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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 · 9d 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Blockstream said Sunday that around 4,000 BTC, roughly $320 million, was withdrawn from the federation wallet backing Liquid Network, a Bitcoin sidechain used by exchanges and financial institutions.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 · 9d agoData breach in the wild

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 · 7d 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 · 8d agoExploit / PoC in the wild

The Permanent Threat: Analyzing Aeternum’s Blockchain-Based C2 Operations and Communications

Unit 42 analyzes the Aeternum botnet loader, which uses Polygon blockchain smart contracts for resilient decentralized C2 and payload execution.

Palo Alto Unit 42 published a technical analysis of Aeternum, a botnet loader that leverages Polygon blockchain smart contracts as its command-and-control infrastructure. The decentralized C2 design makes takedown difficult, giving the threat a persistent, 'permanent' communication channel for payload delivery and execution. The analysis covers the smart contract mechanics and communication protocol used by the operation.

Palo Alto Unit 42 · Aug 10, 2026Malware

Heterogeneous Cross-Chain Transaction Tracing for Solana Bridges via Candidate-Set Selective Decision

SolTracer traces cross-chain transactions onto Solana bridges, improving open-world association F1 by 20.16% over the strongest baseline for illicit-fund tracing.

The paper formalizes four Solana-bound cross-chain transaction modes and proposes SolTracer, which maps heterogeneous execution semantics into a unified event space and uses candidate-set selective decision-making with abstention when valid targets are absent. In the challenging open-world setting with a 50% TA ratio, SolTracer improves F1 by 20.16% over the strongest baseline. An empirical study of real-world transfers examines count-value divergence across bridge mechanisms, cross-asset shifts, and decoupling between on-chain settlement and explorer visibility.

arXiv cs.CR · 6d agoResearch

Attack Chains, Not Just Attack Surfaces: Why Testing Individual Techniques Misses the Point

Filigran introduces Attack Chaining in OpenAEV to continuously simulate multi-stage attack paths, exposing gaps that isolated MITRE ATT&CK technique testing misses.

Filigran announced Attack Chaining, a new scenario type in its OpenAEV platform that links individual techniques into automated, continuously-run multi-stage attack paths, using each step's real output (credentials, tokens, open ports) to branch dynamically toward a final objective. The article cites Filigran's State of Threat Management report, in which 93% of security leaders reported a business-impacting cyberattack in the past 12 months, 88% said AI accelerates attackers, and 84% blamed siloed tools and disconnected testing. The 2025 DGFiP breach is cited as an example where individually survivable weaknesses chained into a major intrusion. The feature includes conditional chaining logic, live attack path mapping, structured findings for identifying chokepoints, and predefined scope and safety guardrails.

The Hacker News · 1d agoTools

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 · 8d agoData breach in the wild

Tracking Shai-Hulud: Inside the ChainDrop NPM Worm

ChainDrop, a Mini Shai-Hulud variant tied to TeamPCP, worms through npm via a compromised maintainer account and anchors C2 in an Ethereum smart contract.

On August 4, 2026, the self-propagating ChainDrop worm entered the npm ecosystem through a compromised maintainer account, poisoning packages including keyv, cacheable, and flat-cache. ChainDrop is a variant of Mini Shai-Hulud linked to the actor TeamPCP. It anchors its C2 infrastructure in an Ethereum smart contract, allowing domain rotation with a single blockchain transaction and defeating domain-based blocklists. The compromised keyv maintainer's GitHub account caused the project's own GitHub Actions release pipeline to publish malicious package versions.

Zscaler ThreatLabz · Aug 11, 2026Malware 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 · 8d agoData breach in the wild

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 · 7d agoResearch

Function Name Is All You Need to Detect Blockchain Application Attacks

TxLucent detects blockchain dApp attacks from transaction function-name sequences using a transformer, achieving 1.56% false negatives without source code.

