Goto

Collaborating Authors

 cryptocurrency


Quantum computers could usher in a crisis worse than Y2K

New Scientist

Quantum computers could cause a global security crisis that makes the once-feared millennium bug, or Y2K, look quaint. This infamous computer risk was averted through the persistent behind-the-scenes work of engineers across the world, but whether the new threat will be tackled similarly is an urgent yet unresolved question. Most digital communications and transactions are protected by cryptography based on mathematical problems that are unsolvable by conventional computers but are solvable by a sufficiently capable quantum computer. Researchers have understood this since the late 1990s, but the day when this capable-enough quantum computer comes online - or Q-Day - was thought to be very far in the future. Working quantum computers are now a reality, and recent leaps in how to use them are bringing Q-Day ever closer.


The first quantum computer to break encryption is now shockingly close

New Scientist

A quantum computer capable of breaking the encryption that secures the internet now seems to be just around the corner. Stunning revelations from two research teams outline how it could happen, with one suggesting that the current largest quantum machine is already more than halfway towards the size needed. The two studies concern an encryption technique built around the elliptic curve discrete logarithm problem (ECDLP). The particulars of how this mathematical problem is solved made it a good candidate for encrypting data and led to its widespread adoption for securing lots of internet communication, including bank transactions, and nearly every major cryptocurrency, including bitcoin. It is extremely difficult for conventional computers to crack ECDLP-based encryption, but since the 1990s researchers have known that quantum computers wouldn't have the same trouble.


The Download: a blockchain enigma, and the algorithms governing our lives

MIT Technology Review

Jean-Paul Thorbjornsen, an Australian man in his mid-30s, with a rural Catholic upbringing, is a founder of THORChain, a blockchain through which users can swap one cryptocurrency for another and earn fees from making those swaps. THORChain is permissionless, so anyone can use it without getting prior approval from a centralized authority. As a decentralized network, the blockchain is built and run by operators located across the globe. During its early days, Thorbjornsen himself hid behind the pseudonym "leena" and used an AI-generated female image as his avatar. But around March 2024, he revealed his true identity as the mind behind the blockchain. If there is a central question around THORChain, it is this: Exactly who is responsible for its operations?


Crypto-Funded Human Trafficking Is Exploding

WIRED

The use of cryptocurrency in sales of human beings for prostitution and scam compounds nearly doubled in 2025, according to a conservative estimate. Many of the deals are happening in plain sight. Cryptocurrency's frictionless, transnational, low-regulation transactions have long promised the ability to pay anyone in the world for anything. More than ever before, that anything includes human beings: victims of human trafficking forced into scam compounds and the sex trade on an industrial scale, bought and sold in crypto deals carried out with impunity, often in full public view. In new research published today, crypto-tracing firm Chainalysis found that crypto-funded transactions for human trafficking--largely forced laborers trapped in compounds across Southeast Asia and coerced into working as online scammers, as well as sex-trafficking prostitution rings--grew explosively in 2025.



Unintentional Consequences: Generative AI Use for Cybercrime

Luu, Truong Jack, Samuel, Binny M.

arXiv.org Artificial Intelligence

The democratization of generative AI introduces new forms of human-AI interaction and raises urgent safety, ethical, and cybersecurity concerns. We develop a socio-technical explanation for how generative AI enables and scales cybercrime. Drawing on affordance theory and technological amplification, we argue that generative AI systems create new action possibilities for cybercriminals and magnify pre-existing malicious intent by lowering expertise barriers and increasing attack efficiency. To illustrate this framework, we conduct interrupted time series analyses of two large datasets: (1) 464,190,074 malicious IP address reports from AbuseIPDB, and (2) 281,115 cryptocurrency scam reports from Chainabuse. Using November 30, 2022, as a high-salience public-access shock, we estimate the counterfactual trajectory of reported cyber abuse absent the release, providing an early-warning impact assessment of a general-purpose AI technology. Across both datasets, we observe statistically significant post-intervention increases in reported malicious activity, including an immediate increase of over 1.12 million weekly malicious IP reports and about 722 weekly cryptocurrency scam reports, with sustained growth in the latter. We discuss implications for AI governance, platform-level regulation, and cyber resilience, emphasizing the need for multi-layer socio-technical strategies that help key stakeholders maximize AI's benefits while mitigating its growing cybercrime risks.


