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There Are Now More Than 90 Crypto ETFs Pending SEC Approval, Led by XRP and Solana – Decrypt

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There Are Now More Than 90 Crypto ETFs Pending SEC Approval, Led by XRP and Solana – Decrypt



In brief

The SEC is mulling 90 applications for crypto ETFs, many focused on XRP, Solana, and other top altcoins.
Many of the funds are expected to be approved this year, according to industry experts.
Some will likely be shuttered due to lackluster inflows, a crypto startup CEO told Decrypt.

There is a growing stack of applications for exchange-traded funds that offer investors exposure to cryptocurrencies on the U.S. Securities and Exchange Commission’s desk, totaling 92 filings, according to Bloomberg ETF Analyst James Seyffart.

“You will almost certainly have to squint and zoom to see,” he said on X, while posting a screenshot of a spreadsheet that included various issuers, assets, and deadlines on Friday.

This year, asset managers have jockeyed to offer ETFs in the U.S. for cryptocurrencies beyond the ones approved for Bitcoin and Ethereum last year. They range from major altcoins like XRP and Solana—the most popular new targets, based on the list—to relatively obscure meme coins like Bonk and Donald Trump’s official token.

Although the SEC has delayed decisions on applications for several products this year, the regulator faces a final deadline on at least a dozen applications in October. Experts including Seyffart expect the SEC to approve a number of applications at that time.

In June, Seyffart said it’s a question of “when not if” for coins like Solana, XRP, and Litecoin. He portrayed them as near-locks, with 95% odds of approval this year.

ETFs for other coins, such as Dogecoin, Cardano, Polkadot, Hedera, and Avalanche, also have a strong change, Seyffart added, penciling in 90% approval odds for the same period.



Some crypto investors may be hopeful that the approval of an ETF for their coin of choice will lead to higher prices and broader adoption, potentially among financial institutions. Luca Prosperi, co-founder and CEO of stablecoin platform M0, is somewhat skeptical. He told Decrypt it’s likely that many crypto ETFs will shutter due to lackluster inflows.

“I don’t think many of them will be long-lived,” he said. “I think there are very few, if any, [digital] assets that are large and mature enough to support an ETF beyond Bitcoin, Ethereum, and Solana.”

Still, a bevy of ETF applications speaks to the ways that cryptocurrencies are becoming ingrained into traditional financial infrastructure over time, he added.

“Now that this sector is maturing, Wall Street is obviously trying to find ways to get common people exposure,” he said. “ETFs are great conduits.”

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Pudgy Penguins Game ‘Pudgy Party’ Launches on iOS and Android – Decrypt

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Pudgy Penguins Game ‘Pudgy Party’ Launches on iOS and Android – Decrypt



In brief

Pudgy Penguins and Mythical Games collaborated to develop Pudgy Party, a new Web3 mobile game.
The game falls in the party genre, offering fast-paced mini-games for players similar to Fall Guys or Stumble Guys.
Pudgy Penguins CEO Luca Netz has high expectations, aiming for tens of millions of downloads.

Ethereum NFT brand Pudgy Penguins and game developer Mythical Games announced the global launch of Pudgy Party, a mobile party game that’s now available on Android and iOS. 

Pudgy Party draws comparisons to popular games like Fall Guys and Stumble Guys—colorful riffs on the battle royale genre in which players race through wild obstacle courses and persist through survival challenges.

And this time around, it has a Web3 twist.

“We took our own interpretation of that genre,” Mythical Games CEO John Linden told Decrypt. “We thought it was the right focus for not only the brand, but the gameplay—something the community can really get behind.” 

In Pudgy Party, users will step into a game filled with Pudgy Penguins characters, which have made an impact across social media and via retail products like plush toys. And players will automatically enroll in Web3 gaming in the process, even if they don’t realize it.

“Every player that comes in, they’re automatically onboarded into a wallet,” Linden said.

“They have a wallet, but most of them won’t even know about it,” he said of the onboarding experience, which is designed to encourage “getting in and playing.” The game integrates blockchain via the Mythos Chain, a network built on the Polkadot blockchain, in the background. 

“The Web3 stuff is kind of just seamlessly behind it,” he added, “You’re suddenly getting assets and you’re leveling them up, and you can change them and you can burn them for other things. All that’s fairly hidden from the user initially.”

