Britains to Lose $34M Due to Crypto & Forex Fraud

Despite the fact it's big amount, it decreased from $ 48 million during pre-previous period
21 May 2019   723

The Financial Conduct Authority (FCA) of the United Kingdom reported that over the past year, the number of crypto and Forex scams has tripled (from 530 to 1834).

However, despite the growth in the number of fraudulent schemes, the total amount of investor losses for the year decreased from £ 38 million ($ 48 million) to £ 27 million ($ 34 million). The average size of losses per investor also fell from £ 59,600 ($ 75,827) to £ 14,600 ($ 18,575).

According to the financial regulator, in most of the fraudulent schemes (81%) cryptocurrencies are involved. In addition, FCA reported that in order to attract people into their projects, scammers often use social networks, promise quick profit to inexperienced investors, and also use fake celebrity statements.

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   975

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.