Search: “Liquid Network”

Hackers Drain $320 Million From Liquid Network, Then Return Most of It

Hackers exploited an Elements bug to drain about 4,000 BTC (~$320M) from Liquid Network's federation wallet, then returned 3,400 BTC after Blockstream patched.

An attacker drained roughly 4,000 of 4,200 BTC (~$320M) from Bitcoin's Liquid Network federation wallet on September 6 by exploiting a bug in Elements, the open-source code powering the sidechain, which allowed unbacked L-BTC tokens that were redeemed for real Bitcoin through SideSwap's authorized peg-out mechanism. The self-described white-hat attackers negotiated publicly via OP_RETURN on-chain messages, demanding the bridge nodes be patched before returning 3,400 BTC (~$262.6M) and keeping about 598 BTC (~$47M). Blockstream confirmed the affected bridge nodes were patched; the network remains paused while federation members complete security work, and experts debate whether the act legally constitutes extortion.

Security Affairs·Sep 8, 20:35 UTC · 7d agoExploit / PoC in the wild

Hackers drain $320M in Bitcoin from Liquid Network, claim they’re the good guys

Hackers withdrew roughly 4,000 BTC (about $320M) from the Liquid Network federation wallet backing the Blockstream-developed Bitcoin sidechain, claiming benign intent.

Blockstream said Sunday that around 4,000 BTC, roughly $320 million, was withdrawn from the federation wallet backing Liquid Network, a Bitcoin sidechain used by exchanges and financial institutions. The attackers publicly claimed they were 'the good guys'; no attribution or recovery details are provided. The theft affects infrastructure that backs custodial Bitcoin transfers for exchanges.

DataBreaches.net·Sep 7, 16:37 UTC · 9d agoData breach in the wild

Hackers Return $263 Million Stolen From Liquid Network

Hackers drain roughly 4,000 BTC (~$320M) from Liquid Network federation wallet, then return 3,400 BTC with ~598 BTC still outstanding.

Attackers withdrew about 4,000 Bitcoin (roughly $320 million) from the Liquid Network federation wallet, which held approximately 4,200 BTC, via the SideSwap Peg-out Authorization Key without that key being compromised. Blockstream disabled nodes and suspended transactions after disclosing the heist on Sunday. Alleged white-hat hackers returned 3,400 BTC (~$262.6M) on Monday, demanding the underlying bug be patched before releasing the remaining ~598 BTC (~$47M). The network remains paused while fixes and a safe restart are prepared.

SecurityWeek·Sep 8, 16:35 UTC · 8d agoData breach in the wild

Hackers drain $320M in Bitcoin from Liquid Network, claim they're the good guys

Attackers withdrew about 4,000 BTC (~$320M) from Liquid Network's federation wallet via a SideSwap peg-out, claiming whitehat status.

Hackers drained roughly $320 million in Bitcoin — about 4,000 BTC, 95% of holdings — from the federation wallet backing Blockstream's Liquid Network sidechain. The withdrawal occurred through SideSwap using its Peg-out Authorization Key (PAK), yet no PAK appears to have been compromised, and the exact mechanism remains under investigation. The actors embedded an on-chain message identifying themselves as whitehats, asked Blockstream to patch federation nodes first, and promised to return most of the funds after fixes are confirmed. Liquid disabled its bridge nodes and asked exchanges to suspend L-BTC deposits and withdrawals; other Liquid assets and the Bitcoin network were unaffected.

The Register · Security·Sep 7, 13:26 UTC · 9d agoExploit / PoC in the wild

Liquid Hackers Return 3,400 Bitcoin Taken via Elements Bug, Still Holding $47M in BTC

Hackers exploited an Elements bug to take ~4,000 BTC from Liquid Network, returned 3,400 BTC (~$265M), and still hold ~598.5 BTC (~$47M).

