Aphone’s service launched on March 7 and allows users with older or less powerful devices to interact with Web3 applications and other demanding software.

How the Aphone App Overcomes Hardware Barriers

Unlike traditional smartphone apps, Aphone, which costs $20 annually,  runs on a decentralized cloud-computing infrastructure known as Aethir. By shifting the processing burden to the cloud, the Aphone app enables resource-intensive applications and games to function on outdated devices.

This cloud-based approach also makes the Aphone platform-agnostic, allowing for smooth operation across web browsers and a range of Android and Apple devices.

We’re excited to officially announce our strategic partnership with @AethirCloud #APhone’s vision of cloud smartphones on blockchain is powered by Aethir’s decentralized cloud infrastructure

APhone delivers lag-free mobile #Web3 experiences ANYWHERE. No more device… pic.twitter.com/LYZpchY2xy

— APhone (@aphonelabs) March 6, 2024

Aphone’s development team targets users in emerging economies where affordable, older smartphones are common and access to fast mobile internet is expanding.

Jennifer Booze, lead for Aphone’s ecosystem growth and development, sees the virtual smartphone as an ideal way to introduce Web3 concepts and applications to the masses.

Thanks to the Solana blockchain, the Aphone app can deliver fast transactions, minimal fees, and strong security. According to Booze, the Aphone interface acts as a powerful operating system that utilizes Solana’s capabilities, facilitating actions like NFT management and decentralized application (dApp) usage.

PHONE Token and Incentivized Engagement

The Aphone ecosystem incorporates a native token, PHONE, which will underpin governance processes and offer rewards designed to boost user engagement and participation within the platform.

Aphone also links to decentralized physical infrastructure networks (DePINs) like Helium, which operates on Solana. Users can tap into these networks, potentially earning rewards for strengthening network coverage or validating transactions.

The post Virtual Smartphone App Aphone on Solana Revives Old Devices in Emerging Markets appeared first on Cryptonews.

Musk has been on this recent meme spree since he filed a lawsuit accusing CEO Sam Altman of violating the company’s initial agreement.

Crypto Community Divided on Musk’s Actions

The crypto community went beyond just reacting to the meme. Many speculated on the potential outcomes of this unexpected move.

pic.twitter.com/zCnUNKK9N2

— Elon Musk (@elonmusk) March 6, 2024

David Gokhshtein, an influential figure in the crypto space, suggested that Musk should consider acquiring OpenAI, drawing parallels to his previous acquisition of Twitter.

Members of the cryptocurrency community have shown support for Musk, particularly applauding the integration of the Grok AI chatbot into the X platform.

Grok AI, developed by Musk’s startup xAI, takes a different approach from OpenAI’s ChatGPT, emphasizing openness in addressing various topics. Musk developed Grok AI in response to what he perceives as the ideological leanings of OpenAI.

OpenAI Pushes Back Against Musk’s Claims

In the recent legal saga involving Elon Musk and OpenAI, the AI research company has pushed back against Musk’s claims, releasing correspondence that sheds light on the dispute.

In response to his lawsuit, OpenAI revealed that Musk previously acknowledged the need for for-profit funding to support the company’s research, contradicting his current claims.

OpenAI stated that Musk initially pledged $1 billion in funding before withdrawing the offer. The company ultimately secured $13 billion in funding from Microsoft and established itself as a for-profit entity valued at $90 billion. This development has reignited the ongoing conflict between Musk and OpenAI.

The latest “meme spat” isn’t the first time Musk has clashed with OpenAI.

The dispute between Musk and OpenAI dates back to 2018 when the Tesla boss argued that the company needed billions of dollars urgently and suggested that selling itself to Tesla was the only way forward.

OpenAI rejected this proposal and waited for Microsoft’s funding, however, leading to tensions between Musk and the company.

The post Elon Musk Sparks Excitement and Speculation in Crypto Community with OpenAI Troll appeared first on Cryptonews.

The resolution, brought forward by representatives Mike Flood (R-NE) and Wiley Nickel (D-NC), was passed by a majority of committee members in hopes of overturning the bulletin. Known as SAB 121, the bulletin would force banks to list custodial cryptocurrencies on their balance sheet, effectively limiting them from participating in the digital asset ecosystem.

SAB 121 Presents “Serious Ramifications” For The Banking Sector

Congressman Flood expressed his disapproval of the SEC’s bulletin, claiming it would have serious ramifications for the banking industry as a whole.

.@SECGov has virtually locked out the most regulated institutions from serving as custodians for digital assets. It’s time to roll back SAB 121 and to stop @GaryGensler’s overreach. pic.twitter.com/n3xWRhPMWq

— Rep. Mike Flood (@USRepMikeFlood) February 29, 2024

“The ramifications of requiring banks to hold these assets on-balance sheet are pretty significant,” he remarked. “If a bank were to custody digital assets according to the parameters of SAB 121, the on-balance sheet treatment would affect their other regulatory obligations like their capital and liquidity requirements. The end result is that banks must choose to either custody digital assets—thus inflating their balance sheet and severely affecting every other line of business or stay out of the market.”

Banks Are Eager To Join Spot Bitcoin ETFs as Custodians

Additionally, Flood took issue with the fact that banks are currently prevented from serving as custodians for the recently SEC-approved spot Bitcoin ETFs under SAB 121.

“That’s a situation where you might want more bank custodians, who are well-regulated experts on custody, on the job,” Flood added. “As it is, there are only four total custodians for those eleven Bitcoin ETFs, and they are all non-banks.”

Not everyone present at the committee meeting was on board with Flood and Wiley’s resolution, however.

Congresswoman Maxine Waters (D-CA) expressed disdain at the committee’s criticism of SAB 121.

“This bulletin is non-binding SEC staff guidance intended to help clarify how a company should account for its customers’ cryptocurrencies,” Waters claimed. “We often hear Republicans and the crypto industry complain about a lack of clarity from the SEC, but ironically, the resolution before us effectively blocks the SEC staff from providing that clarity around crypto.”

Resolution Overturning SAB 121 Moves Ahead

The committee vote comes just weeks after a trade group coalition representing some of the United States’ largest banks implored SEC Chair Gary Gensler to modify the staff accounting bulletin, arguing it raised “important questions about the safety and stability” of the banking ecosystem.

The resolution will now make its way to the floor of the House of Representatives for a full vote.

The post House Financial Services Committee Votes In Favor of Resolution to Overturn SEC’s SAB 121 appeared first on Cryptonews.

Groq, the latest AI tool to make waves in the industry, has quickly gained attention after its public benchmark tests went viral on the popular social media platform X.

Many users have shared videos of Groq’s remarkable performance, showcasing its computational prowess that outperforms the well-known AI chatbot ChatGPT.

side by side Groq vs. GPT-3.5, completely different user experience, a game changer for products that require low latency pic.twitter.com/sADBrMKXqm

— Dina Yerlan (@dina_yrl) February 19, 2024

Groq Develops Custom ASIC Chip for Itself

What sets Groq apart is its team’s development of a custom application-specific integrated circuit (ASIC) chip designed specifically for large language models (LLMs).

This powerful chip enables GroqChat to generate an impressive 500 tokens per second, while the publicly available version of ChatGPT, known as ChatGPT-3.5, lags behind at a mere 40 tokens per second.

Groq Inc, the company behind this AI marvel, claims to has created a software-defined AI chip called a language processing unit (LLP), which serves as the engine that drives Groq’s model.

