Bitcoin split, Bybit lawsuit against North Korea, and miner crisis: main events of the week
The outgoing week proved truly turbulent for the crypto industry. The Bitcoin network experienced an unexpected soft-fork split, Bybit initiated an unprecedented lawsuit against North Korea, and American miners faced serious financial losses. I break down the key events that will shape the agenda for the near future.
Bitcoin recovered to $65,000 amid institutional demand
The start of the week was marked by a continued correction: on August 4, the leading cryptocurrency dipped below $63,000, with on-chain data recording a record prolonged capitulation phase. However, the market quickly found its footing. Institutional investors acted as a catalyst for the reversal: spot Bitcoin ETFs attracted $853 million, and large holders (wallets with balances from 10 to 10,000 BTC) purchased over 20,000 coins in recent days.
As a result, by the end of the week, the asset recovered its losses and reached $65,200 — the highest level since late July, gaining 3.4%. Ether showed similar dynamics (+3.7%), and its ETF funds recorded their largest weekly inflow since mid-April ($244 million). Notably, the fear and greed index remains stuck in the "fear" zone at 31, indicating lingering nervousness among retail traders.
Bitcoin network split: BIP-110 sets a precedent
On August 8, the leading cryptocurrency's network unexpectedly split at block #961,632. Nodes supporting the BIP-110 soft fork refused to accept blocks without a support signal, while the main chain continued operating normally. The competing branch from the Ocean pool and the Roughnecks alliance mined only two blocks in eight hours versus 48 for the main network — the difficulty recalculation, which coincided exactly with the split, took its toll.
The key issue here is not hashrate but the lack of consensus. Two weeks before the fork, only 2.53% of blocks signaled support for the proposal against the required 55%. As developer Kevin Loake rightly noted, the main risk is the loss of real bitcoins: both branches accept identical transactions, and an attacker could intercept a signed transfer and send it to the main network. This is a serious lesson for the community that hard forks without broad support create not new opportunities but new threats.
Bybit vs. North Korea: a global legal precedent
Crypto exchange Bybit filed a civil lawsuit against North Korea, its intelligence agency, and the Lazarus Group hacking collective over the theft of $1.5 billion in February 2025. The documents were filed in the U.S. District Court for the District of Columbia back in June but were only unsealed now. The platform demands not only the return of the stolen funds but also treble damages under the U.S. Racketeer Influenced and Corrupt Organizations Act.
Notably, only 5.3% of the funds ($75.5 million) could be traced — the rest dissolved into mixers and cross-chain bridges. Meanwhile, researcher Vangelis Stykas found traces of North Korean hackers in the systems of 1,640 organizations across 57 countries. According to TRM Labs, DPRK groups now account for over 70% of the global volume of digital asset thefts. This is not just crime but a tool of Pyongyang's state policy.
U.S. Senate delays CLARITY Act, miners go into the red
American lawmakers postponed the vote on the CLARITY Act to September: Republicans lack the votes to overcome the 60-senator threshold, and a rift is brewing within the faction over stablecoin yields. The market, however, estimates the chances of the bill passing this year at just 21% (according to Polymarket), reflecting a realistic picture.
Meanwhile, the mining sector is going through tough times. MARA Holdings posted a quarterly loss of $611 million, and CleanSpark — $239.8 million. The industry is in turmoil: companies are actively buying up energy capacity (Fortitude Mining acquired a site in Nebraska), and a real battle for electricity is unfolding in Texas between data centers, AI projects, and miners. The state governor even imposed a temporary moratorium on connecting new facilities.
My take on the situation
The week showed that the crypto market matures through crises. The network split caused by an unprepared soft fork is a signal of the need for stricter coordination mechanisms within the community. Bybit's lawsuit against North Korea could become a historic precedent that redefines the approach to international regulation of crypto crime. And miners' losses are not just a cyclical phenomenon but a structural shift: the industry is forced to compete with AI giants for energy, and only those who can diversify their business model will survive. Investors should closely watch these trends — they will define the market landscape for years to come.