Inherent in the world of cryptocurrency systems and their security models is the notion that private keys-and thus assets-are controlled by individuals or individual entities. We present Liquefaction, a wallet platform that demon-strates the dangerous fragility of this foundational assumption by systemically breaking it. Liquefaction uses trusted execution environments (TEEs) to encumber private keys, i.e., attach rich, multi-user policies to their use. In this way, it enables the cryptocurrency credentials and assets of a single end-user address to be freely rented, shared, or pooled. It accomplishes these things privately, with no direct on-chain traces. Liquefaction demonstrates the sweeping consequences of TEE-based key encumbrance for the cryptocurrency land-scape. Liquefaction can undermine the security and economic models of many applications and resources, such as locked tokens, DAO voting, airdrops, loyalty points, soulbound tokens, and quadratic voting. It can do so with no on-chain and minimal off-chain visibility. Conversely, we also discuss beneficial applications of Liquefaction, such as privacy-preserving, cost-efficient DAOs and a countermeasure to dusting attacks. Importantly, we describe an existing TEE-based tool that applications can use as a countermeasure to Liquefaction. Our work prompts a wholesale rethinking of existing models and enforcement of key and asset ownership in the cryptocurrency ecosystem.

As the outputs of generative AI (GenAl) techniques improve in quality, it becomes increasingly challenging to distinguish them from human-created content. Watermarking schemes are a promising approach to address the problem of distinguishing between AI and human-generated content. These schemes embed hidden signals within AI -generated content to enable reliable detection. While watermarking is not a silver bullet for addressing all risks associated with GenAl, it can play a crucial role in enhancing AI safety and trustworthiness by combating misinformation and deception. This paper presents a comprehensive overview of water-marking techniques for GenAl, beginning with the need for watermarking from historical and regulatory perspectives. We formalize the definitions and desired properties of watermarking schemes and examine the key objectives and threat models for existing approaches. Practical evaluation strategies are also explored, providing insights into the development of robust watermarking techniques capable of resisting various attacks. Additionally, we review recent representative works, highlight open challenges, and discuss potential directions for this emerging field. By offering a thorough understanding of watermarking in GenAl, this work aims to guide researchers in advancing watermarking methods and applications, and support policymakers in addressing the broader implications of GenAl.

We explore an emerging threat model for end-to-end (E2E) encrypted applications: an adversary sends chosen messages to a target client, thereby "injecting" adversarial content into the application state. Such state is subsequently encrypted and synchronized to an adversarially-visible storage. By observing the lengths of the resulting cloud-stored cipher-texts, the attacker backs out confidential information.We investigate this injection threat model in the context of state-of-the-art encrypted messaging applications that support E2E encrypted backups. We show proof-of-concept attacks that can recover information about E2E encrypted messages or attachments sent via WhatsApp, assuming the ability to compromise the target user’s Google or Apple account (which gives access to encrypted backups). We also show weaknesses in Signal’s encrypted backup design that would allow injection attacks to infer metadata including a target user’s number of contacts and conversations, should the adversary somehow obtain access to the user’s encrypted Signal backup.While we do not believe our results should be of immediate concern for users of these messaging applications, our results do suggest that more work is needed to build tools that enjoy strong E2E security guarantees.