Unlike traditional AI models that heavily rely on graphics processing units (GPUs), which are both scarce and expensive, Groq’s LPU offers an alternative solution with unmatched speed and efficiency.

Wow, that's a lot of tweets tonight! FAQs responses.
• We're faster because we designed our chip & systems
• It's an LPU, Language Processing Unit (not a GPU)
• We use open-source models, but we don't train them
• We are increasing access capacity weekly, stay tuned pic.twitter.com/nFlFXETKUP

— Groq Inc (@GroqInc) February 19, 2024

Interestingly, Groq Inc is no newcomer to the industry, having been founded in 2016, when it secured the trademark for the name “Groq.”

However, last November, as Elon Musk introduced his own AI model, named Grok (with a “k”), the original creators of Groq took to their blog to address Musk’s naming choice.

In a playful yet assertive manner, they highlighted the similarities and asked Musk to opt for a different name, considering the association with their already-established Groq brand.

Despite its recent social media buzz, neither Musk nor the Grok page on X has commented on the naming overlap between the two tools.

AI Developers to Create Custom Chips

GroqChat’s successful use of its custom LPU model to outperform other popular GPU-based models has caused a stir.

Some even speculate that Groq’s LPUs could potentially offer a significant improvement over GPUs, challenging the high-performing hardware of in-demand chips like Nvidia’s A100 and H100.

“Groq created a novel processing unit known as the Tensor Streaming Processor (TSP) which they categorize as a Linear Processor Unit (LPU),” X user Jay Scambler wrote.

“Unlike traditional GPUs that are parallel processors with hundreds of cores designed for graphics rendering, LPUs are architected to deliver deterministic performance for AI computations.”

Scambler added that this means that “performance can be precisely predicted and optimized which is critical in real-time AI applications.”

Groq is serving the fastest responses I've ever seen. We're talking almost 500 T/s!

I did some research on how they're able to do it. Turns out they developed their own hardware that utilize LPUs instead of GPUs. Here's the skinny:

Groq created a novel processing unit known as… pic.twitter.com/mgGK2YGeFp

— Jay Scambler (@JayScambler) February 19, 2024

The trend aligns with the current industry movement where major AI developers are actively exploring the development of in-house chips to reduce reliance on Nvidia’s models alone.

For one, OpenAI, a prominent player in the AI field, is reportedly seeking substantial funding from governments and investors worldwide to develop its own chip. 

The post New AI Model Groq Challenges Elon Musk’s Grok and ChatGPT appeared first on Cryptonews.

According to the ‘Rule on Impersonation of Government and Businesses’ document, AI deepfakes that impersonate businesses and governments could face legal action.

No AI Deepfakes Allowed for Businesses and Government Agencies

The FTC said the changes are necessary due to the prevalence of impersonations of businesses, government officials, and parastatals.

The endgame is to protect customers from possible harm incurred from generative AI platforms.

The updated rule will come into effect 30 days following its publication in the Federal Register.

For now, public comments are welcome for the next 60 days. Once the rule is enacted, the FTC will be empowered to go after scammers who defraud users by impersonating legitimate businesses or government agencies.

The AI industry has come a long way since the famous launch of ChatGPT in November 2022 by the OpenAI team. The company, led by Sam Altman, has recently launched a new product called Sora.

Sora uses AI prompts to generate realistic videos with highly detailed scenes, complex camera motions, and vibrant emotions.

Introducing Sora, our text-to-video model.

Sora can create videos of up to 60 seconds featuring highly detailed scenes, complex camera motion, and multiple characters with vibrant emotions. https://t.co/7j2JN27M3W

Prompt: “Beautiful, snowy… pic.twitter.com/ruTEWn87vf

— OpenAI (@OpenAI) February 15, 2024

Powerful AI tools like those offered by OpenAI and Google have increased productivity for many people and businesses.

However, they have also become an effective tool in the hands of cybercriminals. With the tool, criminals can easily alter the appearance or voice of someone to deceive a target audience.

The FTC rule change will come down hard on these criminals to ensure they face the full weight of the law.

While there is no concrete rule that makes AI-generated recreations illegal, US Senators Chris Coons, Marsha Blackburn, and Thom Tillis have taken steps to address the issue.

Impersonator Scams Stole $2.7 Billion in 2023

Impersonator scams, though not often featured in tabloids, pose a major threat to the US.

Speaking on the issue, the FTC Chair Lina Khan noted that voice cloning and AI-driven scams were rising.

Khan proposed that updating the rules would strengthen the agency’s ability to address AI-enabled scams that impersonate individuals.

Putting a figure on the potential hazard impersonator scams carry, Khan noted that US citizens lost upwards of $2.7 billion in 2023.

2. Scams where fraudsters pose as the government are highly common. Last year Americans lost $2.7 billion to impersonator scams.

The rule @FTC just finalized will let us levy penalties on these scammers and get back money for those defrauded.https://t.co/8ON0G63ZjL

— Lina Khan (@linakhanFTC) February 15, 2024

The new rules would also enable the agency to return the stolen funds to the affected victims.

Meanwhile, the head of the Federal Communications Commission (FCC), Jessica Rosenworcel, has proposed categorizing all calls with AI-generated voices as illegal.

Today we announced a proposal to make AI-voice generated robocalls illegal – giving State AGs new tools to crack down on voice cloning scams and protect consumers. https://t.co/OfJUZR0HrG

— The FCC (@FCC) January 31, 2024

The announcement came after reports surfaced that US citizens were getting robocalls imitating President Joe Biden.

NH voters are getting robocalls from Biden telling them not to vote tomorrow.

Except it’s not Biden. It’s a deepfake of his voice.

This is what happens when AI’s power goes unchecked.

If we don’t regulate it, our democracy is doomed.pic.twitter.com/8wlrT63Mfr

— Public Citizen (@Public_Citizen) January 22, 2024

In the call, US voters were advised not to vote in the US Presidential elections.

Meanwhile, in the crypto industry, AI deepfakes are a menace.

According to Michael Saylor, about 80 deepfake videos of himself are removed daily. Most videos show him asking users to send their Bitcoin to a posted wallet address.

Michael Saylor, Chairman of MicroStrategy and one of the largest Bitcoin holders, has issued a warning to the Bitcoin community about the risk of scams using deep-fake videos created by artificial intelligence (AI). He revealed that his security team had to remove about 80…

— manaury ezequiel (@manauryezequiel) January 15, 2024

New ones emerge daily, however. Saylor, who serves as the Chairman for Microstrategy, has warned crypto investors about the trend.

The post FTC Updates Rules to Address AI Deepfake Threats to Consumer Safety appeared first on Cryptonews.

Solana Mobile’s recently announced Chapter 2 web3 phone has seen skyrocketing demand, with preorders selling out within the first day of the launch announcement.

The Solana Mobile Chapter 2 phone was announced earlier this week as a cheaper follow-up to the company’s first web3 phone, the Saga. Chapter 2 is being offered initially at $450, less than the $599 price tag for the Saga.

Chapter 2 Sales to Eclipse Saga’s First Year

Solana Labs co-founder Raj Gokal told TechCrunch that Chapter 2 hit its seven-day sales goal in just the first 24 hours. An impressive 25,000 preorders came in within the first day, followed by 30,000 orders in the first 30 hours after the launch.

