$69M Crypto Scam Busted in Japan

According to law enforcement agencies, about 6,000 people participated in the project called Sener, that turned to be a financial pyramid
15 November 2018   1056

Tokyo police have arrested eight people who are suspected of creating a cryptocurrency financial pyramid called Sener. According to the Asahi Shimbun, the organizers raised $ 69 million (7.8 billion yen).

It follows From the police reports that the company is not registered with the Financial Services Agency of Japan. In October, 73 people filed for Sener with a claim for damages amounting to $ 3.3 million (370 million yen). According to law enforcement agencies, about 6,000 people participated in the project. Six suspects have already pleaded guilty, two deny.

Also, according to a police report, Sener has invested in cryptocurrency. The organizers promised from 3% to 20% of profits every month, and if investors bring in new participants, the payout percentage will increase.

The company conducted seminars with the involvement of foreign speakers, which were posted on YouTube.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   979

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.