Attackers exploited a bug in Elements, the software behind Blockstream's Liquid Network Bitcoin sidechain, to create L-BTC and withdraw roughly 4,000 BTC (about $320 million) via SideSwap's Peg-out Authorization Key, roughly 95% of Liquid's reported reserves. They returned 3,400 BTC (about $265 million at ~$78,000 per BTC) to the federation address on September 7, keeping about 598.5 BTC (roughly $47 million). The group called itself white hats, demanded node patches before returning funds, and negotiated via on-chain and PGP-encrypted messages; Ledger CTO Charles Guillemet characterized the arrangement as extortion. Blockstream says the peg-out key and other keys were not compromised, updated software is deployed, and the network remains paused pending a coordinated restart.

The Hacker News·Sep 8, 14:54 UTC · 8d agoExploit / PoC in the wild

‘White hat’ hackers take $47 million bounty after $320 million crypto theft

Hackers withdrew $320 million in bitcoin from Liquid Network, negotiated on-chain, returned $266.5 million and kept a $47 million reward.

Purported white-hat hackers withdrew 4,000 BTC (about $320 million) from Liquid Network's own wallet, one of the largest cryptocurrency thefts of 2026. Over roughly 12 hours of public on-chain negotiation with operator Blockstream, the hackers returned $266.5 million in bitcoin and kept 598.5 BTC (about $47 million), claiming it as a reward for uncovering a bug. Blockstream deployed updated software and paused deposits and withdrawals while experts traced the flaw to the Elements sidechain framework. April thefts of $290 million from Kelp and $280 million from Drift, attributed to North Korean hackers, were previously 2026's largest.

The Record·Sep 8, 17:00 UTC · 8d agoData breach in the wild

A hacker stole $340M in a crypto heist, then returned most of it

A hacker exploited a bug to steal about 4,000 BTC (~$340M) from Blockstream's Liquid Network, then returned roughly 3,400 BTC after the bug was fixed.

A hacker exploited a bug to withdraw roughly 4,000 bitcoins worth about $340 million from Liquid Network, a settlement service launched in 2018 by crypto firm Blockstream and used by several cryptocurrency exchanges. Liquid Network paused operations, and the hacker, described as a white hat, offered to return the funds once the bug was fixed. Former Blockstream executive Samson Mow said the bug was fixed and about 3,400 BTC (~$293M) returned, leaving roughly 600 BTC (~$47M) under the hacker's control pending further security improvements. Rekt's leaderboard ranks the heist among the largest cryptocurrency thefts to date.

TechCrunch · Security·Sep 8, 14:11 UTC · 8d agoExploit / PoC in the wild

Risky Bulletin: BEC campaign steals €35 million from French notaries

Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.

A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.

Risky Business News·Sep 7, 03:42 UTC · 9d agoPhishing & fraud in the wild1

Fly Language Model (FLM) Wires the Full Fruit Fly Connectome Into a Frozen 1.2B LLM, and Its Own Controls Show the Wiring Does Not Help

Researchers wire the full fruit fly connectome (166,700 nodes) into a frozen LiquidAI LFM2.5-1.2B LLM, but controls show no fly-specific benefit.

The Fly Language Model (FLM) couples the complete MaleCNS v1.0 fruit fly connectome (166,700 nodes, 25,582,938 edges) to a frozen LiquidAI LFM2.5-1.2B-Instruct backbone, training only a 278,528-parameter readout (~0.0238% of backbone parameters). The fly readout improved NLL by 0.0222 nats/token (perplexity 3.98 to 3.90) on 32 SmolTalk dialogues, but a direct-input control without the graph beat it in all three seeds. Relabeling node identities removes the gain and the recurrence contracts state differences by 0.6 per token, so the connectome adds no long-range memory. The MIT-licensed code runs locally on Python 3.12, but study artifacts remain private, limiting independent reproducibility.

MarkTechPost·Sep 12, 18:51 UTC · 3d agoAI research1

Risky Bulletin: Ukraine's top prosecutor resigns amid scam call center scandal

Ukraine's top prosecutor Ruslan Kravchenko resigned after NABU arrested a deputy for taking bribes protecting scam call centers running fake investment platforms.