This is a massive increase compared to the Saga, which saw lackluster demand when it debuted mid-last year with a $1000 price point. The Saga didn’t gain popularity until its price was dropped to $599 and it started offering crypto rewards to owners through decentralized apps.

SAGA gained popularity almost overnight when the decentralized app Bonk announced it would provide 30 million BONK tokens to SAGA owners for free. At the time, the 30 million BONK tokens were worth more than the $599 cost of the SAGA phone, which meant users could essentially get the SAGA device for free just by claiming their BONK crypto reward.

The promotion catalyzed a sales frenzy, with SAGA selling out in just two days after the Bonk announcement as crypto fans rushed to claim their free tokens along with the phone.

Now, Chapter 2 is set to eclipse 12 months’ worth of Saga sales in its first week alone, demonstrating the outstanding interest in Solana Mobile’s new cheaper web3 phone.

What’s Driving the Preorder Frenzy?

There are several factors contributing to the red-hot demand for Chapter 2 presales.

Firstly, the phone offers similar web3 capabilities to the Saga at a more affordable $450 price point. This combines with crypto fans’ growing awareness of the benefits offered by web3 phones like built-in crypto wallets and access to decentralized apps.

Secondly, the success of BONK promotion for the Saga has built anticipation that the new phone will offer even more lucrative incentives.

Can’t wait for Chapter 2 @solanamobile pic.twitter.com/xtEqTraVn3

— Big Joe (@SolanaMoJo) January 18, 2024

While Chapter 2 won’t have the Saga’s genesis token for redeeming rewards, Solana Mobile has hinted at “building on this experience” with partnerships with crypto projects offering incentives to new phone owners.

Lastly, Solana Mobile designed Chapter 2 to enable greater flexibility for developers and users in the web3 space. With no restrictions on supported tokens or NFTs, and no platform fees, crypto projects have a greater incentive to partner with Solana Mobile.

Can Solana Mobile Sustain the Hype Around Chapter 2?

The key question is whether Solana Mobile can sustain interest and sales momentum for Chapter 2 leading up to its slated launch in early 2025.

The company will need to deliver on its promises of crypto incentives for Chapter 2 owners. The demand might turn out to be merely hype that will fizzle out, especially with tech fans’ tendency to have short attention spans.

Regardless, the staggering early preorder numbers demonstrate the surging mainstream appeal of web3 phones. If Solana Mobile can capture and hold people’s imagination, Chapter 2 could start a new chapter of rapid growth for web3 mobile adoption.

The post Solana Mobile Chapter 2 Sells Out in 24 Hours – What’s Fueling The Excitement? appeared first on Cryptonews.

Ethereum’s upcoming upgrade, “Cancun-Deneb” (also known as “Dencun”), is set to begin testing on January 17, as per an official note published on the Ethereum Github repository.

According to the latest Ethereum All Core Developers Consensus Call report, Ethereum developers have confirmed their progress towards launching a Goerli shadow fork for testing the Cancun/Deneb upgrade with all clients. This testing phase is expected to be initiated within the next one to two weeks.

The initial testing will take place on the Goerli testnet, followed by implementation on the Sepolia testnet on January 30 and the Holesky testnet on February 7.

The Cancun/Deneb upgrade is currently undergoing testing on Devnet 12, where all execution layer (EL) and consensus layer (CL) client combinations, including the Prysm client, have been integrated. The MEV-Boost software has been activated for most client combinations, with the exception of those involving the Prysm client.

The introduction of a shadow fork is part of the testing process, serving as a smaller-scale test fork that focuses on specific improvements needed before implementing the Dencun upgrade on the main protocol.

However, the Ethereum team has not yet specified when Dencun will be deployed on the mainnet. The Dencun upgrade includes several tools designed to reduce fees, enable new features for bridges and staking pools, and limit the use of self-destruct operations on smart contracts.

After testing, the next goal will be to distribute the changes on the mainnet around the end of February, although these dates are subject to change depending on the outcome of the testnet forks.

Ethereum’s Deneb-Cancun Upgrade Introduces Proto-Danksharding for Enhanced Scalability and Reduced Transaction Costs on Layer 2 Networks

The upcoming Ethereum upgrade is set to introduce changes to the two mainnet layers of Ethereum: the execution layer, overseeing smart contract execution, and the consensus layer, focusing on blockchain consensus through staking.

Specifically, the upgrade for the execution layer will be named Cancun, while the consensus layer upgrade will be referred to as Deneb, collectively forming the Deneb-Cancun upgrade.

A key feature of the Deneb-Cancun upgrade is Ethereum Improvement Proposal 4844 (EIP-4844), also known as proto-danksharding. EIP-4844 aims to enhance Ethereum’s scalability, surpassing the current capabilities of Layer 2 solutions.

EIP-4844 is designed to enable Ethereum nodes to temporarily store and retrieve off-chain data, addressing the data and storage requirements of blockchain applications. Once activated, EIP-4844 is expected to reduce transaction costs on Layer 2 rollup solutions, including Optimism and Arbitrum, compared to their current rates.

This proposal also allows layer-2 rollup networks to temporarily store certain transaction data using a new format called “blobs.” These blobs can be deleted after 18 days, providing a potential reduction in transaction fees on layer-2 networks.

Initially, before Shapella, developers had decided to postpone the inclusion of EIP 4844 in the context of updates, given its complexity, preferring to focus on ETH withdrawals in staking.

However, Ethereum developers have delved into the technical details of EIP 4844.

Other proposals in the Dencun upgrade include EIP-1153, introducing a “transient storage” system to reduce fees further, and EIP-4788, enhancing transparency by storing the root of each Beacon chain block in a smart contract that applications can query. The data from EIP-4788 is expected to be utilized in new features for bridges and staking pools.

Concerns Arise Over Potential Delay in Ethereum’s Dencun Upgrade Deployment on Mainnet

In an Ethereum consensus-layer meeting held a month ago, concerns were raised about the potential delay in deploying the Ethereum upgrade known as “Dencun ” on the mainnet. Tim Beiko from the Ethereum Foundation highlighted the absence of the upgrade on public testnets like Goerli, Sepolia, and Holesky.

Beiko pointed out that if Dencun wasn’t launched on a public testnet before the November 2023 Devconnect developer conference, the mainnet deployment might be delayed beyond the Christmas holidays, possibly into 2024.

Factors such as the readiness of the software code, testing across Ethereum’s execution and consensus layers, and the preparedness of multiple client teams were deemed critical for Dencun’s mainnet deployment. At the time of the meeting, the upgrade work was in the “devnet phase,” with plans to test on a localized developer network called “Devnet 9” before transitioning to the public testnet phase.

Dencun would represent the first major update since the release of Shapella earlier this year, which allowed for ether withdrawals in staking (ETH) from the blockchain. Ethereum upgrades typically undergo several months of testing before being deployed to the mainnet. The previous upgrade, codenamed “Shapella,” began testing on February 7 and was launched on the mainnet on April 12.

The post Ethereum’s Upcoming Upgrade ‘Cancun-Deneb’ Set to Begin Testing on January 17 appeared first on Cryptonews.

Zooko Wilcox, the creator of the privacy-oriented blockchain network Zcash, is stepping down as CEO of Electric Coin Co., the primary developer behind Zcash. Wilcox has served as the project’s leader since its creation in 2015.