Researchers propose TxLucent, which maps transaction call traces to function name sequences and uses a transformer to detect blockchain application attacks without source code or handcrafted rules. Evaluated on 424 real-world incidents with 14,611 attack transactions, it achieves a 1.56% false negative rate and an estimated 0.0017% false positive rate across over 500 million Ethereum transactions. Average analysis time of 24.90 milliseconds supports real-time detection on popular blockchains.

arXiv cs.CR · 5d agoResearch1

Guppy: Efficient Light Clients via Recursive Zero-Knowledge Proofs

Guppy lets blockchain light clients verify full state via recursive zero-knowledge proofs without validators maintaining state commitments, processing thousands of updates per second.

Guppy is a light-client protocol in which validators commit only to state updates while an off-chain, untrusted service secured by recursive zero-knowledge proofs maintains a verifiable Merkle tree over the full state. A hash-chain commitment moves validator signature verification out of the proving circuit, and a parallel recursive proving pipeline keeps latency growth logarithmic with throughput. A Plonky2-based implementation maintains a tree of size 2^30 while processing thousands of updates per second, adding only 2-4 seconds of latency without increasing block-construction complexity.

arXiv cs.CR · 8d agoResearch

Chinese espionage groups swarm to exploit triple-link chain of zero-days

At least four China-aligned espionage groups chained three zero-days in Chromium browsers and Windows ALPC for espionage since late August.

Proofpoint observed at least four state-aligned threat groups, starting with TA412/Violet Typhoon/APT31 on August 28, chaining three zero-days in the 'BlueMoon' exploit chain targeting Chrome, Chromium-based browsers and Microsoft Windows. The chain includes RCE flaws in Chromium's JavaScript engine (CVE-2026-85046, CVE-2026-87491) and a Windows Advanced Local Procedure Call privilege-escalation zero-day (CVE-2026-85880), enabling sandbox code execution, sandbox escape and system privileges. APT31 delivered the chain via phishing links to NGOs, mining and commodity trading firms in the US, installing a browser extension disguised as Google Gemini to surveil activity and steal credentials. Other groups (UNK_LateNight, UNK_DoubleCheck, UNK_QuietRacket) targeted US aerospace, Vietnamese manufacturing, and Indonesian and Singaporean organizations; fewer than 20 victims were directly observed but the true count is likely higher.

CyberScoopupdated · 4h agofirst · 6d agoExploit / PoC in the wild 17 sourcesCVE-2026-85046CVE-2026-87491CVE-2026-858802· 1 read

You've Got a BUD in Me: Authenticated Reads from Per-Block Write Logs

Researchers propose BUD, per-block write-log digests enabling blockchain validators to serve historical membership and exclusion proofs far cheaper than state-wide tries.

The paper introduces Block Update Digests (BUD), which authenticate each block's write log with predecessor pointers, plus a SuperBUD and exponential hierarchy to turn long unchanged intervals into short proofs. Soundness against adversarial provers and up to f Byzantine validators is proven under archive, attestation, and committee evidence assumptions. Benchmarks show a 50x state-size increase raises the base-BUD path only 1.24x versus 3.1x for in-memory and 69.5x for disk-backed Merkle Patricia tries, with read payloads below 800 bytes and p99 warm verification at 146 microseconds.

arXiv cs.CR · 6d agoResearch

TuxBot v3: Inside an IoT Botnet Framework With LLM

Unit 42 uncovers TuxBot v3, an LLM-assisted IoT botnet framework with 17-architecture builds, Telnet brute-forcing, and DDoS capabilities.

Palo Alto Unit 42 identified TuxBot v3 Evolution, a modular IoT botnet framework derived from AISURU, Wuhan-lineage botnets, and MHDDoS. The C-based bot brute-forces Telnet with 1,496 credential pairs, targets over 30 IoT device families, and communicates with a Go-based C2 over encrypted TCP with multiple fallback mechanisms including DGA, P2P, and DNS TXT. LLM-assisted development left hallucinated crypto implementations and broken exploit modules in the analyzed samples, though roughly 70% of core functionality works. Researchers warn polished production builds likely exist, raising the threat potential.

