News linked to both this project and an event.
According to Decrypt, Galaxy Digital has officially launched the "Bitcoin Quantum Readiness Initiative," with three core pillars including: providing up to $5 million in post-quantum cryptography research grants to developers, publishing specialized research reports through Galaxy Research, and establishing a quantum advisory committee composed of scholars from multiple top universities. The initiative targets "Q-Day"—the critical moment when quantum computers utilize Shor's algorithm to crack Bitcoin's elliptic curve encryption, forge signatures, and steal wallet assets. Project Eleven predicts that quantum computers capable of cryptographic threats may emerge as early as 2030, at which point approximately 6.9 million BTC will face exposure risks. The Coinbase Quantum Advisory Committee has also called on developers to immediately initiate migration work. Meanwhile, Trump has signed an executive order setting the deadline for the U.S. federal government to complete post-quantum cryptography migration to December 2031.
: On-chain digital asset management neobank ether.fi has selected Nexus Mutual to provide ETH slashing coverage, covering slashing penalties for its validators up to 15,000 ETH. ether.fi stated that it operates a large-scale validator set on Ethereum, and slashing is a tail risk. This coverage is used to cover validator losses, with a scale exceeding the total historical ETH slashing losses. ether.fi currently manages over $6 billion in assets across products such as Cash, Stake, and Liquid. Since 2019, Nexus Mutual has provided over $7 billion in coverage for smart contract attacks, slashing, and other digital asset risks. (Decrypt)
researchers from the Ethereum Foundation Protocol Security team said in a blog post on Thursday that they have deployed a series of AI agents to test the software relied upon by Ethereum, searching for vulnerabilities in encryption systems, protocol code, and smart contracts. The vulnerabilities discovered by the AI agents include a remotely triggerable panic issue in the libp2p gossipsub peer-to-peer layer used by Ethereum consensus clients. The issue has been fixed and disclosed on Github as CVE-2026-34219. Researchers stated that the AI agents are organized into specialized roles such as reconnaissance, search, patching, and verification, used to find potential attack paths, reproduce faults, and verify their applicability to production code. The Ethereum Foundation stated that AI has not replaced security researchers but has changed the way they work, enabling the team to cover far more scope than manual review. However, it requires researchers to exercise more careful judgment when evaluating a large number of seemingly credible conclusions. (Decrypt)
multiple blockchain and post-quantum cryptography researchers have warned that artificial intelligence (AI) is accelerating the development of quantum computing and could potentially impact the security systems of mainstream blockchains, including Bitcoin and Ethereum, earlier than anticipated.Alex Pruden, CEO of Project Eleven, a firm focused on quantum-resistant infrastructure, stated that the combination of AI and quantum computing is fundamentally reshaping the future security landscape. "People will no longer be able to rely on existing security assumptions as they have in the past," he said.Researchers point out that AI is already being used to optimize quantum error correction, which is one of the key technical bottlenecks in the development of quantum computing. Illia Polosukhin also noted that AI has been accelerating scientific breakthroughs for years, and in the future, there may even be a circular acceleration effect where "AI helps build the next generation of quantum computers."One of the industry's biggest current concerns is the "Harvest Now, Decrypt Later" strategy, where governments or advanced attackers begin mass-collecting encrypted data now, waiting to decrypt it all at once once quantum computing matures. Polosukhin warned that if quantum computers become viable within a few years, "most of today's important data on the internet could be decrypted in the future."Given that most blockchain networks and internet infrastructure currently rely on elliptic curve cryptography (ECC), a sufficiently powerful quantum computer could theoretically derive a private key from a public key, directly breaking wallets and on-chain systems. Simultaneously, AI itself is strengthening hacking capabilities. Pruden stated that AI models are becoming increasingly adept at discovering software vulnerabilities and cryptography implementation flaws, and may even be able to crack some encryption algorithms directly in the future.However, AI is also being used by developers for code auditing, formal verification, and testing post-quantum security systems, creating a "long-term security arms race" with simultaneous upgrades on both the offensive and defensive sides. Researchers believe the most significant change brought by AI and quantum computing together is that the core assumption of "long-term cryptographic reliability" in the digital age is being challenged. Future security systems may shift from "static upgrades" to continuous dynamic evolution. (CoinDesk)
According to Decrypt, Microsoft’s Threat Intelligence team disclosed that attackers had injected malicious code into Mistral AI packages distributed via the PyPI platform. This malicious code automatically executes when developers use the packages on Linux systems, downloading and running a malicious file named <code>transformers.pyz</code> in the background—the filename deliberately mimics the widely used Hugging Face Transformers library to evade detection. Microsoft noted that the malware primarily steals developers’ login credentials and access tokens. It avoids execution on Russian-language systems and includes logic that can randomly delete files on devices located in Israel or Iran. This attack is linked to the “Shai-Hulud” supply-chain campaign launched in September. In response, Mistral stated that its investigation found the attack originated from compromised developer devices, and its corporate infrastructure was not breached.