The decision was made by the Board of Directors, which includes Alan Fairless, Michelle Lai, Zaki Manian, Christina Garman, and Wilcox himself.

Josh Swihart, who has been with Electric Coin Company (ECC) for five and a half years, will be taking over as the new CEO. Swihart previously served as the company’s marketing director for seven months in 2018 and has been the Senior Vice President of Growth for the past two years.

Swihart is noted for his leadership skills in finding product-market fit, unlocking partnerships, improving Zcash usability, and increasing adoption. Swihart, who took a four-month break from ECC to work as a part-time investor at Denver Angels in Colorado, is seen as having a strong entrepreneurial, technical, and product background. ECC expressed confidence in Swihart’s leadership, emphasizing his vision for ECC and his passion for Zcash.

Swihart, in a blog post, mentioned that Zcash’s focus in the “new season” would be to “find product-market fit.” He outlined near-term priorities, including iterating more quickly, increasing Zcash’s utility, and making Electric Coin Company financially sustainable.

In a separate statement, Wilcox reflected on his time building Zcash, describing it as an incredible experience. He noted the difficulty of separating Zcash from his identity and emphasized the importance of maintaining a healthy distinction between the two.

Wilcox, upon stepping down as the CEO of Electric Coin Company, expressed his intention to take a couple of months to reflect on how he can best contribute. He noted that Zcash’s role in human history is much bigger than that of any individual.

He added that any commitment he makes in the future would need to include Zcash because, in his view, the Zcash community represents “freedom’s best hope.” This underscores his continued dedication to the principles and goals of Zcash, even as he transitions to a different role within the organization. Wilcox will continue to serve as a director on the board of the Bootstrap Project, the parent company of ECC.

The transition in leadership comes as Zcash continues to play a significant role in advancing privacy-centric technologies in the blockchain space.

Zcash’s zk-SNARK: Pioneering Privacy in Blockchain Transactions Faces Market Fluctuations Amid CEO Change

The Zcash network, launched in 2016 as a fork of the Bitcoin blockchain, is renowned for its privacy features, notably the “shielded addresses” or “z-addresses” that enable encryption on one or both sides of a blockchain transaction. Zcash relies on a mathematical proof known as zk-SNARK, derived from zero-knowledge cryptography, marking one of the hottest trends in blockchain architecture in 2023.

Zcash’s technical documentation explains that zk-SNARK allows the owner of a z-address to selectively disclose transaction details to trusted third parties using a view key. The view key grants read access without spending authority, enabling auditable transactions while maintaining participant control over disclosure. This feature supports compliance with payment auditing, tax regulations, and anti-money laundering rules.

Electric Capital, in its blog post, credited Zooko Wilcox for leading Electric Capital in delivering Zcash as the “first real-world application of zero-knowledge proofs.” The use of zk-SNARK in Zcash has been a significant development in enhancing privacy and security in blockchain transactions.

The native cryptocurrency of Zcash (ZEC) experienced a 5.8% decline over the past 24 hours, in line with a broader downturn in digital asset markets on the specified day. The price didn’t move much on the announcement of the CEO change.

The post Zcash Creator Zooko Wilcox to Step Down as CEO of Electric Coin appeared first on Cryptonews.

Ethereum is one of the most widely used blockchain networks globally. Recent findings from CoinMarketCap show that Ethereum has the highest number of total developers, accounting for 16% of all developers in the crypto sector.

Unfortunately, the Ethereum network has also become extremely prone to security exploits. Blockchain security firm Beosin found in its “Global Web3 Security Report ” that crypto investors lost $282.96 million to rug pulls during quarter three of this year. The report further noted that phishing schemes generated $66.15 million during the same time period. According to findings from Beosin, the Ethereum blockchain underwent the most losses and incidents overall.

Updated framework for reviewing smart contract code

Chaals Nevile, technical program director at the Enterprise Ethereum Alliance (EEA) — an organization that aims to drive the use of enterprise ethereum as an open standard — told Cryptonews that there are known problems within Ethereum that are impacting the ecosystem’s security. “The most obvious problem is that the Solidity compiler – which outputs byte code and other artifacts needed for deployment of smart contracts – has bugs. As the compiler evolves, old bugs are fixed, but new ones are also created,” said Nevile.

In order to address this and other challenges, the EEA established the “EthTrust Security Levels Working Group in November 2020.” In August 2022, the group released the publication of the “EthTrust Security Levels Specification v1.” This specification has since served as a framework for developers, organizations and customers leveraging and reviewing smart contract code written in Solidity, Ethereum’s main programming language.

Yet as the Ethereum network continues to advance, Nevile pointed out that the EthTrust Security Levels Specification required updates to reflect ongoing and new security developments. “For instance, the v1 specification covers bugs up to about the year 2022, yet new bugs were discovered after we released v1,” he said.

This in mind, Nevile shared that today the EEA announced the release of Version 2.0 of its EthTrust Security Levels Specification. Neville noted that the EthTrust Security Levels Specification v2 addresses issues such as newly discovered bugs in the Solidity compiler, treatment of rounding errors, more vigorous treatment of read-only reentrancy attacks and more.

Updates are critical, as the Ethereum ecosystem has fallen victim to security exploits in the past due to these specific issues. For instance, Michael Lewellen, head of solutions architecture at OpenZeppelin – a security firm building an open-source framework to secure smart contracts – told Cryptonews that “The DAO” hack occurred due to reentrancy. “The DAO Hack was the original big hack on Ethereum that happened in 2016 and got everyone thinking more about security. This was a classic case of reentrancy,” Lewellen said. The DAO hack resulted in a loss of $3.64 million in ETH.

Nevile explained that reentrancy occurs when a developer starts a smart contract and then requests for the program to do something different while it is in the middle of running code. He said:

“Essentially this means that a program is halfway through running code, but then something else is asked of it. As a result, the two requests could get mixed up. A program hacker can then use this mix up as an opportunity to steal people’s money or change the prompt of things.”

Will an industry standard be widely adopted? 

Aware of the severity behind such incidents, Lewellen pointed out that OpenZeppelin leverages the EthTrust Security Levels v1 framework to prevent such security vulnerabilities from occurring. “We use this framework as a pre-audit assessment for many of our clients. This allows clients to know that we are checking for certain instances during the audit process.”

This industry standard seems to be helpful, as an anonymous OpenZeppelin client revealed to Cryptonews that EthTrust is what the company had been lacking in the past. The source said:

“We failed our previous security audit because we didn’t have clear guidance on what security requirements we were missing. We feel much more confident going into our next audit after reviewing the EthTrust requirements and implementing them in our codebase.”

Yet Nevile commented that while feedback for the EthTrust standard v1 has been positive, it remains challenging getting developers and organizations to know that such an open standard exists. He also noted that the framework is best suited for newer Ethereum projects. He said:

“Projects like Uniswap, Aave and others may look at these specifications and find them to be useful, but for the most part it’s common knowledge for them. Projects that are just now being developed and going to production on Ethereum will likely find these specifications to be valuable.”

However, the question remains whether or not such an industry standard will help prevent security exploits on Ethereum moving forward. John Wingate, founder and chief executive officer of BankSocial – a financial services company that leverages blockchain technology – told Cryptonews that the changing nature of industry standards is problematic. “Standards are always changing; languages are always depreciating methods, variables, data types, and object types,” he said.