Users will be able to collect outfits, emotes, and other in-game assets, as well as costumes that can be minted as NFTs and later traded via the marketplace.

The game will launch with its first seasonal event, “Dopameme Rush,” a brainrot-themed event featuring popular internet memes. Seasons will run monthly and come with free and premium passes, as well as special events and leaderboard competitions. 

After taking a once-declining brand to the shelves of Walmart and Target, Pudgy Penguins CEO Luca Netz has set the bar high for the upcoming game launch. 

“It has to have, at a minimum, tens of millions of players and downloads,” he told Decrypt. “My hope is we can actually push and make this a top app on the App Store, period.”

Netz expects that Pudgy Party will make a massive push beyond the crypto bubble, and become the first Pudgy franchise product.

“I think you’re going to see some of the world’s biggest streamers streaming Pudgy Party. I think you’re going to see epic IRL events, huge campaigns, and tournaments and prize pools to bring people in,” he said, adding that thinks it will be the “biggest Web3 game that we’ve ever had.” 

Mythical Games has already built some of Web3’s most prominent games with its FIFA Rivals and NFL Rivals, which have collectively amassed millions of mobile downloads. It hopes to build something similar with the Pudgy Penguins. 

“We’re after building a forever franchise with Luca,” Linden said. “We want to help them take this into the gaming world and have something that can be around and played by literally hundreds of millions of people over a period of time.” 

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21Shares Seeks Launch of SEI ETF With Potential Staking Yield for US Investors – Decrypt

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21Shares Seeks Launch of SEI ETF With Potential Staking Yield for US Investors – Decrypt



In brief

21Shares filed with the SEC for the first SEI ETF tracking the Sei blockchain token with potential staking rewards for additional yield.
The application joins a set of altcoin ETF filings as fund managers target smaller digital assets beyond Bitcoin and Ethereum.
Canary Capital filed a similar SEI ETF application in May.

Asset management firm 21Shares has filed with the Securities and Exchange Commission to launch an exchange-traded fund tracking the Sei blockchain’s native token.

The proposed 21Shares SEI ETF would offer investors exposure to SEI while providing the potential for additional yield through staking rewards, according to a registration statement filed Thursday. 

Following successful launches of spot Bitcoin and Ethereum ETFs in 2024, fund managers are targeting smaller digital assets, including Solana, Dogecoin, XRP, and other altcoins under a crypto-friendly Trump administration.

The Trust’s primary objective is “to seek to track the performance of SEI,” with a secondary focus on generating “rewards from staking a portion of the Trust’s SEI,” the filing reads.

It’s “highly likely that 21Shares’ SEI ETF would be accepted and would be available along with Bitcoin and Ethereum ETFs,” Krishnendu Chatterjee, CEO and co-founder of A2ZCryptoInvestment, told Decrypt

“21Shares SEI ETF is a step towards broader application towards regulated alt investment (including staking benefits),” he added.

Still, 21Shares confirmed it has not yet concluded that staking can be offered under a public trust structure, according to the prospectus.

The Trust will use Coinbase Custody Trust Company as its primary custodian for SEI holdings, while Coinbase Inc. will serve as the prime broker for trading activities, according to the filing.

The move adds to Canary Capital’s filing of the first SEI ETF application in May, which also shares similar staking objectives.

Multiple crypto ETF applications are now in play and face SEC decision deadlines in October, with regulators extending review periods for spot XRP funds from several issuers and Solana ETF proposals, among others. 

Industry experts widely expect a batch of approvals beginning in October based on established listing standards.

“Along with Digital Asset Treasury Companies, ETFs provide exposure to a new asset class for institutions, and it is not an exception but would become a new normal,” Chatterjee said, noting “XRP, Solana, and AVAX ETFs have high chances of getting approved by year’s end, even if not by October.”

SEI currently ranks as the 74th largest crypto by market capitalization at approximately $1.82 billion. 

The token is trading around $0.30 following recent gains, according to CoinGecko, though it remains about 73.7% below its March 2024 all-time high of $1.14.

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Beijing Sets Ambitious Targets for Nationwide AI Integration Over 10 Years – Decrypt

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Beijing Sets Ambitious Targets for Nationwide AI Integration Over 10 Years – Decrypt



In brief

China has set targets for AI adoption, seeking 70% penetration by 2027 and 90% by 2030.
The policy mandates integration of AI across industry, governance, and public services.
The move underscores Beijing’s bid to outpace Western rivals in artificial intelligence.

