakers race against an August deadline. Senator Thom Tillis confirmed ongoing discussions with the White House, while Senate Majority Leader John Thune delayed a cloture vote on the bill, narrowing the window for passage before a five-week recess.

A Bitcoin Red Team identified 85 critical flaws across 390 open-source repositories following the Coldcard hardware wallet exploit, which resulted in over $100 million in losses. The team, led by Calle and Rob Hamilton, used AI models to audit Bitcoin-related software, uncovering 4,962 total findings, including 635 high-severity issues.

Russia has passed a law regulating crypto exchanges, allowing only registered entities to operate and limiting retail investors to 300,000 rubles ($3,700) annually. The law maintains a ban on using digital currencies as payment or legal tender, though exceptions exist for international trade contracts. President Vladimir Putin previously expressed support for Bitcoin, stating it cannot be banned.

A hack on Coldcard hardware wallets exploited flawed entropy generation in key creation, leading to the theft of over 1,300 bitcoins and prompting users to move funds to custodial exchanges. The incident challenges assumptions about self-custody security while emphasizing the need to preserve Bitcoin's decentralized principles.

SEC Commissioner Hester Peirce expressed optimism that the Clarity Act, a crypto market structure bill, will pass before the Senate recesses. The bill aims to clarify regulatory authority over the crypto spot market and address concerns raised by the banking lobby and lawmakers.

Canadian digital asset manager 3iQ Corp. will manage Bhutan’s Bitcoin reserves for the Gelephu Mindfulness City project, overseeing 10,000 Bitcoins pledged for the new economic hub. Bhutan has been accumulating Bitcoin since 2019 and aims to position the region as a digital financial hub focused on mindfulness, sustainability, and innovation, drawing comparisons to El Salvador’s Bitcoin City initiative.

BIP-110, a Bitcoin soft fork, is set to activate in late 2026, imposing restrictions on transaction data and script features. Most corporations, particularly those using Bitcoin as a store of value or through third-party providers, face minimal impact. Node operators must choose whether to adopt BIP-110 rules, which could lead to chain splits if miners and nodes diverge.

An FBI Supervisory Special Agent is accused of stealing $925,426.07 in seized cryptocurrencies from an 'adversarial nation' by transferring funds to personal wallets. The agent confessed to a Department of Justice employee and was fired from the FBI on July 31. Court documents describe the evidence against him as strong, with charges carrying up to 10 years of incarceration each.

Republicans criticize Democrats for delaying the Crypto Clarity Act, which aims to establish a regulatory framework for cryptocurrencies. Lawmakers have two days to vote on the bill before Senate recess, with bipartisan support but ongoing disputes over wording. The updated bill addresses ethics concerns and has backing from financial institutions.

A Bitcoin address holding $31.8 million in dormant coins moved its funds after 12 years, coinciding with a Coldcard wallet hack that has drained an estimated $130 million. Hackers exploited a vulnerability in Coldcard wallets, prompting warnings about security risks and urging investors to transfer funds to safer setups.

Strategy's CEO Phong Le stated the company will navigate the current Bitcoin bear market by actively managing its capital structure. The Nasdaq-listed firm sold 1,638 Bitcoins and repurchased shares, holding 842,138 Bitcoins worth $53.8 billion as its largest corporate Bitcoin stash.

American Bitcoin reported a second-quarter loss due to Bitcoin's price decline but increased its Bitcoin holdings from 7,021 to 8,002 coins, boosting its reserve to over $510.6 million. The company's stock rose over 5% following the announcement of its highest quarterly production on record.

Bitcoin Magazine Strategy sold 1,638 BTC ($104.7 million) to fund preferred stock dividends and buybacks, continuing a pattern of Bitcoin sales for cash management. The company also sold 3.01 million MSTR shares ($290.6 million) and maintains a Bitcoin treasury of 842,138 coins valued at $54 billion.

Hackers have stolen over $114 million in Bitcoin from Coldcard wallets due to a firmware bug in Coldcard Mk3 devices, allowing seedphrase guessing. Coinkite, the company behind Coldcard, confirmed all models were vulnerable and halted shipments of the product.

Over $70 million in Bitcoin was stolen via a Coldcard exploit, with the thief using a top blockchain services provider to facilitate the attack. Coinkite admitted all Coldcard models were vulnerable due to a firmware bug causing weak private key generation.

Coinbase’s Chief Policy Officer, Faryar Shirzad, stated that younger Democrats support the Clarity Act, a bipartisan bill aimed at regulating digital assets, despite opposition from some older Democrats. He emphasized the bill’s bipartisan nature and predicted its passage due to growing public interest in crypto.

Coinkite released fixed firmware for Coldcard hardware wallets after a critical bug compromised private key generation, potentially stealing over 1,000 bitcoins. The vulnerability, likely involving AI in the breach, affected Coldcard MK3 devices with specific firmware versions. Users who did not use dice rolls or BIP 39 passphrases are at risk, and Coinkite advises firmware updates and wallet migrations to secure funds.

Coldcard wallets (MK3, MK4, MK5, Q) have a critical security vulnerability allowing attackers to brute-force seed phrases if generated without sufficient entropy (e.g., 50+ dice rolls). Funds are actively being drained, with 1000 BTC reported moved. Immediate action is required to move funds to secure wallets, use passphrases, or adopt alternatives like Nunchuck.

A firmware bug in Coldcard Wallet's Mk3 model caused weak entropy in seed generation, leading to predictable private keys and the theft of over $70 million in Bitcoin. Coinkite advised users of affected models (Mk3, Mk4, Mk5, Q) to move funds after hackers exploited the vulnerability to drain multiple addresses.

Cynthia Lummis, referred to as the 'Bitcoin Senator,' criticizes Democrats for delaying the bipartisan Crypto Clarity Act, which aims to establish a regulatory framework for cryptocurrency. The bill, which has faced prolonged debate and amendments, remains stalled despite support from financial institutions and lawmakers.