This concern in mind, Nevile shared that version 3 of the EthTrust specification is already in the works. “We are roughly 16 months between publications. I think that 12 to 18 months is a frequent enough revision to ensure that we don’t fall out of date.”

Although this may be, Wingate believes that repeatable, automated testing is the only way to make sure decentralized applications are adhering to best practices that may prevent security exploits. He said:

“This means being able to set your platform up to have regular, automated, code testing. When the source code, or compiler is known to have a bug, the automation tool can be updated and then everyone gets the benefit of scanning for the exploits.”

The post Ethereum Smart Contract Framework Updated to Combat Security Concerns appeared first on Cryptonews.

Apple has decided to terminate its credit-card partnership with Goldman Sachs as the tech giant pushes deeper into consumer lending.

Apple recently submitted a proposal to Goldman Sachs, outlining its intention to exit the contract within the next 12 to 15 months, according to a report from The Wall Street Journal. 

The termination encompasses the entire consumer partnership, including the credit card launched in 2019 and the savings account introduced this year.

The decision marks a rapid reversal for a program that, just over a year ago, was extended until 2029 and was expected to be a cornerstone of Goldman Sachs’ foray into the mainstream consumer market. 

However, things took a turn for the worse for Goldman Sachs towards the end of last year when it incurred significant losses in its attempts to establish a comprehensive consumer operation. 

By early this year, Goldman Sachs had informed Apple of its intention to offload the partnership. 

Typically, the merchant, in this case, Apple, holds a controlling role in such collaborations.

Goldman Sachs has engaged in discussions with American Express regarding the possibility of transferring the program to the renowned card giant. 

However, American Express has raised concerns about certain aspects of the program, including its loss rates, and it remains uncertain whether these discussions have progressed further. 

Synchrony Financial Shows Interest in Apple’s Credit Card Program

Synchrony Financial, the largest issuer of store credit cards in the U.S., has also shown interest in assuming control of the credit-card program. 

Synchrony has long sought to position itself as an issuer with close ties to tech companies, boasting partnerships with industry giants such as Amazon and PayPal. 

Interestingly, Synchrony originally competed against Goldman Sachs for the Apple credit-card program.

For Apple, this development poses a setback for its services business, which has become increasingly crucial as iPhone sales plateau. 

However, it’s worth noting that the Goldman partnership likely represents only a small portion of Apple’s revenue stream. 

In the September quarter, Apple reported a negligible annual decline in overall sales, while services revenue grew by approximately 16%.

For Goldman Sachs, the partnership’s demise represents a significant step back from its failed attempt to diversify beyond serving corporate clients and the ultra-rich. The bank is now refocusing on its core clientele.

Apple’s Relationship with Goldman Sachs Face Challenges From Beginning

The relationship between Goldman Sachs and Apple faced challenges from the beginning. 

Apple’s advertisements stating that the card was not from a bank reportedly irritated certain Goldman executives. 

Moreover, Apple insisted on approving nearly all applicants, leading to increased loan losses for Goldman. 

Apple’s requirement to send cardholders’ bills at the beginning of the month also caused significant customer service challenges for Goldman, as most card programs stagger bill distribution to avoid overwhelming call volumes.

Some Goldman executives privately attribute regulatory scrutiny faced by the bank to its association with Apple. 

Last year, Goldman disclosed that the Consumer Financial Protection Bureau was investigating its credit card account management practices, including billing error resolutions and cardholder refunds. 

The Federal Reserve has also been examining Goldman’s broader consumer-lending business.

 In response, Goldman has initiated Project Blue, an internal effort focused on addressing regulatory issues, and has been reassigning employees from consumer lending to support this endeavor.

The post Apple Ends Partnership With Goldman Sachs as Tech Giant Expands into Lending appeared first on Cryptonews.

Top management of artificial intelligence company, OpenAI, are scrambling to “reunify” the organization following the dramatic ousting of co-founder, Sam Altman.

According to a report by Bloomberg News, OpenAI’s Vice President for Global Affairs, Anna Makanju, assured employees that the company has “a plan we are working towards.”

“Intense discussions”

According to the report, OpenAI executives are “continuing to go over mutually acceptable options” as they attempt to navigate more discussions today.

“These intense discussions can drag out, and I know it can feel impossible to be patient,” Makanju allegedly stated.

OpenAI’s board of directors announced Altman’s firing on Friday, claiming that he “was not consistently candid in his communications.”

“The board no longer has confidence in his ability to continue leading OpenAI,” read an announcement Friday from the company.

Meanwhile, OpenAI president and co-founder, Greg Brockman, quit following news of Brockman’s firing.

On Monday, Microsoft CEO Satya Nadella announced a partnership with Altman and Brockman “to lead a new advanced AI research team.”

“We look forward to moving quickly to provide them with the resources needed for their success,” posted Nadella.

Employees threaten to walk

Since Altman’s abrupt firing, over 700 OpenAI employees signed a letter to the company’s board of directors demanding they resign and reinstate Altman.

“Your actions have made it obvious that you are incapable of overseeing OpenAI,” the letter to the board reads in part. “We are unable to work for or with people that lack competence, judgment and care for our mission and employees.”

Alongside the letter, employees began posting the sentiment “OpenAI is nothing without its people” en masse on X.

Among those tweeting their support of the ousted duo was chief technology officer, Mira Murati, who was elected to take over as interim CEO following Altman’s exit. Murati ultimately resigned, with OpenAI giving former executive of livestreaming platform Twitch, Emmett Shear, the role.

“I will do everything I can to reunite the company”

“I loved my time at OpenAI,” Altman posted following his departure. “It was transformative for me personally, and hopefully the world a little bit. Most of all I loved working with such talented people.”

OpenAI’s chief scientist and the man widely reported to be a leading force behind Altman’s exit, Ilya Sutskever, tweeted remorse for their decision on Monday.

“I deeply regret my participation in the board’s actions,” said the company’s chief scientist, Ilya Sutskever. “I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company.”

The post OpenAI Scrambles to Prevent Staff from Leaving, Having “Intense Discussions” – Report appeared first on Cryptonews.

505 OpenAI employees have signed a letter demanding the board of directors at the artificial intelligence company step down following the sudden ousting of co-founder, Sam Altman, on Friday.

Over 500 OpenAI employees threaten to walk

Kara Swisher, a podcaster for New York Magazine, tweeted the signed employee declaration on Monday morning. In it, hundreds of staff threaten to leave their positions for a new Microsoft AI subsidiary spearheaded by Altman and Greg Brockman, another co-founder of OpenAI.

CEO of Microsoft, Satya Nadella, tweeted out that his organization hired Altman and Brockman “to lead a new advanced AI research team.”

“We look forward to moving quickly to provide them with the resources they need for their success,” wrote Nadella. 

“Your actions have made it obvious that you are incapable of overseeing OpenAl,” the letter reads in part. “We are unable to work for or with people that lack competence, judgment and care for our mission and employees.”

Moreover, the employees state that they “will take this step imminently, unless all current board members resign” and it “reinstates Sam Altman and Greg Brockman.”

A turbulent few days

Altman was fired from the company he helped develop Friday, with the board of directors alleging he “was not consistently candid in his communications.”

“The board no longer has confidence in his ability to continue leading OpenAI,” read an announcement Friday from the company. 

Brockman, who was serving as president of OpenAI, quit on Friday following the news.