China is aiming to achieve a 70% penetration rate of AI technologies within the next couple of years, enabling its population to utilize “next-generation smart terminals, intelligent agents, and other applications” by 2027, according to a State Council directive that sets the country’s most ambitious artificial intelligence targets to date.

The policy aims to “reshape modes of production and everyday life” and “enable a revolutionary leap in productive forces,” mandating the integration of AI across technology, industry, consumption, governance, welfare, and international cooperation.

By 2030, penetration rates are expected to reach 90%, with a complete transition to an “intelligent economy and intelligent society” by 2035, according to the council.



Meeting the 2027 target means that 980 million Chinese citizens will regularly use AI-powered devices or services. For context, China’s smartphone penetration hit 70% in 2018, eight years after the iPhone’s local launch. Beijing expects similar AI adoption within the next three years.

These targets far exceed Western timelines. The U.S. National AI Initiative Act contains no concrete adoption mandates. The EU’s AI Act focuses on risk management rather than deployment. 

Meanwhile, other nations are scrambling to keep pace. 

Canada boosted its AI strategy this year. Taiwan has also published a plan to generate over $510 billion in AI technology by 2040. Egypt’s Digital Builders program, backed by Microsoft and Amazon, aims to train 100,000 AI specialists by 2030.

The aggressive timeline builds on existing momentum from Chinese AI companies like DeepSeek, whose models already power various applications, including Shenzhen’s surveillance systems, voice controls in Geely vehicles, and diagnostic tools in nearly 100 hospitals

Longgang County, one of nine districts in Shenzen, cut administrative approval times by 90% after adopting Deepseek’s AI. The startup has been successful despite U.S. export restrictions, which are specifically designed to prevent China from winning the AI war with American hardware.

The State Council’s directive calls for “AI-native enterprises whose underlying architectures and operating logic are based on AI” and encourages enterprises to incorporate artificial intelligence into strategic planning.

It also calls for promoting “intelligent interconnection of everything” across smart terminals and product ecosystems.

The Chinese policy promises to “help Global South countries build AI capabilities” through open-source technology and computing resources, positioning Beijing as an alternative to models presented by the West. It specifically mentions “treat[ing] AI as an international public good for the benefit of humankind.”

Industrial applications include “intelligent agricultural equipment such as smart farm machinery, agricultural drones, and agricultural robots” in farming, while the service sector must adopt “unmanned services” alongside human workers. 

But the financial services, logistics, and legal sectors would need to undergo significant transformation to achieve such goals, not to mention the growing pains that will accompany the continued evolution of the tech.

The policy acknowledges risks including “model opacity (black-box), hallucinations, and algorithmic discrimination,” establishing governance frameworks for “natural persons, digital persons, and intelligent robots,” suggesting preparation for AI agents requiring legal status.

The State Council’s language leaves little room for interpretation: regions and departments “shall closely integrate these opinions with actual conditions” and “ensure tangible results,” it said.

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Everclear Launches TRON Network Support, Bringing Capital-Efficient Rebalancing to Top Stablecoin Network

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Everclear Launches TRON Network Support, Bringing Capital-Efficient Rebalancing to Top Stablecoin Network



Disclosure: This is a sponsored post. Readers should conduct further research prior to taking any actions. Learn more ›

George Town, Cayman Islands – August 28, 2025 – Everclear, the cross-chain clearing and settlement protocol dedicated to eliminating liquidity fragmentation for blockchains and digital assets, announced an integration with the TRON network. This integration facilitates the settlement of onchain transactions without the need for centralized exchanges or fragmented routes, essentially solving liquidity fragmentation for any dApps building on TRON’s vibrant ecosystem of decentralized finance.

With a circulating supply of USDT exceeding $82 billion and one of the most active user bases in crypto, TRON has become the backbone of the global stablecoin market and onchain economy. A leader in payments, remittances, and cross-border transactions, TRON’s growth has been fueled by high adoption rates in regions where stablecoins provide access to US dollars. The TRON network is home to 2.86 million daily active users who execute approximately 8.8 million transactions each day.