Palo Alto Unit 42 · 28d agoMalware1

MicroHasTEE: Bare-Metal Haskell for Type-Level Peripheral Ownership on Armv8-M

MicroHasTEE expresses TrustZone secure and non-secure firmware as one typed Haskell program, catching peripheral-ownership inconsistencies at compile time.

MicroHasTEE is a multiparty Haskell framework that models both TrustZone firmware images as participants in a single typed program, using type-level capability ledgers to track peripheral acquisition, configuration, transfer, and finalization. MicroHs compiles the shared program twice to produce separate bare-metal Secure and Non-secure firmware images. The framework rejects inconsistent resource use, post-configuration attribution changes, wrong-domain callbacks, and calls to unregistered Secure services. A door-lock case study on an STM32U5 Nucleo board produced images of 232.7 KiB and 228.4 KiB of flash with roughly 220 KiB of SRAM per domain.

arXiv cs.CR · 5d agoResearch1

Hackers Disable Endpoint Protection and Deploy Sliver Across Compromised Windows Domain

The Hunter's Ledger tracked campaign UTA-2026-024 using Sliver C2, Domain Admin account creation, and Ethereum-based C2 rotation to compromise a US organization's Windows domain.

The Hunter's Ledger tracked an intrusion at one unnamed US organization as UTA-2026-024, staged from exposed server 193.233.202.17 with a Sliver beacon. Operators created a non-expiring Domain Admin account, enabled RDP with NLA disabled, dumped SAM, SYSTEM and SECURITY hives plus LSASS memory, and disabled eight endpoint protection services. A Node.js implant resolved its C2 server from an Ethereum smart contract that rotated domains five times in five months, while SYSTEM scheduled tasks with backdated dates and DNS allowlist manipulation provided persistence. The infrastructure ties to a confirmed ransomware incident, but no encryptor deployment was proven in this intrusion.

Cyber Security News · 8d agoThreat actor in the wild

Stellar Colosseum: A Many-Agent Harness for Long-Horizon Research in Mathematics and Theoretical Computer Science

Stellar Colosseum, a many-agent harness for long-horizon math and TCS research, solves open problems and reaches 71% on TCS-Bench with Gemini models.

Stellar Colosseum is a model-agnostic harness that allocates inference across long-horizon research in mathematics and theoretical computer science, using strategy exploration, a readiness gate, section-level decomposition, and verifier feedback routing. Integrated into Google Antigravity's Teamwork framework as the Long Proof pattern, it obtains new results on open problems from FOCS and JMLR papers using Gemini 3.1 Pro. On TCS-Bench it achieves 71.0% accuracy with Gemini 3.1 Pro and Gemini 3.7 Flash, and a Codeforces evaluation with Gemini 3.1 Pro solves 218 of 222 problems.

arXiv cs.AI / cs.LG / cs.CL · 2d agoAI research

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 · 7d agoResearch

Eleethub: A Cryptocurrency Mining Botnet with Rootkit for Self

Unit 42 uncovered Eleethub, a Perl-based Bitcoin mining botnet using a crafted rootkit and libprocesshider to evade detection, still under development with few infections.

Unit 42 discovered an under-development Perl Shellbot campaign that mines Bitcoin using xmrig and emech while evading detection via a rootkit that replaces the ps tool and the LD_PRELOAD-based libprocesshider.so library. Infected devices download a malicious shell script, connect to IRC-based C2 at eleethub.com and the UnderNet network, and can receive commands for UDP/TCP floods, port scans, and HTTP attacks. The botnet can affect Unix systems and Windows 10 hosts running a Linux subsystem, and its operators use the 'Los Zetas' branding, though they are unlikely to be the Mexican drug cartel. Researchers found only a few compromised 'zombies' before the campaign expanded.

Palo Alto Unit 42 · 28d agoMalware in the wild

This Key Will Self-Destruct: An Open Standard for Revocable API Keys

SecurityWeek opinion piece proposes ORKS, an open standard adding issuer prefixes, discovery files, and unauthenticated revocation endpoints to make leaked API keys quickly revocable.