“I continue to believe in the mission of creating safe AGI that benefits all of humanity,” Brockman wrote in a message to the company.

“I loved my time at OpenAI,” tweeted Altman. “It was transformative for me personally, and hopefully the world a little bit. Most of all I loved working with such talented people.”

What comes next for the troubled company

Emmett Shear, co-founder of live streaming service, Twitch, will take over as interim CEO. 

Previously, OpenAI’s chief technology officer, Mira Murati was elected to the position before she signed her name alongside other members of staff threatening to walk unless Brockman and Altman were reinstated.

Furthermore, Nadella stated that Microsoft would continue its collaboration with OpenAI while simultaneously collaborating with Altman and Brockman.

“We look forward to getting to know Emmett Shear and OAI’s new leadership team and working with them,” Nadella wrote. 

On Monday morning, OpenAI board member, Ilya Sutskever, tweeted his remorse over their decision.

“I deeply regret my participation in the board’s actions,” Sutskever wrote. “I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company.”

The post 505 of 700 OpenAI Employees Demand Board Resign Following Sam Altman Firing, Threaten to Walk appeared first on Cryptonews.

According to a recent report by Computer World, Apple is planning to allow iPhone users in the EU to install apps from outside the official App Store to comply with the region’s new Digital Markets Act. This potential change has raised concerns among cybersecurity experts about an increase in phishing attacks targeting crypto users.

Security Firms Sound Alarm on Phishing Attack Risks

While Apple has not officially confirmed the policy change, multiple reports have indicated since 2022 that the company is preparing for it. Cybersecurity firms warn this could expose iPhone users to greater risks, however.

Apple will allow iPhone users in the EU to sideload apps starting in the first half of 2024 to comply with new regulations!

Sideloading will allow users to downloads apps from the internet and third-party app stores

Should Apple allow users to sideload apps outside of the EU?… pic.twitter.com/A2et1ppmjK

— Apple Hub (@theapplehub) November 13, 2023

In a recent report, blockchain security firm SlowMist explained that Android users in China have already suffered major financial losses from phishing attacks linked to fake apps installed outside the Google Play Store. They caution that iPhone sideloading could lead to similar “phishing attacks, asset theft, account password theft, and other risks” targeting crypto investors.

Experts Advise Caution With Sideloaded Apps

David Schwed, COO of blockchain security company Halborn, said in an interview that sideloaded apps may contain malicious code disguised as legitimate software. He explained that the iOS protections like sandboxing “might not fully mitigate the risks posed by skillfully crafted, deceptive applications designed to exploit user trust.”

In an October 2021 whitepaper, even Apple acknowledged that sideloaded apps make it easier for cybercriminals to distribute malware more widely. The company argued that attackers could trick users into sideloading by making apps appear to come from the App Store.

To protect themselves from phishing attempts, experts advise crypto users to avoid unknown links, watch for phishing URLs, and double-check before entering passwords or authorizing transactions. Opting for apps from official sources like Apple’s App Store and Google Play Store reduces the chance of downloading harmful software.

While iPhone sideloading may become mandatory in the EU, whether Apple will expand the policy globally is unclear. For now, crypto investors would be wise to exercise caution if given the option to install apps outside the App Store. The convenience may come with increased phishing risks.

The post iPhone Sideloading Could Increase Crypto Phishing Attacks, Experts Warn appeared first on Cryptonews.

Ritual, a startup building a decentralized platform for artificial intelligence, has raised $25 million in a seed funding round. The funding was led by venture capital firm Archetype, with participation from Robot Ventures and Canonical.

The San Francisco-based startup seeks to provide universal access to AI technology. Currently, innovation and access to high-quality AI like large language models is concentrated at big tech companies like Google, Microsoft, and Meta. Ritual wants to change that by building an open, decentralized network for hosting, training, and running AI models.

“The consolidation of AI among a small group of powerful companies poses a significant threat to the future of technology,” said Niraj Pant, co-founder of Ritual in a press release. “We founded Ritual to end the ecosystem’s reliance on the few, to open access to this critical infrastructure, and ensure a future of building better AI.”

Democratizing Access to Cutting-Edge AI

Ritual‘s network connects distributed computing devices to power various AI workloads, allowing anyone to participate in training and running models, not just large tech companies with massive computing resources.

An API layer provides easy access to models hosted on the network. A proof system offers guarantees around computational integrity. The decentralized nature of Ritual also makes it resistant to censorship and provides inherent data privacy and verifiability.

“Ritual is building the leading decentralized AI network, expanding the potential for every single company – from crypto to enterprise – to innovate on this new frontier of technology,” said Ash Egan, founder of Archetype.

Unique use cases enabled by Ritual’s decentralized approach include autonomous agents and integrating AI with decentralized finance (DeFi) protocols to enable dynamic governance.

The startup claims it’s the first platform allowing smart contracts to natively integrate AI capabilities. Enterprises can also leverage the network for private fine-tuning and inference with foundation models.

Strong Team to Realize the Vision

Ritual was founded by Pant, former investor at Polychain Capital, and Akilesh Potti, a machine learning researcher turned quant at Palantir.

The 15-person team combines experts from OpenAI, Coinbase, Palantir, and other leading technology companies.

Ritual plans to use the new funding to build out the network, hire key roles, and grow its ecosystem of users. The company is targeting an alpha launch in early 2024.

Advisors include AI and crypto experts like NEAR Protocol co-founder Illia Polosukhin, EigenLayer founder Sreeram Kannan, and Robot Ventures GP Tarun Chitra.

“Ritual is building long-term infrastructure for safe and secure open-source AI innovation across all industries, and has the potential to power the next wave of growth and innovation,” said Polosukhin.

The post Ritual Raises $25M for AI Decentralization, Targets Universal Access with DeFi Integration appeared first on Cryptonews.

CoinMarketCap, the well-known cryptocurrency data platform, introduced a ChatGPT plugin on Tuesday, offering users a streamlined way to access complex crypto market analysis. 

The new feature leverages the capabilities of ChatGPT to offer real-time data and insights, adding a new tool to the toolbox of how we understand crypto analytics.

The initiative seeks to make crypto analysis more accessible and user-friendly by integrating AI-driven insights directly within the CoinMarketCap platform. This development marks the first time CoinMarketCap has ventured into the AI tools space.

What Can the ChatGPT Plugin Do?

The CoinMarketCap ChatGPT plugin brings together two tools: CoinMarketCap’s crypto data repository and ChatGPT’s LLM artificial intelligence capabilities. 

The plugin offers answers to questions about the crypto market, such as correlations between different cryptocurrencies and their performance over time. Users can activate the feature via the ChatGPT Plus subscription, available for $20 per month, and start utilizing it for detailed crypto analysis.

#HelloWorld

Meet CoinMarketCap’s New AI-Intern #CMCChatGPT
Your very own Personal Crypto Analyst Intern

Powered by CMC’s leading real-time Crypto Data
Always on call to answer your Crypto Questions & Prompts

[Learn More]https://t.co/K4MpXDIfDp

<1/6>

— CoinMarketCap (@CoinMarketCap) October 11, 2023

The ChatGPT plugin has a variety of functions. One use case is analyzing the performance of and spotting patterns in prices of different cryptocurrencies during important economic and social events.

For instance, the tool can check the Bitcoin price performance leading up to U.S. presidential elections or analyze the correlation between popular ERC-20 tokens and Ethereum. Essentially, the plugin serves as a go-to source for anyone seeking to engage in price prediction or leverage AI trading within the blockchain and crypto space.

