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Decentralized exchange KiloEx says $7.5M exploit has been contained

Decentralized exchange KiloEX has confirmed it has suspended usage of its platform and is tracing stolen funds after suffering a $7.5 million exploit. 

The exploit has been contained, with use of the platform suspended and an investigation underway, the KiloEX team said in an April 14 statement to X.

“The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” KiloEX said. 

“We are analyzing the attack vector and affected assets. We are collaborating with ecosystem partners to trace and recover funds where possible.” 

Decentralized exchange KiloEx says $7.5M exploit has been contained

Source: KiloEX

A bounty program and a full report on how the exploit occurred is also in the works, according to KiloEX. 

In an update, the KiloEX team said it was collaborating with BNB Chain, Manta Network, and cybersecurity firms Seal-911, SlowMist and Sherlock in an effort spanning “multiple ecosystems.” 

“Our investigation has confirmed that the stolen assets are currently being routed through zkBridge and Meson,” KiloEX said. 

“We are urgently attempting to engage with both protocols to halt ongoing transactions and prevent additional losses.” 

KiloEX attacker exploited price oracle issue, say analysts 

Cybersecurity firm PeckShield said in an April 14 post to X the exploiter looted $7.5 million in total, $3.3 million Base, $3.1m opBNB and $1m BSC. 

The firm has speculated the exploit is likely a “price oracle issue,” where the information used by a smart contract to determine the price of an asset is manipulated or inaccurate, leading to the exploit. 

“Our initial analysis on one transaction exploit indicates a price oracle issue,” PeckShield said. 

Decentralized exchange KiloEx says $7.5M exploit has been contained

Source: PeckShield

“The hacker exploits it to create a new position with initial given ETH/USD price of 100 and then immediately close the position with inflated ETH/USD price of 10000, netting the $3.12m profit in one single transaction.” 

Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, also weighed in, speculating the exploit was likely due to a price oracle issue.

“Anyone can change the Kilo’s price oracle. They did verify that the caller shall be a trusted forwarder, though, but didn’t verify the forwarded caller,” Shou said. 

Shou added it was a “very simple vulnerability” when a user asked about the complexity of the exploit. 

Decentralized exchange KiloEx says $7.5M exploit has been contained

Source: Chaofan Shou

The news has sent the KiloEX’s native token, Kilo, plunging over 27% to trade at $0.03596, according to CoinGecko. It’s still down over 78% from its all-time high of $0.1648, which it hit on March 27.

Related: Mantra CEO says OM token recovery ‘primary concern’ but in early stages

KiloEx was established in 2023 and is backed by Binance Labs, which is a lead investor and strategic partner. 

This exploit comes just days after the exchange announced a partnership with Dubai-based Web3 venture capitalist firm DWF Labs on April 13, which promised to expand KiloEx’s market presence and accelerate growth. 

On March 25, DWF Labs launched a $250 million Liquid Fund to accelerate the growth of mid- and large-cap blockchain projects and drive real-world adoption of Web3 technologies.

Magazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler’s Digest, April 6–12

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Tether partners with OCEAN mining pool to decentralize Bitcoin block-building

Stablecoin issuer Tether has announced it intends to deploy its existing and future Bitcoin hashrate to OCEAN’s Bitcoin mining pool in an effort to strengthen the network’s decentralization.

“Deploying hashrate to OCEAN aligns with both our mining investments and our broader mission to fortify Bitcoin against centralizing forces,” Tether’s CEO Paolo Ardoino said in an April 15 statement.

Tether partners with OCEAN mining pool to decentralize Bitcoin block-building

Source: OCEAN Mining

While Bitcoin hashrate is decentralized, the block-building process conducted by mining pools is mostly centralized by a few dominant actors — most notably Foundry USA, AntPool and ViaBTC.

The OCEAN protocol attempts to decentralize this process by empowering miners to build their own block templates using their open-source DATUM protocol, reducing dependency on centralized intermediaries and enhancing censorship resistance, Tether said.

Tether’s deployment would leverage OCEAN’s DATUM software across all of its mining operations worldwide, including in rural areas in Africa. 