The article argues that plain API keys leak frequently yet lack any standardized revocation mechanism, unlike OAuth tokens which gained RFC 7009 revocation in 2013, and that GitHub's Secret Scanning Partner Program solves this only in a proprietary, invite-only way. The author proposes ORKS (Open Revocable Key Standard), with a draft spec on GitHub, built on four parts: keys embedding their issuer domain in a fixed prefix format, a discoverable /.well-known/api-key-config JSON file, unauthenticated revocation by possession of the full key, and declared constraints such as IP allowlists, expiry, scopes, and mTLS. An optional quarantine mode inspired by Toyota's andon cord restricts a reported key to read-only and throttled operation for a default 24-hour window before automatic revocation. The piece frames AI agents as making this urgent, since agents hold many credentials, can exfiltrate them via prompt injection, and can leak secrets into logs at machine speed.

SecurityWeek · 7d agoTools1

IntentFuzz: A Protocol-Aware Fuzzer for Automated Invariant Violation Detection in Intent-Based Cross-Chain Bridges

IntentFuzz protocol-aware fuzzer recovers bridge structure from unannotated Solidity and confirmed 22 invariant violations across 24 real-world deployments.

IntentFuzz formalizes a taxonomy separating invariant violations from settlement exposures in intent-based cross-chain bridges, then recovers a bridge's intent structure and deposit/fill function roles from unannotated Solidity source. It classified deposit and fill functions with 100% recall and 82% combined precision, and achieved 100% recall and precision on 23 planted-bug mutants. Across 24 real-world deployments it confirmed 17 genuine invariant violations with heuristic-only input generation, rising to 22 with its LLM-assisted tier, spanning eight vulnerable GitHub repositories with findings reproducible against public deployed bytecode.

arXiv cs.CR · 5d agoResearch1

LiteLLM Supply-Chain Attack - Technology, Banking and Healthcare the Most Affected

TeamPCP planted the SANDCLOCK credential stealer in LiteLLM PyPI releases, exposing credentials across 2,038 repositories at 898 organizations including Microsoft and NVIDIA.

Threat actor TeamPCP compromised LiteLLM maintainer credentials and published malicious versions 1.82.7 and 1.82.8 to PyPI around March 2026, creating an exposure window of several months. The SANDCLOCK credential stealer exposed full credential sets across 898 GitHub owners and 2,038 repositories, including Microsoft, Azure, IBM, NVIDIA, PayPal, Deloitte, Bosch, and S&P Global. Stolen material includes GitHub CI/CD identities, AWS/GCP/Firebase credentials, SSH keys, Kubernetes secrets, and OpenAI and Anthropic API keys; Resecurity acquired a 150GB archive with 2,146 credential records. Technology, banking/finance, and healthcare organizations are the most affected sectors, and victims must rotate all exposed credentials.

Security Affairs · Aug 17, 2026Malware in the wild

Lightweight Zero Trust via Automotive SDN

Researchers map automotive SDN with MACsec/MKA and CORECONF/YANG to NIST SP 800-207, satisfying five of seven Zero Trust tenets without added infrastructure.

Zonal in-vehicle networks ship Ethernet, MACsec, and TSN but treat the network itself as trusted, with no standardized runtime way to revoke access, rotate keys, or contain a compromised ECU. The paper first analyzes what Open Alliance TC17 v1.0 MACsec/MKA with pre-shared CAKs already provides against the seven NIST SP 800-207 Zero Trust tenets. It then adds CORECONF/YANG management per Open Alliance TC19, mapping the SDN Controller and Agents one-to-one onto NIST's PE, PA, and PEP, and instantiates a YANG-based network-access-control flow and key-management scheme. The result fully covers five of the seven tenets and partially covers two, without any ZTA-specific infrastructure.

arXiv cs.CR · 7d agoResearch

ClickFix Campaign Compromises 31 Orgs, Abuses Polygon Blockchain

A ClickFix social engineering campaign compromised 31 organizations, abusing the Polygon blockchain via EtherHiding for dynamically updated command-and-control.

