Proposal Could Put Bitcoin Holdings at Risk of Quantum-Related Freezes

Recent Developments in the Crypto Space A Bitcoin proposal, known as BIP-361, aims to protect the network from potential quantum computer attacks by introducing quantum-resistant addresses. If implemented, this could lead to the freezing of coins not migrated to these new addresses. The proposal, also referred to as "Post Quantum Migration and Legacy Signature Sunset," has been updated in Bitcoin's official proposal repository. This comes after a Google report warned that a sufficiently powerful quantum machine could compromise the Bitcoin blockchain with less firepower than initially estimated, prompting some to speculate about a 2029 deadline for bitcoin's quantum readiness. Meanwhile, research highlights the vulnerabilities in AI agents handling crypto payments. These agents, which can perform tasks such as booking flights and executing trades, rely on "LLM routers" that can serve as attack vectors for malicious actors. The routers have full access to sensitive data passing through them, leaving users vulnerable to attacks as they assume they are interacting directly with reputable AI models. In another development, CoW Swap, a decentralized trading interface, temporarily halted its services due to a domain name system (DNS) hijacking incident. The attack, which occurred at 14:54 UTC, affected the platform's website and underscored the ongoing security risks at the front-end layer of DeFi platforms. While the protocol's underlying infrastructure was not directly compromised, it was paused as a precaution. Furthermore, the XRP Ledger has added native support for zero-knowledge (ZK) proofs through its integration with Boundless, a ZK proving network. This move is designed to enable financial institutions to transact privately on the public blockchain while meeting regulatory requirements. Zero-knowledge proofs allow one party to prove a statement is true without revealing the underlying data, addressing a significant barrier to institutional adoption on public blockchains.