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first_img American engineer attacked employer's network for ransom of 20 bitcoins, sentenced to 32 months in prison

A former core infrastructure engineer, Daniel Rhyne, from an industrial company in New Jersey, was sentenced to 32 months in prison for attacking his employer's computer network and demanding a ransom in Bitcoin. The 59-year-old Rhyne, who is from Kansas City, Missouri, was sentenced on September 28 by U.S. District Judge Michael A. Shipp in Trenton. He pleaded guilty in April this year to charges including extortion by threatening to damage a protected computer and intentionally damaging a protected computer. The prosecution did not disclose the name of the company, which is headquartered in Somerset County, New Jersey, serving clients in industries ranging from biopharmaceuticals to oil and gas.According to the FBI's criminal complaint, around 4 PM on November 25, 2023, the company's network administrator began receiving hundreds of password reset notifications for accounts, and subsequently discovered that all other domain administrator accounts had been deleted. Forty-four minutes later, employees received an email titled "Your Network Has Been Penetrated," claiming that the company's IT administrator had been locked out, backups had been deleted, and warning that unless 20 Bitcoins (approximately $750,000 at the time) were paid by December 2, an additional 40 servers would be shut down daily for 10 days. The ransom was set at 700,000 euros, to be paid in Bitcoin.Investigators traced the attack back to an unauthorized virtual machine created on the company network on November 9, 2023, with the password "TheFr0zenCrew!", which was subsequently set for the administrator account, 301 user accounts, and the email used to send the ransom note.

first_img NEAR co-founder Polosukhin: On-chain tool expansion, demand for centralized exchanges is decreasing

Illia Polosukhin, co-founder of NEAR Protocol, stated in a live interview at the Digital Asset Summit 2026 held in Singapore that as near.com continues to expand its on-chain services, users no longer need centralized exchanges for "a large amount" of crypto activities. He mentioned that near.com is "almost ready" and has a "large roadmap for continuously adding features," including bank withdrawals, transaction records for tax purposes, and selective disclosure for confidential transactions. He also shared his experience using centralized exchanges, stating that despite knowing the company's CEO, one of his accounts was still deleted.near.com integrates cross-chain spot trading, tokenized stocks, wealth management products, and perpetual contracts into a single interface. Polosukhin indicated that most of the infrastructure for NEAR Intents has been migrated to confidential sharding, keeping transaction activities private, and users can disclose individual transactions when needed. He mentioned that near.com has a lot of fiat-related features coming soon and referenced the collaboration between NEAR and Monerium, allowing users to convert euros in their bank accounts to EURe via IBAN. The ultimate goal of NEAR Intents is to handle "any asset to any asset," such as USD to EUR, SGD to HKD.Regarding tokenized stocks, near.com completed integration with Ondo Finance in September, allowing users to convert euros into tokenized NVIDIA stocks, with NEAR planning to add more stocks from global markets.

first_img Europol report: Cryptocurrency wallets are the main risk points for quantum attacks

On Wednesday, the European Union law enforcement agency Europol released two reports urging the industry and policymakers to proactively address the threats posed by quantum computing. One report, titled "Quantum Computing and Cryptocurrency," written by Europol's European Cybercrime Centre, points out that cryptocurrency wallets are "the main exposure point for quantum threats." Wallets rely on private keys for authorized transactions and public keys for verification; a sufficiently powerful quantum computer could derive the private key from an exposed public key, allowing attackers to access funds without authorization, a moment often referred to as Q-Day. The report states that the hash functions used to link blocks and support mining are fundamentally resistant to quantum attacks.The report believes that cryptocurrency will not collapse due to quantum computing but recommends adopting "proactive defenses," including a phased transition to quantum-resistant cryptography and improving wallet security and key management. Wallets with public keys exposed on-chain cannot be remedied afterward, and the report states that the only solution is to migrate in advance. Glassnode estimated in May this year that 6.04 million BTC (30.2% of the issued supply) have exposed public keys. Upgrading Bitcoin also comes with costs: NIST standardized post-quantum signatures are 10 to 120 times larger than the ECDSA signatures currently used in Bitcoin, which could lead to block space overload and increased transaction fees. The report cites a 2024 study estimating that migrating all unspent transaction outputs would require at least 76 days of cumulative downtime.The second report, "Collect First, Decrypt Later," was completed in collaboration with Carlos III University of Madrid in Spain. It studies the behavior of attackers who collect encrypted data today and decrypt it in the future, finding risks in protocols such as TLS, SSH, and OpenPGP.

first_img Hyperliquid CEO: The Wall Street wealth creation model is unsustainable for most participants

The co-founder and CEO of the decentralized perpetual contract trading platform Hyperliquid, Jeff Yan, stated during a fireside chat at the Token2049 conference in Singapore that traditional wealth creation opportunities on Wall Street, such as company stocks, are essentially inaccessible to the investing public before they are listed on exchanges, causing retail investors to miss out on the most significant price increases prior to listing. He noted that certain assets are tradable by only a few people during most of their growth phases, and by the time the public can trade them, the growth has already been captured by a privileged few, making this wealth creation model unsustainable.Yan stated that Hyperliquid's main mission is to expand the accessibility of wealth creation opportunities and encourage more people to participate in the financial system, with income being merely a byproduct. He mentioned that Hyperliquid's success partly stems from its perpetual contracts having no expiration date, which reduces the number of decisions traders need to make and prevents liquidity fragmentation. According to data from DefiLlama, Hyperliquid generated $72 million in revenue over the past 30 days, ranking third among protocols in terms of revenue.Blockchain asset management company Pantera stated in July that perpetual contracts, due to their structural advantages, could become one of the dominant trading tools in the global financial sector, and Hyperliquid has demonstrated the potential of blockchain infrastructure to challenge traditional markets. Jeffrey Sprecher, CEO of the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, called on regulators to create a fair competitive environment for the launch of 24/7 on-chain perpetual contracts. In March of this year, the New York Stock Exchange partnered with the tokenization platform Securitize to advance blockchain-based stock trading infrastructure.

U.S. Senate Investigation: USDT is a key liquidity channel for Iran's shadow banking, Gulf VASP faces higher sanction risks

A report from the U.S. Senate Permanent Subcommittee on Investigations (PSI) identifies stablecoins, particularly USDT, as a key liquidity channel supporting Iran's shadow banking system. Licensed virtual asset service providers (VASP) in the Gulf Cooperation Council (GCC) region face heightened sanctions compliance pressure and need to enhance wallet ownership identification and counterparty assessment.Soham Jethani, a partner at the law firm Septten, stated that merchants settling crypto assets into local fiat currency do not necessarily avoid sanctions risks. Liability may involve designated entities, the provision of funds or economic resources, and asset handling within the transaction chain, potentially arising before the final settlement by banks. Jethani pointed out that the name of the stablecoin or the currency in which it is priced does not determine legal ownership; specific rights depend on contractual arrangements and actual payment processes.Globally circulating stablecoins may also pose secondary sanctions risks, as indirect or historical wallet associations do not automatically constitute violations and must be assessed in conjunction with applicable regulations, transaction participants, and specific facts. In regulated markets like the UAE, licensed exchange wallets are continuously monitored, and related funds can be frozen before consumption settlements, with merchants also required to complete KYC. Regulated VASPs handling deposits and withdrawals bear the responsibility for counterparty and sanctions risk assessment and corresponding controls.
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