“By enabling on-site generation of unique block templates and aggregating thousands of rig connections with low-latency performance, DATUM ensures global competitiveness while promoting geographic and operational diversity,” Tether said.

Related: Inside the Trump-backed Bitcoin mining mega-deal with Hut 8

Tether currently deploys Bitcoin hashrate at sites in Uruguay, Paraguay and El Salvador, where the $144 billion stablecoin issuer is also headquartered.

Those initiatives emerged around the time Tether announced it would invest $500 million into Bitcoin mining in late 2023.

OCEAN was created by Bitcoin core developer Luke Dashjr in 2023 and has been backed by the likes of Block CEO Jack Dorsey. OCEAN also relocated its headquarters to El Salvador in May 2024.

Dashjr sparked controversy in December 2023 when he slammed Bitcoin Ordinals users for clogging the network with “spam.” However, he refuted claims that OCEAN censored the non-fungible token-like transactions.

OCEAN still has a lot of market share to capture

The OCEAN protocol currently mines between 0.2% to 1% of Bitcoin blocks, according to mempool.space data.

It has mined nine blocks over the last week, including two in a row at 892342 and 892343 on April 14.

However, OCEAN’s output remains a fraction of that seen by Foundry USA, AntPool and ViaBTC, which have mined 331, 199 and 161 Bitcoin blocks, respectively, over the same timeframe — accounting for over 66% of all blocks.

The Tether partnership would likely provide a much-needed boost to OCEAN’s hashrate, which has amounted to 18.3 exahashes per second (EH/s) over the last 24 hours.

Tether partners with OCEAN mining pool to decentralize Bitcoin block-building

OCEAN protocol’s Bitcoin mining statistics. Source: mempool.space

By comparison, Foundry USA’s hashrate over the same timeframe has exceeded 298 EH/s, leveraging hashrate from the likes of Bitcoin mining firms Hut 8, Bitdeer and Bitfarms.

Magazine: Financial nihilism in crypto is over — It’s time to dream big again

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Bitcoin takes back seat as Trump, Bukele focus on trade and immigration

US President Donald Trump hosted El Salvador’s President Nayib Bukele at the White House on April 14, with talks centered on trade and immigration, excluding Bitcoin from the public agenda.

Pressing issues of migration and bilateral security cooperation set the tone of Bukele’s first official meeting at the White House during Trump’s second term. 

According to a livestream shared by Bukele’s office on X, Trump raised the possibility of transferring US citizens convicted of crimes to prisons in El Salvador, urging Bukele to expand the country’s prison system to house more prisoners. “I said homegrowns are next, the homegrowns. You gotta build about five more places.” 

Bitcoin takes back seat as Trump, Bukele focus on trade and immigration

Source: Nayib Bukele

Since taking office, the Trump administration has deported hundreds of alleged foreign criminal individuals to El Salvador under a $6 million deal between the countries.

Trump also addressed the ongoing trade war unleashed by his administration on April 2, suggesting a potential temporary exemption for automakers aimed at easing the transition of their supply chains.

“I’m looking at something to help some of the car companies with it,” Trump told reporters present at the meeting, adding that the US auto industry “need[s] a little bit of time” to relocate production to the country. 

The meeting did not touch on digital assets and Bitcoin (BTC) policy — a flagship initiative of both presidents’ administrations. 

El Salvador adopted Bitcoin as legal tender in 2021, pioneering the Bitcoin strategic reserve approach later followed by Trump.

The US president positioned himself as a pro-crypto candidate during the 2024 election. On March 6, Trump signed an executive order to create a Bitcoin strategic reserve and digital asset stockpile in the United States.

The US holds nearly 198,000 BTC, valued at over $17 billion as of March. The reserve is primarily formed of Bitcoin seized in criminal and civil cases, including significant amounts from the Silk Road and Bitfinex hack cases.

Related: How much Bitcoin does the US hold, and where did it come from?

El Salvador’s BTC plans face IMF opposition

El Salvador signed off in December a $1.4 billion loan agreement with the International Monetary Fund (IMF), which included commitments to unwind Bitcoin-related initiatives and reduce public sector involvement with digital assets.

