Category Archives: AI

Hacker (Mar 22 2023)

North Korean Hackers Steal Record $1.5 Billion in Crypto: Why Post-Quantum Cryptography is More Critical Than Ever

AI, Cybersecurity

At 01 Communique, we’ve been at the forefront of cybersecurity innovation since our founding in 1992. Today, I want to discuss a recent development that underscores the critical importance of our work in post-quantum cryptography.

The Largest Crypto Heist in History

The FBI has confirmed that North Korea was behind what is being described as the biggest heist in history – the theft of approximately $1.5 billion in virtual assets from ByBit, a Dubai-based cryptocurrency exchange. This surpasses the previous record of $1 billion stolen by Saddam Hussein from Iraq’s central bank before the 2003 war.

According to the FBI, North Korean hackers (operating under what they term “TraderTraitor”) have already begun converting some of the stolen assets to bitcoin and dispersing them across thousands of addresses on multiple blockchains. This is part of their strategy to launder these assets before eventually converting them to fiat currency.

North Korea’s Growing Cyber Capabilities

This latest theft is not an isolated incident. The notorious Lazarus Group, North Korea’s sophisticated cybercrime unit, stole more than $1.3 billion in cryptocurrency in 2024 across 47 incidents – nearly double the $660 million seized in 2023. These funds are believed to directly finance the regime’s nuclear and ballistic missile programs.

As blockchain analysis firm Chainalysis noted, these hackers “have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft.”

The Quantum Threat Looms Larger

While these attacks are alarming on their own, they represent just the beginning of what could become a much more serious threat landscape. As we noted in our December 16, 2024 press release, recent advancements in quantum computing – such as Google Quantum AI’s Willow quantum chip – demonstrate significant improvements in error correction and scalability.

These developments bring us closer to the day when quantum computers will be able to break traditional cryptographic protections. When that happens, not only cryptocurrencies but virtually all digital security systems will be vulnerable.

01 Communique’s Post-Quantum Solution

At 01 Communique, we’ve invested years and millions of dollars developing post-quantum cryptography (PQC) solutions precisely because we recognized this threat early. Our technologies incorporate PQC algorithms endorsed by the US National Institute of Standards and Technology (NIST) as their latest FIPS-203, FIPS-204, and FIPS-205 standards.

We’ve already integrated these advanced protections into various applications, including our email encryption and remote access solutions. But perhaps most relevant to today’s news is our work on cryptocurrency security.

Since 2022, we’ve been developing PQC-compliant blockchain solutions, recognizing that cryptocurrencies would be particularly vulnerable to quantum computing attacks. We’ve completed a PQC-compliant Solana (SOL) L1 blockchain with expectations of completing commercialization in 2025.

Most significantly, we hold US Patent #11,669,833 for technology that can transform any existing cryptocurrency to become PQC-compliant – a solution that directly addresses the vulnerability exposed by the ByBit hack.

The Path Forward

As quantum computing advances and cybercriminals grow more sophisticated, the need for quantum-resistant security solutions becomes increasingly urgent. The ByBit hack demonstrates that even today’s most advanced conventional security measures can be overcome.

We believe that post-quantum cryptography is not just a future requirement but a present necessity. Our IronCAP™ cryptographic engine enables businesses of all sizes to transform their systems to withstand potential attacks from both classical and quantum computers.

For cryptocurrency exchanges, investors, and the broader blockchain ecosystem, adopting PQC solutions now is a proactive step that could prevent the next billion-dollar heist.

01 Communique (TSX-V: ONE; OTC Pink Sheets: OONEF) is a pioneer in post-quantum cybersecurity with its IronCAP™ product line. For more information, visit www.ironcap.ca and www.01com.com.

Disclaimer: This blog post contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those discussed in this post.

artificial-intelligence-4550606_1280

Safeguarding AI: The Imperative for Quantum-Safe Encrypted Machine Learning

AI, Cybersecurity, Cybersecurity, IronCAP

In the rapidly evolving landscape of artificial intelligence, machine learning (ML) algorithms have become indispensable tools, shaping how organizations derive insights and make informed decisions. However, a critical concern persists – the lack of encryption in conventional ML algorithms poses serious privacy and security risks.

Unencrypted ML Algorithms: A Privacy Dilemma

It’s crucial to acknowledge that as of today, most ML algorithms operate in an unencrypted environment. This means that queries, results, and, significantly, the knowledge acquired during the learning process are left exposed. In essence, the crown jewel of organizations in the post-AI world – knowledge, including sensitive customer behavior data – remains vulnerable to exploitation.

Privacy Issues in Unencrypted Queries and Results

The unencrypted nature of queries and results in ML processes leads to severe privacy implications. Imagine a scenario where customer data, financial transactions, or strategic business insights are laid bare during communication between different components of an ML system. This lack of encryption opens the door to eavesdropping and interception, putting sensitive information at risk.

The Exposure of Knowledge: A Prime Target for Hackers

In the era where knowledge is power, the exposure of unencrypted ML knowledge becomes a prime target for hackers. Customer behavior patterns, proprietary algorithms, and other valuable insights acquired through ML processes become the coveted assets that malicious actors seek to exploit. The stakes are high, as organizations risk losing their competitive edge and compromising customer trust.

Quantum-Safe Encryption: The Path to Security

Amidst these challenges, there’s a ray of hope – the realization that we can create ML processes that are quantum-safe encrypted. By adopting our quantum-safe cryptographic techniques, organizations can fortify their ML algorithms against the looming threat of quantum computers, ensuring the confidentiality and integrity of their sensitive information.

Conclusion: Navigating the Quantum-Safe Future

In the race to unlock the full potential of machine learning, securing the knowledge acquired is paramount. As we step into the post-AI world, where data is king, adopting quantum-safe encrypted ML processes becomes not just a necessity but a strategic imperative. By fortifying our algorithms against emerging threats, we can usher in an era where innovation thrives, and organizations confidently harness the power of AI without compromising on security.

Remember, the journey towards quantum-safe encrypted ML is a dynamic one, requiring ongoing vigilance and adaptation to stay ahead in the ever-changing landscape of technology and security.

You need to act now!

We at IronCAP™ have been trying to educate businesses and individuals that Q-day (the day the first quantum hack is publicly recognized) is around the corner and everybody needs to gear up. Nation states and governments are already at it, how about you? To learn more, visit www.ironcap.ca.

IronCAP™ is our latest innovation for the post-quantum cybersecurity. This patent-protected, post-quantum cryptographic system is based on the Goppa Code-based cryptographic technology. It has embedded our proprietary subclass of (L, G) making it not only more secured but also has faster cryptographic operations (key generation, encryption, decryption) than the traditional Goppa Code-based technology (McEliece). We are offering a live demonstration for the general public to try and experience the strength of IronCAP™ post-quantum encryption easily. To learn more, visit www.ironcap.ca.