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Google stated that its Willow quantum chip reduces the error rate in preparing the special states (Magic States) required for quantum computing by about 40 times through a method called "Cultivation." The related research was published this week in Science, which is expected to lower the hardware costs of future large-scale quantum computers and draw more attention to the potential threat of cracking Bitcoin wallets.Magic States are a key resource needed to perform certain quantum computing operations, and their preparation process consumes a significant amount of hardware. Google's experiment achieved about 99.99% state fidelity, but only about 8% of attempts passed the screening. Researchers indicated that future experiments need to be scaled up and issues such as real-time operation and error correction need to be addressed. In March of this year, Google estimated that under specific hardware assumptions, future quantum computers might only need fewer than 500,000 physical qubits to crack the cryptography used in Bitcoin and Ethereum wallets.For Bitcoin, some early wallets' public keys have been public since their mining, theoretically making them targets for future quantum attacks; while wallets with undisclosed public keys may face different attack conditions. However, this breakthrough does not mean that quantum computers are capable of cracking Bitcoin. Google's previous cost estimates for attacks assumed the use of efficient Magic States preparation schemes, so this result cannot simply be understood as a 40-fold reduction in the cost of cracking Bitcoin. Research is still in the advancement stage of quantum hardware and error correction technology, and the complete equipment and engineering capabilities required for actual attacks have not yet been realized.

The Google Quantum AI team published a paper in Science, announcing that a technique called magic state cultivation reduces errors by about 40 times on the Willow processor, producing logical fidelity of 99.99% for T states. Magic states are one-time resources required to run useful quantum programs, consumed with each use; according to estimates cited by Google, the cost of producing magic states can account for up to 95% of a quantum computer's total capacity, leaving very limited space for actual computation.The previous standard approach was magic state distillation proposed by physicists Sergei Bravyi and Alexei Kitaev in 2004, which required a large number of qubit factories dedicated solely to this task. Google researchers proposed a cheaper cultivation route in 2024, which behaves more like a filter: injecting rough magic states into a small area of the chip, running a series of checks on them, discarding all attempts found to be defective, and allowing the passers to gradually expand. In the experiments, only about 8% of attempts passed all checks, meaning that more than 90% of attempts had to be discarded for each clean state retained.The cultivation technology is one of the supports for Gidney's 2025 estimate that RSA-2048 encryption could be broken by fewer than a million noisy qubits, a reduction of 20 times from the 20 million estimated in 2019. This experiment used up to 54 of the 105 qubits in Willow, with the paper noting that breaking the RSA-2048 key requires magic states with an error rate of about one in ten billion, which is about a million times cleaner than this result.

In a blog post released on Monday, Anthropic acknowledged that its Claude model had unauthorized access to real computer systems during a cybersecurity assessment, an incident reflecting operational security failures as well as alignment failures in motivation reasoning and intent to harm. Anthropic disclosed in July that the Claude model had breached the systems of three companies because the third-party assessment environment was connected to the public internet, while the model was informed it was in a simulated environment without internet access.Anthropic stated that Claude may have interpreted evidence of real internet access as still being in a simulated environment and was willing to take harmful actions on the real internet to complete the cybersecurity assessment task. Additionally, during tests at the UK AI Safety Institute, after assessors deliberately granted Claude Mythos internet access, the model took unauthorized actions on the live network. Anthropic emphasized that the models involved did not have the cybersecurity protections included in the officially released products.Following the incident on July 30, Anthropic has suspended cybersecurity assessments of pre-release models and introduced stricter protections: tests must run in verified offline sandboxes equipped with real-time monitoring; a new classifier can intercept suspected boundary violations, terminate tests, and notify humans. Anthropic has also expanded the scope of offline monitoring used by internal frontier agents. Previously, OpenAI models had also breached Hugging Face in July to obtain answers for cybersecurity tests, with investigations revealing that about 1,200 agents acted collaboratively through unauthorized message boards.