“As stablecoin usage continues to grow globally, capital needs to move where users are — and that activity is overwhelmingly taking place on TRON,” said Dima Khanarin, CEO of the Everclear Foundation.

Native TRON support on Everclear provides solvers, bridge operators, and protocol treasuries with access to capital-efficient rebalancing mechanisms. These allow the largest circulating supply of USDT to move seamlessly between TRON and over 20 other blockchains without fragmentation, manual flows, or reliance on centralized exchanges. 

Everclear’s coordination of global settlement and cross-chain liquidity strengthens TRON’s ability to deliver secure and scalable blockchain solutions, priming the network for even broader institutional adoption. For native USDT (TRC-20) transfers on TRON, solvers can submit rebalancing intents between TRON and EVM-compatible chains by netting opposing transfers automatically and completing the remainder at competitive prices. 

Whether a bridge is rebalancing liquidity, a protocol is moving treasury, or a solver is playing auctions — cross-chain clearing on TRON flows as seamlessly as any other chain in the Everclear system. TRON is the second non-EVM chain supported by Everclear, marking a major milestone in their mission to become the universal clearing layer for all crypto.

“Everclear’s cross-chain clearing and settlement protocol unlocks efficient routes for real-world use cases like payments and remittances,” said Sam Elfarra, Community Spokesperson for the TRON DAO. “Whether a chain runs on EVM or built on another framework, its liquidity can be unified within a single settlement layer.”

Everclear plans expansion to more non-EVM blockchains in the future and is actively onboarding new bridge and protocol partners to rebalance USDT via TRON. Solver networks looking to capture new auction routes, bridge protocols managing multichain liquidity, and stablecoin issuers or app treasuries moving capital across chains can learn more about joining the Clearing Protocol by visiting everclear.org

About TRON DAO

TRON DAO is a community-governed DAO dedicated to accelerating the decentralization of the internet via blockchain technology and dApps.

Founded in September 2017 by H.E. Justin Sun, the TRON blockchain has experienced significant growth since its MainNet launch in May 2018. TRON hosts the largest circulating supply of USD Tether (USDT) stablecoin, exceeding $82 billion. As of August 2025, the TRON blockchain has recorded over 328 million in total user accounts, more than 11 billion in total transactions, and over $28 billion in total value locked (TVL), based on TRONSCAN.

TRONNetwork | TRONDAO | X | YouTube | Telegram | Discord | Reddit | GitHub | Medium | Forum

Media ContactYeweon Park[email protected]

About Everclear

Everclear is the first crosschain clearing and settlement protocol, designed to solve liquidity fragmentation in Web3.

By applying the concepts of clearing and netting from TradFi, Everclear empowers solvers, intent protocols, and CEXs to rebalance capital efficiently across chains. 

Since launching its Mainnet Beta in September 2024, Everclear has scaled to +$500M in monthly clearing volume and over $1.5B processed across 23+ chains, including Solana and Tron.

Backed by strategic partners such as NEAR Foundation and integrated with leading protocols like Across, LiFi, RhinoFi, Particle, Hyperlane, and Tokka Labs, Everclear enables large transactions, fast settlement (15 minutes on average), and the lowest rebalancing fees in the industry. 

With expansion to 40+ chains underway, Everclear is building the backbone of crosschain liquidity—accelerating towards a $1 trillion clearing market.

Media ContactAnže Pintar[email protected]

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Paris Police Probe Alleged Kidnapping and Wrench Attack of Ex-Crypto Trader – Decrypt

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Paris Police Probe Alleged Kidnapping and Wrench Attack of Ex-Crypto Trader – Decrypt



In brief

A 35-year-old former crypto trader was allegedly kidnapped and tortured in Paris, with captors demanding €10,000 ransom before releasing him with a swollen face.
France leads Europe with 10 crypto-related physical attacks in 2025, part of what experts call a hidden epidemic affecting the global crypto community.
Cybersecurity experts warn the incidents represent “the tip of the iceberg” as organized crime groups increasingly target crypto holders as high-value victims.

A former crypto trader was allegedly kidnapped and held for ransom between Paris and Saint-Germain-en-Laye in another wrench attack.

It’s become a worryingly common incident in France’s rising crisis of crypto-related abductions that security experts warn represents only “the tip of the iceberg.”

