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Madras high court
Blockchain cryptocurrency Cyber Security Digital Assets KYC Madras high court

Madras High Court says cryptocurrencies are property, not currency — what the ruling means for investors

 



Chennai, India — In a paradigm-shifting  judgment that reshapes how India’s legal system views digital assets, the Madras High Court has ruled that cryptocurrencies qualify as property under Indian law. The verdict, delivered by Justice N. Anand Venkatesh, establishes that while cryptocurrencies cannot be considered legal tender, they are nonetheless assets capable of ownership, transfer, and legal protection.


Investor’s Petition Leads to Legal Precedent

The case began when an investor approached the court after her 3,532.30 XRP tokens, valued at around ₹1.98 lakh, were frozen by the cryptocurrency exchange WazirX following a major cyberattack in July 2024.

The breach targeted Ethereum and ERC-20 tokens, resulting in an estimated loss of $230 million (approximately ₹1,900 crore) and prompted the platform to impose a blanket freeze on user accounts.

The petitioner argued that her XRP holdings were unrelated to the hacked tokens and should not be subject to the same restrictions. She sought relief under Section 9 of the Arbitration and Conciliation Act, 1996, requesting that Zanmai Labs Pvt. Ltd., the Indian operator of WazirX, be restrained from redistributing or reallocating her digital assets during the ongoing restructuring process.

Zanmai Labs contended that its Singapore-based parent company, Zettai Pte Ltd, was undergoing a court-supervised restructuring that required all users to share losses collectively. However, the High Court rejected this defense, observing that the petitioner’s assets were distinct from the ERC-20 tokens involved in the hack.

Justice Venkatesh ruled that the exchange could not impose collective loss-sharing on unrelated digital assets, noting that “the tokens affected by the cyberattack were ERC-20 coins, which are entirely different from the petitioner’s XRP holdings.”


Court’s Stance: Cryptocurrency as Property

In his judgment, Justice Venkatesh explained that although cryptocurrencies are intangible and do not function as physical goods or official currency, they meet the legal definition of property.

He stated that these assets “can be enjoyed, possessed, and even held in trust,” reinforcing their capability of ownership and protection under law.

To support this interpretation, the court referred to Section 2(47A) of the Income Tax Act, which classifies cryptocurrencies as Virtual Digital Assets (VDAs). This legal category recognizes digital tokens as taxable and transferable assets, strengthening the basis for treating them as property under Indian statutes.


Jurisdiction and Legal Authority

Addressing the question of jurisdiction, the High Court noted that Indian courts have the authority to protect assets located within the country, even if international proceedings are underway. Justice Venkatesh cited the Supreme Court’s 2021 ruling in PASL Wind Solutions v. GE Power Conversion India, which affirmed that Indian courts retain the right to intervene in matters involving domestic assets despite foreign arbitration.

Since the petitioner’s crypto transactions were initiated in Chennai and linked to an Indian bank account, the Madras High Court asserted complete jurisdiction to hear the dispute.

Beyond resolving the individual case, Justice Venkatesh emphasized the urgent need for robust regulatory and governance frameworks for India’s cryptocurrency ecosystem.

The judgment recommended several safeguards to protect users and maintain market integrity, including:

• Independent audits of cryptocurrency exchanges,

• Segregation of customer funds from company finances, and

• Stronger KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance mechanisms.

The court underlined that as India transitions toward a Web3-driven economy, accountability, transparency, and investor protection must remain central to digital asset governance.


Impact on India’s Crypto Industry

Legal and financial experts view the judgment as a turning point in India’s treatment of digital assets.

By recognizing cryptocurrencies as property, the ruling gives investors a clearer legal foundation for ownership rights and judicial remedies in case of disputes. It also urges exchanges to improve corporate governance and adopt transparent practices when managing customer funds.

“This verdict brings long-needed clarity,” said a corporate lawyer specializing in digital finance. “It does not make crypto legal tender, but it ensures that investors’ holdings are legally recognized as assets, something the Indian market has lacked.”

The decision is expected to influence future policy discussions surrounding the Digital India Act and the government’s Virtual Digital Asset Taxation framework, both of which are likely to define how crypto businesses and investors operate in the country.