While the Salvadoran Congress amended its Bitcoin laws in January to comply with the deal, the government has continued its daily purchases of BTC. The country’s National Bitcoin Office’s tracker shows it currently holds 6,147.18 BTC, worth about $520.7 million at this writing. 

Related: Tether will relocate HQ to El Salvador after securing license

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As robotics has advanced, industry has steadily adopted more robots to automate away many kinds of grunt work. More than 540,000 new industrial robots were installed worldwide in 2023, taking the number of total industrial robots active to above 4 million, per IFR. Industrial robots typically excel at repetitive tasks, but they find it challenging […]
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Not even Pokémon is safe from AI benchmarking controversy. Last week, a post on X went viral, claiming that Google’s latest Gemini model surpassed Anthropic’s flagship Claude model in the original Pokémon video game trilogy. Reportedly, Gemini had reached Lavender Town in a developer’s Twitch stream; Claude was stuck at Mount Moon as of late […]
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Shared micromobility company Lime has reached an agreement to send batteries used in its scooters and e-bikes to Redwood Materials, which will extract and recycle critical minerals such as lithium, cobalt, nickel, and copper. The agreement announced Monday makes Redwood Materials the exclusive battery recycling partner for Lime’s shared scooters and e-bikes located in cities […]
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The manufacturing industry is at a crossroads: Geopolitical instability is fracturing supply chains from the Suez to Shenzhen, impacting the flow of materials. Businesses are battling rising costs and inflation, coupled with a shrinking labor force, with more than half a million unfilled manufacturing jobs in the U.S. alone. And climate change is further intensifying the pressure, with more frequent extreme weather events and tightening environmental regulations forcing companies to rethink how they operate. New solutions are imperative.

Meanwhile, advanced automation, powered by the convergence of emerging and established technologies, including industrial AI, digital twins, the internet of things (IoT), and advanced robotics, promises greater resilience, flexibility, sustainability, and efficiency for industry. Individual success stories have demonstrated the transformative power of these technologies, providing examples of AI-driven predictive maintenance reducing downtime by up to 50%. Digital twin simulations can significantly reduce time to market, and bring environment dividends, too: One survey found 77% of leaders expect digital twins to reduce carbon emissions by 15% on average.

Yet, broad adoption of this advanced automation has lagged. “That’s not necessarily or just a technology gap,” says John Hart, professor of mechanical engineering and director of the Center for Advanced Production Technologies at MIT. “It relates to workforce capabilities and financial commitments and risk required.” For small and medium enterprises, and those with brownfield sites—older facilities with legacy systems— the barriers to implementation are significant.

In recent years, governments have stepped in to accelerate industrial progress. Through a revival of industrial policies, governments are incentivizing high-tech manufacturing, re-localizing critical production processes, and reducing reliance on fragile global supply chains.

All these developments converge in a key moment for manufacturing. The external pressures on the industry—met with technological progress and these new political incentives—may finally enable the shift toward advanced automation.

Download the full report.

This content was produced by Insights, the custom content arm of MIT Technology Review. It was not written by MIT Technology Review’s editorial staff.

This content was researched, designed, and written entirely by human writers, editors, analysts, and illustrators. This includes the writing of surveys and collection of data for surveys. AI tools that may have been used were limited to secondary production processes that passed thorough human review.

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Tech buzzwords are clanging through the halls of Washington, DC. The Trump administration has promised to “leverage blockchain technology” to reorganize the US Agency for International Development, and Elon Musk’s DOGE has already unleashed an internal chatbot to automate agency tasks—with bigger plans on the horizon to take over for laid-off employees. The executive order that created DOGE in the first place claims the agency intends to “modernize Federal technology and software.” But jamming hyped-up tech into government workflows isn’t a formula for efficiency. Successful, safe civic tech requires a human-centered approach that understands and respects the needs of citizens. Unfortunately, this administration laid off all the federal workers with the know-how for that—seasoned design and technology professionals, many of whom left careers in the private sector to serve their government and compatriots.

What’s going on now is not unconventional swashbuckling—it’s wild incompetence. Musk may have run plenty of tech companies, but building technology for government is an entirely different beast. If this administration doesn’t change its approach soon, American citizens are going to suffer far more than they probably realize.

