Daily Drop (502): Beijing's Web3 Innovation, TSMC 3x Bigger Chips, Cyberweapon Makers Stay Compliant, China Settles $582.3B Yuan, Naver's AI Targets Gov, China-South Korea Chip, Dehumanized Warfare
05-28-2023
Sunday, May 28, 2023 // (IG): BB // Intro Exploit Dev // Coffee for Bob
Ukrainian drone blow up Russian most advanced tank
Analyst Comments: The reported destruction of a Russian T-90M tank by an aerial reconnaissance unit highlights the intensity of the conflict and the efforts to neutralize advanced military assets. The account describes the use of drones to target the tank, with multiple bombing attempts before successfully causing significant damage. The T-90M, known for its updated turret design, panoramic sight, and radar-absorbent material, represents the latest advancement in Russian main battle tanks. The mention of at least 20 documented losses of T-90M tanks underscores the significance of such losses in the ongoing conflict.
FROM THE MEDIA: A Russian T-90M tank was reportedly destroyed by an aerial reconnaissance unit after intense efforts to neutralize it. The tank, known for its advanced features and technological capabilities, was targeted by drones dropping bombs in multiple attempts. Eventually, the tank's engine compartment caught fire, causing damage to its turret. The incident highlights the ongoing conflict's intensity and the significance of neutralizing advanced military assets. Furthermore, the mention of documented losses of at least 20 T-90M tanks indicates the impact of such losses on the conflict.
READ THE STORY: Defense Blog
South Korea’s Naver to target foreign governments with the latest ChatGPT-like AI model
Analyst Comments: Naver's move to offer customized AI models to foreign governments reflects the growing importance of sovereign AI technology and data protection. By catering to political and cultural contexts, Naver aims to address concerns about US data controls and security. However, the company may face challenges in adapting its highly customized AI algorithms to different countries, requiring significant financial and human resources. Naver's success in the Korean market and its collaborations with Samsung Electronics demonstrate its expertise in the AI ecosystem. Nonetheless, it will face increased competition in the Korean-language AI services market, particularly with Google's entry. Naver's strategy to prioritize the Korean and Japanese markets while eyeing overseas opportunities highlights the importance of localizing AI solutions.
FROM THE MEDIA: Naver, South Korea's dominant internet search engine, plans to offer tailored versions of its latest AI model to foreign governments concerned about US data controls. Unlike Microsoft and Google, which focus on universal AI models, Naver aims to develop localized AI applications for countries with political sensitivities and non-English speaking countries. The company sees sovereign AI technology as crucial for data protection and compares exporting its AI models to building atomic power plants abroad. Naver recently signed an agreement with Saudi Arabia to provide IT services, including AI tools. However, experts caution that Naver's AI algorithms are highly customized for Korean services, making it challenging to adapt them to different countries. Naver acknowledges its focus on the Korean market but also eyes overseas markets, emphasizing the importance of localization in the AI race.
READ THE STORY: FT
Is the BlackByte ransomware gang behind the City of Augusta attack
Analyst Comments: The cyber attack on the City of Augusta highlights the vulnerability of municipal IT systems and the ongoing threat of ransomware attacks. The admission of unauthorized access and subsequent data leak by the BlackByte ransomware group underscores the importance of robust cybersecurity measures and incident response protocols. The incident serves as a reminder of the potential consequences of cyber attacks, including the compromise of sensitive data and the financial and reputational damage incurred. Municipalities and organizations must prioritize proactive cybersecurity practices, including regular system assessments, employee training, and the implementation of effective detection and response mechanisms.
FROM THE MEDIA: The City of Augusta in Georgia recently experienced an IT system outage caused by a cyber attack. Initially denying it was a ransomware attack, the city later admitted to unauthorized access to its system. The BlackByte ransomware gang has claimed responsibility for the incident and leaked a substantial amount of data as proof of the breach. The city's Information Technology Department is conducting an investigation to determine the impact of the security breach and restore full functionality to its systems. The group is demanding a ransom of $400,000 to delete the stolen information, along with an additional $300,000 for potential buyers of the data. This attack is part of a broader trend of ransomware incidents targeting cities and organizations.
