• Tornado Cash has seen a resurgence in 2024, with $1.9 billion in deposits in the first half of the year.
• This increase comes despite ongoing US sanctions and legal issues for its founders.
• Hackers continue to use Tornado Cash to launder stolen funds from various crypto exploits.
• WazirX, an Indian crypto exchange, recently suffered a $235 million breach linked to Tornado Cash.
• The US Treasury views crypto mixers as a national security threat, but some in the industry are challenging the sanctions.

Tornado Cash, a cryptocurrency mixing service, has experienced a significant resurgence in 2024 despite ongoing sanctions and legal challenges.

According to data from Flipside Crypto, the platform received about $1.9 billion in deposits during the first six months of the year. This marks a 50% increase compared to the total deposits for all of 2023.

The Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash in August 2022 after discovering that the North Korean hacking group Lazarus had used it to launder around $455 million in stolen funds.

These sanctions mean that any wallet interacting with Tornado Cash could be blacklisted, making it difficult to withdraw funds through legal crypto exchanges.

Despite these restrictions, Tornado Cash remains popular among hackers looking to hide the source of stolen cryptocurrencies.

Recent data from blockchain analytics firm Arkham Intelligence shows that the hacker behind the $100 million Poloniex exchange exploit transferred $76 million to Tornado Cash since May. Similarly, hackers responsible for the HECO Bridge and Orbit Chain exploits moved $166 million and $48 million respectively through the mixer in the first half of 2024.

The ongoing use of Tornado Cash by hackers was highlighted in a recent incident involving WazirX, an Indian crypto exchange.

On July 18, 2024, WazirX reported a security breach resulting in the loss of $235 million. One of the wallet addresses linked to this hack was funded through a Tornado Cash deposit, further demonstrating the mixer’s role in cryptocurrency-related crimes.

The crypto industry has been challenging the Tornado Cash sanctions through a lawsuit filed in 2022.

Supporters argue that the sanctions are “unlawful and unconstitutional” because Tornado Cash is not a country or an “entity,” and blocking it violates free speech rights under the US Constitution.

Major crypto firms like Coinbase and advocacy groups such as The Blockchain Association and Coin Center have backed this lawsuit.

However, the US Treasury maintains that crypto mixers pose a national security threat, and Tornado Cash failed to implement adequate controls to prevent money laundering.

This stance has led to legal troubles for the platform’s co-founders. Alexey Pertsev was sentenced to over five years in Dutch prison on money laundering charges. Roman Storm was arrested in the United States and pleaded not guilty to similar charges, while Roman Semenov remains at large.

The resurgence of Tornado Cash highlights the ongoing challenges in regulating decentralized finance (DeFi) platforms. While US authorities have cracked down on crypto-related crimes, the decentralized nature of protocols like Tornado Cash makes them difficult to police effectively.

The post Tornado Cash Deposits Surge to $1.9 Billion in 2024 Despite Sanctions appeared first on Blockonomi.

So it looks like the developer of sanctioned crypto mixer Tornado Cash stays behind bars after being denied bail.

Pertsev was arrested by Dutch police in Amsterdam in August 2022 for his role in developing the open-source Tornado Cash code. The prominent cryptocurrency mixing service was accused of being misused for money laundering by third parties.

Governments Want Total Transparency

After a multi-day court hearing as part of his trial, Pertsev was convicted of money laundering in May this year and was sentenced to 64 months in prison. In his arguments, the developer said he had no intent to facilitate criminal activities and he was simply a codewriter.

Pertsev has since appealed the conviction, but a Dutch court has denied his request to be released on bail while he prepares his appeal.

As reported, the bail request and Pertsev’s access to a computer to help his defense were denied, said Keith Cheng, Pertsev’s defense lawyer. Cheng added that the rejection was unexpected.

Judith de Boer, Pertsev’s lawyer, believes Pertsev’s release from jail is necessary for a fair appeal for a case that will set a precedent for how much responsibility software developers have for how their creations are used.

