The rising AI economy is bringing a new type of cybercrime. Cybercriminals are scamming AI firms by signing up for new accounts to steal tokens via computing power. The problem is getting worse, according to Patrick Collison, CEO of payment behemoth Stripe. The token hackers now amount for one in every six new customer subscriptions.
Experts said that the threat actors steal the tokens to later sell them on the dark web. ‘Token pilfering’ has plagued the cybersecurity world and is becoming quite expensive for AI startups to give free trials to potential customers.
It is not new for hackers to attack startups. With the AI economy rising, it has created fractures for hackers because with traditional software trials, a registration for an AI firm brings valuable tokens for compute power that hackers can sell later.
The most neglected subject in AI is token theft. Because they are using tokens at machine speed, these attackers can swiftly accrue enormous consumption bills that they never plan to pay and burn inference costs. This is one of the most frightening aspects of that.
In order to use the tokens for purposes unrelated to what the company is delivering or to resell them, token theft sometimes involves thieves creating many accounts at an AI company and across multiple firms. They always vanish after using up all of the tokens; Sands compared this swindle to those who "dine and dash" at restaurants.
The problem surfaces as the crooks use agents to steal the tokens in minutes. Unlike a traditional software company, the cybercrime happens too fast for the organization to address the issue.
It is hell for AI firms who want to give out free trials to get more new users. Typically, it costs nothing for a firm to give out free trials on a temporary basis, but for AI firms, the customer-acquisition costs can go up to $500 due to scammers abusing the startup policies of giving out free tokens for trial accounts.
The token epidemic has created problems for startups. Few have stopped free trials, but it has affected their growth as it shuts down the opportunities to get new customers.
Luckily, one solution exists. According to Stripe, there exists a product called Radar that works as a default fraud detector in the credit card payment network, adapts tools, and helps clients find and block token fraud.
Project Eleven, a quantum security firm, published a report that said these quantum computers, even one, is powerful enough to hack the elliptic curve digital signatures securing Ethereum, Bitcoin, and other big blockchains. Experts say they won’t exist beyond 2033, and may end soon by 2030. The window for action is closing fast. According to the report, “Migration to quantum-resistant cryptography is no longer optional but imperative for any blockchain system expected to be trusted and secure into the future."
Recent innovations have significantly lowered the hardware bar needed to launch such attacks. A breakthrough Google paper said that breaking the elliptic curve cryptography threshold could be achieved within 1,200 logical cubits, and less than 90 minutes of computing time on a supercomputing hardware.
Google has put a Q-Day (like D-day) at 2032. Project Eleven’s research has decreased the timeline by two years: 2030. The report estimates that 6.9 million Bitcoin (one third of the total estimated supply) have already been leaked on-chain, exposed to the potential quantum attack. For ETH, exposure is more, with over 65% of all ETH held in quantum-exposed addresses.
The public ledgers and bearer-instruments offer no security. Blockchains has no scam department, no redressal platform for stolen funds, and no chargeback measures. If a quantum hacker recovers a private key and steals money, the loss is permanent. The transition problem is further fouled by slow-moving blockchain governance.
What makes blockchains particularly vulnerable, the report explains, is that their public ledgers and bearer-instrument design offer no safety net. Unlike a bank, a blockchain has no fraud department, no chargeback mechanism, and no way to reverse a forged transaction. Once a quantum attacker recovers a private key and drains a wallet, the loss is permanent.
Bitcoin SegWit upgrade took more than two years to complete whereas ETH’s transition of proof stake took around 6 years to build. Quantum migration reaches the most basic layer of any blockchain mechanism.
The tech world has already started moving. More than half of web traffic (human) is currently post-quantum encrypted, Cloudflare data from December 2025 said.
The digital asset industry lacks preparedness. Crypto developers are suggesting various proposals but these plans will take years to execute while the threat is already brushing businesses and users.
"The internet has already moved," the report added. "The digital asset industry—which arguably has more at stake because blockchains directly protect bearer value with the exact cryptographic primitives that quantum computers threaten—has barely started."
The increasing regulatory data collection is now mixing with bitcoin’s on-chain transparency, making a trove of identity linked data that hackers can abuse for forced, real-world attacks.
Physical attacks against cryptocurrency holders are on the rise due to a number of factors, including social engineering, frequent major data breaches, KYC requirements, and regulatory data collection.
These occurrences, which are frequently referred to as "wrench attacks," entail coercion to gain private keys or force transactions by threats or physical violence. With France emerging as a focus point, this movement is highlighting a weakness in the industry's regulation.