A Legally Secure Digital Future

By aligning India’s legal reasoning with international trends, the Madras High Court has placed the judiciary at the forefront of global crypto jurisprudence. Similar to rulings in the UK, Singapore, and the United States, this decision formally acknowledges that cryptocurrencies hold measurable economic value and are capable of legal protection.

While the ruling does not alter the Reserve Bank of India’s stance that cryptocurrencies are not legal currency, it does mark a decisive step toward legal maturity in digital asset regulation.

It signals a future where blockchain-based assets will coexist within a structured legal framework, allowing innovation and investor protection to advance together.



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poisoning attack
AI Poisoning AI Risks ChatGPT Claude Chatbot Cyber Security cybersecurity risks LLM Model Malicious Chatbot Scam poisoning attack

AI Poisoning: How Malicious Data Corrupts Large Language Models Like ChatGPT and Claude

 

Poisoning is a term often associated with the human body or the environment, but it is now a growing problem in the world of artificial intelligence. Large language models such as ChatGPT and Claude are particularly vulnerable to this emerging threat known as AI poisoning. A recent joint study conducted by the UK AI Security Institute, the Alan Turing Institute, and Anthropic revealed that inserting as few as 250 malicious files into a model’s training data can secretly corrupt its behavior. 

AI poisoning occurs when attackers intentionally feed false or misleading information into a model’s training process to alter its responses, bias its outputs, or insert hidden triggers. The goal is to compromise the model’s integrity without detection, leading it to generate incorrect or harmful results. This manipulation can take the form of data poisoning, which happens during the model’s training phase, or model poisoning, which occurs when the model itself is modified after training. Both forms overlap since poisoned data eventually influences the model’s overall behavior. 

A common example of a targeted poisoning attack is the backdoor method. In this scenario, attackers plant specific trigger words or phrases in the data—something that appears normal but activates malicious behavior when used later. For instance, a model could be programmed to respond insultingly to a question if it includes a hidden code word like “alimir123.” Such triggers remain invisible to regular users but can be exploited by those who planted them. 

Indirect attacks, on the other hand, aim to distort the model’s general understanding of topics by flooding its training sources with biased or false content. If attackers publish large amounts of misinformation online, such as false claims about medical treatments, the model may learn and reproduce those inaccuracies as fact. Research shows that even a tiny amount of poisoned data can cause major harm. 

In one experiment, replacing only 0.001% of the tokens in a medical dataset caused models to spread dangerous misinformation while still performing well in standard tests. Another demonstration, called PoisonGPT, showed how a compromised model could distribute false information convincingly while appearing trustworthy. These findings highlight how subtle manipulations can undermine AI reliability without immediate detection. Beyond misinformation, poisoning also poses cybersecurity threats. 

Compromised models could expose personal information, execute unauthorized actions, or be exploited for malicious purposes. Previous incidents, such as the temporary shutdown of ChatGPT in 2023 after a data exposure bug, demonstrate how fragile even the most secure systems can be when dealing with sensitive information. Interestingly, some digital artists have used data poisoning defensively to protect their work from being scraped by AI systems. 

By adding misleading signals to their content, they ensure that any model trained on it produces distorted outputs. This tactic highlights both the creative and destructive potential of data poisoning. The findings from the UK AI Security Institute, Alan Turing Institute, and Anthropic underline the vulnerability of even the most advanced AI models. 

As these systems continue to expand into everyday life, experts warn that maintaining the integrity of training data and ensuring transparency throughout the AI development process will be essential to protect users and prevent manipulation through AI poisoning.
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phishing
Ai Data AI Risks AI Security Arctic Wolf Arctic Wolf security research Cyber Security data security phishing

Arctic Wolf Report Reveals IT Leaders’ Overconfidence Despite Rising Phishing and AI Data Risks

 

A new report from Arctic Wolf highlights troubling contradictions in how IT leaders perceive and respond to cybersecurity threats. Despite growing exposure to phishing and malware attacks, many remain overly confident in their organization’s ability to withstand them — even when their own actions tell a different story.  

According to the report, nearly 70% of IT leaders have been targeted in cyberattacks, with 39% encountering phishing, 35% experiencing malware, and 31% facing social engineering attempts. Even so, more than three-quarters expressed confidence that their organizations would not fall victim to a phishing attack. This overconfidence is concerning, particularly as many of these leaders admitted to clicking on phishing links themselves. 

