Humanity Protocol Loses $36M to Phishing as JPYC Flips Polygon, Bitcoin Near $66K

Crypto News

Humanity Protocol, a biometric decentralized identity project, disclosed findings from an independent security investigation into the June 8 breach of its native token H. The probe concluded that attackers sent a phishing email impersonating Korean exchange Bithumb to a company executive, who opened a malicious file that installed remote-access malware. The compromise let intruders seize full control of the executive’s machine and exfiltrate wallet data and private keys. Roughly 36 million dollars in tokens were ultimately drained, and H’s price collapsed more than 80 percent immediately after the incident. Investigators framed the operation as a targeted, sophisticated intrusion rather than an opportunistic one.

Once inside, the attacker bypassed endpoint security, took over the device’s remote desktop, and used the stolen keys to manipulate H across two networks. On Ethereum, they upgraded the token contract to withdraw roughly 141 million H, while on BNB Smart Chain they hijacked administrative rights over the ProxyAdmin contract to mint additional supply. The stolen and freshly issued tokens were liquidated over about eight hours through decentralized exchanges including Uniswap and PancakeSwap. The Ethereum contract has since been frozen by an independent multisig outside the attacker’s control through a DEX drain, though the BSC deployment remains compromised and still capable of further minting.

Investigators flagged several technical fingerprints consistent with North Korea-linked intrusion patterns, while stopping short of definitively assigning blame. The indicators included a first-stage loader signed with a Hancom digital certificate, a Stas’m RDP wrapper, a binary disguised as Microsoft Defender’s Network Inspection Service, and hidden guest user profiles. The report characterized these tools and techniques as hallmarks of state-aligned threat actors rather than conclusive proof. The project said its mainnet bridge was unaffected and is coordinating with exchanges on the vulnerable BSC contract, while urging users to move funds to a cold wallet and avoid impersonator accounts and fraudulent claim links.

In a quieter but structurally significant development, the yen-pegged stablecoin JPYC saw its largest circulating supply shift to a new home. On June 12, the Kaia blockchain overtook Polygon as the chain hosting the most JPYC in circulation, according to on-chain tracking data. Kaia, formed from the merger of LINE’s Finschia and Kakao-affiliated Klaytn, is one of four networks JPYC supports alongside Ethereum, Polygon, and Avalanche. Issuance on Kaia began only on May 15, making the flip a rapid ascent that underscores how distribution channels can reshape a stablecoin’s footprint within weeks rather than months.

The shift traces to expanding usage rails on Kaia. JPYC became available on May 22 through Unifi, a global fintech service from LINE NEXT accessible directly inside the LINE app, broadening both issuance and spending pathways. On-chain figures show total JPYC across all chains stands at roughly 923.5 million tokens, with Kaia now holding about 362.5 million versus Polygon’s 331.2 million. The reversal illustrates how consumer-facing integrations, rather than purely speculative demand, can drive measurable on-chain supply migration for regulated yen stablecoins seeking mainstream payment adoption across Asia.

Against this backdrop, broader sentiment remains fragile. Bitcoin traded near 66,000 dollars, while COINOTAG aggregate data placed the Fear and Greed Index at 20, deep in Extreme Fear territory, and Bitcoin dominance at 70.3 percent — a reading that signals capital concentrating in the largest asset as appetite for smaller tokens contracts. Macro crosscurrents added to the unease: Anthropic dispatched senior staff to Washington this week to reverse fresh US export controls that pulled its most advanced AI models offline, a regulatory flashpoint underscoring how policy shocks beyond crypto continue to ripple through risk markets.

The week’s threads share a common lesson: security and infrastructure, not price, are defining where value accrues. COINOTAG’s aggregate market data — a total crypto market capitalization near 1.88 trillion dollars, 70.3 percent Bitcoin dominance, and an Extreme Fear reading of 20 — points to a defensive market rewarding resilience over speculation. The Humanity Protocol breach, confirmed by an independent on-chain investigation, shows how a single phishing email can erase tens of millions, while JPYC’s chain migration, evidenced by transparent on-chain supply data, demonstrates that adoption now follows usability. In this climate, verifiable fundamentals and operational security increasingly separate durable projects from fragile ones.