“In a case involving such fundamental legal questions, pre-trial detention is unacceptable,” said de Boer. “This unprecedented case addresses when a software developer can be criminally liable for third-party misuse.”

Apart from Pertsev, two other Tornado Cash developers are also facing legal issues, including Roman Storm, Tornado Cash’s co-founder, and developer Roman Semenov.

Following his arrest in the U.S. last year, Storm is facing charges including conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business, and conspiracy to violate the International Emergency Economic Powers Act. He is currently undergoing trial in the U.S. court system.

Meanwhile, Semenov’s current whereabouts are unknown. The developer is speculated to be located in the UAE, but he remains at large and has not been taken into custody.

Pertsev’s supporters have criticized his arrest, arguing that developers should not be held responsible for how their open-source software is used by others.

During his trial, Pertsev and his lawyers also stated that Tornado Cash is a privacy tool and that developers cannot be held liable for how users choose to utilize open-source software. Unfortunately, the Dutch court did not side with Pertsev.

Crypto Community Outrage

The crypto community has reacted with outrage and criticism over the arrest and conviction of Pertsev. Many members have called the 64-month prison sentence an “outlandish” and “sad day for privacy, crypto and open-source.”

Pablito, the head of security research at Blockfence, said the war is not over and that privacy is a human right.

Meanwhile, Web3 expert Alexandre Stachtchenko said Pertsev’s case has gone too far. He expressed strong disapproval of the current regulations around excessive KYC and surveillance practices before they undermine the core principles of democracy.

Byte Federal’s director of product development, Michelle Weekley, said the court ruling shows crypto users must “participate in AML/KYC regulation or go to jail.” He called it a “tyrannical dictatorship.”

Not only the believed unfair treatment, the crypto community members are also concerned the Pertsev verdict could set a dangerous precedent that threatens privacy, open-source development, and the future of the industry.

The court’s approach has stirred controversy as many view the ruling as an overreach of government power and a blow to individual rights.

Crypto lawyers have also argued the decentralized nature of crypto technology requires a more nuanced legal approach than the traditional one applied in Pertsev’s case.

The post Tornado Cash Developer Denied Bail in Money Laundering Case appeared first on Blockonomi.

• Hinkal announced the upcoming launch of the Shared Privacy Protocol
• The protocol enables cross-chain privacy via anonymity staking
• It addresses the need for privacy in DeFi trading, especially for institutional investors
• The Shared Privacy Protocol creates a unified pool of shielded liquidity across all chains
• Users can stake assets to earn rewards while contributing to the privacy pool
• The protocol aims to mirror the privacy standards of traditional finance in DeFi

Hinkal, a multi-chain privacy layer for confidential on-chain transactions, has announced the upcoming launch of its Shared Privacy Protocol. This innovative protocol aims to enable cross-chain privacy through a mechanism called anonymity staking, potentially revolutionizing how privacy is handled in the blockchain space.

The announcement comes at a time when institutional investors are rapidly entering crypto markets, bringing with them a demand for the same level of privacy in DeFi trading that they’ve long enjoyed in traditional equities markets. However, achieving complete privacy in DeFi has been a significant challenge due to the fragmentation of liquidity across more than 200 Layer-1 and Layer-2 blockchains.

Hinkal’s Shared Privacy Protocol addresses this challenge by establishing a unified pool of shielded liquidity across all chains. This approach, which the company likens to “EigenLayer for Privacy,” allows users to bootstrap Shielded Total Value Locked (TVL) in a manner similar to how EigenLayer enabled projects to bootstrap security.

The protocol introduces a concept of horizontal privacy integration, where the Shielded TVL can be mirrored across different blockchains such as Arbitrum or Solana.

This allows traders and decentralized applications (dApps) across the entire blockchain ecosystem to leverage the full value of the Shielded TVL pool, regardless of which specific chain they’re operating on.