Ukraine's anti-corruption bureau NABU arrested Serhiy Kropyva, Deputy Head of International Cooperation at the Prosecutor General's Office, alleging officials took monthly protection fees from a network of 100-500 scam call centers luring victims into fake investment platforms, with bribes reportedly growing from $700,000 to $3.5 million per month. Prosecutor General Ruslan Kravchenko resigned on Monday, calling it a political decision, while Kropyva was fired with bail set at 120 million hryvnias ($2.7 million) and over 100 call centers shut down in the past month. The newsletter also briefly covers a cyberattack crippling more than 80 Luxembourg medical practices via payment vendor BMS Engineering, ShinyHunters' claimed theft of 200,000 Florida DMV driver records, a cyberattack on the American Meteor Society, and school closures in Springfield, Massachusetts.

Risky Business News·Sep 9, 06:06 UTC · 7d agoPhishing & fraud

HybridFLow: SDN-Orchestrated Client Partitioning for Hybrid Federated Learning

HybridFLow uses SDN topology visibility to partition federated-learning clients into sync/async groups, reaching 80% accuracy 33-40% faster than SmartFLow.

HybridFLow is a closed-loop, SDN-driven orchestration framework for hybrid federated learning that integrates network-layer intelligence into cross-silo training. It leverages the SDN controller's global topology view to generate calibrated per-client communication-time estimates, partitioning clients into synchronous and asynchronous groups while balancing round latency and update staleness, with measured times fed back after each round. Across multiple network topologies it reaches 80% target accuracy 33-40% faster than SmartFLow and cuts average round duration by 30-40 seconds, while FedAsync fails to reach target accuracy under non-IID data.

arXiv cs.AI / cs.LG / cs.CL·Sep 9, 16:23 UTC · 7d agoAI research

Security Affairs newsletter Round 594 by Pierluigi Paganini – INTERNATIONAL EDITION

Weekly Security Affairs newsletter aggregates top stories including Cisco FMC exploitation, Qilin ransomware, Chrome zero-days, and Berlin leak.

Pierluigi Paganini's Security Affairs newsletter Round 594 (International Edition) rounds up the week's security headlines. Topics include attackers exploiting a critical Cisco FMC flaw to deploy Qilin ransomware, SonicWall mass exploitation linked to a UK council attack, multiple CISA KEV additions, Chrome zero-days used by four nation-state actors, a $320 million Liquid Network theft, and a Berlin ransomware data leak. It also covers AI security items such as agent sandbox failures and distillation campaigns by Chinese AI firms.

Security Affairs·Sep 13, 14:23 UTC · 3d agoIndustry in the wildCVE-2026-42016CVE-2026-42018CVE-2026-82329+1 CVEs1

Meme Coin Factories: Uncovering Large-Scale Manipulations on pump.fun

Large-scale pump.fun study of 15 million meme coins identifies five manipulation classes including wash trading and a Market-Manipulation-as-a-Service ecosystem.

Researchers analyzed all 15 million coins launched on pump.fun over the last two years plus large random samples of transaction data, identifying five manipulation classes: wash trading, creator address obfuscation, coordinated sells, copycat coins, and social media manipulation. Strategic actors bypass the platform interface and implement strategies in a highly automated, low-latency way by interacting directly with the blockchain. The study also uncovers Market-Manipulation-as-a-Service (MMaaS) third-party tools that let non-technical users run these manipulations, and proposes mitigations for traders, pump.fun, and regulators.

arXiv cs.CR·Sep 9, 14:35 UTC · 7d agoResearch

Srsly Risky Biz: America's Drivers Licence Breach is a National Security Disaster

Dark web service Nexus sold 153 million US and Canadian driver's licenses, linked to identity verification firm IDScan under FBI investigation.