READ THE STORY: Security Affairs
Chinese hackers seeking ways to cripple infrastructure ‘likely to have targeted UK operators’
Analyst Comments: The targeting of British companies and infrastructure operators highlights the reach and capabilities of such groups. The utilization of legitimate tools and techniques within the Windows operating system adds complexity to detection and attribution efforts, making it challenging to distinguish between legitimate activities and malicious attacks. The joint statement from the UK's cyber security intelligence agency and its allies demonstrates the importance of international collaboration in addressing cyber threats. The potential disruptions to critical infrastructure underline the significance of enhancing cyber defenses and bolstering resilience against such attacks.
FROM THE MEDIA: A state-sponsored Chinese hacking group known as Volt Typhoon, initially targeting the United States, is believed to have likely targeted British companies and infrastructure operators. The group's objective is to disrupt vital services in the event of a conflict between China and the West. The UK's cyber security intelligence agency, in collaboration with key allies, has revealed the existence of Volt Typhoon and its ability to gain undetected long-term access to critical computer systems. Concerns have been raised about potential disruptions to infrastructure assets such as rail networks, oil pipelines, and gas pipelines. The hacking methods employed by Volt Typhoon, which leverage legitimate "administrator" tools within the Windows operating system, pose challenges in detection and make it difficult to differentiate between authorized user activities and external attacks. Experts suggest that the group may have expanded its targets to include British organizations, particularly those linked to compromised American systems.
READ THE STORY: INEWS
Chinese Commerce Ministry: China and South Korea to Enhance Discussions on Strengthening Chip Industry Collaboration
Analyst Comments: South Korea, as a major chip exporter, heavily relies on China as a destination for its chip exports, while also depending on US technology and equipment for chip production. The discussions between China and South Korea indicate their recognition of the importance of maintaining stability in the industrial supply chain and addressing potential disruptions caused by sanctions and national security concerns. The focus on communication between working-level officials and the request for a predictable business environment highlights the need for constructive dialogue to ensure smooth cooperation and address challenges faced by South Korean companies in China.
FROM THE MEDIA: China and South Korea have agreed to enhance dialogue and cooperation on semiconductor industry supply chains, as global concerns over chip supplies, sanctions, and national security continue to grow. During a meeting between China's Commerce Minister, Wang Wentao, and South Korean Trade Minister, Ahn Duk-geun, the two sides discussed maintaining the stability of the industrial supply chain and strengthening cooperation in various fields. The Chinese Ministry of Commerce stated that China is willing to deepen trade ties and investment cooperation with South Korea. While the Chinese statement focused on the semiconductor industry, the South Korean statement emphasized the need for stable supplies of key raw materials and a predictable business environment for South Korean companies in China.
READ THE STORY: Reuters
China To Settle $582,300,000,000 in Yuan Worldwide Amid Push to Circumvent US Dollar
Analyst Comments: China's push for global currency settlement agreements exclusively utilizing the yuan demonstrates its efforts to strengthen the international role of its currency and reduce dependence on the US dollar. By signing these agreements with over 40 countries and regions, including significant players like Russia, Venezuela, and Gulf nations, China aims to promote cross-border yuan settlement and enhance the efficiency of bilateral trade. The move is seen as part of China's broader strategy to internationalize the yuan and establish it as a viable alternative to the US dollar in international transactions. One of the key motivations behind this initiative is to shield participating countries from the potential impacts of the "weaponized dollar," as evidenced by the sanctions imposed on Russia after its actions in Ukraine. By conducting direct settlements in yuan, China believes it can mitigate the influence of US-led financial sanctions and provide participating countries with greater financial autonomy.
FROM THE MEDIA: China has announced that it has signed currency settlement agreements worth $582.3 billion, exclusively utilizing the yuan. The agreements, inked by China's central bank with over 40 countries and regions since 2016, aim to enhance the role of the yuan in international trade and reduce reliance on the US dollar. Notable countries involved in these pacts include Russia, Venezuela, the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia. China asserts that cross-border yuan settlement will make bilateral trade more efficient and contribute to the internationalization of the yuan. Additionally, it claims that using the yuan for direct settlement will protect countries from the impact of a "weaponized dollar," as exemplified by sanctions imposed on Russia following its invasion of Ukraine.