Georgi Koreli, co-founder and CEO of Hinkal, emphasized the importance of this development:

“Ensuring complete privacy on-chain is a critical step in enabling the full adoption of crypto as an asset class across the institutional financial sector. The launch of the Shared Privacy Protocol is a key milestone in unleashing the power of community and breaking privacy barriers in crypto.”

The Shared Privacy Protocol offers benefits to various stakeholders in the DeFi ecosystem. Stakers can deploy their native and staked assets to the protocol, generating additional yield while maintaining the flexibility to trade yield tokens on other dApps.

Traders benefit from an expanded Shielded pool, which further obfuscates their trading strategies and allows them to maximize deployed capital across multiple chains. For developers of decentralized exchanges and dApps, the protocol offers a seamless way to integrate new privacy capabilities into their platforms.

This approach to privacy in DeFi mirrors the secure standards of traditional finance, allowing both individual and institutional users to manage assets and transact on major dApps without publicly disclosing wallet addresses. This level of privacy is crucial for institutional adoption of DeFi, as it protects trading strategies and prevents front-running.

Evgeny Gokhberg, founder of Re7 Capital and an investor in Hinkal, highlighted the importance of this solution for institutional players:

“A compliant solution enabling discrete liquidations without disclosing transaction data is necessary for us to efficiently operate in DeFi markets, and Hinkal’s Shared Privacy Protocol is the solution we have been searching for a long time.”

Hinkal, founded by Stanford graduate Giorgi Koreli and his Ph.D. brother Nika Koreli, is designed as an institutional-grade protocol providing users with full control over their on-chain assets.

The protocol uses zero-knowledge (ZK) proofs to enable private smart contract wallet experiences, allowing users to interact with their favorite dApps directly from private addresses without needing to withdraw assets for obfuscation.

The post Hinkal Launches Shared Privacy Protocol for Cross-Chain DeFi Privacy appeared first on Blockonomi.

• Brazil’s data protection authority (ANPD) has banned Meta from using Brazilian personal data to train its AI models.
• The decision follows Meta’s privacy policy update in May, which allowed it to use public Facebook, Instagram, and Messenger data for AI training.
• ANPD cites “imminent risk of serious and irreparable damage” to users’ fundamental rights.
• Meta has five working days to comply or face daily fines of 50,000 reais (about $8,808).
• This follows similar pushback from regulators in the European Union.

Brazil’s national data protection agency (ANPD) has taken a step to protect its citizens’ privacy by ordering Meta to stop using Brazilian personal data to train its artificial intelligence models.

This decision, announced on Tuesday, comes in response to Meta’s recent privacy policy update that granted the company permission to use public posts, images, and captions from Facebook, Instagram, and Messenger for AI training purposes.

The ANPD’s ruling cites “imminent risk of serious and irreparable damage” to the fundamental rights of Brazilian users. With over 102 million Facebook users and 113 million Instagram users in Brazil, the country represents a significant market for Meta, making this decision particularly impactful.

The agency’s concerns are not unfounded. A recent report by Human Rights Watch revealed that LAION-5B, one of the largest image-caption datasets used to train AI models, contains identifiable photos of Brazilian children.

This discovery raised alarms about the potential for deepfakes and other forms of exploitation, highlighting the urgent need for stricter data protection measures.

Under the ANPD’s order, Meta has been given five working days to demonstrate compliance with the directive by amending its privacy policy to exclude the use of personal information from public posts for AI training. Failure to do so will result in daily fines of 50,000 reais (approximately $8,808 or £6,935).

Meta, in response to the decision, expressed disappointment, stating that their approach complies with local privacy laws. A company spokesperson said,

“This is a step backwards for innovation, competition in AI development and further delays bringing the benefits of AI to people in Brazil.”

However, privacy advocates and data protection experts have welcomed the ANPD’s proactive stance.

Pedro Martins from Data Privacy Brasil pointed out discrepancies between Meta’s data protection measures for Brazilian and European users.