Arctic Wolf, known for its endpoint security and managed detection and response (MDR) solutions, also analyzed global breach trends across regions. The findings revealed that Australia and New Zealand recorded the sharpest surge in data breaches, rising from 56% in 2024 to 78% in 2025. Meanwhile, the United States reported stable breach rates, Nordic countries saw a slight decline, and Canada experienced a marginal increase. 

The study, based on responses from 1,700 IT professionals including leaders and employees, also explored how organizations are handling AI adoption and data governance. Alarmingly, 60% of IT leaders admitted to sharing confidential company data with generative AI tools like ChatGPT — an even higher rate than the 41% of lower-level employees who reported doing the same.  

While 57% of lower-level staff said their companies had established policies on generative AI use, 43% either doubted or were unaware of any such rules. Researchers noted that this lack of awareness and inconsistent communication reflects a major policy gap. Arctic Wolf emphasized that organizations must not only implement clear AI usage policies but also train employees on the data and network security risks these technologies introduce. 

The report further noted that nearly 60% of organizations fear AI tools could leak sensitive or proprietary data, and about half expressed concerns over potential misuse. Arctic Wolf’s findings underscore a growing disconnect between security perception and reality. 

As cyber threats evolve — particularly through phishing and AI misuse — complacency among IT leaders could prove dangerous. The report concludes that sustained awareness training, consistent policy enforcement, and stronger data protection strategies are critical to closing this widening security gap.
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Internet
AWS Business Cyber Security Global IT Outage Government Internet

The Fragile Internet: How Small Failures Trigger Global Outages






The modern internet, though vast and advanced, remains surprisingly delicate. A minor technical fault or human error can disrupt millions of users worldwide, revealing how dependent our lives have become on digital systems.

On October 20, 2025, a technical error in a database service operated by Amazon Web Services (AWS) caused widespread outages across several online platforms. AWS, one of the largest cloud computing providers globally, hosts the infrastructure behind thousands of popular websites and apps. As a result, users found services such as Roblox, Fortnite, Pokémon Go, Snapchat, Slack, and multiple banking platforms temporarily inaccessible. The incident showed how a single malfunction in a key cloud system can paralyze numerous organizations at once.

Such disruptions are not new. In July 2024, a faulty software update from cybersecurity company CrowdStrike crashed around 8.5 million Windows computers globally, producing the infamous “blue screen of death.” Airlines had to cancel tens of thousands of flights, hospitals postponed surgeries, and emergency services across the United States faced interruptions. Businesses reverted to manual operations, with some even switching to cash transactions. The event became a global lesson in how a single rushed software update can cripple essential infrastructure.

History provides many similar warnings. In 1997, a technical glitch at Network Solutions Inc., a major domain registrar, temporarily disabled every website ending in “.com” and “.net.” Though the number of websites was smaller then, the event marked the first large-scale internet failure, showing how dependent the digital world had already become on centralized systems.

Some outages, however, have stemmed from physical damage. In 2011, an elderly woman in Georgia accidentally cut through a fiber-optic cable while scavenging for copper, disconnecting the entire nation of Armenia from the internet. The incident exposed how a single damaged cable could isolate millions of users. Similarly, in 2017, a construction vehicle in South Africa severed a key line, knocking Zimbabwe offline for hours. Even undersea cables face threats, with sharks and other marine life occasionally biting through them, forcing companies like Google to reinforce cables with protective materials.

In 2022, Canada witnessed one of its largest connectivity failures when telecom provider Rogers Communications experienced a system breakdown that halted internet and phone services for roughly a quarter of the country. Emergency calls, hospital appointments, and digital payments were affected nationwide, highlighting the deep societal consequences of a single network failure.

Experts warn that such events will keep occurring. As networks grow more interconnected, even a small mistake or single-point failure can spread rapidly. Cybersecurity analysts emphasize the need for stronger redundancy, slower software rollouts, and diversified cloud dependencies to prevent global disruptions.

The internet connects nearly every part of modern life, yet these incidents remind us that it remains vulnerable. Whether caused by human error, faulty code, or damaged cables, the web’s fragility shows why constant vigilance, better infrastructure planning, and verified information are essential to keeping the world online.