The victim, identified only as Alexandre, was freed around 4 a.m. Wednesday morning, with a swollen face after being strangled unconscious by his captors, who demanded approximately $11,600 (or  €10,000) from an acquaintance in Algeria through a disturbing photo showing him bound and kneeling, according to Le Parisien.

Police recognized the injured man walking home and immediately took him into custody for medical examination and questioning.

The wrench attack adds to a disturbing trend of crypto-related kidnappings that cybercrime consultant David Sehyeon Baek told Decrypt is far more widespread than publicly reported.

“Many cases never reach the public eye because victims choose silence to protect their reputation or avoid becoming repeat targets,” Baek said.

France has recorded the highest number of crypto-related wrench attacks in Europe, with security expert Jameson Lopp’s database tracking around 10 incidents in 2025 alone—accounting for one-third of the 29 cases reported across Europe.

“Due to the cross-border nature of crypto, in many cases ransom is demanded in crypto to move funds and cash out,” Karan Pujara, founder of scam defense platform ScamBuzzer, told Decrypt, referring to Alexandre’s attackers demanding euros rather than crypto.

“Such attacks prove that traders and investors should not reveal or flaunt their gains,’ he said.

Baek warns that Alexandre’s alleged kidnapping points to a global phenomenon where “organized crime groups and even traditional offline gangs are now jumping into this game, seeing crypto figures as easy, high-value targets.”

This follows the abduction and wrench attack of Ledger co-founder David Balland, who was tortured and had a finger severed before police rescued him in January.

In June, French police arrested alleged mastermind Badiss Mohamed Amide Bajjou in Morocco and charged 25 suspects, many of them very young, in schemes that included the brutal attack on Paymium CEO Pierre Noizat’s pregnant daughter.

The pseudonymous nature of crypto, combined with its instant transferability, makes it particularly attractive to criminals willing to use extreme violence, according to Pujara.

He explained that criminals, if “not successful through online scams,” are willing to go as far as “harming a person and demanding ransom through family and friends, regardless of whether crypto is kept in a hot wallet, cold wallet, or multi-sig.”

Without significant changes to personal security practices and international law enforcement cooperation, Baek predicted that the wrench attack trend will continue to escalate.

Investigators are still examining Alexandre’s clothing and skin for forensic evidence while verifying his account of the ordeal.

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US Trading App Webull Launches Crypto Service in Australia to Challenge Incumbents – Decrypt

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US Trading App Webull Launches Crypto Service in Australia to Challenge Incumbents – Decrypt



In brief

Webull has launched crypto trading for Australian users, with access to 240 digital assets and a 30 basis point spread through Coinbase Prime.
Experts say Australian exchanges charge double the spreads of international peers for major cryptocurrencies like Bitcoin and Ethereum.
The launch follows Webull’s Monday announcement of resuming U.S. crypto trading after suspending services in 2023 during its IPO process.

U.S. trading app Webull launched crypto services for Australian users on Wednesday, offering access to hundreds of different digital assets in a move experts say will force local exchanges to slash fees or risk losing customers.

The launch through Coinbase Prime adds Australia as Webull’s third crypto market, alongside the U.S. and Brazil, with the company promising a 30-basis-point spread, according to a statement.

Industry experts predict the entry will trigger competitive pressure across Australia’s crypto exchange market, where fees have remained stubbornly high compared to international markets.



Pratik Kala, head of research and portfolio manager at Apollo Crypto, told Decrypt that “Australian exchanges have much higher fees and spreads compared to our international peers; in some cases, more than double the spread even for liquid pairs like Bitcoin and Ethereum.”

“Australian exchanges list a small fraction of coins—Webull’s entry with 240 coins will expand overall options for Australians,” he said, with competition expected to “expand overall options for Australians.”

Webull announced Monday that it resumed crypto trading in the U.S. after suspending services in 2023 during its public listing process, part of what CEO Anthony Denier called a “full-throttle” global expansion into digital assets.

James Volpe, founding director of uCubed, told Decrypt that Webull faces “entrenched competition from established players in Australia who will work hard to defend their market share.”

“Competition in such a young market tends to create competitive fee structures and additional service features for users,” he added.

He said new entrants “raise the bar for incumbents,” pushing more competitive fees and better user experiences, but cautioned that “the key” for investors is understanding risks tied to custody and centralized platforms.