In Europe, Meta had planned to exclude data from users under 18 from AI training, while in Brazil, posts from children and teenagers were potentially included. Martins also noted that the opt-out process for Brazilian users was more complicated, potentially taking up to eight steps, compared to a more straightforward process in Europe.

This decision by Brazil’s ANPD mirrors similar concerns raised in the European Union. In June, Meta paused its plans to train AI models on European users’ data after receiving a request from the Irish Data Protection Commission. The company had initially planned to implement the policy change in Europe on June 26, but this has been put on hold pending further review.

The pushback against Meta’s data collection practices for AI training is part of a broader global conversation about privacy, data protection, and the ethical development of artificial intelligence.

For Meta, this setback in Brazil, following similar challenges in Europe, may force a reevaluation of its global AI strategy. The company will need to navigate an increasingly complex regulatory landscape while still pursuing its AI development goals.

The post Brazil Draws the Line: Meta Ordered to Exclude Personal Data from AI Training appeared first on Blockonomi.

• Sesame Online, a Bulgarian online gambling platform, partners with iDenfy for identity verification
• iDenfy’s solution aims to prevent underage gambling and money laundering
• The partnership will automate and streamline Sesame Online’s KYC process
• iDenfy’s technology includes AI facial recognition and 3D liveness detection
• Sesame Online won the Responsible Gaming Program of 2023 award from BEGE Expo

Sesame Online, a Bulgarian online gambling platform, has joined forces with iDenfy, a Lithuanian company that specializes in identity verification. This partnership aims to make online betting safer and easier for users.

Online gambling has become very popular, but it also comes with risks. Two big problems are underage gambling and money laundering. Sesame Online wants to tackle these issues head-on.

Victoria Petrova, the CEO of Sesame Online, explained why they chose iDenfy:

“They are leaders in the market, offering robust automation solutions specifically tailored to the iGaming industry. This change has already helped us onboard more users in less time, ensuring that only verified, real gamers access our services swiftly.”

iDenfy brings some high-tech solutions to the table. They use artificial intelligence (AI) for facial recognition and something called 3D liveness detection. These tools help make sure that the person trying to use the gambling site is who they say they are.

One of the main goals is to keep kids away from online gambling. Research shows that children who start betting at a young age are more likely to have gambling problems later in life. By checking users’ ages, Sesame Online hopes to create a safer environment.

The new system will also help fight money laundering. Sometimes, criminals try to use online gambling sites to make illegal money look legal. By verifying users’ identities and checking where their money comes from, Sesame Online can help stop this kind of fraud.

Domantas Ciulde, the CEO of iDenfy, shared his thoughts on the partnership:

“By constantly improving the power of biometric authentication and machine learning algorithms, we empower gaming operators to uphold regulatory compliance and safeguard young demographics.”

The partnership isn’t just about following rules. It’s also about making things easier for honest players. In the past, signing up for online gambling sites could be slow and frustrating. With iDenfy’s technology, Sesame Online hopes to make the process quicker and smoother.

iDenfy’s system can check over 3,000 types of ID documents from 200 countries. This wide coverage means that Sesame Online can welcome players from many different places while still keeping things secure.

Sesame Online has already shown its commitment to responsible gambling. They won the Responsible Gaming Program of 2023 award from BEGE Expo. This award recognizes their efforts to create a safe and fair gaming environment.

The online gambling industry has to follow strict rules. These rules are there to protect players and prevent crime. By working with iDenfy, Sesame Online is trying to stay ahead of these requirements.

The post Sesame Online Teams Up with iDenfy to Boost Security in Online Gambling appeared first on Blockonomi.

• Julian Assange has been released from prison after reaching a plea deal with the U.S. Department of Justice.
• Assange is expected to plead guilty to a single Espionage Act charge in exchange for a sentence of time already served.
• He left the UK on a private jet and is headed to Saipan in the Northern Mariana Islands for a court appearance.
• The plea deal concludes a long-running legal saga spanning multiple countries.
• Assange is expected to return to his home country of Australia after the court proceedings.