Threats has become the rule rather than the exception, with at least 47.2% of cases involving verified torture or physical assault and 51.5% including firearms. There were 19 fatal occurrences, which resulted in 24 deaths overall and a 6.2% fatality rate. 2025 was the most violent year on record in terms of recorded cases, but analysts warn that the actual number of occurrences is probably greater because of underreporting. All numbers are based on cases that were publicly available at the time of reporting.
The risk profile for Bitcoin holders is very harsh. Transactions are irreversible once private keys are turned over under duress. Chargebacks, account freezes, and institutional recovery procedures are nonexistent. When coupled with actual compulsion, the protocol's famed finality becomes a liability.
France serves as an example of how rapidly this risk might increase. In France, there were twenty bitcoin-related physical attacks in 2025, compared to a total of just four between 2017 and 2024. Eight more cases had already been reported by early February 2026, indicating that the rise is continuing rather than leveling down. Europe now accounts for around 40% of all events worldwide, up from about 22% in 2024.
Cybersecurity investigators have revealed a rogue Go module engineered to capture passwords, establish long-term SSH access, and deploy a Linux backdoor known as Rekoobe.
The package, published as github[.]com/xinfeisoft/crypto, imitates the legitimate Go cryptography repository widely imported by developers. Instead of delivering standard encryption utilities, the altered version embeds hidden instructions that intercept sensitive input entered in terminal password prompts. The stolen credentials are transmitted to a remote server, which then responds by delivering a shell script that the compromised system executes.
Researchers at Socket explained that the attack relies on namespace confusion. The authentic cryptography project identifies its canonical source as go.googlesource.com/crypto, while GitHub merely hosts a mirror copy. By exploiting this distinction, the threat actor made the counterfeit repository appear routine in dependency graphs, increasing the likelihood that developers would mistake it for the genuine library.
The malicious modification is embedded inside the ssh/terminal/terminal.go file. Each time an application calls the ReadPassword() function, which is designed to securely capture hidden input from a user, the manipulated code silently records the data. What should have been a secure input mechanism becomes a covert data collection point.
Once credentials are exfiltrated, the downloaded script functions as a Linux stager. It appends the attacker’s SSH public key to the /home/ubuntu/.ssh/authorized_keys file, enabling passwordless remote logins. It also changes default iptables policies to ACCEPT, reducing firewall restrictions and increasing exposure. The script proceeds to fetch further payloads from an external server, disguising them with a misleading .mp5 file extension to avoid suspicion.
Two additional components are retrieved. The first acts as a helper utility that checks internet connectivity and attempts to communicate with the IP address 154.84.63[.]184 over TCP port 443, commonly used for encrypted web traffic. Researchers believe this tool likely serves as reconnaissance or as a loader preparing the system for subsequent stages.
The second payload has been identified as Rekoobe, a Linux trojan active in the wild since at least 2015. Rekoobe allows remote operators to receive commands from a control server, download additional malware, extract files, and open reverse shell sessions that grant interactive system control. Security reporting as recently as August 2023 has linked the malware’s use to advanced threat groups, including APT31.
While the malicious module remained listed on the Go package index at the time of analysis, the Go security team has since taken measures to block it as harmful.
Researchers caution that this operation reflects a repeatable, low-effort strategy with glaring impact. By targeting high-value functions such as ReadPassword() and hosting staged payloads through commonly trusted platforms, attackers can rotate infrastructure without republishing code. Defenders are advised to anticipate similar supply chain campaigns aimed at credential-handling libraries, including SSH utilities, command-line authentication tools, and database connectors, with increased use of layered hosting services to conceal corrupted infrastructure.
Google owned Mandiant’s threat intelligence team is tracking the attacks under various clusters: UNC6661, UNC6671, and UNC6240 (aka ShinyHunters). These gangs might be improving their attack tactics. "While this methodology of targeting identity providers and SaaS platforms is consistent with our prior observations of threat activity preceding ShinyHunters-branded extortion, the breadth of targeted cloud platforms continues to expand as these threat actors seek more sensitive data for extortion," Mandiant said.
"Further, they appear to be escalating their extortion tactics with recent incidents, including harassment of victim personnel, among other tactics.”
UNC6661 was pretending to be IT staff sending employees to credential harvesting links tricking them into multi-factor authentication (MFA) settings. This was found during mid-January 2026.
Threat actors used stolen credentials to register their own device for MFA and further steal data from SaaS platforms. In one incident, the hacker exploited their access to infected email accounts to send more phishing emails to users in cryptocurrency based organizations.