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Windows 11 reset
Bitlocker BitLocker encryption BitLocker recovery key Cyber Security Data Loss Microsoft account Windows 11 Windows 11 reset

Windows 11’s Auto-Enabled BitLocker Locks User Out of Terabytes of Data — Here’s What Happened

 

Microsoft first introduced BitLocker drive encryption with Windows Vista back in 2007, though it was initially limited to the Enterprise and Ultimate editions. Over the years, it evolved into a core security feature of Windows. With Windows 11, Microsoft went a step further — BitLocker now activates automatically when users sign in with a Microsoft account during the setup process (OOBE). While this auto-encryption aims to secure user data, it has also caused some serious unintended consequences.

That’s exactly what happened to one unfortunate Reddit user, u/Toast_Soup (referred to as “Soup”), who ended up losing access to their data after a Windows reinstall.

Soup noticed their PC was lagging and decided to perform a clean installation of Windows. Their system had six drives — including the boot drive and two large backup drives (D: and E:), each with around 3TB of data. But once the reinstall was complete, those two drives appeared to have vanished. They were locked by BitLocker encryption, despite Soup never manually turning the feature on.

Unaware that Windows 11 automatically encrypts drives linked to a Microsoft account, Soup didn’t have the necessary BitLocker recovery keys — keys they didn’t even know existed. Without them, the data became permanently inaccessible. Even professional data recovery software couldn’t help, since BitLocker’s encryption is designed to prevent unauthorized access.

Desperate, Soup reinstalled Windows again, only to face the same encryption prompt — this time for the boot drive. Thankfully, they noted down the new recovery key and regained access to Windows. Unfortunately, their D: and E: drives remained permanently locked. When Reddit users suggested checking Microsoft account settings, Soup confirmed that only the key for the main C: drive was listed there.

What makes this situation worse is that BitLocker doesn’t just risk unexpected data lockouts — it can also impact system performance. Previous testing has shown that the software-based version of BitLocker can reduce SSD read/write speeds by up to 45%, as the CPU must continuously encrypt and decrypt data. This slowdown could explain the lag Soup noticed before resetting their system.

It’s worth noting that hardware-based encryption (known as OPAL) performs much better but isn’t what Windows 11 enables automatically. Some users in the Reddit thread also mentioned that even small system changes — like altering boot order — can unexpectedly trigger BitLocker on Windows 11 Home, even with a local account.

Windows 10 doesn’t exhibit the same automatic encryption behavior, nor does upgrading from Windows 10 to 11. Unfortunately, in Soup’s case, there’s little left to do other than wipe the drives and start over.

To avoid similar disasters, users should check BitLocker settings immediately after setup, disable automatic encryption if desired, and securely back up recovery keys. Always maintain external backups of crucial data — because once BitLocker takes over without your knowledge, recovery may not be possible.
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Mesh Network
Cryptography Cyber Security Internet Shutdowns Mesh Network

Amigo Mesh Network Empowers Protesters to Communicate During Blackouts

 

Researchers from City College of New York, Harvard University, and Johns Hopkins University have developed Amigo, a prototype mesh network specifically designed to maintain communication during political protests and internet blackouts imposed by authoritarian regimes. The system addresses critical failures in existing mesh network technology that have plagued protesters in countries like Myanmar, India, and Bangladesh, where governments routinely shut down internet connectivity to suppress civil unrest.

Traditional mesh networks create local area networks by connecting smartphones directly to each other, allowing users to bypass conventional wireless infrastructure. However, these systems have historically struggled with messages failing to deliver, appearing out of order, and leaking compromising metadata that allows authorities to trace users. The primary technical challenge occurs when networks experience strain, causing nodes to send redundant messages that flood and collapse the system.

Dynamic clique architecture

Amigo overcomes these limitations through an innovative approach that dynamically segments the network into geographical "cliques" with designated lead nodes. Within each clique, individual devices communicate only with their assigned leader, who then relays data to other lead nodes. This hierarchical structure dramatically reduces redundant messaging and prevents network congestion, resembling the clandestine cell systems historically used by resistance movements where members could only communicate through local anonymous leaders.