WikiLeaks founder Julian Assange has been released from prison after reaching a plea agreement with the U.S. Department of Justice (DOJ). This development marks the end of a long-running legal saga that has spanned over a decade and multiple continents.

Assange, who spent the last five years in London’s high-security Belmarsh Prison, left the UK on a private jet from Stansted Airport on Monday, June 24, 2024. His first stop was Bangkok, Thailand, for refueling before continuing to Saipan, the capital of the Northern Mariana Islands, a U.S. commonwealth in the Western Pacific.

According to court documents filed late Monday, Assange is scheduled to appear in federal court in Saipan on Wednesday, June 26. He is expected to plead guilty to a single felony charge under the Espionage Act for conspiring to unlawfully obtain and disseminate classified national defense information.

In exchange, prosecutors have agreed to a sentence equivalent to the five years Assange has already served in British prison while fighting extradition to the U.S.

JULIAN ASSANGE IS FREE

Julian Assange is free. He left Belmarsh maximum security prison on the morning of 24 June, after having spent 1901 days there. He was granted bail by the High Court in London and was released at Stansted airport during the afternoon, where he boarded a…

— WikiLeaks (@wikileaks) June 24, 2024

The choice of Saipan for the court proceedings is due to Assange’s opposition to traveling to the continental United States and the court’s proximity to Australia, his home country. After the court appearance and sentencing, Assange is expected to return to Australia as a free man.

This plea deal brings an abrupt conclusion to the U.S. government’s yearslong pursuit of Assange, whose WikiLeaks website published a trove of classified documents in 2010.

These documents included diplomatic cables and military files provided by former U.S. Army intelligence analyst Chelsea Manning. Among the files was a video of a 2007 Apache helicopter attack by American forces in Baghdad that killed 11 people, including two Reuters journalists.

The case has been controversial, with supporters hailing Assange as a hero who exposed military wrongdoing, while critics accused him of endangering national security.

Press freedom advocates have lambasted the prosecution, arguing that Assange’s actions were protected under journalistic principles.

Federal prosecutors, however, maintained that his conduct went beyond journalism and amounted to soliciting, stealing, and indiscriminately publishing classified government documents.

Assange’s wife, Stella, confirmed the news to the BBC, expressing elation at the development. She mentioned that the details of the agreement would be made public once the judge has signed off on it.

The flight carrying Assange reportedly cost $500,000, and his supporters are launching a fundraising campaign to help cover the expenses.

Kristinn Hrafnsson, editor-in-chief of WikiLeaks, credited the involvement of Australian Prime Minister Anthony Albanese for helping to bring about the deal. Albanese told the Australian Parliament that an Australian envoy had flown with Assange from London, stating,

“Regardless of the views that people have about Mr. Assange’s activities, the case has dragged on for too long.”

The plea agreement comes months after President Joe Biden said he was considering a request from Australia to drop the U.S. push to prosecute Assange. However, the White House reportedly was not involved in the decision to resolve Assange’s case.

Assange’s legal troubles began in 2010 when he sought asylum in the Ecuadorian Embassy in London to avoid extradition to Sweden on rape allegations, which he denied. He spent nearly seven years in the embassy before his asylum was withdrawn in 2019, leading to his arrest by British police and subsequent imprisonment for skipping bail.

Throughout his ordeal, Assange has received support from various quarters, including a Decentralized Autonomous Organization (DAO) that raised over 16,500 ether – worth over $55.2 million at current prices – for his legal defense.

The resolution of Assange’s case marks a significant moment in the ongoing debate about press freedom, government transparency, and national security.

The post WikiLeaks Founder Julian Assange Released from Prison Following U.S. Plea Deal appeared first on Blockonomi.

