How the crypto industry is coping with AB-threats

Ani Kharatian

Financial crime has entered a new stage of its evolution, where neural networks and automated algorithms have become the main tools of criminals. According to an analysis by Binance Research, global illicit financial activity has increased by $1.3 trillion since 2023, reaching a shocking $4.4 trillion by 2025.


This growth is largely due to the fact that criminal networks have begun to actively use the capabilities of artificial intelligence to scale their fraudulent schemes. At the epicenter of this technological storm is the cryptocurrency industry, which has been forced to build unprecedented levels of protection to protect users and their capital.


The Automated Hacking Economy
Today, the balance of power on the cyberfront has temporarily shifted to the side of the attackers. Data from Binance Research shows that artificial intelligence is currently twice as effective at finding vulnerabilities as it is at detecting and protecting against them. The fracking economy has become dangerously affordable. The average cost of running an exploit with AB is only $1.22 per smart contract, and this number is continuously decreasing by about 22% every two months. These cost reductions completely break down the barriers to mass automated network scanning.


A clear example of this imbalance is the testing of the GPT-5.3-Codex model, which, based on EVMbench, shows 72.2% success in “exploitation” mode, while its effectiveness in “defense” mode is twice as low. Although global losses from hacking attacks in the DeFi sector decreased from $3.6 billion in 2020 to $1 billion in 2025, a sharp increase was recorded in April 2026 to $621 million. About 66% of those attacks were not related to code vulnerabilities, but to hacking access control systems, dominated by social engineering and DNS attacks.


Deepfaking and the social engineering industry
Along with technical hacks, the wave of scams targeting users is also growing. The use of AB made such schemes 4.5 times more profitable, and the number of transactions generated in fraudulent networks increased 9 times. Impersonation tactics will see an incredible 1,400% increase in 2025.


The crypto sector is bearing the brunt of these new technologies. 88% of frauds using dipfakes on a global scale fall into this sector. In North America alone, in the first half of 2025, losses from fraud created by neural networks exceeded 410 million dollars, and according to analysts, by 2027, the total volume of such frauds in the financial sector may reach 40 billion dollars annually.


Asymmetric Response and Scalable Investments in Security
Recognizing the scale of the threat, the global financial sector has moved to aggressive expansion of financial infrastructure. Investments in artificial intelligence technologies in financial services reached $58 billion in 2025 and are confidently moving towards the $97 billion mark in 2027. About 75% of financial institutions plan to increase their financial crime detection budgets.


Cryptocurrency exchanges are not inferior to traditional banks when it comes to implementing security systems. For example, the Binance platform has implemented more than 24 compliance initiatives, and anti-fraud systems work through more than 100 AB models. The use of the Strategy Factory tool allowed to reduce the risk of exposure to illegal funds by 96%. Thanks to the preventive modeling of phishing attacks, the share of successful phishing has decreased from 3.2% to 0.4%. As a result of these efforts, from 2025 to the first quarter of 2026, the platform’s security system blocked $10.53 billion worth of fraudulent transactions, protecting the funds of millions of users.


The Role of Stablecoins in Building Proactive Defenses
Stablecoin issuers play a key role in the new security architecture. Although these assets account for 84% of all illegal on-chain volume, they have the important advantage of being able to freeze funds at the protocol level.


The approaches of the market leaders are significantly different. The company Tether (USDT) takes a proactive position and actively cooperates with law enforcement agencies, which allowed to freeze more than 4.4 billion dollars in criminal assets until April 2026. In comparison, the USDC (Circle) issuer generally only responds to court orders and sanctions. The effectiveness of the proactive approach is also confirmed by the work of the T3 Financial Crime Unit, a joint initiative of Tether, TRON and TRM Labs, which blocked more than 300 million dollars worldwide in its first year of operation. Integrating major exchanges like Binance with such initiatives creates a multi-layered system that combines threat detection and quick asset freezing.


Traditional finance integration and identification challenges
With the convergence of TradFi and CeFi systems, exchanges are more often faced with classic card fraud. Thanks to the introduction of AB models, the use of which has increased from 41% to 57% on Binance, the card fraud rate on the platform is 60-70% lower than the industry average.