Many may wince remembering the rollout of Healthcare.gov under the Obama administration. Following passage of the Affordable Care Act, Healthcare.gov launched in October of 2013 to facilitate the anticipated wave of insurance signups. But enormous demand famously took down the website two hours after launch. On that first day, only six people were able to complete the registration process. In the wake of the mess, the administration formed the US Digital Service (USDS) and 18F, the digital services office of the General Services Administration. These agencies—the ones now dismantled at the hands of DOGE—pulled experienced technologists from industry to improve critical infrastructure across the federal government, including the Social Security Administration and Veterans Affairs. 

Over the last decade, USDS and 18F have worked to build safe, accessible, and secure infrastructure for the people of the United States. DirectFile, the free digital tax filing system that the IRS launched last year, emerged from years of careful research, design, and engineering and a thoughtful, multi-staged release. As a result, 90% of people who used DirectFile and responded to a survey said their experience was excellent or above average, and 86% reported that DirectFile increased their trust in the IRS. Recently, Sam Corcos, a DOGE engineer, told IRS employees he plans to kill the program. When 21 experienced technologists quit their jobs at USDS in January after their colleagues were let go, they weren’t objecting on political grounds. Rather, they preferred to quit rather than “compromise core government services” under DOGE, whose orders are incompatible with USDS’s original mission.

As DOGE bulldozes through technological systems, firewalls between government agencies are collapsing and the floodgates are open for data-sharing disasters that will affect everyone. For example, the decision to give Immigration and Customs Enforcement access to IRS data and to databases of unaccompanied minors creates immediate dangers for immigrants, regardless of their legal status. And it threatens everyone else, albeit perhaps less imminently, as every American’s Social Security number, tax returns, benefits, and health-care records are agglomerated into one massive, poorly secured data pool. 

That’s not just speculation. We’ve already seen how data breaches at companies like Equifax can expose the sensitive information of hundreds of millions of people. Now imagine those same risks with all your government data, managed by a small crew of DOGE workers without a hint of institutional knowledge between them. 

Making data sets speak to each other is one of the most difficult technological challenges out there. Anyone who has ever had to migrate from one CRM system to another knows how easy it is to lose data in the process. Centralization of data is on the administration’s agenda—and will more than likely involve the help of contracting tech companies. Giants like Palantir have built entire business models around integrating government data for surveillance, and they stand to profit enormously from DOGE’s dismantling of privacy protections. This is the playbook: Gut public infrastructure, pay private companies millions to rebuild it, and then grant those companies unprecedented access to our data. 

DOGE is also coming for COBOL, a programming language that the entire infrastructure of the Social Security Administration is built on. According to reporting by Wired, DOGE plans to rebuild that system from the ground up in mere months—even though the SSA itself estimated that a project like that would take five years. The difference in those timelines isn’t due to efficiency or ingenuity; it’s the audacity of naïveté and negligence. If something goes wrong, more than 65 million people in the US currently receiving Social Security benefits will feel it where it hurts. Any delay in a Social Security payment can mean the difference between paying rent and facing eviction, affording medication or food and going without. 

There are so many alarms to ring about the actions of this administration, but the damage to essential technical infrastructure may be one of the effects with the longest tails. Once these systems are gutted and these firewalls are down, it could take years or even decades to put the pieces back together from a technical standpoint. And since the administration has laid off the in-house experts who did the important and meticulous work of truly modernizing government technology, who will be around to clean up the mess?  

Last month, an 83-year-old pastor in hospice care summoned her strength to sue this administration over its gutting of the Consumer Financial Protection Bureau, and we can follow her example. Former federal tech workers have both the knowledge and the legal standing to challenge these reckless tech initiatives. And everyday Americans who rely on government services, which is all of us, have a stake in this fight. Support the lawyers challenging DOGE’s tech takeover, document and report any failures you encounter in government systems, and demand that your representatives hold hearings on what’s happening to our digital infrastructure. It may soon be too late.

Steven Renderos is the executive director of Media Justice.

Correction: Due to a CMS error, this article was originally published with an incorrect byline. Steven Renderos is the author.

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