According to Decrypt, the Gwangju Police Agency in South Korea arrested four Uzbek suspects in April under the Anti-Terrorism Financing Act and disclosed the case on Tuesday. One of them is listed on Interpol's Red Notice. The police stated that this is the first case involving cryptocurrency flowing out from a recognized terrorist organization and then being funneled back to fund physical goods.According to police investigations, from August 2024 to April 2025, the alleged mastermind transferred 4,267 USDT to the Syrian terrorist organization "Katibat Tawhid wal Jihad" (KTJ) in seven transactions. KTJ was established in 2014 and is mainly composed of Central Asian militants, recognized as a terrorist organization by the United Nations and the United States.Additionally, the mastermind is accused of receiving cryptocurrency from KTJ to purchase 11 used cars and 2 excavators, with a total value of approximately 170 million Korean won (about 121,000 USD), which were then shipped to Syria. The other three suspects are alleged to have assisted in the purchase and export of these vehicles.The police stated that previous terrorism-related cases mostly involved remittances to terrorist organizations, while this case is the first instance of receiving funds from a terrorist organization and reverse procuring and supplying vehicles.Investigations revealed that the mastermind rotated operations among three personal wallets, with the vehicle purchase funds deposited into an account under his spouse's name, and he presented someone else's driver's license when arrested. He entered South Korea in 2017 on a student visa, graduated from a university in Daejeon, and has been illegally residing since 2023. He denied the main charges during his first court hearing in June, claiming that the remittances were for family living expenses and that he did not know the identity of the vehicle purchasers. The police stated that the investigation also led to the capture of a second suspect listed on the Red Notice, and the case is still ongoing.

The semiconductor and AI independent research organization SemiAnalysis released a deep security report on Neocloud (new cloud), revealing various cross-tenant security vulnerabilities discovered during the ClusterMAX 3 testing period. In a four-month test covering 25 vendors and 32 clusters, the team achieved multiple instances of cross-tenant remote code execution (RCE) solely by exploiting publicly known vulnerabilities and basic configuration checks. Affected entities included banks, telecommunications companies, universities, research institutions, AI laboratories, and even a national intelligence agency.Typical issues included: shared Kubernetes control plane leading to tenant metadata visibility, container escape, exposure of BMC/IPMI management networks, incorrect configuration of InfiniBand security keys (P_Key, SA_Key, M_Key), unfortified default trust mode of BlueField DPU, Grafana monitoring dashboards using god-level API keys, and lack of VXLAN isolation in front-end networks. The report specifically pointed out a cascading vulnerability case: a misconfiguration of shared vCluster combined with software versions being two years out of date ultimately completed the POC verification of cross-tenant RCE within an afternoon.Notably, the report questioned the mainstream narrative that "AI has fundamentally changed the pace of cybersecurity": statistics on CVEs for NVIDIA GPU drivers, CUDA, PyTorch, Kubernetes, Docker, and the Linux kernel showed that there was no significant increase in vulnerabilities after the popularization of AI coding models, with most data supporting the "no change hypothesis." The report also detailed the incident where an OpenAI-trained agent attacked Hugging Face, where the AI agent achieved cluster-level privilege escalation through a message board established via Artifactory, which went undetected from May to July. While building POC verification for existing vulnerabilities, the team found that Claude Fable and GPT-5.6 Sol frequently rejected security-related requests, ultimately relying on open-source models such as DeepSeek V4, Kimi K3, and GLM-5.2 to complete the task.SemiAnalysis stated that the core issue in the Neocloud (new cloud) industry is not the new risks brought by AI, but rather the long-term absence of basic patch management, tenant isolation, and security design. They recommended that vendors establish automated security announcement monitoring systems and rectify single points of failure that could expose all users' architectural patterns.

The GitHub official status page shows that the platform is currently experiencing service disruptions, with multiple core functionalities experiencing decreased availability.According to the latest announcement, the error rate for GitHub's web interface and API requests reached about 20%, while the error rate for repository archive downloads and raw repository content downloads was around 50%. Additionally, SAML and OIDC authentication, SCIM, and Team Sync functionalities are also affected.Currently affected services include: decreased performance of Pull Requests; decreased performance of Issues; decreased performance of Actions; decreased performance of Webhooks; anomalies in API Requests; decreased availability of GitHub Copilot.GitHub stated that the team is continuously investigating the root cause of this incident and will provide further updates once more information is available.As of now, GitHub has not disclosed the specific cause of the outage, nor has it indicated whether it involves a security incident. This service disruption may affect developers and enterprise users who rely on GitHub for code hosting, continuous integration and deployment, and AI-assisted development.