Advanced security features

Security represents another major innovation in Amigo's design. The system implements "outsider anonymity," making it impossible for bystanders or surveillance systems to detect that a group exists. It enables secure removal of compromised devices from encrypted groups, a persistent vulnerability in older mesh standards. Amigo incorporates forward secrecy, ensuring past communications remain secure even if encryption keys are compromised, and post-compromise security that automatically generates new keys when breaches are detected, effectively blocking intruders

Realistic movement modeling

Unlike previous mesh systems that treated users as randomly moving particles, Amigo integrates psychological crowd modeling based on sociological research. Graduate researcher Cora Ruiz discovered that people in protests move closer together, slower, and in synchronized patterns. This realistic movement modeling creates more stable communication patterns in dense, moving environments, preventing the misrouted messages that plagued earlier systems.

While designed for political activism, Amigo's applications extend to disaster recovery scenarios where communication infrastructure is destroyed. The technology could prove vital for first responders, citizens, and volunteers operating in devastated areas or remote regions without grid connectivity. Lead researcher Tushar Jois indicates the next phase involves working directly with activists and journalists to understand protester needs and test how the network functions as demonstrations evolve.
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Phishing Attack
Cyber Security cybercriminal group Europol Fake Accounts Fake SIM Card Fraud Interpol Phishing Attack

Europol Dismantles SIMCARTEL Network Behind Global Phishing and SIM Box Fraud Scheme

 

Europol has taken down a vast international cybercrime network responsible for orchestrating large-scale phishing, fraud, and identity theft operations through mobile network systems. The coordinated crackdown, codenamed “SIMCARTEL,” led to multiple arrests and the seizure of a massive infrastructure used to fuel telecom-based criminal activity across more than 80 countries. 

Investigators from Austria, Estonia, and Latvia spearheaded the probe, linking the criminal network to over 3,200 cases of fraud, including fake investment scams and emergency call frauds designed for quick financial gain. The financial toll of the operation reached approximately $5.3 million in Austria and $490,000 in Latvia, highlighting the global scale of the scheme. 

The coordinated action, conducted primarily on October 10 in Latvia, resulted in the arrest of seven suspects and the seizure of 1,200 SIM box devices loaded with nearly 40,000 active SIM cards. Authorities also discovered hundreds of thousands of unused SIM cards, along with five servers, two websites, and several luxury vehicles. Around $833,000 in funds across bank and cryptocurrency accounts were also frozen during the operation. 

According to Europol, the infrastructure was designed to mask the true identities and locations of perpetrators, allowing them to create fake social media and communication accounts for cybercrimes. “The network enabled criminals to establish fraudulent online profiles that concealed their real identity and were then used to carry out phishing and financial scams,” Europol said in a statement. 

Investigators have traced the network to over 49 million fake accounts believed to have been created and distributed by the suspects. These accounts were used in a range of crimes, including extortion, smuggling, and online marketplace scams, as well as fake investment and e-commerce schemes. 

The operation highlights the growing global threat of SIM farms—collections of SIM boxes that allow cybercriminals to automate scams, send spam, and commit fraud while remaining undetected by telecom providers. These systems have become a preferred tool for large-scale phishing and social engineering attacks worldwide. 

Just weeks earlier, the U.S. Secret Service dismantled a similar network in New York City, seizing over 300 servers and 100,000 SIM cards spread across several locations. 

Cybersecurity intelligence firm Unit 221B also issued a warning that SIM farms are rapidly multiplying and putting telecom providers, banks, and consumers at risk. “We’ve identified at least 200 SIM boxes operating across dozens of U.S. sites,” said Ben Coon, Chief Intelligence Officer at Unit 221B. 

While the SIMCARTEL takedown marks a major victory for law enforcement, Europol noted that investigations are still underway to uncover the full extent of the criminal infrastructure. Authorities emphasize that combating SIM box networks is essential to defending users against phishing, identity fraud, and telecom-based cyberattacks that continue to grow in sophistication and scale.
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ZeroTier mesh network
business data security Cyber Security cybersecurity tax VPN alternatives VPN breach costs ZeroTier mesh network

Companies Are Ditching VPNs to Escape the Hidden “Cybersecurity Tax” in 2025

 

Every business is paying what experts now call a “cybersecurity tax.” You won’t find it as a line on the balance sheet, but it’s embedded in rising insurance premiums (up 15–25% annually), hardware upgrades every few years, and per-user licensing fees that grow with each new hire. Add to that the IT teams juggling multiple VPN systems across departments — and the cost is undeniable.