Krebs On Security reported that a dark web service called Nexus sold access to 153 million US and Canadian driver's licenses, claiming over a year of continuous exfiltration from a major identity verification company, with roughly 400,000 new licences added in a single day. Krebs verified the data as genuine and linked the incident via circumstantial evidence to identity verification firm IDScan, whose licences of senior US officials including Secretary of War Pete Hegseth appeared in the database; the FBI is investigating and IDScan has confirmed a breach inquiry. The article argues the data has national security implications, citing how Chinese APT espionage (Anthem, Equifax, Marriott, OPM) and Bellingcat investigations exploited leaked databases. Class action suits are being prepared, and the piece calls for stricter oversight of identity verification firms.

Risky Business News·Sep 10, 03:32 UTC · 6d agoData breach in the wild

LimiX-2: A Contextual Mechanism Network Towards General Structured-Data Intelligence

LimiX-2 scales Contextual Mechanism Networks pretrained via context-conditional masked modeling, beating tabular foundation models on TabArena, TALENT, and BCCO benchmarks.

LimiX-2 is a new tabular model in the LimiX family, developed through model and data scaling guided by previously established scaling laws under the Contextual Mechanism Networks (CMNs) paradigm. It is pretrained with Context-Conditional Masked Modeling (CCMM) on synthetic datasets generated by structural causal models spanning diverse graph structures, functional mechanisms, and observation processes. It outperforms dataset-specific models and tabular foundation models on TabArena, TALENT, and BCCO, and its feature attention encodes direct causal relationships, enabling accurate causal skeleton recovery.

arXiv cs.AI / cs.LG / cs.CL·Sep 15, 17:30 UTC · 1d agoAI research1

America's Driver's License Breach Is a National Security Disaster

Dark web service Nexus sells 153 million US/Canadian driver's licenses linked to a breach of identity verifier IDScan.

Krebs on Security revealed a dark web service, Nexus, selling access to 153 million driver's licenses and 3 million travel documents from US and Canadian citizens, roughly 63 percent of all US licenses. Circumstantial evidence links the data to identity verification firm IDScan, which confirmed it is investigating a breach, and the FBI is probing the incident. Licenses belonging to senior US officials, including Pete Hegseth, an FBI assistant director, and Krebs's own contacts were verified as genuine. The exfiltration appears ongoing, with the database growing by nearly 400,000 licenses in a single day, and the data carries significant national security value for foreign intelligence services.

Hacker News · security·Sep 15, 15:58 UTC · 1d agoData breachHN 26↑ · 4 comments3· 1 read

Hackers have withdrawn ~4k BTC (~$320M) from the Liquid Federation wallet

Hackers reportedly withdrew about 4,000 BTC (~$320 million) from the Liquid Federation wallet, according to a widely shared report on X.

A post on X reports that hackers withdrew roughly 4,000 BTC — valued near $320 million — from the Liquid Federation wallet. The source text provides no details on the compromise method, attribution, custody impact, or any organizational response. The story drew heavy attention on Hacker News (125 points, 86 comments), indicating broad community concern.

Hacker News · security·Sep 6, 22:43 UTC · 9d agoData breach in the wildHN 125↑ · 86 comments

From Megawatts to Tokens: How NVIDIA Maximizes AI Factory Production

NVIDIA detailed DSX power-management results: Lambda gained 24% token throughput at fixed power, and an AI factory auto-shed 1MW via Emerald AI's grid program.

NVIDIA says Lambda's first validation of DSX MaxLPS on HGX B200 servers ran 19 nodes within a 16-node power budget, lifting cluster token throughput 24% (roughly 4M to 5M tokens/second) and improving performance per watt by 23%. NVIDIA projects DSX MaxLPS can enable up to 40% more GPU capacity for Vera Rubin NVL72 factories within the same megawatt budget. Emerald AI's Conductor platform, running at NVIDIA's Eos factory with Silicon Valley Power, responded to over 200 utility demand signals, automatically dropping power from 4MW to 3MW without interrupting priority workloads. The first dedicated DSX Flex commercial deployment is planned at a 96-megawatt Manassas, Virginia facility.

NVIDIA Blog·Sep 15, 16:55 UTC · 1d agoAI industry

Embedded Graph Flows for Categorical Graph Generation

Researchers propose Embedded Graph Flows, a generative model with learned categorical embeddings that beats DiGress and GruM on molecular graph benchmarks.