One of the most complicated directions remains the KYC (Know Your Customer) process. About 80% of attacks are related to KYC bypass attempts, where criminals have moved from physical masks to sophisticated deepfake videos and synthetic faces. Face Attack and Liveness Detection models are used against them, which not only prevent attacks, but also increase the efficiency of the verification process by 100 times. At the same time, the balance between technology and human approach is maintained. In 2025, Binance professionals made more than 36,000 voice calls to potential victims, as live communication is more effective in reducing panic caused by social engineering.


The architecture of secure application of AB agents
For the convenience of users, the implementation of AB requires strict isolation of risks. Binance Ai Pro tool shows the right security model: The funds entrusted to the AB agent are strictly separated from the main account, he is provided with limited trading rights (no withdrawal possibility), and the user can fine-tune access, for example, prohibiting margin trading.


Such precautions are vital. Security studies show that about 12% of AB toolkits available in open libraries contain malicious code. Therefore, any module must undergo strict testing and moderation before being used in commercial systems.
The current situation in the crypto market is reminiscent of the early stages of the development of the Internet. The race between hackers and security systems will not stop, but the combined efforts of the industry, law enforcement and multi-layered AB defenses show that even the most sophisticated cyber attacks can be effectively controlled and neutralized.

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From Justice Deficit to Emigration. how to overcome the crisis?

Emil Lazarian

When thousands of families live in conditions of serious social difficulties, and at the same time the “privileged” circle of the government receives millions of bonuses from the state budget, this is a serious crisis of state thinking.

As a former government official myself, I am convinced that such a policy is not only unfair, but also dangerous for the future of the state.

When most of the society is convinced that the government does not act for the public interest, but for the sake of serving “their own”, then the stability of the state is threatened. When a citizen faces price increases, low wages, social insecurity and unfair opportunities every day, but at the same time sees how high-ranking officials receive millions of drams in bonuses, deep disappointment and alienation from the state is formed.
This is a matter of national security.

Emigration begins not only with economic difficulties, but also with a sense of injustice. When a civil servant becomes convinced that political loyalty is not valued in this country, but work and professional ability, he loses confidence in his own future.

About rewards
Today, the authorities speak of “everyone’s Armenia”, but the reality is completely different. Millions in bonuses go to a narrow circle of politically “trusted” officials, while thousands of public sector professionals—teachers, doctors, community and civil servants—continue to survive on modest salaries.

This is a gross violation of social justice.

As Gagik Tsarukyan rightly pointed out, the problem is not the existence of bonuses. The problem is the unfair, closed and politicized system of their distribution. In the same system, a few high-ranking officials cannot receive millions of drams, and tens of thousands of people receive small bonuses or nothing at all.

Our political team is convinced that the state cannot be divided into “privileged” and “the rest”.
If the “Prosperous Armenia” party comes to power, it guarantees that state and civil servants will not be subjected to political pressure, will not be deprived of their jobs for their views, and will not be forced to serve any political agenda.

The remuneration system should operate exclusively according to clear standards established by law, based on the principles of social justice, worthy encouragement of quality work and professional advancement.

It is necessary to separate the state from the government. The state should evaluate the work of its employee, not political loyalty. The state budget should serve the public, not the privileges of narrow groups. The state must create healthy working relationships and a healthy atmosphere, free from fear and political coercion.

Such a country is stable, they want to stay and create in such a country, such a country has a future.


Hrachya Rostomyan, General Secretary of the National Olympic Committee




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France’s mention of destruction of churches in Nagorno-Karabakh triggers cond

Parkev Tvankchian
OC Media
May 7 2026
by Nate Ostiller

A brief mention of Nagorno-Karabakh and the destruction of Armenian churches in the region by French Foreign Minister Jean-Noël Barrot has triggered outrage in Azerbaijan. Barrot’s comments, which referred to ‘consistent reports on the degradation or disappearance of around forty Christian heritage sites since 2021’ in the area, were deemed ‘anti-Azerbaijan allegations’ by Azerbaijani Foreign Ministry spokesperson Aykhan Hajizada on Thursday.

