Ethereum

2024

<p class="is-style-lead">Aleo, a blockchain platform that specializes in privacy-enhancing technology, reportedly encountered an issue that may have compromised its privacy protections.</p>
<p>On Feb. 25, it came to light that Aleo had mistakenly forwarded <a href="https://crypto.news/learn/what-is-kyc-in-crypto/" target="_blank" data-type="link" data-id="https://crypto.news/learn/what-is-kyc-in-crypto/" rel="noopener noreferrer nofollow">know your customer</a> (KYC) documents containing a user’s personal information to an incorrect email address.</p>
<p>The slip-up was reported by Emir Soytürk, an Ethereum Foundation developer and frequent contributor to the Ethereum Foundation’s DevConnect workshops, under the handle @0xemirsoyturk.</p>
<p>In messages shared by another X user, @inversebrah, Soytürk can be seen informing the Aleo team that they had emailed him someone else’s KYC documents, including selfies and ID card photos.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">todays snapshot <a href="https://t.co/m2bZqFOOuZ" target="_blank" rel="noopener noreferrer nofollow">https://t.co/m2bZqFOOuZ</a> <a href="https://t.co/PaEN3XkBzX" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/PaEN3XkBzX</a></p>— smolting (wassie, verse) (@inversebrah) <a href="https://twitter.com/inversebrah/status/1761646440097726851?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 25, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Another crypto analyst, @Selim_jpeg from Alphaday, also received KYC documents intended for someone else.</p>
<p>You might also like: <a href="https://crypto.news/blockchain-researcher-recovers-177k-stolen-nfts/" rel="noopener noreferrer nofollow"> Blockchain researcher recovers stolen funds from NFT heist </a></p>
<p>It is unclear whether Aleo responded to the users’ concerns raised.</p>
<p>These events have cast a spotlight on the network’s approach to privacy, especially considering Aleo’s stated mission of offering a discreet transactional environment via its <a href="https://crypto.news/zero-knowledge-proof-investments-surge-as-practical-use-cases-emerge/" target="_blank" rel="noopener noreferrer nofollow">zero-knowledge-proof</a> system.</p>
<p>Fundamentally, such technology enables transactions to be conducted privately — a core selling point for users seeking discretion. Ironically, the breach occurred in the lead-up to Aleo’s mainnet <a href="https://www.aleo.org/press/" target="_blank" rel="noopener noreferrer nofollow">launch</a>, which was touted to significantly bolster transactional privacy in the crypto ecosystem.</p>
<p>The incident has stirred the crypto community, with many pondering the <a href="https://crypto.news/privacy-coins-face-potential-extinction-but-will-they-survive-the-wrath-of-financial-regulators/" target="_blank" rel="noopener noreferrer nofollow">implications</a> for privacy-based blockchain projects. Some observers, like trader Poordart, pointed out the <a href="https://twitter.com/poordart/status/1761648527355384179" target="_blank" rel="noopener noreferrer nofollow">irony</a> of the situation.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Can i ask why does a privacy first blockchain have KYC?</p>— poordart (@poordart) <a href="https://twitter.com/poordart/status/1761648527355384179?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 25, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Aleo’s story started with an academic paper in 2018 from the co-founders of another privacy-first cryptocurrency, <a href="https://crypto.news/price/zcash/" target="_blank" rel="noopener noreferrer nofollow">Zcash</a>, looking to shift of private transactions to smart contracts.&nbsp;</p>
<p>However, the alleged breach starkly contrasts with the envisioned privacy safeguards, exposing the frailties in third-party data handling and raising questions about the viability of privacy coins in an evolving regulatory landscape.</p>
<p>Read more: <a href="https://crypto.news/blast-network-layer-2-project-prey-500-eth-rug-pull/" rel="noopener noreferrer nofollow"> Blast network’s layer 2 project falls prey to 500 ETH rug pull </a></p>

Aleo blockchain scrutinized after know-your-customer mishap

crypto.news

Other articles published on Feb 25, 2024

Here’s What Rich Dad Poor Dad’s Author Robert Kiyosaki Would Do “If Bitcoin Crashes”

Analyst Speculates Polygon (MATIC) Price Surge: Up 90%?

U.S. economy unfazed by China’s struggles

This is Why Ve-chain Can Be The Next Big Thing In Cryptocurrency

RNDR; Nvidia Partnership: New ATH Coming?

StarkNet (STRK) TVL Surges to $1.32 Billion After Token Launch

Join our free newsletter for daily crypto updates!