1. The EU Commission has revised its Chat Control law proposal, now seeking to mandate “upload moderation” for encrypted messaging apps to detect CSAM before messages are transmitted.
2. Signal President Meredith Whittaker argues that “upload moderation” is simply a rebranding of client-side scanning, which fundamentally undermines end-to-end encryption (E2EE) by creating vulnerabilities that can be exploited by hackers and hostile nation states.
3. The revised proposal would require users of E2EE messaging apps to consent to scanning to detect CSAM, and those who do not consent would be prevented from sending visual content or URLs.
4. Despite the EU Parliament initially voting to exclude E2EE apps from mass surveillance orders in the Chat Control legislation, some European countries continue to push for weakening chat encryption.
5. Whittaker emphasizes that mandating mass scanning of private communications fundamentally undermines encryption, regardless of the terminology used, and calls on lawmakers to stop playing “rhetorical games” with such a serious topic.

In a scathing blog post on Monday, Signal President Meredith Whittaker slammed the European Union’s latest proposal to combat child sexual abuse material (CSAM) online, arguing that the revised Chat Control law is nothing more than a thinly veiled attempt to undermine end-to-end encryption (E2EE) through “rhetorical games.”

The EU Commission first proposed the Chat Control law in mid-2022, which would have forced messaging apps to create a backdoor to E2EE messages to detect CSAM.

While the EU Parliament initially voted against mass screening of encrypted communications, a revised draft of the law now seeks to mandate “upload moderation” as an alternative method of mass scanning.

Whittaker argues that “upload moderation” is simply a rebranding of client-side scanning, a controversial technology that security and privacy experts say is incompatible with strong encryption.

The revised proposal would require users of E2EE messaging apps to consent to scanning to detect CSAM, and those who do not consent would be prevented from sending visual content or URLs, effectively downgrading their messaging experience.

“Mandating mass scanning of private communications fundamentally undermines encryption. Full stop,” Whittaker emphasized. “Whether this happens via tampering with, for instance, an encryption algorithm’s random number generation, or by implementing a key escrow system, or by forcing communications to pass through a surveillance system before they’re encrypted.”

Whittaker stressed that regardless of the terminology used, any approach that creates a vulnerability in E2EE can be exploited by hackers and hostile nation states, removing the protection of unbreakable math and replacing it with a high-value target for attack.

The Signal president’s criticism comes as European police chiefs and some EU member states continue to push for “technical solutions” to ensure “lawful access” to encrypted data, despite warnings from privacy advocates and the EU’s own data protection supervisor that such measures pose a direct threat to democratic values in a free and open society.

Whittaker praised the EU Parliament for initially voting to exclude E2EE apps from mass surveillance orders in the Chat Control legislation, responding to the longstanding expert consensus that subjecting everyone’s private communications to mass scanning against a government-curated database or AI model of “acceptable” speech and content poses serious dangers.

However, she noted that some European countries have continued to play “rhetorical games,” rebranding client-side scanning as “upload moderation” in an attempt to convince non-experts that the risks of the previous plan to undermine E2EE are not present in the new proposal.

Whittaker called on lawmakers to stop playing word games with such a serious topic, emphasizing that the stakes are too high to engage in “embarrassing branding exercises” that do not sway the expert community.

“Either end-to-end encryption protects everyone, and enshrines security and privacy, or it’s broken for everyone,”

Whittaker said.

“And breaking end-to-end encryption, particularly at such a geopolitically volatile time, is a disastrous proposition.”

As the EU continues to debate the Chat Control law, privacy advocates and security experts remain steadfast in their opposition to any measures that would undermine the integrity of E2EE.

The post The Battle Over Encrypted Messaging: Signal President Calls Out EU’s “Rhetorical Games” appeared first on Blockonomi.

1. OpenAI appointed retired U.S. Army Gen. Paul Nakasone, a former NSA director, to its board of directors and the newly formed Safety and Security Committee.
2. Edward Snowden, a former NSA subcontractor turned whistleblower, strongly criticized the decision, urging people not to trust OpenAI or its products like ChatGPT.
3. Snowden called the appointment a “willful, calculated betrayal of the rights of every person on Earth” and warned the public about the implications of having an NSA director on OpenAI’s board.
4. Nakasone, who retired from the NSA in February 2023, was also the longest-serving leader of the U.S. Cyber Command and chief of the Central Security Service.
5. The appointment comes as OpenAI bolsters its leadership team and partnerships, including a recent collaboration with Apple to integrate ChatGPT with Siri and the hiring of two top executives.

