Security Incidents

In 2025, Americans lost $11.36 billion to cryptocurrency fraud, a 22% increase from 2024, with investment scams accounting for the majority. Despite increased enforcement, scams continue to thrive, particularly affecting older victims, prompting authorities to enhance anti-fraud measures.

Timor-Leste’s “crypto cryptocurrency resort” plan is reportedly related to a scam network run by the Cambodian royal family group that has been sanctioned by the United States; on-the-ground investigations found the site to be empty land. The royal family group is accused of carrying out large-scale online fraud, with victims worldwide. The investigation has raised concerns within the Timor-Leste government, which said the country faces the risk of transnational crime.

Phantom Wallet experienced a malfunction during the airdrop period, causing abnormal token prices and account balances to display. Although users’ assets were safe, they suffered transaction losses, leading to compensation demands and a trust crisis. The incident also heightened concerns about blockchain security, as some malicious actors may take advantage of the confusion to launch phishing attacks. While the technical issue has been fixed, improvements are still needed to the user experience and system stability.

A U.S. FBI report shows that in 2025, losses from cryptocurrency scams reached $11.4 billion, up 22% from the previous year. The scams are sophisticated, mainly controlled by criminal groups in Southeast Asia, and they use human trafficking to force victims into labor. The number of victims increased to 181,565 cases, with an average loss of more than $62,000; many people lost their lifetime savings.

On-chain detective ZachXBT revealed that an anonymous source shared stolen data from North Korea’s internal payment servers, involving 390 accounts and encrypted transaction information. More than $3.5 million in funds vanished, and it is connected to a sanctioned company. ZachXBT has compiled a detailed organizational chart.

Blockstream CEO Adam Back said in an interview that quantum computers have not yet threatened the Bitcoin network, but the industry needs to prepare in advance by migrating keys to a quantum-resistant format. He mentioned that his research team is pushing forward on related work; post-quantum cryptography has already entered the implementation stage. The challenge faced is how to complete the migration in an orderly way.

South Korea's financial regulators have mandated that all domestic crypto exchanges implement a uniform withdrawal delay system to combat voice phishing scams. This decision removes prior flexibility for platforms in managing withdrawal exceptions, aiming to give victims time to reconsider transactions.

Timor-Leste’s “cryptocurrency resort” project is believed to be connected to a Cambodian prince group scam network that is subject to U.S. sanctions. On-site investigation found the location to be an empty lot. The prince group has been accused of carrying out large-scale online fraud, with victims worldwide. The investigation prompted concern from the Timor-Leste government, which said the country faces the risk of transnational crime.

Newly surfaced phone records and messages are adding to evidence that could deepen legal scrutiny of Argentine President Javier Milei’s role in the failed Libra cryptocurrency project, The New York Times reported Monday. Court documents from an ongoing federal investigation show Milei exchanged

Argentine President Milei is connected to the Libra cryptocurrency project; call records show he repeatedly contacted entrepreneurs before and after the token was listed, raising questions about his independence. After Milei’s social media posts helped drive the token price to surge and then quickly fall, investors suffered losses of about $250 million. The investigation is still ongoing, and it may affect Argentine politics and the crypto market.

World Liberty Financial borrowed more than $50 million in stablecoins on the Dolomite platform in the short term, drawing attention from the DeFi market. WLFI deposited large amounts of governance tokens as collateral, causing the liquidity pool utilization rate to exceed 100%, leaving liquidity nearly exhausted and pushing interest rates sharply higher. Analysis suggests this move could be intended to meet liquidity demand or to increase on-chain activity; investors should carefully assess the risks.

AI company Anthropic has restricted access to its new AI system, Claude Mythos Preview, after finding thousands of critical software vulnerabilities in testing. Many of these vulnerabilities had gone unnoticed for years, including security issues across multiple operating systems and cryptographic protocols. Industry experts warn that AI-driven cyberattacks will grow significantly, and that the balance between technical innovation and security defenses must be prioritized.

A 2026 FBI report shows that cryptocurrency scams continue to grow, with losses reaching $11.37B in 2025, and people age 60 and older are the primary victims. Investment fraud and cryptocurrency ATM scams are especially prominent, with the highest losses in California. Despite increased law enforcement efforts, the risk continues to rise, and greater security awareness is needed.

The social media platform X has introduced a mandatory verification mechanism for cryptocurrency content to address increasingly severe scam problems. The mechanism will lock an account when it first mentions cryptocurrency, requiring users to complete identity verification. According to data, crypto scams in 2025 are expected to reach $17 billion, and social media platforms have become a major source of scams. The new measures are intended to reduce the success rate of scammers using highly trusted accounts to carry out scams; however, scam activity is still rapidly expanding, and prevention efforts face challenges.

The U.S. Department of Justice’s case against Tornado Cash co-founder Roman Storm continues to intensify. Prosecutors rebut the Supreme Court ruling Storm cited, emphasizing that the legal framework is different. Storm faces criminal charges including money laundering, and the related funds are closely linked to illegal activity. The case has significant implications for crypto privacy protocols and regulation.

Cloudflare announced that it will complete the migration to post-quantum cryptography by 2029. Currently, two-thirds of its traffic already uses this technology. With the rapid development of quantum computing, traditional encryption methods face threats, especially Bitcoin’s security. About 1.7 million Bitcoin public keys have been exposed and could face large-scale cracking risks, with a value as high as $680B.