New Trump's Unit to Help Fight Crypto Fraud

'Task Force on Market Integrity and Consumer Fraud' must solve a number of problems related to fraud prevention
12 July 2018   1181

President of the United States Donald Trump signed an order, according to which a working group will be created, which, among other things, will develop a guide for the investigation of crimes in the field of digital currencies. This is reported by CoinDesk.

New unit is called the 'Task Force on Market Integrity and Consumer Fraud'. According to the presidential order, published on the website of the White House, task force must solve a number of problems related to fraud prevention. The cryptocurrency industry is mentioned in the document in the context of "digital currency fraud", which is one of the priority issues on which the working group "provide guidance for the investigation and prosecution of cases involving fraud".

In what form the leadership will be issued, it is not clear, but it can be assumed that the working group will draw up a report for the presidential administration.

A lot of these schemes involve bitcoin and other cryptocurrencies which do not flow through the traditional financial system. What we're working on now with our cybercrime task force is a working on a comprehensive strategy to deal with that.
 

Rod Rosenstein

Deputy Attorney General, USA

At the same time, Trump's new initiative does not cause surprise. This year, US authorities announced that they are working on a "comprehensive" strategy for crypto-currencies aimed at addressing the problem of fraud in this industry. In February, the Ministry of Justice formed a working group on cybersecurity, which also deals with crypto-currencies.

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   1026

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.