Chinese Police to Bust $87M Worth Crypto Thieves

To date, this case has already become one of the largest in terms of the amount of stolen cryptocurrency
20 August 2018   894

Chinese police have arrested three suspects in theft of bitcoins and another cryptocurrency in the amount of $ 87 million, reports Xinhua.

The investigation lasted several months. Suspects were arrested in Beijing and the provinces of Hunan and Changchun. Representatives of law enforcement agencies noted that several unnamed Internet companies provided assistance to the authorities in the framework of investigative actions.

In March, victim named Jan reported on the theft from his computer cryptocurrency for $ 14.5 million. First, the police found out the data of one suspect named Zhou, and then it became known about his accomplices.

During the investigation, it was found that the suspects committed a series of cyber attacks on corporate and private networks and were able to steal $ 87 million in cryptocurrency.

The police added that the investigation is continuing. Nevertheless, this case has already become one of the largest in terms of the amount of stolen cryptocurrency assets.

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   982

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.