Embedded Graph Flows (EGF) learns continuous embeddings for node and unordered-edge categories and transports Gaussian noise toward these endpoints using a permutation-equivariant graph transformer. On QM9 it achieves the best result on all four reported metrics, with a Fréchet ChemNet Distance of 0.150 versus 0.717 for DiGress and 0.812 for GruM. On ZINC250k it retains the lowest NSPDK MMD, indicating close agreement with local substructures of reference molecules. Code is released on GitHub.

arXiv cs.AI / cs.LG / cs.CL·Sep 4, 16:26 UTC · 12d agoAI research1

With iOS 27, I’m actually using Siri again

Apple's rebuilt Siri, powered by Google Gemini models in iOS 27, finally handles complex multi-step and on-screen-context requests, per TechCrunch review.

Apple's iOS 27 ships a redesigned Siri built on Google's Gemini models, supporting multi-step instructions, on-screen context, file/message/email lookups, and camera viewfinder queries. Siri AI gets a dedicated app with chat history, plus settings for voice and expressiveness. Apple Intelligence also adds natural-language Shortcuts creation and automatic password rotation in the Passwords app.

TechCrunch · AI·Sep 14, 17:10 UTC · 2d agoAI industry

Up to 3.2x Faster Inference with LFM2.5-DSpark

LiquidAI's LFM2.5-DSpark delivers up to 3.2x faster inference, announced via the Hugging Face blog.

LiquidAI announced LFM2.5-DSpark on the Hugging Face blog, claiming up to 3.2x faster inference. The release focuses on improved runtime performance for the LFM2.5 model family; further technical details were not available in the provided text.

Hugging Face Blog·Aug 20, 16:52 UTC · 27d agoAI tools & infra

What stops attackers wrecking industrial plants is knowing how

Help Net Security·Aug 5, 00:00 UTC · Aug 5, 2026Ransomware

Show HN: LLM Attention Visualization

A developer released a browser-based tool that visualizes which past tokens influence each LLM output token using aggregated, value-weighted attention scores.

A Show HN project presents a React application built on Transformers.js that renders per-token attention influence by aggregating attention weights scaled by value-vector magnitudes across all attention heads and layers. To expose internal tensors, the author instrumented the ONNX computation graph, hosted a modified model on Hugging Face, and pre-generated prompts to avoid long model downloads in the browser. Demos with a 600-million-parameter model show how verbatim copying draws heavily on source tokens and how single outputs blend information from multiple phrases.

Hacker News · AI·Sep 8, 16:59 UTC · 8d agoAI tools & infraHN 41↑ · 9 comments

d-Matrix Adopts NVIDIA NVLink Fusion for Rack-Scale XPU Deployment

d-Matrix will integrate its Raptor inference XPUs with NVIDIA NVLink Fusion, MGX racks and Spectrum-X networking for rack-scale AI factory deployment.

Inference chipmaker d-Matrix announced adoption of NVIDIA NVLink Fusion to connect its next-generation Raptor XPUs to NVIDIA's scale-up and scale-out networking, MGX rack architecture, and broader AI factory platform. NVIDIA claims 3x lower XPU-to-XPU latency than off-the-shelf Ethernet and 3 TB/s per-XPU all-to-all bandwidth via sixth-generation NVLink. d-Matrix plans to integrate Vera CPUs, ConnectX-9 SuperNICs, BlueField-4 DPUs and Spectrum-X Ethernet, with racks able to work alongside Vera Rubin NVL72 GPU systems. Other NVLink Fusion partners include AWS, Arm, Intel, Fujitsu, Marvell, MediaTek, Samsung and Cadence.

NVIDIA Blog·updated 15:00 UTC · 3h ago·first Sep 10, 13:00 UTC · 6d agoAI industry 2 sources

Model-Aware Schedules Improve Generation via Fiberwise Optimal Transport

Researchers introduce model-aware diffusion schedules via fiberwise optimal transport, cutting flow-matching FID on CIFAR-10 by 38.6% at 16 function evaluations.