The campaign uses ClickFix-style social engineering to compromise victims, with 31 organizations affected. It employs EtherHiding to dynamically update its command-and-control server, abusing the Polygon blockchain as an attacker-controlled address book. This blockchain-based C2 approach makes the infrastructure more resilient and harder to take down.

Dark Reading · 15d agoThreat actor in the wild

Connecting the Dots: Securing the Overlooked Corners of the Software Development Lifecycle (SDLC) Supply Chain

Unit 42 warns attackers increasingly target CI/CD pipelines and developer tools rather than application code, urging full SDLC supply chain visibility.

Palo Alto Networks Unit 42 research argues attackers are shifting focus from application code to overlooked corners of the software development lifecycle supply chain, including CI/CD pipelines and developer tooling. The write-up calls for total SDLC visibility and strict security controls to defend these developer-facing attack surfaces.

Palo Alto Unit 42 · 25d agoResearch in the wild

On Identifying Sound Conditions for Frontrunning Resistance

Researchers formally define smart-contract frontrunning resistance, showing 55% of 393 audited vulnerabilities escape state-of-the-art detection, and find two undisclosed Ethereum flaws.

The paper gives the first formal definition of frontrunning vulnerability for smart contracts, grounded in how honest users interact with contracts rather than contract code alone. In a large-scale study of 287 smart contract audits, 55% of the 393 vulnerabilities reported by leading auditors fall outside the scope of state-of-the-art dynamic detection criteria. The authors present a sound algorithm for synthesizing secure interaction conditions and apply it to real-world contracts, uncovering previously undiscovered vulnerabilities in two Ethereum contracts.

arXiv cs.CR · 6d agoResearch

Closing the Loop: Bidirectional Fully Encrypted Protocols

Researchers show naively composing unidirectional fully encrypted protocols is detectable and construct provably secure bidirectional FEPs, validated in Rust.

The paper introduces formal security definitions for bidirectional fully encrypted protocols (BiFEPs), covering exact shaping, delivery, protocol-state integrity, private half-close, and cross-direction isolation. It shows trivially composing two unidirectional FEPs enables detection attacks via cross-direction dependencies like traffic imbalance and connection tear-down. The authors construct provably secure BiFEPs for datastream and datagram settings, validated with a Rust implementation; no surveyed deployed protocol provides the full set of properties.

arXiv cs.CR · 1d agoResearch

Notes on gotchas while migrating 35kb preprompts from Opus to self-hosted Ollama

Opinion piece urges migrating 35KB preprompts from Anthropic/OpenAI to self-hosted Ollama, citing session privacy risks and safety filters blocking security research.

The author documents gotchas migrating 35KB preprompts from Claude Opus to self-hosted Ollama, motivated by fears that frontier providers train on user sessions, citing the OpenAI Navier-Stokes controversy. The piece argues inference providers cannot audit their own retention or training pipelines and that only self-hosted hardware offers verifiable privacy. It also criticizes frontier safety filters for refusing vulnerability research tasks and calls for models that support exploitability testing in CI/CD pipelines.

HoneyRoute: Honeypot-Model Routing for Adversarial LLM Serving

HoneyRoute detects malicious LLM serving requests and diverts them to a honeypot model, reaching F1 0.911 with 38 ms median added latency.

HoneyRoute is an inference-serving layer pairing a streaming router (a frozen 0.8B embedding backbone with per-domain MLP heads) with a dual-implementation honeypot and an analysis loop that converts trapped interactions into attacker fingerprints for router retraining. On a production trace plus a seven-domain attack corpus it matches 96% of a two-tier guard-LLM cascade's F1 at 1/385th of its latency with 0% evasion under 13 adversarial transformations. Diverting malicious traffic cuts production token consumption under GCG-suffix flooding by 97.8%, and loop training raises detection F1 to 0.933.

arXiv cs.CR · 8d agoAI safety & security