During a session in the French Senate on Wednesday, Barrot was asked by French MP Étienne Blanc about Nagorno-Karabakh, particularly concerning reports that ‘that Azerbaijan is destroying an ancestral cultural and religious heritage there’, as well as the fate of the 19 Nagorno-Karabakh Armenian prisoners held in Azerbaijan.

‘What is France’s diplomatic stance?’, Blanc asked Barrot.

In response, Barrot said, ‘We are very committed to defending the interests of Christians in the East whenever their freedom of worship or their heritage is threatened’.

In addition to the mentions of the ‘forty Christian heritage sites’ that have been damaged or destroyed, Barrot said he supported the efforts of NGOs aimed at doing census work on the status of Christian sites in the area.

Moving on, Barrot echoed the sentiment recently shared by French President Emmanuel Macron in Yerevan, saying, ‘Eight years ago, Armenia was under the influence of Russia. Thanks to [Prime Minister] Nikol Pachinyan’s peaceful revolution, corruption has been curbed, new alliances have been forged, and a step toward Europe has been taken’.

Azerbaijan took particular issue with the first part of Barrot’s response, as well as the usage of the term ‘Nagorno-Karabakh’ in lieu of ‘Karabakh’.

‘At a time when conditions for lasting peace have been created in the region following the just war waged by Azerbaijan on its sovereign territories within the framework of the norms and principles of international law, we strongly condemn such provocative statements by the French side, which question Azerbaijan’s sovereignty over its territories and cast doubt on the protection of cultural and religious heritage’, Hajizada said.

‘It is a clear example of a double standards that the French Minister, who ignores the destruction of hundreds of mosques and other cultural heritage sites in the Azerbaijan’s territories during Armenia’s occupation, comments on the demolition of certain structures dating back to the occupation period and makes inappropriate references to the proceedings before the International Court of Justice’.

Hajizada further claimed that ‘historical and religious monuments located in the sovereign territories of Azerbaijan constitute our national and cultural heritage and are protected regardless of their origin or religious or secular affiliation’.

In April, satellite imagery suggested that Azerbaijan had destroyed an Armenian church in the area.

Three other recent resolutions with similar language by the Dutch and Belgian parliaments, as well as the EU Parliament, have also caused outrage in Azerbaijan. The latter led to Azerbaijan severing ties with the EU Parliament.

For ease of reading, we choose not to use qualifiers such as ‘de facto’, ‘unrecognised’, or ‘partially recognised’ when discussing institutions or political positions within Abkhazia, Nagorno-Karabakh, and South Ossetia. This does not imply a position on their status.

https://oc-media.org/frances-mention-of-destruction-of-churches-in-nagorno-karabakh-triggers-condemnation-from-baku/

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The air temperature will rise

Khondkarian Raffi

In Yerevan, in the afternoon of May 7, in the evenings of May 8, 10, 11 and 12, short-lasting rain and thunderstorms are possible in separate parts of the city, during the thunderstorms, wind intensification is expected at a speed of 16-19 m/s. Weather without precipitation is expected on May 9.


On the territory of the Republic, on the afternoon of May 7, 8 and 12 from time to time, in the daytime hours of 9-11, short-lasting rain and thunder are expected in some regions, hail is possible in some places. On the night and morning hours of May 8, precipitation will be in the form of wet snow and sleet rain in some mountainous regions. Rainless weather is expected on the night of May 9, 10 and 11.


The wind is south-westerly at 2-5 m/s, during a thunderstorm, wind intensification is also expected at a speed of 16-20 m/s.


The air temperature will gradually rise by 5-7 degrees on May 9-12.

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In the report about Aliyev-Kallas meeting, Armenia’s capital was referred to a

Garo Vardanian
MediaMax, Armenia
May 6 2026

In the report about Aliyev-Kallas meeting, Armenia’s capital was referred to as “Irevan”

Yerevan /Mediamax/. In official reports on the meeting between Azerbaijani President Ilham Aliyev and the High Representative of the European Union for Foreign Affairs and Security Policy, Kaja Kallas, Armenia’s capital, Yerevan, was referred to as “Irevan.”