How to Access the ChatGPT Plugin on CoinMarketCap

Accessing the ChatGPT plugin on CoinMarketCap is a straightforward process. Users need to head to ChatGPT’s website, select the GPT-4 tab, and then click on “Plugins.” From there, a search for “CoinMarketCap” will lead them to the installation steps. Once installed, the plugin can be activated within the GPT-4 tab, and users will see the CoinMarketCap logo, signaling that the feature is ready for use.

While the ChatGPT plugin marks CoinMarketCap’s first foray into integrating AI for crypto analysis, it potentially sets the stage for further advancements in this field. With real-time, up-to-the-minute data provided by CoinMarketCap, users can expect increasingly precise insights, particularly as they continue to interact with the AI-driven tool. 

The plugin comes as part of the ChatGPT Plus subscription, which itself is expected to see more features added over time, enriching the scope of AI trading and crypto analysis.

The combination of CoinMarketCap and ChatGPT isn’t just a one-off feature; it’s indicative of a broader trend toward making complex financial data more understandable and accessible. By leveraging artificial intelligence, CoinMarketCap is offering a tool that could democratize access to detailed crypto analysis. 

It allows for a wider range of participants in the crypto market, from seasoned traders to newcomers, to make data-driven decisions without the steep learning curve traditionally associated with crypto trading and investment. 

The post CoinMarketCap Launches ChatGPT Plugin to Simplify Crypto Analysis appeared first on Cryptonews.

OpenAI founder Sam Altman has announced an enhancement to the company’s popular AI-powered chatbot ChatGPT that could potentially revolutionize the crypto industry. 

Altman has recently confirmed that ChatGPT, a powerful language model, can now browse the internet to provide up-to-date information with source links, breaking free from its previous limitation of data only up to September 2021. 

we are so back https://t.co/rPpYdQuTpP

— Sam Altman (@sama) September 27, 2023

The development opens up a world of possibilities for the role of ChatGPT in the crypto space.

The AI chatbot has already gained popularity as a tool for crypto price predictions, but its limited knowledge base has been a constraint until now. 

However, with the ability to access current information from the web, ChatGPT can now offer more accurate and informed insights into the dynamic world of cryptocurrencies.

ChatGPT’s Role in Crypto Continues to Grow

ChatGPT’s contribution to the crypto industry extends beyond predictions. 

In June, Elliptic, a leading firm specializing in managing crypto risks, announced its integration of ChatGPT into its intelligence and research operations. 

This integration aims to enhance the efficiency and accuracy of Elliptic’s research efforts, enabling investigator teams to identify emerging risk factors and manage larger volumes of risks effectively.

Moreover, the Solana Foundation integrated ChatGPT into its network in May. 

Consequently, the company introduced a new plugin that allows users to directly access features such as checking wallet balances, transferring tokens, and even purchasing non-fungible tokens (NFTs) with Solana through ChatGPT.

As reported, cryptocurrency exchange Bitget is also using AI in a number of ways to provide better services for users and stay ahead of the curve. 

Back in July, Gracy Chen, the managing director of Bitget, revealed that the exchange is utilizing AI tools to streamline processes and enhance functions. 

One area where AI has proved particularly beneficial for Bitget is in its translation team, Chen said. 

By leveraging AI, the exchange is able to handle translations for its multi-language services more efficiently. 

Additionally, the customer service department utilizes AI to provide faster responses to queries, including customized information and trading data.

Bitget is also working on an AI-powered chatbot, inspired by OpenAI’s ChatGPT, to assist users in their trading activities.

ChatGPT Predicts Mainstream Adoption of Crypto

Web3 entrepreneur and marketeer, Stacy Muur, recently took to X (formerly Twitter) to inquire about ChatGPT’s vision of the future of web3.

In its response, the chatbot outlined a timeline that included global acceptance of cryptocurrencies by 2024, widespread adoption of decentralized identity systems by 2025, and the replacement of traditional financial services by decentralized finance (DeFi) by 2026. 

Furthermore, ChatGPT foresaw the rise of decentralized autonomous organizations (DAOs), blockchain integration in healthcare, and the establishment of an energy-efficient and environmentally conscious blockchain ecosystem by 2035.

“Services like Filecoin and Arweave become the backbone of internet storage, offering more secure, efficient, and decentralized alternatives to traditional cloud or server-based storage systems,” the chatbot predicted.

I asked ChatGPT-4 to predict the future of Web3.
Here's what it had to say:

2024: Global Crypto Regulation

The legal framework for cryptocurrencies is accepted in 90% of countries around the globe. KYC/AML becomes standardized, clearing the path for institutional money to flow… pic.twitter.com/LbHDn80bhj

— Stacy Muur (@stacy_muur) September 23, 2023

The post Could ChatGPT’s Latest Enhancement Herald a Revolutionary Phase for Crypto? appeared first on Cryptonews.

Researchers at San Diego State University have developed an artificial intelligence (AI) system to detect and expose cryptocurrency giveaway scams on Twitter. 

Dubbed GiveawayScamHunter, the automated system has identified a staggering 95,111 scam lists created by 87,617 accounts on the social media platform between June 2022 and June 2023.

By using GiveawayScamHunter, the researchers were able to extract website and wallet addresses associated with the scams, ultimately uncovering 327 scam giveaway internet domains and 121 new scam-related cryptocurrency wallet addresses. 

They also provided valuable insights into the workings of these scams, including how scammers target victims and the estimated number of victims scammed during the one-year study period.

The report estimated that over 365 victims were attacked by crypto scams during the period, leading to the loss of more than $872,000.

Furthermore, the researchers discovered that Twitter Lists, a networking tool available on the platform, have become a convenient vector for scammers to exploit due to their permissionless nature. 

In order to identify which lists were involved in giveaway scams, the team trained a natural language processing tool on data from previously identified scams. 

This enabled them to identify almost 100,000 instances of giveaway scam lists and collect data on previously unreported scam websites and wallets.

The researchers said they have shared their findings, along with the associated accounts, domains, and wallet addresses, with both Twitter and the crypto community.

However, according to their paper, 43.9% of the associated accounts remain active as of the paper’s publication on August 10.

“Our analysis also shows that 43.9% of spam accounts still remain active as of this writing, implying the urgent needs of detecting the spam accounts and preventing the dissemination on Twitter,” the report said.

Scammers Use AI to Develop New Scam Methods

The use of AI in detecting cryptocurrency giveaway scams on social media platforms comes as scammers and bad actors have already started using this technology to develop new methods of fraud and deception.

By leveraging AI-powered tools, scammers can amplify their reach and create a seemingly loyal fanbase of thousands of people. 

These fake accounts and interactions can be used to give the illusion of credibility and popularity to their scam projects. 

Scammers may even use AI-driven chatbots or virtual assistants to engage with individuals, provide investment advice, promote fake tokens and initial coin offerings, or offer high-yield investment opportunities. 

The use of AI can also challenge social proof-of-work, which assumes that crypto projects with greater and more loyal followings online must be legitimate. 

One example of how scammers are using AI is through the use of “pig butchering” scams. AI instances can spend several days befriending someone, usually an elderly or vulnerable person, only to end up scamming them. 

The post Researchers Deploy AI to Uncover Crypto Giveaway Scam Schemes on Twitter appeared first on Cryptonews.