The emails were later deleted to hide the tracks. Experts also found UNC6671 mimicking IT staff to fool victims to steal credentials and MFA login codes on credential harvesting websites since the start of this year. In a few incidents, the hackers got access to Okta accounts.
UNC6671 leveraged PowerShell to steal sensitive data from OneDrive and SharePoint.
The use of different domain registrars to register the credential harvesting domains (NICENIC for UNC6661 and Tucows for UNC6671) and the fact that an extortion email sent after UNC6671 activity did not overlap with known UNC6240 indicators are the two main differences between UNC6661 and UNC6671.
This suggests that other groups of people might be participating, highlighting how nebulous these cybercrime organizations are. Furthermore, the targeting of bitcoin companies raises the possibility that the threat actors are searching for other opportunities to make money.
Termed as “nodejs-smtp,” the package imitates the genuine email library nodemailer with the same README descriptions, page styling, and tagline, bringing around 347 downloads since it was uploaded to the npm registry earlier this year by a user “nikotimon.”
It is not available anymore. Socket experts Krill Boychenko said, "On import, the package uses Electron tooling to unpack Atomic Wallet's app.asar, replace a vendor bundle with a malicious payload, repackage the application, and remove traces by deleting its working directory.”
The aim is to overwrite the recipient address with hard-coded wallets handled by a cybercriminal. The package delivers by working as an SMTP-based mailer while trying to escape developers’ attention.
This has surfaced after ReversingLabs found an npm package called "pdf-to-office" that got the same results by releasing the “app.asar” archives linked to Exodus and Atomic wallets and changing the JavaScript file inside them to launch the clipper function.
According to Boychenko, “this campaign shows how a routine import on a developer workstation can quietly modify a separate desktop application and persist across reboots. He also said that “by using import time execution and Electron packaging, a lookalike mailer becomes a wallet drainer that alters Atomic and Exodus on compromised Windows systems."
The campaign has exposed how a routine import on a developer's pc can silently change a different desktop application and stay alive in reboots. By exploiting the import time execution and Electron packaging, an identical mailer turns into a wallet drainer. Security teams should be careful of incoming wallet drainers deployed through package registries.
In the first half of 2025, hackers stole a record $2.1 billion in cryptocurrency, marking an all-time high. The data highlights the vulnerable state of the cryptocurrency industry. North Korean state-sponsored hackers accounted for 70% of the losses, responsible for USD 1.6 billion, rising as the most notorious nation-state actor in the crypto space, according to a report by TRM Labs.
This indicates a significant increase in illegal operations, surpassing the 2022 H1 record by 10% and nearly matching the total amount stolen for the entire 2022 year, highlighting the danger to digital assets.
The biggest cryptocurrency attack has redefined the H1 2025 narrative, the attack on Dubai-based crypto exchange Bybit. TRM believes the attack highlights a rising effort by the Democratic People’s Republic of Korea (DPRK) for cryptocurrency profits that can help them escape sanctions and fund strategic aims like nuclear weapons programs, besides being a crucial component of their statecraft.
“Although North Korea remains the dominant force in this arena, incidents such as reportedly Israel-linked group Gonjeshke Darande (also known as Predatory Sparrow) hacking Iran’s largest crypto exchange, Nobitex, on June 18, 2025, for over USD 90 million, suggest other state actors may increasingly leverage crypto hacks for geopolitical ends,” TRM said in a blog post.
"Infrastructure attacks — such as private key and seed phrase thefts, and front-end compromises — accounted for over 80% of stolen funds in H1 2025 and were, on average, ten times larger than other attack types," reports TRM. These attacks target the technical spine of the digital asset system to get illicit access, reroute assets, and mislead users. Infrastructure attacks are done via social engineering or insider access and expose fractures in the cryptosecurity foundation.
H1 2025 has shown a shift towards crypto hacking, attacks from state-sponsored hackers, and geopolitically motivated groups are rising. Large-scale breaches related to nation-state attacks have trespassed traditional cybersecurity. The industry must adopt advanced, effective measures to prevent such breaches. Global collaboration through information sharing and teamed efforts can help in the prosecution of such cyber criminals.
The government seized $7.7m in funds in 2023 that involved Sim Hyon Sop- a worker at the North Korean Foreign Trade Bank (FTB) who joined hands with IT workers to launder the money for Pyongyang.
According to the complaint, the North Korean IT workers escaped security via fraud IDs and tactics that hid their real location. The salaries were credited in stablecoins like USDT and USDC.