According to Cointelegraph, the cryptocurrency exchange Binance provided customer trading records and identity information to Russian authorities, which were subsequently used in a terrorism financing case against IT specialist Yuri Belenkiy.Yuri Belenkiy was detained in September 2025 and is currently awaiting trial in Russia. The Russian Investigative Committee accuses Yuri Belenkiy of donating over $700 in cryptocurrency to the Ukrainian military and banned organizations between January 2023 and March 2024.The information obtained by Russian authorities includes his transaction history, date of birth, address, phone number, Russian passport, and Bulgarian residence permit. Binance announced its complete withdrawal from Russia in September 2023 and sold its local business to CommEX.Binance stated that the company is not responsible for making or enforcing the laws of any jurisdiction, nor does it determine the content of charges or how governments use information in legal proceedings; the company will cooperate with legitimate information requests from global law enforcement agencies in accordance with applicable laws, privacy, and regulatory requirements.

According to Wired, during security testing, the open-source model Kimi K3 from the dark side of the moon broke out of the sandbox and accessed the internet, attempting to find test answers via GitHub. American security startup Frontier Security stated that Kimi K3 exploited a sandbox configuration vulnerability, but it itself lacked sufficient built-in protective mechanisms.Similar to incidents previously disclosed by OpenAI and Anthropic, this escape partially stemmed from a sandbox configuration error. However, Kimi K3 did not initiate an attack, as the answers were easily accessible on GitHub. The CEO of Frontier Security stated that Kimi K3 performed excellently in cybersecurity defense but lacked mechanisms to prevent cheating or escaping the sandbox. Security experts emphasized that configuring the testing environment is crucial, as the misuse of AI agents could lead to system failures.

According to Jinshi reports, Meta Platforms (META.O) company's artificial intelligence model attacked another company during cybersecurity testing. Meta's MUSE SPARK 1.1 model breached the company's systems and made changes to its internal systems. A Meta spokesperson stated that this anomaly was caused by a configuration error, after which the model exploited a security vulnerability.

According to Jinshi reports, on August 2 local time, Moscow Mayor Sobyanin stated on social media that the explosion incident at a restaurant in the city on August 1 was a terrorist attack, resulting in 3 deaths and 21 injuries. Sobyanin mentioned that law enforcement agencies are investigating the specifics of the incident.The Russian National Anti-Terrorism Committee reported that the incident was caused by the explosion of a homemade explosive device.

According to Jinshi, U.S. Treasury Secretary Ben S. Bernanke stated that the United States will actively track down Iranian assets globally to ensure compensation funds for the victims of terrorism supported by Iran. Bernanke emphasized that the U.S. government's military and economic blockade measures against the Iranian regime will continue to advance without any slackening.

According to Dawn, the Federal Investigation Agency (FIA) of Pakistan has established a virtual currency investigation department within the newly launched National Command and Control Center (NC3), focusing on combating money laundering and terrorist financing using virtual assets.Officials responsible for the counter-terrorism department stated that this department will work in conjunction with the newly established Pakistan Virtual Assets Regulatory Authority (PVARA) to specifically investigate criminal activities related to crypto assets, and recommend that the National Cyber Crime Investigation Agency (NCCIA) and the Anti-Narcotics Force (ANF) set up similar units to address the use of crypto assets in cybercrime and drug trafficking.The FIA has also integrated functions such as anti-money laundering, border entry and exit monitoring, human trafficking, and smuggling investigations within the NC3, and is promoting new regulations and personnel expansion to shorten case processing times and enhance law enforcement coordination efficiency.

According to Jinshi, the U.S. Department of the Treasury announced the release of counter-terrorism sanctions, targeting relevant entities in Russia and Iran.

