Lovera ⛏ ₿ ɱ

Our investigators are observing never-seen-before laundering patterns with the stolen funds from the Binance exploit. Thousands of transactions in a short period suggest that the attackers are using automation to obscure the trail of funds. Rather than simply moving funds onward, they repeatedly circulate them among addresses, often sending funds back to addresses involved earlier in the sequence. Read more: chainalysis.com/blog/binance…

Cryptography is not over. The internet is not over. Blockchains are not over. We’re just entering the 🚨danger zone🚨, that’s all. Whether quantumly or classically, major public key implementations will fall. Maybe soon. We need to move to a crypto agile paradigm instead of assuming certain functions will work for decades. All cryptographic infrastructure including blockchains has to be rebuilt around this realization. That’s it.

I don't recommend anyone scramble to move their funds to new wallets today. But we should take the risks to cryptography from AI-accelerated math seriously, and minimize our exposure to not just quantum-vulnerable cryptography, but also potentially AI-vulnerable cryptography. The core new area of risk from this viewpoint is, unfortunately, ML-DSA / FHE / lattices. (and it's also another reason, along with quantum, why ECDSA might fall even faster than expected, hence the "fresh address" recommendation) So far most people have been in the mode of thinking "elliptic curves broken, hashes safe, lattices safe". But there is a good chance that the concrete security of lattices will take serious hits from the next two years of AI math. The basic threat model is: factoring is something that naively takes 2^(n/2) time, but over decades smart people have found and optimized number field sieves, and degraded that to 2^O(n^(1/3)), which is why RSA keys and signatures need to be ~400 bytes (and not 64 bytes). What if there are skeletons in the closet like that, both for elliptic curves and lattices, that we are simply not smart enough to discover - but bots soon will be? This is a major part of the reason why for the past year ethereum's lean roadmap has been going in the "hash-only" direction: no lattices, no ML-DSA, no Falcon, no lattice-based commitments inside ZK proofs, etc. Signatures in lean ethereum are all hash-based, either WOTS or SPHINCS-. For signatures and proofs, we already know how to go hash-only. The bigger challenge is for *public-key encryption* - and this goes far beyond blockchains. Secure communication, anonymizing protocols, lots of things need public-key encryption. And unfortunately there are long-standing mathematical theorems showing why public-key encryption cannot be done with hashes alone. You have to have some kind of trapdoor object that has at least one form of usable "structure" - either group theory (incl. isogenies) or lattices or code-based or potentially in the future even more newfangled and spooky things (local mixing?). But for anything that has structure, you should assume that AI will make at least some progress in breaking that structure. Here, one reasonable inference is that if you want to make something plausibly long-term secure, multiply the key sizes by 10. To me that's a very plausible world and something not at all extreme to predict. If AI will bring us 50 years of math in 2 years, then that 50 years of math may very plausibly include a "naive factoring -> GNFS" level of improvement to our ability to break lattices. In that world, lattices will still exist, but they will have to be significantly bigger to guarantee the same level of safety. And at those new larger sizes, hash-based constructions will beat lattice-based constructions on concrete efficiency in every use case where hash-based constructions are possible at all. Theoretically, of course it's possible that hashes are broken too (eg. P = NP would imply that). But I think P = NP is very unlikely. And intuitively, it's much more likely that a mathematical object has exactly no exploitable structure (like hashes are intended to), than that a mathematical object has exactly ~3 forms of exploitable structure (for elliptic curves: associativity, Schoof, pairings) and not some secret fourth form of structure we have not yet discovered that greatly degrades its security (for elliptic curves, ECDLP and pairing security). Similar for LWE, SVP, RLWE and the zoo of lattice problems. For this reason, we do not yet see any reason to worry and start padding the byte size of hashes (if we start to worry more, we would pad the round count first before doing anything to the byte size). Concrete TLDR, my own personal views: * Hash-based > lattice-based, in those situations where hash-based is possible at all * For anything lattice-based, be much more paranoid on param sizes. Remember that blockchains are only a small portion of the cryptography story; this point goes far beyond blockchains and applies to eg. access to websites, secure messaging, Tor / VPNs ... * For privacy protocols, strongly favor NOT putting encrypted notes onchain. Instead, send them offchain through some third-party mechanism. * If it's not difficult for you, keeping your funds in addresses which have not yet been used to make a transaction is a good idea. If it's easy for you, do it. **But be careful about migrations; I personally have lost more money in botched migrations than I have lost in all hacks combined**. * For multisig wallets, doing confirmations offchain is better than onchain, because this way the signatures of signer wallets do not get exposed to the public, so if ECDSA falls to AI much faster than expected, at least the multisig "gracefully degrades" to a 1-of-1 where the 1 is whoever was gathering the signatures - a much better place to be than "anyone can take the money" firefly.social/post/x/210783…

🚨 Ledger + Trezor cryptocurrency theft toolkit allegedly offered for sale on a cybercrime forum ⠀ A threat actor is advertising what they describe as an “unleaked” Ledger and Trezor exploit toolkit, claiming it can be used to trick cryptocurrency wallet users into authorizing malicious transactions. ⠀ The advertised capabilities include: ⠀ • Support for Ledger and Trezor devices • Custom cryptocurrency and EVM chain selection • Transaction signing workflows • SMS-based victim interaction • Multiple social-engineering flow templates • Custom recipient addresses • Claimed “one-click” transfer functionality ⠀ The actor shared a demonstration showing a Trezor Model T-themed transaction request for 5 ETH, designed to prompt a wallet user to review and sign a transaction. ⠀ The seller claims the toolkit is hosted on their infrastructure and says similar kits have been offered elsewhere for five-figure prices. ⠀ The claims and the functionality, effectiveness and authenticity of the advertised toolkit have not been independently verified. ⠀ 💥 No delays. No guessing. No redactions. Get the intel threat actors see, the moment they post it. darkwebinformer.com/pricing

🇪🇸 SPANISH MUNICIPAL TRANSPORT & CITIZEN DATABASE ALLEGEDLY FOR SALE A threat actor is advertising what they claim is a fresh database extracted from the Low Emission Zone (ZBE) registration portal of a Spanish municipality. According to the listing, the database contains: * 1,110+ unique users * 1,130+ application requests * 1,070+ unique vehicle license plates * National identity numbers (DNI/NIF) * Names, emails and phone numbers * Municipal staff email addresses * Vehicle registration details * Password hashes The seller published a sanitized sample and explicitly markets the dataset for phishing, identity theft and credential-based attacks. ⚠️ Analyst Note: Although the record count is relatively small, the combination of government-linked identities, national ID numbers, contact information and vehicle registrations makes the dataset potentially valuable for highly targeted impersonation and social-engineering attacks. The affected municipality is not identified in the listing, and the authenticity and origin of the database have not been independently verified. #DDW #Spain #DataBreach #DarkWeb

WOW!! That Just Happened!!! This Is PER DAY!! rabidmining.com/crypto-ai-pr…

Someone opened $1m long of XMR!