The paper proposes constructing diffusion and flow-matching sampling schedules from a fiberwise prediction risk defined via optimal transport, combined with coefficient-path kinetic action, yielding a closed-form time allocation. Across DDPM and flow-matching experiments spanning targets, datasets, and architectures, the schedules beat model-agnostic baselines, including a 38.6% relative FID reduction for flow matching on CIFAR-10 at 16 function evaluations. Normalized fiberwise-risk profiles from independently trained models align closely, suggesting empirical universality, and a frozen analytic allocation template retains most of the gains.

arXiv cs.AI / cs.LG / cs.CL·Sep 10, 17:30 UTC · 6d agoAI research

Week in review: Cisco fixes IMC bug, Patch Tuesday forecast, Black Hat USA 2026

Help Net Security·Aug 9, 00:00 UTC · Aug 9, 2026VulnerabilityCVE-2026-66066CVE-2026-185771

Operation ASTERIX: Anatomy of a Crypto Fraud Pipeline

Rapid7 exposed infrastructure behind a cryptocurrency fraud pipeline using phishing panels, voice-dialing scripts, fake wallets, and AI coding assistants.

Rapid7 researchers identified an exposed web directory on infrastructure used to support a cryptocurrency fraud operation tracked as Operation ASTERIX. The server contained raw phone-number datasets, account-validation tools, enriched lead records, phishing panels, voice-dialing scripts, fake wallet applications, persistence mechanisms, and Telegram exfiltration code. Recovered prompts, shell history, and project files show the operator relied on AI coding assistants to package Electron applications, obfuscate code, troubleshoot builds, and modify phishing infrastructure.

Rapid7 Blog·Aug 17, 11:29 UTC · Aug 17, 2026Phishing & fraud

Solidity Pro VS Code Extensions Steal Crypto Wallets, API Keys, and Credentials

The Hacker News·Aug 10, 10:57 UTC · Aug 10, 2026Malware1

Cyberattack causes network outage at Boston Scientific, disrupts global operations

Boston Scientific disclosed a cyberattack that caused a network outage, disrupting global operations including order processing and shipping.

The medical device maker detected the incident on August 25, activated incident response protocols with third-party cybersecurity experts, and told the SEC that access to systems supporting operations, including order processing and shipping, was disrupted. Boston Scientific employs about 59,000 people across 127 countries and posted more than $20 billion in net sales in 2025; it has not determined whether the incident is material and no group has claimed responsibility. The company joins a recent run of medtech attacks including Stryker, iRhythm, Novo Nordisk and Xsolis.

Help Net Security·Aug 27, 00:00 UTC · 20d agoData breach

Thelio Mira AI Linux Workstation: 192 GB GPU Memory

System76 launches the Thelio Mira AI Linux workstation from $3,299 with dual NVIDIA RTX Pro 6000 GPUs and 192 GB GPU memory for local AI workloads.

System76's Thelio Mira AI is a locally built (Denver, Colorado) Linux workstation for AI training, fine-tuning, and inference, starting at $3,299. Configurations go up to a 16-core AMD Ryzen 9000 CPU, 192 GB DDR5 RAM, and dual NVIDIA RTX Pro 6000 Blackwell GPUs delivering 192 GB of (ECC) GPU memory with liquid cooling, dual PCIe 5.0 x16 slots, and up to three M.2 NVMe drives. It ships with Pop!_OS 24.04 LTS or Ubuntu and is positioned as a way to avoid recurring cloud GPU costs.

Hacker News · AI·Sep 10, 23:10 UTC · 5d agoAI industryHN 44↑ · 27 comments

[AINews] OpenAI reports Navier-Stokes singularity find in 88 hours using Astra-next, roughly 10,000 agents and 130B tokens (>$40M), a contender for second ever Millennium Prize awarded

OpenAI-linked accounts claim roughly 10,000 AI agents produced a Navier-Stokes singularity result in 88 hours, pending mathematical verification.