To launder the money, employees created accounts using fake IDs, transferred funds in small amounts to other blockchains (chain hopping), and/or converted them into other digital currencies (token swapping).
Scammers also bought non-fungible tokens (NFTs) and used US accounts to make their operations look real. Sim worked with Kim Sang Man, the CEO of the “Jinyong IT Cooperation Company,” who served as a middleman between the FTB and the IT workers.
According to the Justice Department’s National Security Division, North Korea, for years has “exploited global remote IT contracting and cryptocurrency ecosystems to evade US sanctions and bankroll its weapons programs.”
Department head Sue Bai said, “Today’s multimillion-dollar forfeiture action reflects the Department’s strategic focus on disrupting these illicit revenue schemes. We will continue to use every legal tool available to cut off the financial lifelines that sustain the DPRK and its destabilizing agenda.”
North Korean IT workers have been slithering their way into employment in US firms for many years. However, the advancement of these operations was exposed in 2024 when security expert KnowBe4 disclosed that even their organization was tricked into hiring an IT specialist from North Korea.
After that, Google has cautioned that US businesses remain a primary target and also warned that the threat actors have nor started focusing their operations at Europan firms. While few do normal work to get paid, there is also a concern that their organization access allows them to extract important data and use it for extortion.
Pig Butchering is a “form of investment fraud in the crypto space where scammers build relationships with targets through social engineering and then lure them to invest crypto in fake opportunities or platforms created by the scammer,” according to The Department of Financial Protection & Innovation.
Pig butchering has squeezed billions of dollars from victims globally. Cambodian-based Huione Group gang stole over $4 billion from August 2021 to January 2025, the New York Post reported.
Individuals should watch out for certain things to avoid getting caught in these extortion schemes. Scammers often target seniors and individuals who are not well aware about cybercrime. The National Council on Aging cautions that such scams begin with receiving messages from scammers pretending to be someone else. Never respond or send money to random people who text you online, even if the story sounds compelling. Scammers rely on earning your trust, a sob story is one easy way for them to trick you.
Another red flag is receiving SMS or social media texts that send you to other platforms like WeChat or Telegram, which have fewer regulations. Scammers also convince users to invest their money, which they claim to return with big profits. In one incident, the scammer even asked the victim to “go to a loan shark” to get the money.
Last year, Meta blocked over 2 million accounts that were promoting crypto investment scams such as pig butchering. Businesses have increased efforts to combat this issue, but the problem still very much exists. A major step is raising awareness via public posts broadcasting safety tips among individuals to prevent them from falling prey to such scams.
Organizations have now started releasing warnings in Instagram DMs and Facebook Messenger warning users about “potentially suspicious interactions or cold outreach from people you don’t know”, which is a good initiative. Banks have started tipping of customers about the dangers of scams when sending money online.
A Reuters investigation revealed that cryptocurrency exchange Coinbase knew in January about a breach affecting outsourced customer support agents in India. Six people who knew about the incident said Coinbase was aware of sensitive user data compromise through its contractor, TaskUs, before it was officially announced in May.
On 14th May, TaskUs filed an SEC document revealing that an India-based TaskUs employee was found taking pictures of a computer screen with her phone. Five former TaskUs employees confirmed that the worker and one accomplice were bribed by threat actors to get Coinbase user data.
After this information, more than 200 TaskUs employees were fired in a mass layoff from the Indore center, which drew media attention in India. Earlier, Coinbase suspected ‘overseas support agents’ but now the breach is estimated to cost 400 million dollars.
Coinbase had been a long-term partner of TaskUs, a Texas-based outsourcing firm, cost-cutting labor by giving customer support work to offshore teams. After 2017, TaskUs agents, mostly from developing countries, handled Coinbase customer inquiries.
In the May SEC filing, Coinbase said it didn’t know about the full scale of the breach until it received an extortion demand of $20 Million on 11th May. As a cautionary measure, Coinbase cut ties with TaskUs employees and other unknown foreign actors. Coinbase has notified regulators, compensated affected users, and taken strict measures to strengthen security.
In a public statement, TaskUs confirmed it had fired two staff (unnamed) for data theft but didn’t mention Coinbase. The company found the two staff involved in a cyber attack campaign that targeted other service providers linked to the client.
Hackers did not breach the Coinbase crypto wallets directly, they cleverly used the stolen information to impersonate the Coinbase employees in a series of social engineering scams. The hackers posed as support agents, fooling victims into transferring their crypto assets.