OpenAI, the artificial intelligence company behind the widely popular ChatGPT, has recently appointed retired U.S. Army Gen. Paul Nakasone, a former director of the National Security Agency (NSA), to its board of directors.

The decision has drawn sharp criticism from Edward Snowden, the former NSA subcontractor turned whistleblower, who has warned the public not to trust OpenAI or its products.

In a series of posts on X (formerly Twitter), Snowden called the appointment a “willful, calculated betrayal of the rights of every person on Earth.” He urged people to be cautious of OpenAI and its offerings, stating, “Do not ever trust @OpenAI or its products (ChatGPT etc.) There is only one reason for appointing an @NSAGov Director to your board.”

They've gone full mask-off: ???????? ???????????? ???????????????? trust @OpenAI or its products (ChatGPT etc). There is only one reason for appointing an @NSAGov Director to your board. This is a willful, calculated betrayal of the rights of every person on Earth. You have been warned. https://t.co/bzHcOYvtko

— Edward Snowden (@Snowden) June 14, 2024

Nakasone, who retired from the NSA in February 2023, was the longest-serving leader of the U.S. Cyber Command and chief of the Central Security Service.

In addition to joining OpenAI’s board, he will also be a part of the company’s newly formed Safety and Security Committee. According to OpenAI, Nakasone’s insights will contribute to the company’s efforts to strengthen cybersecurity by quickly detecting and responding to threats.

However, Snowden’s concerns stem from his experience as a whistleblower who exposed the NSA’s surveillance of private citizens’ information in 2013. Since then, he has been a polarizing figure, with some praising his work in revealing surveillance and intelligence collection practices, while others accuse him of threatening national security.

Snowden’s strong reaction to Nakasone’s appointment highlights the ongoing debate about the balance between privacy, security, and the development of powerful AI technologies.

OpenAI has been in hyper-growth mode since the launch of ChatGPT in late 2022, and the company has been bolstering its leadership team and partnerships to keep pace with the rapidly evolving AI market.

OpenAI recently announced a collaboration with Apple to integrate ChatGPT with Siri and hired two top executives: Sarah Friar as chief financial officer and Kevin Weil as chief product officer.

The post Edward Snowden Warns Against Trusting OpenAI After NSA Director Appointment appeared first on Blockonomi.

• IOTA Foundation’s Web3 Identification Solution, developed with partners, has been selected for the European Blockchain Sandbox.
• The solution tokenizes identification processes, allowing users to verify identity in Web3 while maintaining control over personal data.
• Users undergo remote identification with IDnow, which is tokenized by walt.id and stored in the Bloom wallet as a soulbound token.
• The token can be recognized by Web3 dApps and services to confirm user identity without revealing personal information.
• HAVN Network provides the dedicated EVM-compatible KYC chain infrastructure anchored to the Shimmer network.

The IOTA Foundation, in collaboration with walt.id, IDnow, Bloom Wallet, and HAVN, has developed a groundbreaking Web3 Identification Solution that has been selected for the European Blockchain Sandbox.

This initiative, launched by the European Commission in 2023, provides a controlled environment for testing and validating innovative distributed ledger technology (DLT) solutions while engaging with regulators from across the EU.

The Web3 Identification Solution aims to revolutionize traditional Know-Your-Customer (KYC) processes, which have long been hindered by inefficiencies, high costs, and data privacy concerns.

By leveraging DLT and tokenization, the solution enables users to maintain control over their personal data while providing a seamless and privacy-preserving way to identify themselves in Web3 environments.

The identification process begins with users undergoing a remote identification with IDnow, a leading identity verification platform provider in Europe.