According to Decrypt, an anonymous cryptocurrency whale filed a lawsuit against Coinbase this week in the U.S. District Court for the Northern District of California, accusing the exchange of refusing to return over $55 million worth of DAI stablecoins stolen in a phishing attack in 2024. The plaintiff claims to have engaged multiple on-chain investigation firms to trace the funds, ultimately identifying that the stolen assets flowed into a Coinbase account. Coinbase confirmed in December 2024 that it had frozen the relevant assets but refused to return them, citing the need for a court order. As of today—more than a year and a half after the incident—the victim has still not recovered the assets and has therefore turned to litigation. The attack was carried out by hackers using the “Inferno Drainer” tool to spoof the DeFi Saver login page; after the victim inadvertently interacted with the fake page, their wallet was fully compromised by the attackers.
According to Decrypt, U.S. Representatives Thomas Massie and Lauren Boebert jointly introduced the AI surveillance bill titled the “Surveillance Accountability Act,” which would require U.S. federal agencies to obtain a judicial warrant before using artificial intelligence for data analysis and surveillance. The bill aims to close a loophole in the “third-party doctrine”—a legal framework originating from 1970s court rulings that permits the U.S. government to access users’ data held by third-party platforms (e.g., banks and telecommunications providers) without a warrant. The bill’s sponsors argue that, in the internet and AI era, this doctrine has been excessively expanded, thereby weakening protections for citizens’ privacy.
According to Decrypt, OpenAI CEO Sam Altman stated that Anthropic is promoting its AI model Claude Mythos through “fear-based marketing,” using narratives about security risks to justify its limited-open strategy. Claude Mythos has recently drawn attention for its ability to autonomously discover software vulnerabilities and perform complex cybersecurity operations. The report notes that Mozilla previously disclosed that the model identified 271 vulnerabilities in the Firefox browser during testing. Meanwhile, discussions surrounding the model’s potential offensive cybersecurity risks continue to intensify. Altman also emphasized that OpenAI will not scale back its infrastructure investments and will continue expanding its computational capabilities.
According to Decrypt, Mozilla recently revealed that Anthropic’s latest AI model, Claude Mythos, identified 271 security vulnerabilities during internal testing of the Firefox browser; all related vulnerabilities were patched this week. For comparison, a previous Anthropic model had detected only 22 security-sensitive vulnerabilities. Mozilla stated that all discovered vulnerabilities fell within the scope of what top human researchers could identify. Claude Mythos was officially launched in March 2026 and is Anthropic’s most powerful model to date for reasoning, coding, and cybersecurity. It is currently available exclusively to vetted partners—including Amazon, Apple, and Microsoft—under Anthropic’s “Project Glasswing” initiative.
According to Decrypt, Blockstream CEO Adam Back stated at Paris Blockchain Week that he supports advancing Bitcoin’s quantum resistance upgrade on an opt-in basis, opposing proposals to forcibly freeze quantum-vulnerable addresses. He emphasized that “preparation well in advance is far safer than scrambling to respond during a crisis,” and noted that the Bitcoin community possesses strong coordination capabilities to rapidly address critical vulnerabilities. Previously, developer Jameson Lopp and five others proposed BIP-361 (“Post-Quantum Migration and Legacy Signature Sunset”), which advocates phasing out quantum-vulnerable addresses over five years and ultimately freezing coins held in unmigrated addresses—including approximately 1.7 million bitcoins held by Satoshi Nakamoto.
According to Decrypt, Bitcoin ATM operator Bitcoin Depot filed a disclosure with the U.S. Securities and Exchange Commission (SEC) revealing that it suffered a cybersecurity attack on March 23. Hackers infiltrated the company’s IT systems to obtain credentials for its digital asset settlement account and stole approximately 50.9 BTC—valued at roughly $3.665 million—from the company’s wallet. Following the incident, the company activated its incident response protocol, engaged external cybersecurity experts to conduct an investigation, and notified law enforcement authorities. Bitcoin Depot stated that its customer platform and user data remained unaffected. The company classified this event as a material matter, which may result in reputational damage and additional legal and regulatory costs.