Zcash's protocol has passed a security audit conducted by Anthropic's Claude Mythos AI, finding no serious vulnerabilities. However, the increasing use of AI in cybersecurity is also raising concerns about potential exploitation by threat actors in the broader crypto industry.
Anthropic released Fable 5, a powerful AI model, raising concerns among crypto users about potential misuse for malicious purposes, despite embedded safeguards. Experts debate the actual threat to DeFi protocols.
OpenAI's Daybreak initiative uses AI to enhance crypto security by identifying and fixing vulnerabilities before exploitation, contrasting with the crypto industry's reactive approach, which often fails to prevent significant losses.
Security researchers flagged a drain of hundreds of dormant Ethereum wallets in late April, with over 260 ETH (~$600K) stolen from wallets idle for 4-8 years. The incident occurred alongside Wasabi Protocol's $4.5-5.5M exploit, Drift's $285M breach, and KelpDAO's $292M rsETH bridge hack, bringing April's DeFi losses to over $625M. The common thread across these incidents: concentrated admin authority, weak signer workflows, single-verifier bridge paths, and unresolved wallet key exposure. Security experts urge users to migrate old funds to fresh key material and for protocols to implement timelocks, multi-sig thresholds, and independent verification.
MoonPay has acquired Sodot, an Israeli crypto security infrastructure provider, for approximately $100 million in an all-stock transaction. The deal, which closed in April, will use Sodot's multi-party computation key management technology as the foundation for MoonPay's new institutional division serving financial institutions, asset managers, trading firms and exchanges. Former CFTC acting chair Caroline Pham will lead the new unit.
