The crypto market shed about $13 billion in the past 24 hours, with total cap sliding to $2.54 trillion as money rotated into U.S. equities — a familiar May pattern. Meanwhile, attackers drained $3.2 million from 86 Gnosis Safe wallets through a third-party module, and Coinbase executives publicly backed the CLARITY Act, framing payment stablecoins as lower-risk than commercial banks.
Capital flows out of crypto
Bitcoin slipped 0.6% to $76,786, hovering just above the 0.382 Fibonacci level at $76,030. A close below that could open the door to $73,910 and $71,789. On the upside, a daily close above $78,654 would target $82,895. Zcash was the worst performer among the top 100, dropping 4.25% to $624, though the sell volume was light — a possible sign of exhaustion. The S&P 500 closed Friday at 7,473.47, up 0.37%, and has been outpacing crypto on a dollars-per-day basis. U.S. stock markets were closed Monday for Memorial Day, but Friday's bid carried through Asia and pulled crypto lower into the European session.
The Gnosis Safe drain
Attackers exploited a third-party module called SquidRouterModule to drain $3.2 million from 86 Gnosis Safes. Squid, the team behind the router, stated that the exploited contract was not its code. The incident is the latest reminder of the risks that come with composability in DeFi — one vulnerable module can cascade across hundreds of vaults. The affected users likely authorized the module at some point, a common attack vector.
Coinbase backs the CLARITY Act
Coinbase executives endorsed the CLARITY Act, which would regulate payment stablecoins under the GENIUS reserve framework. They argued the bill treats stablecoins more like lower-risk instruments than commercial bank deposits. The endorsement comes as Congress debates stablecoin legislation, a key priority for the crypto industry this year.
Hyperliquid launches canonical outcome markets
Hyperliquid introduced what it calls canonical outcome markets, based on offchain events. Validators vote on the deployment and settlement of each market. The move aims to bring onchain resolution to real-world events without relying on oracles, though the governance-heavy model raises questions about decentralization.
Who was behind the SquidRouterModule exploit remains unclear. The $3.2 million is gone, and the 86 Safes are still empty — but the broader market is watching whether the vulnerability was a one-off bug or a sign of a deeper flaw in Gnosis Safe's module ecosystem.
