Cryptography

Railgun Protocol Thwarts Attempt to Launder Stolen Crypto

Thursday. July 11 at 4:00 PM

1 min. read

Railgun's privacy protocol successfully blocked Inferno Drainer's latest money laundering scheme, preventing the laundering of 174 Ether worth $533,000. The malicious attempt was rejected by Railgun's automated private proofs of innocence system, forcing the stolen funds back to the attacker's wallet. Railgun, utilizing zero-knowledge cryptography, protects user balances and transaction details while enabling decentralized app usage. The protocol's PPOI system, launched in 2023, ensures tokens are not associated with illicit activities. Transactions linked to malicious actors are identified and blocked, providing no privacy to wrongdoers. Despite accusations of association with Lazarus Group, Railgun has been endorsed by Ethereum's Vitalik Buterin for promoting privacy. With over $180 million stolen, Railgun's intervention highlights the importance of security in the crypto space.

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Uncovering Vulnerabilities in AI Robots

Friday. October 18 at 9:00 AM

Penn Engineering researchers have identified critical flaws in AI-powered robots, allowing for manipulation to perform dangerous actions such as running red lights or detonating bombs. The team, led by George Pappas, created an algorithm called RoboPAIR that successfully bypassed safety protocols on various robotic systems. This research highlights the need for a thorough reassessment of AI integration in physical systems. Jailbreaking, in the context of AI and robotics, involves exploiting vulnerabilities to override ethical constraints. The study revealed three key weaknesses in AI-powered robots, leading to potential harm categories like physical harm, privacy violations, and illegal activities. Researchers are working with manufacturers to enhance AI safety protocols. As AI becomes more prevalent in society, the battle between researchers and jailbreakers continues to evolve, with more sophisticated approaches being developed. This underscores the importance of identifying weaknesses to improve system safety and security.

Cryptography

Quantum Computing Threat to Encryption

Monday. October 14 at 11:30 AM

Chinese researchers claim to have breached encryption algorithms used in banking and crypto using a quantum computer. Shanghai University researchers, led by Wang Chao, utilized a quantum computer from Canada’s D-Wave Systems to breach algorithms through quantum annealing. They targeted Present, Gift-64, and Rectangle algorithms, which form the basis of the Substitution-Permutation Network (SPN) structure supporting AES encryption. While AES-256 is considered secure, quantum computers pose a potential threat. Wang's team described quantum annealing as an AI algorithm optimizing solutions globally. Quantum tunneling allows the quantum computer to find the lowest point efficiently. Despite limitations, researchers believe quantum attacks could expose vulnerabilities in cryptographic systems. Vitalik Buterin proposed a hard fork to mitigate quantum computing risks in the future. The findings were published in the China Computer Federation Chinese Journal of Computers. The crypto industry faces challenges as quantum computing advancements could potentially compromise encryption security.

Cryptography

Sophisticated AI Tool ProKYC Raises Concerns in Crypto Fraud

Friday. October 11 at 1:30 PM

A cybersecurity firm, Cato Networks, has raised alarms about a new AI-powered deepfake tool called ProKYC. This tool enables malicious actors to circumvent high-level Know Your Customer (KYC) measures on cryptocurrency exchanges, marking a significant advancement in crypto fraud sophistication. Instead of resorting to traditional methods like purchasing forged ID documents on the dark web, fraudsters can now create entirely new identities using AI tools. ProKYC specifically targets crypto exchanges and financial institutions with stringent KYC protocols, such as facial recognition matching. The tool can generate fake ID documents and deepfake videos to deceive KYC processes successfully. With the rise of AI-powered tools like ProKYC, the threat of New Account Fraud (NAF) on crypto exchanges has escalated. Detecting and preventing such AI fraud poses challenges, but potential methods include manual identification of high-quality images and inconsistencies in facial movements. The consequences of identity fraud can be severe, with penalties including imprisonment and hefty fines.

Cryptography

Brazilian Authorities May Lift Ban on Elon Musk's X Platform

Wednesday. October 9 at 7:30 AM

Brazilian regulators are considering lifting the ban on Elon Musk's social media platform, X, following the payment of a 28.6 million Brazilian reais fine. X met the latest requirement for its return after being suspended by Brazil's Supreme Federal Court in August for non-compliance with orders related to misinformation. The final payment, which included fines for lack of cooperation and non-compliance with the suspension, was confirmed after some payment mishaps. X also appointed a new legal representative, blocked accounts spreading fake news, and awaits a decision from Brazil's Attorney General on the platform's return. Justice Moraes, who has been investigating X since 2023, will review the case if the return is approved. Elon Musk has criticized Moraes' actions as politically motivated censorship, accusing him of targeting political opponents unlawfully.

Cryptography