ART: A Graph-based Framework for Investigating Illicit Activity in Monero via Address-Ring-Transaction Structures

Venturi, Andrea, Jerico-Yoldi, Imanol, Zola, Francesco, Orduna, Raul

arXiv.org Artificial Intelligence

As Law Enforcement Agencies advance in cryptocurrency forensics, criminal actors aiming to conceal illicit fund movements increasingly turn to "mixin" services or privacy-based cryptocurrencies. Monero stands out as a leading choice due to its strong privacy preserving and untraceability properties, making conventional blockchain analysis ineffective. Understanding the behavior and operational patterns of criminal actors within Monero is therefore challenging and it is essential to support future investigative strategies and disrupt illicit activities. In this work, we propose a case study in which we leverage a novel graph-based methodology to extract structural and temporal patterns from Monero transactions linked to already discovered criminal activities. By building Address-Ring-Transaction graphs from flagged transactions, we extract structural and temporal features and use them to train Machine Learning models capable of detecting similar behavioral patterns that could highlight criminal modus operandi. This represents a first partial step toward developing analytical tools that support investigative efforts in privacy-preserving blockchain ecosystems


Global stock markets fall sharply over AI bubble fears

The Guardian

Asian markets recorded the sharpest slide in seven months on Wednesday. Asian markets recorded the sharpest slide in seven months on Wednesday. Global stock markets have fallen sharply amid concerns that a boom in valuations of artificial intelligence (AI) companies could be rapidly cooling. Markets in the US, Asia and Europe have fallen after bank bosses warned a serious stock market correction could lie ahead, after a run of record stock market highs led some companies to appear overvalued . In the US, the tech-focused Nasdaq and the S&P 500 on Tuesday suffered their largest one-day percentage drop in almost a month.


Agent-Based Genetic Algorithm for Crypto Trading Strategy Optimization

Tian, Qiushi, Liang, Churong, Hong, Kairan, Li, Runnan

arXiv.org Artificial Intelligence

ABSTRACT Cryptocurrency markets present formidable challenges for trading strategy optimization due to extreme volatility, non-stationary dynamics, and complex microstructure patterns that render conventional parameter optimization methods fundamentally inadequate. We introduce Cypto Genetic Algorithm Agent (CGA-Agent), a pioneering hybrid framework that synergistically integrates genetic algorithms with intelligent multi-agent coordination mechanisms for adaptive trading strategy parameter optimization in dynamic financial environments. The framework uniquely incorporates real-time market microstructure intelligence and adaptive strategy performance feedback through intelligent mechanisms that dynamically guide evolutionary processes, transcending the limitations of static optimization approaches. Comprehensive empirical evaluation across three cryptocurrencies demonstrates systematic and statistically significant performance improvements on both total returns and risk-adjusted metrics. Index T erms-- Crypto Trading Strategy, Multi-Agent Systems, Genetic Algorithm, Auto Parameter Optimization 1. INTRODUCTION Quantitative trading has emerged as a dominant paradigm in modern financial markets, leveraging algorithmic decision-making systems to execute trades based on sophisticated mathematical models and statistical inference.


Enhancing Cryptocurrency Sentiment Analysis with Multimodal Features

Liu, Chenghao, Mahanti, Aniket, Naha, Ranesh, Wang, Guanghao, Sbai, Erwann

arXiv.org Artificial Intelligence

As cryptocurrencies gain popularity, the digital asset marketplace becomes increasingly significant. Understanding social media signals offers valuable insights into investor sentiment and market dynamics. Prior research has predominantly focused on text-based platforms such as Twitter. However, video content remains underexplored, despite potentially containing richer emotional and contextual sentiment that is not fully captured by text alone. In this study, we present a multimodal analysis comparing TikTok and Twitter sentiment, using large language models to extract insights from both video and text data. We investigate the dynamic dependencies and spillover effects between social media sentiment and cryptocurrency market indicators. Our results reveal that TikTok's video-based sentiment significantly influences speculative assets and short-term market trends, while Twitter's text-based sentiment aligns more closely with long-term dynamics. Notably, the integration of cross-platform sentiment signals improves forecasting accuracy by up to 20%.