“The greatest challenge,” he said, “is the shift toward non-custodial and decentralized technologies, giving users control over their identity, custody of assets, and lowering trading costs.”

Despite such hurdles, he acknowledged “while the institutional backing and infrastructure via Coinbase may provide an edge, success here depends on building trust and demonstrating value in an increasingly sophisticated market.”

Webull supports trading through individual accounts, SMSFs, trusts, and company structures, positioning crypto as part of traditional investment frameworks with 24/7 customer support.

Volpe said this may boost crypto’s role in wealth management, but “true integration” hinges on “education, regulation, and investor confidence.”

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Nvidia Tops Estimates, Stock Falls in After Hours on China Export Headwinds – Decrypt

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Nvidia Tops Estimates, Stock Falls in After Hours on China Export Headwinds – Decrypt



In brief

Nvidia beat Q2 estimates with $46.7B in revenue and $1.05 adjusted EPS, driven by strong Blackwell chip sales.
Shares fell 3.4% after the company disclosed zero H20 chip sales to China due to tightened U.S. export controls.
The muted reaction also reflects investor concerns over geopolitical risk and slowing sequential growth in data center sales.

Nvidia reported stronger-than-expected second-quarter results on Wednesday, extending its run as the world’s dominant supplier of AI semiconductors.

Yet shares tumbled in extended trading after the company confirmed that it sold no H20 chips to China during the period, reviving concerns over export restrictions and geopolitical risk.

The disclosure sent Nvidia’s shares down 3.4% to $176 in after-hours trading, as investors weighed the near-term impact of the regulatory backdrop on one of its key markets.



Revenue for the three months ended July 27 rose to $46.7 billion, Nvidia reported, up 6% from the prior quarter and 56% higher than a year earlier. Analysts had expected roughly $46 billion.

Net income surged to $26.4 billion, or $1.08 per diluted share, while adjusted earnings reached $1.05 a share, exceeding a $1.02 consensus.

Data center sales, which accounted for 88% of total revenue, hit $41.1 billion, boosted by a 17% sequential gain in Blackwell chip shipments.

Still, the 5% quarter-over-quarter jump did little to appease investors, adding to pressure on Nvidia’s stock.

CEO Jensen Huang remained upbeat, labelling Blackwell “the AI platform the world has been waiting for,” and pointed to growing adoption across hyperscalers, government partnerships, and sovereign model developers, according to a statement on Wednesday.

But the bullish tone was tempered by Nvidia’s confirmation that it recorded no H20 sales to China during the quarter. 

The company revealed that it had diverted $650 million in H20 chips, initially intended for China, to a non-restricted customer abroad, unlocking a $180 million inventory reserve. 

The H20 was previously designed to comply with U.S. export rules, but updated licensing requirements imposed in April 2025 effectively hindered sales into the Chinese market.

The move followed Washington’s tightening of AI chip controls, which now require export licenses for high-performance semiconductors destined for China in a policy move aimed at curbing Beijing’s access to advanced computing power for military and surveillance use.

While the numbers suggest continued strength in AI infrastructure demand, the muted stock reaction indicates that investors are becoming increasingly sensitive to macroeconomic risks, particularly the uncertain trajectory of U.S.-China trade policy.

Looking ahead, Nvidia expects Q3 revenue of $54 billion with gross margins forecast at 73.5%. 

The board has also approved a $60 billion expansion of Nvidia’s share repurchase program in a bid to return capital to shareholders. A $0.01 dividend is scheduled for October 2.

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‘Vibe Hacking’: Criminals Are Weaponizing AI With Help From Bitcoin, Says Anthropic – Decrypt

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‘Vibe Hacking’: Criminals Are Weaponizing AI With Help From Bitcoin, Says Anthropic – Decrypt



In brief

A new Anthropic report says cybercriminals are using AI to run real-time extortion campaigns, with ransom notes using Bitcoin as the payment rails.
North Korean operatives are faking technical skills with AI to land Western tech jobs, funneling millions into weapons programs, often laundered through crypto.
A UK-based actor is selling AI-built ransomware-as-a-service kits on dark web forums, with payments settled in crypto.

Anthropic released a new threat intelligence report on Wednesday that reads like a peek into the future of cybercrime.

Its report documents how bad actors are no longer just asking AI for coding tips, they’re using it to run attacks in real time—and using crypto for the payment rails.