OpenAI-affiliated accounts claim a system of roughly 10,000 agents, trained over about a year with multi-agent reinforcement learning, produced a finite-time singularity result related to the Navier-Stokes Millennium Problem. The claimed 88-hour runtime and 130B-token cost circulate only via social posts, and no preprint, theorem statement, or proof artifact is available. Acceptance by the mathematics community is unresolved, so the claim's epistemic status remains unknown. The roundup also notes Cognition's $48B and Mistral's $24B fundraises, GPT Image 2.5, and Meta's Muse agent relaunch.

Latent Space·Sep 9, 05:04 UTC · 7d agoAI research1

Treasury urges banks to file cyber scam reports, noting nearly $13 billion in losses since 2023

FinCEN urged banks to report cyber scams after a study found $12.7 billion stolen from US victims of crypto investment scams since 2023.

FinCEN analyzed more than 33,000 cyber fraud incident reports filed by roughly 1,300 financial institutions between September 2023 and December 2025, finding about $12.7 billion in losses to cryptocurrency investment scams across all 50 states. Traditional banks reported about $6.4 billion in suspected scam activity and crypto firms about $5.5 billion. Scam activity is growing, with monthly reports rising nearly 11% as centers expand beyond Myanmar, Cambodia, and Laos. The US later sanctioned Xinbi Guarantee, a Telegram-based marketplace used to launder over $36 billion.

The Record·Sep 10, 21:15 UTC · 5d agoPhishing & fraud 4 sources

Anthropic Says Seven China-Based AI Labs Ran Industrial-Scale Claude Distillation Attacks

Anthropic disrupted industrial-scale unauthorized Claude distillation by seven China-based AI labs, including Alibaba, DeepSeek, Moonshot, and Z.ai.

Anthropic identified and disrupted six illicit distillation campaigns since February 2026 run by seven China-based labs: Alibaba, Moonshot, DeepSeek, Z.ai (Zhipu), MiniMax, Xiaomi, and SenseTime. The largest, GTG-16005, involved 151 million exchanges targeting Claude Opus 4.6/4.7 chain-of-thought transcripts, peaking at roughly 3 million exchanges per day from more than 3,500 fraudulent accounts. Labs used proxy/relay services with fictitious identities, fake or stolen credit cards, harvested API keys, and purchased conversation transcripts from third-party resellers. Anthropic is countering by banning reseller accounts, summarizing internal reasoning before responding, and introducing preserved thinking in Fable 5.1, which encrypts reasoning and prevents context edits before it.

The Hacker News·Sep 11, 16:15 UTC · 5d agoAI safety & security 10 sources

Why the current tech backlash feels different

The Verge's Decoder mailbag discusses the current tech backlash, arguing AI hype overstates verifiability outside software engineering.

Nilay Patel's Decoder mailbag episode addresses listener feedback on the widely discussed 'software brain' essay. He argues AI hype is concentrated on software because code is verifiable through compilation, while domains like drug discovery, math and science lack equivalent verifiability. The episode also touches on AI backlash, surveillance, data centers and upcoming midterm coverage.

The Verge · AI·Sep 10, 14:00 UTC · 6d agoAI industry1

Making Knowledge Distillation Cheap Enough to Run at Scale

Hugging Face blog by Multiverse Computing describes techniques making knowledge distillation cheap enough for large-scale training.

A Hugging Face blog post from Multiverse Computing (CAI) presents methods for reducing the cost of knowledge distillation so it can be run at scale. The post is aimed at practitioners compressing large models into smaller, cheaper ones for production use.

Hugging Face Blog·Aug 10, 10:05 UTC · Aug 10, 2026AI research

Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

A distillation framework compresses LLM reasoning into a 15.5M-parameter trade-up recommendation model reaching AUC 0.941 with product-type test-time training.