The Azerbaijani state news agency Azertac reporting on the meeting held in Baku on May 5, stated in particular:

“The peace process between Azerbaijan and Armenia was discussed, and the steps our country is taking to advance the peace agenda were emphasized. It was noted that trade and economic ties between Azerbaijan and Armenia have already been established. In this context, it was emphasized that our country has unilaterally lifted restrictions on transit cargo bound for Armenia. The participation of the President of Azerbaijan via videoconference in the 8th European Political Community Summit, held in Irevan, was hailed as a historic event.”

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Armenian activists accuse EU of “hypocrisy” over biased human rights stance f

Nahapetian Samvel
Brussels Signal
May 6 2026

“It is hypocritical for the EU to support democracy, human rights, and a dignified life for Ukrainians in their own country, but not for Armenians. This is why we are very frustrated.”

Luca Steinmann

Armenian human rights activists accuse the EU of hypocrisy and double standards, saying it raises human rights concerns against adversaries like Russia while overlooking similar issues in politically aligned partners such as Yerevan.

“It is hypocritical for the EU to support democracy, human rights, and a dignified life for Ukrainians in their own country, but not for Armenians. This is why we are very frustrated,” said Artak Beglaryan, former ombudsman of Nagorno-Karabakh, who fled the region with around 100,000 Armenians after Azerbaijan’s takeover in 2023.

He says Armenia is undergoing an authoritarian drift driven by the government — a trend he argues is largely overlooked by the EU, which continues to support Yerevan due to its geopolitical shift away from Russia.

The ombudsman is an independent role tasked with safeguarding the rights of a specific group of citizens. Beglaryan stepped down after being displaced from Nagorno-Karabakh to continue his human rights work in Armenia. His position has been taken by Gegham Stepanyan, who focuses primarily on the rights of displaced persons who fled to Armenia and shares his views.

“In Armenia there are political persecutions, very strong pressure against opposition leaders and members. What is happening has nothing to do with democracy,” said Gegham Stepanyan.

Beglaryan and Stepanyan conveyed these views to Brussels Signal on the sidelines of a protest they organized outside the venue hosting the European Political Community (EPC) summit in the Armenian capital. The EPC is a pan-European forum bringing together leaders from EU member states and partner countries outside the bloc, including European Commission President Ursula von der Leyen, French President Emmanuel Macron, and Ukrainian President Volodymyr Zelenskyy.

At the entrance, groups of protesters — mostly displaced persons from Nagorno-Karabakh — held signs calling for greater attention to their rights and to the broader human rights situation in Armenia. Many placards also accused the Armenian government of authoritarian drift.

Beglaryan reportedly attempted to enter the venue to deliver a letter to European leaders outlining these concerns, but was prevented from doing so by the authorities.

Born in Nagorno-Karabakh in the late 1980s, he has lived through all the wars in the long-disputed region between Armenia and Azerbaijan. The latest conflict in 2023 led to the mass displacement of the Armenian population and the complete transfer of control of the region to Azerbaijan. Since then, he argues, human rights conditions in Armenia have deteriorated sharply.

According to him, the authorities led by Prime Minister Nikol Pashinyan are pursuing a strategy to stay in power at any cost despite past foreign policy failures, combining a shift toward the EU with a push for peace with Azerbaijan, even if it means accepting most of Baku’s conditions.

This has included effectively shelving the Nagorno-Karabakh issue and treating it as “an exclusively Azerbaijani matter,” while increasing pressure on those who continue to advocate for displaced Armenians, the right of return, the release of prisoners and the protection of Armenian cultural heritage of the region.

Beglaryan says that “talking about Nagorno-Karabakh is now seen as an obstacle to peace agreements,” and those who do so increasingly face pressure. Over time, he adds, this pressure has expanded beyond the Nagorno-Karabakh issue itself, reaching broader voices perceived as opposing the government’s political line. 

Since 2023, the Armenian government has carried out the arrest of at least forty individuals considered politically hostile, with charges ranging from terrorism to other serious criminal accusations, including opposition party leaders, prominent figures among Nagorno-Karabakh’s displaced community, and members of the clergy.