READ THE STORY: The Daily Hodl
Significance of Geopolitics: Genocide, Serbia, and the Ukraine War
Analyst Comments: The historical information presented in the summary is accurate, including the details of the Bosnian genocide and Serbia's relationship with Russia. It correctly highlights the atrocities committed during the genocide, the subsequent war crimes trials, and Serbia's efforts to maintain a balanced approach in its international relations. The passage's assessment of the motivations behind the West's engagement with Serbia and the significance of the Ukraine war may be subjective and open to interpretation. While geopolitical interests can certainly play a role in international relationships, other factors such as regional stability, diplomacy, and economic cooperation also contribute to the engagement between countries. It is essential to consider multiple perspectives and further examine the complexities of international relations to form a comprehensive understanding.
FROM THE MEDIA: This report discusses the Bosnian genocide, also known as the Srebrenica massacre, and its impact on Serbia's relationship with the West and Russia. It highlights the historical facts surrounding the genocide, including the atrocities committed by the Army of Republika Srpska and the subsequent war crimes trials. The passage also mentions Serbia's alliance with Russia and its efforts to balance relations with both the West and Russia under President Aleksandar Vučić. It suggests that the West's increasing engagement with Serbia despite its history and ties with Russia is driven by geopolitical interests, particularly related to the Ukraine war.
READ THE STORY: Modern Diplomacy
China Implements Strict Measures, Targets Over 1 Million Social Media Posts and Accounts
Analyst Comments: The crackdown reflects Beijing's ongoing efforts to control online information and suppress what it perceives as harmful or destabilizing content. It's part of a larger trend of increased regulation over the tech sector and a clampdown on non-state-approved information sources. However, it has raised concerns among international organizations, such as the International Federation of Journalists (IFJ), which argues that the crackdown has increased pressure on independent and foreign media workers, stifled independent journalism, and contributed to misinformation, particularly about COVID-19. It's clear that while the Chinese government views these actions as necessary for maintaining social stability and preventing the spread of harmful information, critics see it as a suppression of free speech and a way to control the narrative on important issues.
FROM THE MEDIA: In a campaign from March to May 2023, China's government took action on over a million social media posts and accounts that it identified as spreading misinformation, profiteering illegally, or impersonating state officials. This initiative is part of a broader effort since 2021 to regulate cyberspace and control information dissemination. The crackdown targeted "self-media" accounts, which publish news and information but aren't government-run or state-approved, on popular social media apps like WeChat, Douyin, and Weibo. The campaign resulted in the permanent closure of 67,000 accounts and the penalization of 930,000 others with lesser punishments. The Cyberspace Administration of China (CAC) coordinated with various departments to rectify illegal 'self-media' and urged citizens to participate in monitoring and reporting such activities.
READ THE STORY: Bloomberg
Cyberweapon manufacturers plot to stay on the right side of the US
Analyst Comments: Paragon's strategic alignment with US interests and consultation with American advisers appears to have helped the company establish a strong position within the controversial spyware industry. The company has adeptly navigated a challenging political landscape, drawing clear distinctions between itself and other companies like NSO that have faced backlash for the misuse of their products. The use of its Graphite spyware by the US Drug Enforcement and Administration Agency is already raising concerns. The potential for misuse, particularly in a context like Mexico where NSO's Pegasus was previously abused, could put Paragon under scrutiny. While the company has thus far successfully navigated the challenges of the industry, it will need to ensure careful and ethical use of its products to maintain its position and reputation.
FROM THE MEDIA: Paragon Solutions, an Israeli cyberweapon manufacturer, made strategic decisions to align with the US government and its interests. The company's product, Graphite, a powerful spyware similar to the Pegasus software developed by rival NSO Group, is capable of breaching modern smartphone security and evading encryption. To differentiate itself from NSO, whose software has been implicated in targeting journalists and dissidents leading to blacklisting in the US, Paragon sought guidance from top American advisers and secured funding from US venture capital groups. Its strategy also involved targeting sales to US-friendly nations, resulting in the US government becoming a major client. However, despite positioning itself as an ethical actor in the spyware industry, concerns are now arising around the potential misuse of Paragon's Graphite, particularly by the US Drug Enforcement and Administration Agency in Mexico.