Then there’s the biggest expense: the average $4.4 million cost of a data breach. Business disruption and customer recovery drive this figure higher, with reputational damage alone averaging $1.47 million. In severe cases, companies have faced damages exceeding a billion dollars.

2025’s Turning Point: Escaping the Cybersecurity Tax

A growing number of companies are breaking free from these hidden costs by replacing legacy VPNs with software-defined mesh networks. When Cloudflare’s major outage hit in June, most of the internet went dark — except for organizations already using decentralized architectures. These companies continued operating seamlessly, having eliminated the single point of failure that traditional VPNs depend on.

According to the Cybersecurity Insiders 2025 VPN Exposure Report, 48% of businesses using VPNs have already suffered breaches. In contrast, alternatives like ZeroTier are quickly gaining ground. The company ended 2024 with over 5,000 paid accounts and now supports 2.5 million connected devices across 230 countries. Its consistent double-digit quarterly revenue growth shows that enterprises are embracing change — and backing it financially.

The Competitive Edge of Going VPN-Free

Organizations shifting away from VPNs aren’t just improving security — they’re gaining a cost advantage. Traditional VPNs were designed for small, centralized teams in the 1990s. Today’s global workforce spans continents, cloud platforms, and contractors. That single-bridge network design now costs businesses in three key ways:

  1. Operational Overhead: Multiple incompatible VPNs, recurring hardware replacements, and per-user fees that scale with headcount. IT teams spend excessive time on access management instead of innovation.

  2. Insurance Premiums: Legacy VPN users face 15–25% annual insurance increases as breach risks rise. Past incidents — from Colonial Pipeline to Collins Aerospace — show just how damaging VPN vulnerabilities can be.

  3. Breach Exposure: Nearly half of VPN-dependent firms have already paid the breach price, suffering payroll halts, SLA penalties, and costly SEC disclosures.

Inside the Architecture Shift

The emerging alternative — software-defined mesh networking — works differently. Instead of channeling all traffic through one gateway, these systems create direct, encrypted peer-to-peer connections between devices.

ZeroTier’s approach illustrates this model well: each device gets a unique cryptographic ID, enabling secure, direct communication. A controller handles authentication, while data itself never passes through a centralized chokepoint.

“With Internet-connected devices outnumbering humans by a factor of three, the need for secure connectivity is skyrocketing,” says Andrew Gault, CEO of ZeroTier. “But most enterprises are paying a massive tax to legacy architectures that create more problems than they solve.”

 When Cloudflare’s systems failed, organizations using these mesh networks remained online. Each device could access only what it needed, minimizing exposure even if credentials were compromised. And when scaling up, new locations or users are added through software configuration — not hardware procurement.

Real-World Impact

Companies like Metropolis, which operates checkout-free parking systems, are rapidly scaling from thousands to hundreds of thousands of devices — without new VPN hardware. Similarly, Forest Rock, a leader in building controls and IoT systems, leverages ZeroTier to manage critical endpoints securely. Energy firms and online gaming operators are following suit for scalable, secure connectivity.

These organizations aren’t burdened by licensing costs or hardware lifecycles. New hires are onboarded in minutes, and insurance providers are rewarding them with better rates, as their reduced attack surface leads to fewer breaches.

The Race Against Time

As more companies shed the cybersecurity tax, the competitive divide is widening. Those making the switch can reinvest savings into pricing, innovation, or expansion. Meanwhile, firms clinging to VPNs face escalating premiums and operational inefficiencies.

If a giant like Cloudflare — with world-class engineers and infrastructure — can suffer outages from a single failure point, what does that mean for companies still running multiple VPNs?

Modern cyber threats are only becoming more sophisticated, especially with AI-driven attack tools. The cost of maintaining outdated security infrastructure keeps climbing.

Ultimately, the question is no longer if organizations will transition to mesh networks, but when. The ones that act now will enjoy the cost and speed advantages — before their competitors do, or before a costly breach forces the decision.

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