According to Money Control, “The person familiar with the matter confirmed that Coinbase was the client and that the incident took place in January. Reuters could not determine whether any arrests have been made. Police in Indore did not return a message seeking comment.”
A foundation, closely associated with Telegram, called the Open Network (TON), is pursuing ambitious expansion in the United States. A strategic move like this comes amid the expectation that Donald Trump's upcoming administration will be able to offer a more favourable regulatory environment. The TON Foundation is proud to announce a pivotal leadership transition: Manuel "Manny" Stotz, an experienced investor and blockchain advocate, has been selected as President of the organisation.
There is a new chapter in the foundation's journey to accelerate global adoption of the blockchain, emphasising expanded operations in the United States as part of a strategic expansion plan. In a statement released by a spokesperson for the TON Foundation to Cointelegraph on January 14, a spokesperson confirmed to the Cointelegraph that the US will become one of the most important markets for TON under the Trump Administration.
The TON Foundation has recently appointed Manuel Stotz, one of the world's leading digital asset investors, as its new president. The foundation will be able to expand its operations in the U.S. market with Stotz, the founder of Kingsway Capital Partners. Stotz stated that the U.S. would soon become a global crypto centre specialising in innovation. Steve Yun, who will remain a board member, will resign from the presidency, and he will be taking over the CEO role.
In light of the trend that a new president in the US is expected to provide a more favourable environment for cryptocurrency, this shift reflects this expectation. It is expected that his administration will address some of the most important regulatory issues on the day of his inauguration, which is scheduled for January 20, among crypto supporters. Among the concerns is how digital assets are treated by banks, with many in the crypto sector hoping that a change will happen in the rules regarding whether they will be accounted for as liabilities.
In addition to the issue of “de-banking,” which has impacted many crypto firms in the U.S., another issue that may be addressed is the issue of blockchain technology and its prospects. It has been Stotz's honour to serve as a board member of the TON Foundation since it was founded in Switzerland in 2023. With his new role at the TON Foundation, he will replace Steve Yun, who remains on the board. Stotz is a major investor in the digital asset industry and is the founder of Kingsway Capital Partners, an investment management firm.
There have been over 50 projects backed by the firm, among them Animoca Brands, Blockchain.com, CoinDCX, Toncoin, Genesis Digital Assets, and others. In the TON Foundation's opinion, the changing regulatory environment in the United States offers new opportunities for blockchain technology. Notably, several industry participants are optimistic about the incoming administration's pro-crypto stance, which includes plans for creating a national Bitcoin reserve and promoting blockchain-based economic reform.
As President-elect Trump has also indicated his desire to advance the field by appointing influential figures, such as Paul Atkins and David Sacks, to key positions in the sector, it is anticipated that these developments will lead to a surge in blockchain and artificial intelligence innovation. TON Foundation president Stotz believes that these developments may signify a turning point for the industry as a whole, and he believes that the US is an important market for accelerating blockchain adoption worldwide.
A decentralised project called TON is closely related to Telegram's TON blockchain, which was developed by the messenger and then turned into a decentralised project. The Toncoin token allows the network to provide 950 million Telegram users with services such as in-app payments and games, and with Stotz's leadership, TON plans to increase its user base and integrate blockchain-based solutions into everyday applications under Stotz's leadership.
The main objective of the fund is to use Telegram's vast global audience to promote the widespread adoption of blockchain technologies. With the TON Foundation, which is dedicated to supporting the development of the TON blockchain, Telegram's 950 million users will have access to crypto services through Telegram's platform. In 2023, Telegram formalised the foundation in Switzerland, a year after a 2020 settlement with the SEC ended Telegram's earlier fundraising efforts.
It was announced in December 2024 that the foundation would be expanding to Abu Dhabi following the ADGM's distributed ledger technology framework. This move is intended to provide legal backing for decentralised projects throughout the MENA and APAC regions, with a target of reaching 500 million users by 2028. In the crypto industry, the return of Trump to power could be considered a turning point in the market as a result. He has announced that cryptocurrencies will be treated differently in the United States of America than they were in the past, which could result in more blockchain projects coming into the country in the future and increased innovation in decentralised technologies.
Despite this change in leadership at the TON Foundation, the organisation continues to adhere to its mission and values even during this transition and continues to follow through with its objectives. As a board member of the foundation, Steve Yun provides ongoing leadership and direction and Manny Stotz plays a pivotal role in helping to make it a place for growth, collaboration, and innovation in the future. TON anticipates milestones to be achieved in the US over the coming months, which will further enhance the company's reputation as one of the leading blockchain companies in the world.