The standout case is what researchers call “vibe hacking.” In this campaign, a cybercriminal used Anthropic’s Claude Code—a natural language coding assistant that runs in the terminal—to carry out a mass extortion operation across at least 17 organizations spanning government, healthcare, and religious institutions.

Instead of deploying classic ransomware, the attacker relied on Claude to automate reconnaissance, harvest credentials, penetrate networks, and exfiltrate sensitive data. Claude didn’t just provide guidance; it executed “on-keyboard” actions like scanning VPN endpoints, writing custom malware, and analyzing stolen data to determine which victims could pay the most.

Then came the shakedown: Claude generated custom HTML ransom notes, tailored to each organization with financial figures, employee counts, and regulatory threats. Demands ranged from $75,000 to $500,000 in Bitcoin. One operator, augmented by AI, had the firepower of an entire hacking crew.

Crypto drives AI-powered crime

While the report spans everything from state espionage to romance scams, the throughline is money—and much of it flows through crypto rails. The “vibe hacking” extortion campaign demanded payments of up to $500,000 in Bitcoin, with ransom notes auto-generated by Claude to include wallet addresses and victim-specific threats.

A separate ransomware-as-a-service shop is selling AI-built malware kits on dark web forums where crypto is the default currency. And in the bigger geopolitical picture, North Korea’s AI-enabled IT worker fraud funnels millions into the regime’s weapons programs, often laundered through crypto channels.



In other words: AI is scaling the kinds of attacks that already lean on cryptocurrency for both payouts and laundering, making crypto more tightly entwined with cybercrime economics than ever.

North Korea’s AI-powered IT worker scheme

Another revelation: North Korea has woven AI deep into its sanctions-evasion playbook. The regime’s IT operatives are landing fraudulent remote jobs at Western tech firms by faking technical competence with Claude’s help.

According to the report, these workers are almost entirely dependent on AI for day-to-day tasks. Claude generates resumes, writes cover letters, answers interview questions in real time, debugs code, and even composes professional emails.

The scheme is lucrative. The FBI estimates these remote hires funnel hundreds of millions of dollars annually back to North Korea’s weapons programs. What used to require years of elite technical training at Pyongyang universities can now be simulated on the fly with AI.

Ransomware for sale: No-code, AI-built

If that weren’t enough, the report details a UK-based actor (tracked as GTG-5004) running a no-code ransomware shop. With Claude’s help, the operator is selling ransomware-as-a-service (RaaS) kits on dark web forums like Dread and CryptBB.

For as little as $400, aspiring criminals can buy DLLs and executables powered by ChaCha20 encryption. A full kit with a PHP console, command-and-control tools, and anti-analysis evasion costs $1,200. These packages include tricks like FreshyCalls and RecycledGate, techniques normally requiring advanced knowledge of Windows internals to bypass endpoint detection systems.

The disturbing part? The seller appears incapable of writing this code without AI assistance. Anthropic’s report stresses that AI has erased the skill barrier—anyone can now build and sell advanced ransomware.

State-backed operations: China and North Korea

The report also highlights how nation-state actors are embedding AI across their operations. A Chinese group targeting Vietnamese critical infrastructure used Claude across 12 of 14 MITRE ATT&CK tactics—everything from reconnaissance to privilege escalation and lateral movement. Targets included telecom providers, government databases, and agricultural systems.

Separately, Anthropic says it auto-disrupted a North Korean malware campaign tied to the infamous “Contagious Interview” scheme. Automated safeguards caught and banned accounts before they could launch attacks, forcing the group to abandon its attempt.

The fraud supply chain, supercharged by AI

Beyond high-profile extortion and espionage, the report describes AI quietly powering fraud at scale. Criminal forums are offering synthetic identity services and AI-driven carding stores capable of validating stolen credit cards across multiple APIs with enterprise-grade failover.

There’s even a Telegram bot marketed for romance scams, where Claude was advertised as a “high EQ model” to generate emotionally manipulative messages. The bot handled multiple languages and served over 10,000 users monthly, according to the report. AI isn’t just writing malicious code—it’s writing love letters to victims who don’t know they’re being scammed.

