News

FBI Seizes Stolen Cryptocurrencies

The Wall Street Journal is reporting that the FBI has recovered over $30 million in cryptocurrency stolen by North Korean hackers earlier this year. It’s only a fraction of the $540 million stolen, but it’s something.

The Axie Infinity recovery represents a shift in law enforcement’s ability to trace funds through a web of so-called crypto addresses, the virtual accounts where cryptocurrencies are stored. These addresses can be created quickly without them being linked to a cryptocurrency company that could freeze the funds.

In its effort to mask the stolen crypto, Lazarus Group used more than 12,000 different addresses, according to Chainalysis. Unlike bank transactions that happen through private networks, movement between crypto accounts is visible to the world on the blockchain…

New Linux Cryptomining Malware

It’s pretty nasty:

The malware was dubbed “Shikitega” for its extensive use of the popular Shikata Ga Nai polymorphic encoder, which allows the malware to “mutate” its code to avoid detection. Shikitega alters its code each time it runs through one of several decoding loops that AT&T said each deliver multiple attacks, beginning with an ELF file that’s just 370 bytes.

Shikitega also downloads Mettle, a Metasploit interpreter that gives the attacker the ability to control attached webcams and includes a sniffer, multiple reverse shells, process control, shell command execution and additional abilities to control the affected system…

Responsible Disclosure for Cryptocurrency Security

Stewart Baker discusses why the industry-norm responsible disclosure for software vulnerabilities fails for cryptocurrency software.

Why can’t the cryptocurrency industry solve the problem the way the software and hardware industries do, by patching and updating security as flaws are found? Two reasons: First, many customers don’t have an ongoing relationship with the hardware and software providers that protect their funds­—nor do they have an incentive to update security on a regular basis. Turning to a new security provider or using updated software creates risks; leaving everything the way it was feels safer. So users won’t be rushing to pay for and install new security patches…

Facebook Has No Idea What Data It Has

This is from a court deposition:

Facebook’s stonewalling has been revealing on its own, providing variations on the same theme: It has amassed so much data on so many billions of people and organized it so confusingly that full transparency is impossible on a technical level. In the March 2022 hearing, Zarashaw and Steven Elia, a software engineering manager, described Facebook as a data-processing apparatus so complex that it defies understanding from within. The hearing amounted to two high-ranking engineers at one of the most powerful and resource-flush engineering outfits in history describing their product as an unknowable machine…