Some international observers have denounced these developments, including Kenneth Roth, former executive director of Human Rights Watch. Beglaryan argues that many of these cases are politically motivated and fabricated, while the government maintains that the proceedings are based on legitimate legal grounds.

A month from now, Armenia will hold elections seen as decisive for whether the current government stays in power or is replaced. Most opposition forces want to return the Nagorno-Karabakh issue to the political agenda, a move that would likely strain relations with Azerbaijan and complicate prospects for peace.

The government, meanwhile, frames its approach as a choice between peace and war, while also pointing out that some opposition groups are seen as aligned with the Kremlin.

In the days surrounding the European Political Community summit in Yerevan, several other diplomatic events are taking place, including the EU–Armenia Dialogue — a framework for political engagement, reforms and bilateral relations between Brussels and Yerevan. Some observers see their timing as a de facto endorsement of the Armenian government, without sufficient attention to internal human rights concerns.

“I have long believed in European values, in the idea that when the EU speaks about freedom and democracy, it truly means it,” Beglaryan said. “But at this moment, I observe that for European leaders these values seem to matter only when they are used as a tool to pressure countries with different geopolitical agendas. I would be happy to have a country with genuine European and democratic values and institutions, as well as just, dignified, inclusive and sustainable peace with Azerbaijan.”


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What can the EPC summit in Armenia achieve?

Emil Lazarian
EuroTopics
May 6 2026

06 May 2026

What can the EPC summit in Armenia achieve?

More than 40 leaders convened at the European Political Community (EPC) summit in the Armenian capital of Yerevan on Monday and Tuesday to discuss the future of Europe in light of the wars in Iran and Ukraine. With the looming prospect of US troops withdrawing from Germany, there was a general agreement that the continent needs to take more responsibility for its own security.

Support for shift away from Moscow

Not this summit, but the upcoming Armenian elections are what counts, argues political analyst Arkady Dubnov on Facebook:

“At this stage, it’s still too early to say whether Armenia will cease to be an ally of Russia, but it is hard to deny that Yerevan is increasingly distancing itself from Moscow. What is clear, however, is that the European presence in Yerevan is intended to provide Prime Minister Pashinyan with strong support in his preparations for the parliamentary elections on 7 June. If his Civic Contract party succeeds in defeating the pro-Russian opposition, the path towards European integration will continue, and the distance from Russia will grow.”

Arkadi Dubnow

  Original article

Big talk with little substance

The taz sees a lack of strategic depth:

“Every European step inside Armenia is seen as a provocation, every move towards the West as a move away from Russia. Prime Minister Pashinyan wants to turn this to his advantage. In the run-up to the parliamentary elections on 7 June he will play the pro-European reformist and promoter of peace. But it’s a risky gamble: he faces domestic instability if he loses – and in terms of foreign policy, potentially the next war. … Europe is stepping up its presence but has no strategy. … That is the uncomfortable truth behind the images from Yerevan. Diplomacy comes and goes, but the risks remain.”

Petrosyan Tigran

  Original article

Rapprochement between Yerevan and Ankara

T24 takes a closer look at Armenian-Turkish relations:

“The visit of Vice President Cevdet Yılmaz, the first meeting at this level since 2008, removed the word ‘normalisation’ from the realm of rhetoric and placed it back in the zone of real possibility. … An open border could turn this region into a transit zone. By creating mutual dependencies, economics often succeeds where politics fails. This dependence will become one of the most tangible guarantees for peace. … But the situation is fragile: the mood at home, historical memory and regional tensions could obstruct the process at any moment.”


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Armenia signs agreements with EU and France

Jagharian Tania
OC Media
May 6 2026

On Tuesday, as Armenia hosted the inaugural Armenia–EU summit, a joint declaration was adopted, along with the signing of a number of documents. Separately, France and Armenia established a strategic partnership in the scope of the state visit by French President Emmanuel Macron.

The Armenia–EU summit followed the 8th European Political Community Summit, hosted in Yerevan on 4 May, making Armenia the first South Caucasus country to host the summit since its inception in 2022. It was also the largest international conference ever held in Armenia.

Armenia hosts European Political Community summit

In the frameworks of the bilateral summit, Prime Minister Nikol Pashinyan hosted the President of the European Council António Costa and the President of the European Commission Ursula von der Leyen.