Why it matters

Anthropic frames these disclosures as part of its broader transparency strategy: to show how its own models have been misused, while sharing technical indicators with partners to help the wider ecosystem defend against abuse. Accounts tied to these operations were banned, and new classifiers were rolled out to detect similar misuse.

But the bigger takeaway is that AI is fundamentally altering the economics of cybercrime. As the report bluntly puts it, “Traditional assumptions about the relationship between actor sophistication and attack complexity no longer hold.”

One person, with the right AI assistant, can now mimic the work of a full hacking crew. Ransomware is available as a SaaS subscription. And hostile states are embedding AI into espionage campaigns.

Cybercrime was already a lucrative business. With AI, it’s becoming frighteningly scalable.

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US Prosecutors Challenge ‘Unusually Lenient’ Sentence in HashFlare Mining Fraud – Decrypt

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US Prosecutors Challenge ‘Unusually Lenient’ Sentence in HashFlare Mining Fraud – Decrypt



In brief

Legal experts say prosecutors face uphill battle appealing “unusually lenient” sentence for Estonians who ran a $577 million crypto Ponzi scheme.
Judge Lasnik sentenced defendants to time served, rejecting prosecutors’ 10-year prison request due to concerns about foreign defendants’ treatment.
HashFlare fraud hit 440,000 victims worldwide through fake mining contracts, with $400 million seized for compensation.

Federal prosecutors have moved to overturn what one legal expert called an “unusually lenient” outcome in one of the largest crypto frauds ever tried in the region.

The government on Tuesday appealed with the Ninth Circuit Court of Appeals the “time served” sentences handed down to Estonian nationals Sergei Potapenko and Ivan Turõgin, who pleaded guilty to conspiracy in a $577 million cryptocurrency mining Ponzi scheme.

The notice challenges both the sentencing hearing decisions and Judge Robert S. Lasnik’s written “Order on Sentencing” issued on Tuesday.

The appeal targets Lasnik’s decision to sentence Potapenko and Turõgin to only three years of supervised release and $25,000 fines each, rejecting prosecutors’ request for 10-year prison terms in what authorities called “the largest fraud ever prosecuted” in the Western District of Washington.

Ishita Sharma, a blockchain and crypto lawyer and managing partner at Fathom Legal, told Decrypt that “the chances are high for the sentence to be upheld” because “the Ninth Circuit generally defers to a district judge’s discretion unless it finds the sentence was clearly outside the bounds of reasonableness.”

Sharma said the Ninth Circuit will weigh whether the judge “properly calculated and considered the U.S. Sentencing Guidelines,” the “consistency” of the ruling with national norms for large fraud cases, and if leniency “undermines general deterrence” in economic crimes.

Navodaya Singh Rajpurohit, legal partner at Coinque Consulting, shared the same view, telling Decrypt that while the sentence may seem “unusually lenient,” Judge Lasnik clearly articulated his reasoning around “time already served, immigration risks, and restitution concerns.”

The legal expert noted Judge Lasnik’s “reasonings are genuine there could actually be problems if they are retained in us,” referring to the systemic concerns about foreign defendants’ treatment that formed the foundation of the sentencing decision.

While “prosecutors can argue it downplays the fraud, but history shows the Ninth Circuit rarely reverses sentences when the judge ties them to specific, well-reasoned order,” he said.

The HashFlare defendants pleaded guilty in February to defrauding 440,000 victims worldwide through fraudulent crypto mining contracts from 2015 to 2019.

They showed customers “fake online dashboards” with fictitious returns while lacking the mining infrastructure they promised, instead using investor funds for luxury purchases and buying Bitcoin through exchanges to pay early withdrawers.

Judge Lasnik has described the case as “one of the most difficult sentencings the Court has encountered during 27 years on the federal bench.”

He noted that all parties agreed the defendants should serve any prison sentence in Estonia through a treaty transfer, but is “taking too great a risk by assuming that office [Department of Justice’s Office of International Affairs] will approve defendants’ treaty transfer rather than reject it,”

Lasnik warned that without treaty transfers, the defendants would “face a significantly longer and harsher term of imprisonment” than American white-collar criminals receiving identical sentences, followed by “indefinite detention” by Immigration and Customs Enforcement before deportation.

However, Sharma noted that the sentence’s “leniency in the face of a massive fraud raises serious concerns about consistency and deterrence.”

The defendants forfeited approximately $400 million in assets for victim compensation.

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