The Federal Bureau of Investigation has issued a stark warning about the growing threat of “deepfakes” being used in cyber extortion. 

In a recent report, the FBI said that malicious actors are using deepfakes to manipulate photographs or videos, often obtained from social media accounts or the open internet, and create sexually-themed images that appear authentic.

They then circulate these photos on social media or pornographic websites for the purpose of sextortion schemes or to harass the victim.

The FBI mentioned that the improvements in the quality, customizability, and accessibility of artificial intelligence-enabled image generators have further contributed to the growth of deepfakes. 

The commission said it has received reports from victims, including minors, whose photos or videos were altered to create explicit content that was then publicly circulated. 

Many victims were unaware their images had been copied, manipulated, and circulated until it either came to their attention or they stumbled across them online. 

Once the manipulated content is circulated, victims face significant challenges in preventing its continual sharing or removal from the internet.

“Malicious actors have used manipulated photos or videos with the purpose of extorting victims for ransom or to gain compliance for other demands (e.g., sending nude photos),” the FBI said. 

The federal agency recommended that people exercise caution when posting or direct messaging personal photos, videos, and identifying information on social media, dating apps, and other online sites. 

Moreover, people should use discretion when posting images, videos, and personal content online, particularly those that include children or their information, as they can be captured, manipulated, and distributed by malicious actors without your knowledge or consent. 

Applying privacy settings on social media accounts, running frequent online searches for personal information, using reverse image search engines, exercising caution when accepting friend requests or communicating with unknown or unfamiliar individuals, and securing online accounts with complex passwords and multi-factor authentication are also among the FBI’s recommendations.

Deepfakes Used to Target Crypto Users

As of late, there have also been instances where deepfakes were used to target unsuspicting crypto users.

For instance, in May, a deepfake of Tesla and Twitter CEO Elon Musk was created to promote a crypto scam. The video contained footage of Musk from past interviews, manipulated to fit the fraudulent scheme.

Yikes. Def not me.

— Elon Musk (@elonmusk) May 25, 2022

Scam promoters have long resorted to deepfakes to drum up demand among potential crypto investors. 

Scammers impersonate anyone from influencers to high-profile crypto figures, but also ordinary people to gain victims’ trust.

Last year, Miranda, an e-commerce worker who did not wish to disclose her real name because her company had not given her permission to speak publicly, was targeted by such an attack when imposters released a deepfake video of the Melbourne woman promoting a crypto scam and published it on her Instagram account.

The post AI Deepfakes Becoming Tool of Choice in Cyber Extortion, Says FBI – How is Crypto Being Used in the Process? appeared first on Cryptonews.

Chinese autonomous vehicle startup Pony.ai has introduced its driverless robotaxi service in Shenzhen.

On Monday, the autonomous vehicle technology company revealed that it has received a permit in Shenzhen to conduct robotaxi services without an onboard safety officer in the city’s core areas, according to a report by CnEVPost.

Pony.ai was founded in late 2016, and since then has established research and development (R&D) centers in Silicon Valley, Guangzhou, Beijing, and Shanghai, and is running robotaxi operations locally. 

The company launched the robotaxi app PonyPilot in December 2018, and in November 2020, it secured a permit to operate the robotaxi service in Beijing. 

In March 2021, Pony.ai announced that it had received a license in Beijing to operate fully unmanned robotaxi services within a 60 sq.km area in the Yizhuang Economic Development Zone.

In April, the company was granted permission to offer robotaxi service without a safety officer in the vehicle in Guangzhou.

Baidu is the only other firm that has obtained such a permit.

Pony.ai Has 200,000 Paid Travel Orders

Pony.ai’s expansion into the sprawling metropolis of Shenzhen comes as the company has been able to quickly roll out self-driving technology in different cities. 

The company said that driverless vehicles need to undergo rigorous testing before hitting the road, including remote and extreme scenarios, safety management, network and data security, risk response, and a comprehensive assessment by experts and government departments. 

To date, Pony.ai has more than 1 million kilometres of fully unmanned testing and nearly 200,000 paid travel orders.

Pony.ai, which is backed by Toyota Motor and NIO Capital, aims to remain at the forefront of China’s rapidly growing autonomous vehicle market. 

The Chinese government has identified self-driving cars as a key strategic area for growth and has been actively supporting the development of the sector.

The country had previously said that it wants to have vehicles with partial self-driving technology account for 50% of all new-auto sales by 2025.

Meanwhile, Pony.ai faces stiff competition from rivals such as Baidu and Didi Chuxing.

Autonomous cars have been in development for over a decade, but the market has been heating up just recently as investors and automakers pour billions of dollars into the business. 

Several companies including Waymo, Cruise, and Zoox, have launched their own robotaxi services all over the world. 

Robotaxis are expected to reduce traffic, lower transportation costs, and improve safety. 

They also have the potential to significantly reduce traffic congestion. A fleet of self-driving cars can be programmed to travel in the most efficient way possible, avoiding traffic jams, and waiting times. 

By reducing traffic congestion, Robotaxis can help alleviate the issues of air pollution and environmental degradation caused by long idling times in congested traffic.

The post Pony.ai Introduces Driverless Robotaxi Service in Shenzhen, Following Successful Launch in Guangzhou appeared first on Cryptonews.

The US and international law enforcement have made 288 arrests and seized over $53 million in cash and cryptocurrency as part of a major dark web crackdown.

In a Tuesday press release, the US Justice Department said the operation, started in 2021, spanned across the United States, Europe, and South America and involved law enforcement on three continents.

The “unprecedented” operation, dubbed Operation SpecTor, was aimed at tackling fentanyl and opioid trafficking on the darknet. 

The joint action saw 288 suspects arrested, over $53 million in cash and cryptocurrency confiscated, and dozens of firearms and more than 850 kilograms of drugs seized.

In the US, more than 100 federal operations and prosecutions had been made, Attorney General Merrick Garland said, adding:

“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web”

Garland mentioned that over 150 of the arrests were made in the US, with one in California accused of selling $2 million of fentanyl and methamphetamine on the dark web. 

The operation also involved law enforcement from nine other countries, including Austria, Brazil, France, Germany, the Netherlands, Poland, Switzerland, and the UK. 

In a separate press release, Europol added that the operation resulted in the seizure of a dark-web marketplace called Monopoly Market. 

“This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web,” Europol’s Executive Director Catherine De Bolle said. 

SpecTor Was Next in Line After Hydra and Genesis Market

Garland said SpecTor was a continuation of the effort to disrupt darknet marketplaces after the closure of Hydra in 2022 and online identity theft site Genesis Market in 2023.

In April 2022, American and German federal government law enforcement agencies seized and shut down Hydra, which was considered to be the world’s largest and oldest darknet marketplace of illegal items and services.

At the time, the DOJ said German Federal Criminal Police had seized cryptocurrency wallets containing $25 million in Bitcoin from the marketplace.

The agency also claimed that Hydra accounted for an estimated 80% of all darknet market-related cryptocurrency transactions in 2021. 

Similarly, earlier this year, authorities shut down popular fraud shop Genesis Market and arrested hundreds of its users around the world in a coordinated international law enforcement effort dubbed Operation Cookie Monster.

The post Global Dark Web Crackdown: 288 Arrested, Drugs, Guns, and Crypto Seized appeared first on Cryptonews.