Following the summit, Armenia and the EU adopted a joint declaration and signed a number of documents, including the Armenia–EU Connectivity Partnership. The sides also initialled a document on the ‘working arrangement on operational cooperation in the field of border management’ between Armenia and the EU Border and Coast Guard Agency.

The cooperation dates back to 2024, when Armenian border troops took control over all the checkpoints of the Armenian borders, including at the Yerevan Zvartnots Airport. Previously, Russian border guards had been stationed at the checkpoints. While they have since left, Russians still maintain their presence along the border with Turkey and Iran.

Armenia to ‘increasingly add’ border guards, Pashinyan says

In addition, they issued a call for ‘expressions of interest from EU/EEA/Armenia-based businesses to invest in Armenia’. Armenia also received  its progress report on Armenia’s implementation of the Visa Liberalisation Action Plan, which reportedly ‘highly praised’ the country’s progress.

A separate agreement was signed between the European Commission (DG ENEST) and technology company Firebird AI in the digital and energy sectors.

In parallel, a battery energy storage system (BESS) with a capacity of up to 1 GW is planned to support electricity system stability and the integration of renewable energy.

‘Today, with another step, we are raising the relations between Armenia and the European Union to a qualitatively new level’, Pashinyan said.

In turn, Costa called the summits taking place in Armenia ‘a very historic moment’ and noted that the EU-Armenia Strategic Partnership Agenda was adopted in December 2025, adding ‘we have been strengthening and strengthening our relations’ since then.

Von der Leyen acknowledged that Armenia and the EU ‘are closer than ever’, adding that the Armenia-EU summit would contribute to raising cooperation to a new level.

‘Armenia indeed, as you said, provides the shortest route to Central Asia and the Caspian Sea with Europe. Previously, this route was closed due to war and geopolitical considerations, now you are changing that, thanks to your courageous choice for the sake of peace and greater integration into European networks. Through this, Armenia can become a regional centre’, von der Leyen said.

Separately, Armenia and France signed a joint declaration on establishing a strategic partnership.

Relevant authorities and companies from both countries also exchanged documents outlining intentions for cooperation in areas including AI, cybersecurity, semiconductors, as well as research, development, and innovation in military technologies and defence systems.

Armenian and French companies signed a sales agreement for two A321-200 NX aircrafts between FlyOne Armenia and Airbus, alongside other deals, including the construction of the 8.6-kilometre Bargushat Tunnel in southern Armenia.

Macron also endorsed Pashinyan ahead of the upcoming parliamentary elections scheduled for 7 June.

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Armenia, France sign deal to build Bagushat tunnel on North-South Highway

Ani Tigranian
Georgia Today
May 6 2026
by Lana Kokaia

Armenia and France have signed an agreement to construct the Bagushat Tunnel on Armenia’s North-South Highway, Prime Minister Nikol Pashinyan says.

The deal was signed during French President Emmanuel Macron’s state visit to Yerevan, alongside several bilateral agreements.

Pashinyan says the project marks a new stage in the development of the North-South Highway and aims to introduce higher construction standards in Armenia through the involvement of French companies.

He notes that cooperation with experienced international firms will help implement European standards in the country, while also creating opportunities for local contractors.

Pashinyan describes the highway as one of Armenia’s largest infrastructure projects, adding that the Bagushat section is particularly complex and requires advanced technical expertise.

He says the project is progressing with French support and reflects deepening cooperation between the two countries.

https://georgiatoday.ge/armenia-france-sign-deal-to-build-bagushat-tunnel-on-north-south-highway/

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Gevorg Kaloshyan has died. He was the Armenian side’s interpreter at Armenian-

Hovik Karapetian
News.am, Armenia
May 6 2026

Sources from ArmLur.am have just reported that Gevorg Kaloshyan has died. He suffered cardiac arrest.

According to ArmLur.am, in recent times Gevorg Kaloshyan was the interpreter for the Armenian side at almost all Armenian-Turkish meetings. The day before, he was also present at a working meeting on the restoration and reopening of the Gyumri–Kars railway.

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