Extropy Security Bytes: w4 2025
Welcome to this week’s blockchain security roundup, brought to you by Extropy.io! In this series, we deliver bite-sized updates on the most critical developments in the blockchain and cryptocurrency world. From vulnerabilities in major networks to emerging threats and regulatory changes, stay informed and ahead of the curve. Let’s dive into the highlights from 19th to 24th January!
TikTok Coin Rug Pull:
A cryptocurrency linked to a potential TikTok comeback was promoted by Ryan Fournier, a MAGA influencer, who appeared to hold a significant amount of the tokens. Users accused Fournier of a rug pull, alleging he sold his tokens after promoting them, causing the coin’s value to collapse.
Tron:
A security vulnerability in the Tron network’s UpdateAccountPermission feature put over 14,500 wallets at risk. This flaw allows hackers to take control of wallets, preventing owners from making any transactions. Attackers can lock users out of their funds without them knowing, while the user may continue to deposit funds into the compromised wallet. The UpdateAccountPermission function is designed to enhance account security using multi-signature-like functions, but it contains a flaw that can be exploited.
In other security news:
Concerns over increase in data breaches and scams following $TRUMP and $MELANIA:
On January 18, 2025, President Donald Trump launched his own cryptocurrency, named $TRUMP, which quickly surged in value, reaching a market capitalization exceeding $10 billion and ranking among the top 20 digital assets. The Trump business organization retains 80% of the tokens, scheduled for gradual release during his presidency. Shortly after, First Lady Melania Trump introduced her own memecoin, $MELANIA, briefly causing a decline in $TRUMP’s value.
While supporters view these initiatives as a celebration of free-market principles, concerns have been raised regarding centralization and security. Experts warn that the significant financial stakes could make these coins prime targets for cybercriminals. Leading cybersecurity firms are emphasizing the importance of identifying and strengthening potential vulnerabilities within critical infrastructure to safeguard against potential threats.
Quantum Computing and Blockchain Security:
Recent advancements in quantum computing, such as Google’s new Willow quantum chip, have raised concerns about the future security of blockchain encryption. While current quantum computers lack the capacity to break Bitcoin’s encryption, ongoing developments highlight the need for the crypto community to explore quantum-resistant algorithms to safeguard against potential future threats.
US Regulatory Proposals for Enhanced Crypto Security:
The U.S. Consumer Financial Protection Bureau (CFPB) has proposed that cryptocurrency companies be held responsible for reimbursing customers for losses due to hacks or unauthorized transactions. This proposal aims to align digital wallet security standards with those of traditional bank accounts, requiring companies to strengthen security measures and maintain higher reserves. The CFPB is currently gathering industry comments before finalizing the rule.
North Korean Involvement in Crypto Hacks:
North Korean hacking group Lazarus has been linked to significant crypto thefts, including a $600 million heist from a blockchain network tied to the game Axie Infinity in 2022. In 2024, they sent over $150,000 in stolen cryptocurrency to Huione Pay, a Cambodian payment firm, highlighting the global reach and complexity of such cybercrimes.
That’s it for this week’s blockchain security news! At Extropy.io, we’re committed to helping you navigate the ever-changing world of blockchain technology with confidence. Stay vigilant, stay informed, and join us next week for more insights. If you have any questions or topics you’d like us to cover, feel free to reach out. Until then, stay secure!