This process complies with EU Anti-Money Laundering (AML) and KYC requirements. The identification is then tokenized by walt.id, a prominent provider of open-source decentralized identity and wallet infrastructure, and stored in the user’s Bloom wallet as a soulbound token.

The soulbound token can be recognized by Web3 dApps and other services to confirm the user’s identity without revealing personal information.

This reusable token eliminates the need for repetitive identification processes, enhancing user experience and privacy.

If requested by an authorized party, the identity information can be revealed, and the token can also be revoked.

The identity information can be issued in the W3C Verifiable Credential format for permissionless sharing in off-chain use cases.

HAVN Network, a specialist in integrating hybrid blockchain technologies, provides the dedicated EVM-compatible KYC chain infrastructure anchored to the Shimmer network. This enables efficient interchain communication and transaction validation while ensuring regulatory compliance.

Being selected for the European Blockchain Sandbox is a significant milestone for the Web3 Identification Solution, as it opens the door to regulatory discussions about KYC and privacy in a Web3 environment. This is particularly relevant given the increasing interest of regulators in decentralized finance (DeFi).

The post IOTA Foundation’s Web3 ID Solution Selected for European Blockchain Sandbox appeared first on Blockonomi.

• Fhenix, an Ethereum Layer 2 network focused on data confidentiality, has raised $15 million in a Series A funding round led by Hack VC, bringing its total funding to $22 million.
• Fhenix has launched its open testnet called Helium, allowing developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network for the first time.
• The project uses fully homomorphic encryption (FHE) technology from cryptography company Zama to enable end-to-end data encryption, even during the processing stage.
• Fhenix aims to drive data confidentiality across the entire blockchain ecosystem and has partnered with EigenLayer to develop an FHE co-processor.
• The Fhenix mainnet is expected to launch in the first quarter of 2025, and the company has set up a grants program to attract developers to its testnet.

Fhenix, (read our guide here) an Ethereum Layer 2 network developer focused on data confidentiality, has recently announced the successful completion of a $15 million Series A funding round.

The round, led by Hack VC, saw participation from prominent investors such as Dao5, Amber Group, Primitive Ventures, GSR, Collider Ventures, and Stake Capital.

This latest injection of capital brings Fhenix’s total funding to $22 million, following a $7 million seed round in September 2023.

Alongside the funding announcement, Fhenix also launched its open testnet called Helium.

This milestone marks the first time developers can deploy “confidential” smart contracts on the Fhenix Layer 2 network.

The project leverages fully homomorphic encryption (FHE) technology from cryptography company Zama to enable end-to-end data encryption, even during the processing stage. FHE is considered the “holy grail” of cryptography, as it allows for the computation of encrypted data without the need for decryption.

Fhenix co-founder and CEO Guy Itzhaki emphasized the importance of confidentiality in the blockchain ecosystem, stating,

“After scaling, confidentiality is the next major hurdle Ethereum needs to solve in order to reach mainstream adoption. FHE is the most elegant solution to the problem of encryption because, unlike existing confidentiality solutions based on zero-knowledge technology, it allows for end-to-end computation of encrypted data.”

Looking ahead, Fhenix plans to launch its mainnet in the first quarter of 2025. While details regarding a potential token launch remain undisclosed, the company has set up a grants program to attract and support developers in exploring the capabilities of its testnet.

The exact size of the program has not been finalized, but Itzhaki assures that it will be substantial, given the recent Series A funding round.

Fhenix’s long-term vision extends beyond its own Layer 2 network, as the company aims to drive data confidentiality across the entire blockchain ecosystem.

To further this goal, Fhenix has partnered with EigenLayer to develop an FHE co-processor. This co-processor will act as a stateless rollup, enabling Layer 1 and Layer 2 networks to access FHE services with minimal modifications.

Fhenix’s focus on data confidentiality and its innovative use of FHE technology position the project as a promising player in the Ethereum ecosystem.

The post Fhenix Raises $15M & Launches Helium Testnet, Enabling Confidential Smart Contracts on Layer 2 appeared first on Blockonomi.