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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
06/06/2025

Crypto News Roundup June 6: Alex Protocol Hacked for $8.3M, Spot ETH ETFs Pull in Strong Inflows, Political Clash Over CLARITY Act, and Trump's Crypto Ties

June 6 marked a turbulent day for the crypto market as three major developments simultaneously shook multiple corners of the blockchain ecosystem: a serious security breach on a Bitcoin DeFi protocol, massive capital inflows into Ethereum ETFs, and fierce political clashes over former President Donald Trump's ties to the digital asset industry. Here's a full breakdown: 1. Alex Protocol – Bitcoin DeFi Protocol Hacked for $8.3M On the morning of June 6, the crypto community was rocked

Crypto News Roundup June 6: Alex Protocol Hacked for $8.3M, Spot ETH ETFs Pull in Strong Inflows, Political Clash Over CLARITY Act, and Trump's Crypto Ties

June 6 marked a turbulent day for the crypto market as three major developments simultaneously shook multiple corners of the blockchain ecosystem: a serious security breach on a Bitcoin DeFi protocol, massive capital inflows into Ethereum ETFs, and fierce political clashes over former President Donald Trump's ties to the digital asset industry. Here's a full breakdown:

1. Alex Protocol – Bitcoin DeFi Protocol Hacked for $8.3M

On the morning of June 6, the crypto community was rocked when Alex Protocol, a layer-2 DeFi platform built on the Stacks blockchain (a Bitcoin layer), announced it had been exploited, resulting in an estimated loss of $8.3 million.

In an official statement posted on X (Twitter), the Alex team said the root cause was a vulnerability in the protocol's self-listing verification logic, which allowed the attacker to exploit a logic flaw and drain liquidity from multiple asset pools.

The stolen assets included:

  • 8.4 million STX (Stacks' native token)
  • 21.85 sBTC
  • 149,850 USDC and USDT
  • 2.8 Wrapped BTC (WBTC)

This is considered one of the largest attacks ever to hit the Stacks ecosystem, which serves as a smart contract extension layer for Bitcoin.

Moving quickly, Alex Lab Foundation, the organization behind the protocol, pledged to fully reimburse affected users from its reserve fund. However, no specific details on the repayment plan or timeline have been released. Cointelegraph reached out to Alex but had not received a response by press time.

2. Spot Ethereum ETFs Post 15 Consecutive Days of Inflows, on Track to Top $1 Billion

Despite broader market volatility, U.S. spot Ethereum ETFs are recording an unprecedented inflow streak.

According to data from Farside Investors, June 6 marked the 15th consecutive day of positive flows for these funds, with $25.3 million added on that day alone. Since May 16, a cumulative total of $837.5 million has flowed into Ethereum ETFs.

That figure represents 25% of the total net inflows of $3.32 billion these ETFs have attracted since they began trading in July 2024.

Analysts note that if the trend continues for another 5 sessions, the inflows from this 15-day run will surpass $1 billion — a powerful signal of growing institutional confidence in ETH as an investable asset.

This comes as expectations mount that Ethereum will become the next blue-chip asset after Bitcoin, increasingly viewed by major institutions as a core component of long-term portfolios.

3. U.S. Congress Deeply Divided Over CLARITY Act and Trump's Crypto Ties

On June 6, a House hearing on digital asset market structure played out in a highly charged atmosphere, as Democratic lawmakers raised alarms over the possibility that former President Donald Trump is personally profiting from the crypto industry, while Republican members dismissed those concerns as "politically motivated."

The debate centered on the CLARITY Act, a landmark bill aimed at providing a clear regulatory framework for digital assets, which is set for a House floor vote on June 10.

  • Rep. Maxine Waters (D) argued that Trump's financial ties to crypto organizations need thorough investigation before the bill moves forward.
  • Meanwhile, Digital Assets Subcommittee Chair Bryan Steil (R) dismissed these concerns as "Trump derangement syndrome."

Tensions escalated further when Rep. Stephen Lynch accused Republicans of "ignoring the truth about Trump's crypto corruption" out of fear of political blowback.

Earlier, on May 22, Trump hosted a fundraising dinner for holders of his memecoin. Shortly after, Waters introduced new legislation that would bar the president, vice president, and members of Congress — along with their families — from holding crypto investments while in office.

It remains unclear whether Democrats have enough votes to block passage of the CLARITY Act.

Takeaways

June 6, 2025 saw three developments with potentially lasting consequences across the crypto ecosystem: DeFi security risks on the Bitcoin network, institutional money flooding into Ethereum, and political gridlock in the U.S. — the country leading the world on digital asset policy.

Investors should keep a close eye on the CLARITY Act vote on June 10, as well as Alex Protocol's post-hack recovery steps, as the market searches for renewed momentum following a period of correction.