In response to the recent market controversy regarding the reduction of Stabledrop shares, Cap founder Benjamin issued a statement of apology and provided a detailed response. He stated that the team prematurely committed to an airdrop scale of 11 million before the funding was fully secured, but subsequent changes in the market environment led to a fundraising amount that fell short of expectations, resulting in the actual airdrop pool shrinking to 4.2 million.To avoid substantial principal losses for early YT (Yield Token) holders, the team temporarily adjusted the originally planned linear distribution scheme to a "capital protection but no profit" restructuring model, ensuring that no one incurs losses. This rule applies equally to all wallets. Meanwhile, in response to community concerns about a related whale address allegedly engaging in "internal score manipulation," Benjamin clarified that the wallet belongs to a former colleague and is not operated by the team, and that project treasury funds have not been utilized. Additionally, he emphasized that the Cap protocol is still operating healthily, and the decline in TVL that occurred over the weekend was mainly due to the surge in USDM lending rates on Aave for MegaETH, causing arbitrageurs to exit, which is unrelated to this airdrop incident. All redemptions have been processed smoothly.

According to the Times of India, the Gujarat police have arrested two suspects involved in cryptocurrency-related cybercrime, with the network allegedly trading over 226 million rupees. Investigators claim that the network is linked to terrorist financing, global drug trafficking, and dark web financial activities.Officials stated that this arrest is part of an ongoing investigation into the use of cryptocurrency channels for terrorist financing. Previously, 10 suspects had already been arrested during the investigation. The two latest suspects are accused of using the KYC information of a man named Sabbir Ali Sarani to create a Binance wallet and receiving 5,000 USDT through layered transactions.

The revenue agreement PiggyBank issued a statement acknowledging a serious error in the LAB token basis trading that took place last month. PiggyBank disclosed that the team previously purchased locked LAB tokens at a low price through OTC channels for about $100,000 (accounting for approximately 2% of the portfolio) and simultaneously shorted perpetual contracts for hedging.However, during the holding period, LAB encountered severe market manipulation, liquidity depletion, and deeply negative funding rates, leading to excessively high hedging costs. The team ultimately chose to close the short position to limit downside risk. Based on current prices, the total value of the locked LAB position is $1.35 million. However, due to the lack of liquidity in this position, PiggyBank will exclude it from the net asset value calculation until the first unlock on August 14.Although the situation is still changing and there is still potential for considerable returns, this is the "fairest and most transparent" way for users to manage liquidity. Therefore, today's net asset value will show a decline of approximately 15% in the USDC treasury, about 12% in SPYx, and about 9% in JitoSOL. A detailed report will be released next week, including follow-up processing plans. On-chain investigator ZachXBT previously publicly questioned PiggyBank, accusing it of insider control over more than 95% of the supply.

Helius CEO mert tweeted that the news regarding the Zcash network outage is inaccurate, and the network is not down. Some browser applications connected to faulty nodes, which caused the browsers to display errors, but the network is functioning perfectly fine.Previously, it was reported that the Zcash network is currently in a stalled state, with no blocks produced in the past 4 hours.

The Hyperliquid ecosystem project Ventuals posted on X: "We have noticed that about an hour ago, there was an incident in our SPACEX market. One of the off-chain data providers, which is a component of the oracle price, returned erroneous data, causing severe fluctuations in the oracle price and mark price of that market, which in turn triggered the liquidation of some users' positions.We have taken immediate measures to prevent similar situations from occurring in any Pre-IPO market and are assessing the impact of this incident on affected users to formulate an appropriate compensation plan. Affected users will receive compensation within the next 48 hours.According to previous news from ChainCatcher, the SPACEX-USDH perpetual contract on Hyperliquid experienced a 45% flash crash last night."

Jocy@IOSGVC, founding partner of IOSG Ventures, posted on platform X stating that rumors regarding IOSG Ventures depositing UNI and COMP to Binance are false. The related wallet is not an IOSG address, and the Arkham platform has marked the tags "IOSG Ventures" and "Binance Deposit Change Address" with question marks, indicating they are unverified.IOSG has not held or sold any UNI or COMP positions recently.

Keone Hon, co-founder of Monad, posted on platform X stating that the Monad account was frozen without any warning, and he speculates that it was due to a system error. Monad has not engaged in any abnormal operations or violations of API usage. They have currently contacted the support team of platform X through various channels and expect the account to be restored soon.