The paper targets trade-up recommendation, which identifies higher-quality alternatives that preserve customer purchase intent. A retrieval-augmented few-shot LLM teacher generates labels and rationales that supervise a compact embedding-pair classifier; at inference the 15.5M-parameter student uses only two precomputed 768-dimensional embeddings with no LLM calls. On 8,352 annotated pairs, label-only training scored AUC 0.912, reasoning distillation reached 0.924, and product-type test-time training lifted it to 0.941 with average precision 0.940. The distilled student is roughly 5,000x faster and 10,000x cheaper than direct LLM inference on a 100K-pair proxy catalog.

arXiv cs.AI / cs.LG / cs.CL·Sep 4, 17:08 UTC · 12d agoAI research

New infosec products of the week: August 21, 2026

Weekly product roundup covering NETSCOUT outbound DDoS mitigation, F5 AI Gateway enhancements, Intezer Workflows, and Tufin TOS 5.3.

NETSCOUT extended Adaptive DDoS Protection to automatically mitigate outbound attack traffic for service providers. F5 enhanced its AI Gateway and integrated it into the F5 AI Security Platform for unified AI access governance. Intezer launched Workflows, native automation and response inside its platform without a separate SOAR, and Tufin released Orchestration Suite 5.3 with AI-powered Segmentation Intelligence for multi-vendor environments.

Help Net Security·Aug 21, 00:00 UTC · 26d agoTools

🔬“We have foundation models for language, not for physics” — Anima Anandkumar, Bren Professor of Computing

Caltech professor Anima Anandkumar discusses Neural Operators and FourCastNet for physics modeling, arguing inductive biases beat pure token scaling.

Anima Anandkumar, Bren Professor at Caltech and co-founder of Accelerated Understanding, describes Fourier Neural Operators that learn in frequency and spherical-harmonic domains to model weather, fusion, and fluid or heat flow. Her team built FourCastNet 3, a global weather model competitive with physics-based simulations that runs on consumer-grade GPUs. She also introduced TorchLean, a framework for writing PyTorch-style networks inside the Lean proof assistant for formal verification, and was appointed to the United Nations Scientific Advisory Board. She argues physical domains resist scaling due to tiny datasets and context lengths in the hundreds of billions, so progress comes from built-in structure and physical priors.

Latent Space·Aug 26, 15:15 UTC · 21d agoAI research1

Scalability Analysis of Distributed Kolmogorov-Arnold Network Training on High-Performance Computing Systems

An empirical study shows distributed Kolmogorov-Arnold Network training reaches 74.7% parallel efficiency at 8 A100 GPUs, with overheads driven by All-Reduce choices.

The study evaluates data-parallel Kolmogorov-Arnold Network (KAN) training on the FinisTerrae III supercomputer using up to 8 NVIDIA A100 GPUs across 4 nodes with PyTorch Distributed Data Parallel. Strong scaling yields 5.97x speedup and 74.7% parallel efficiency at 8 GPUs, comparable to conventional deep learning workloads, while communication overhead ranges from 1.3% to 6.1%, driven mainly by All-Reduce algorithm selection and inter-node latency rather than KAN's edge-wise gradient structure. Weak scaling shows an initial single-to-multi-GPU throughput drop followed by stability, and the parameter-to-memory ratio improves with model size even as training time scales unfavorably. The authors provide GPU topology and model-size deployment guidelines for KAN training.

arXiv cs.AI / cs.LG / cs.CL·Sep 7, 16:45 UTC · 9d agoAI research1

Decentralized network congestion control for DAG-based distributed ledger system

Researchers propose node-specific variable proof-of-work to curb transaction spamming in DAG-based distributed ledgers, proving a Nash equilibrium enforces prescribed node behavior.

The paper proposes a variable, behavior-based node-specific proof-of-work model for DAG-based distributed ledger networks, where congestion is mainly driven by transaction spamming rather than user growth or token launches. The model grants equal opportunity to stakeholders regardless of computational resources and penalizes nodes issuing more than a prescribed number of transactions. System behavior is modeled as a non-cooperative game over finite network resources, and the authors prove existence of a Nash equilibrium enforcing the prescribed behavior.

arXiv cs.CR·Sep 9, 09:48 UTC · 7d agoResearch