READ THE STORY: FT
TSMC Planning Chips 3x Bigger Than Today
Analyst Comments: Nvidia's success with the H100 chip demonstrates the rising importance of specialized hardware in the burgeoning field of generative AI. As applications like ChatGPT gain traction, demand for high-performance hardware will likely continue to rise, potentially leading to supply constraints and further competition among tech giants. Nvidia's massive growth also illustrates how technology advancements and market timing can intersect for extraordinary success. The company’s development of the H100 coincided perfectly with the rise in demand for generative AI, leading to soaring sales and valuation.
FROM THE MEDIA: TSMC is working on a new version of its CoWoS-L technology, which will enable the development of extremely large interposers called Super Carrier Interposers. These interposers will be significantly larger than current system-in-package (SiP) sizes, with the potential to increase in size by up to 3.3 times. The push for larger chip sizes is driven by the growing demand for advanced computing capabilities in areas like artificial intelligence (AI) and high-performance computing (HPC). Companies like AMD, Intel, and Nvidia are using multi-tile chiplet designs to enhance computing power, which requires advanced cooling systems. TSMC is exploring on-chip liquid cooling technology to address the cooling requirements of these powerful chips, but this introduces complexity and additional costs to the process.
READ THE STORY: Toms Hardware
How Russian and Iranian drone strikes further dehumanize warfare
Analyst Comments: The insights provided shed light on the significant role of drones in contemporary conflicts and raise crucial ethical concerns surrounding the use of lethal autonomous weapons systems (LAWS). The psychological impact of distance and dehumanization on decision-making underscores the imperative of responsible deployment of AI in military contexts. The article appropriately highlights the challenges posed by autonomy, accountability, and accuracy in relation to LAWS, emphasizing the necessity of reliable data and effective regulation. The acknowledgment of ongoing international efforts to address the regulation of LAWS reflects the growing recognition of the need for comprehensive frameworks governing AI use in the military domain.
FROM THE MEDIA: Drones have played a significant role in recent conflicts, including the Russian-Ukrainian war, the Azerbaijan-Armenian conflict, and tensions between China and Taiwan. The article highlights the psychological, social, and technological challenges posed by lethal autonomous weapons systems (LAWS) and the increasing use of drones in warfare. It emphasizes the moral disengagement that can occur when operators are distanced from the consequences of their actions. The article also discusses the autonomy and intelligence of AI systems, particularly in the context of drone swarms, and the importance of accountability and accuracy in the deployment of LAWS. It mentions ongoing efforts to regulate LAWS at the international level.
READ THE STORY: Sun Journal
Govt warns against Russia-backed APT hacker’s activities
Analyst Comments: The government's proactive response in issuing a circular and providing guidelines demonstrates its recognition of the seriousness of the threat. By advising measures such as separate servers, strengthened user control, and digital code signing, the government aims to enhance cybersecurity defenses and protect sensitive information. It is crucial for Pakistani authorities to continue monitoring and countering such cyber threats to safeguard critical government systems and data.
FROM THE MEDIA: According to sources, Russian Advanced Persistent Threat (APT) hackers are actively targeting government institutions in Pakistan. The federal government has issued a circular to all provincial governments, ministries, and divisions, warning them about these activities. The circular provides guidance on preventing cyber-attacks by the Russia-backed hacking network. Recommendations include using separate servers for offline and online networks, strengthening user control and monitoring incoming internet traffic, keeping track of file locations, implementing digital code signing for software verification, maintaining regular password changes at the administrator level, creating comprehensive emergency plans, and ensuring data backups. This development comes after previous reports on Israeli hackers' activities in Pakistan, prompting the government to advise against exchanging personal information with suspicious companies and to exercise caution while accessing unknown links and using public Wi-Fi.
READ THE STORY: ARY
China Envisions Establishing a Military-Industrial Complex under Xi's Leadership
Analyst Comments: The rise of this new group of military-industrial technocrats under Xi's leadership suggests a shift in China's political and military strategy. The incorporation of these individuals into the upper echelons of Chinese leadership signifies a more direct fusion of military and industrial interests at the highest level of government, a move likely aimed at streamlining efforts to modernize China's military and compete with the U.S. The implications of this development are potentially significant. On one hand, it may result in a more efficient and effective Chinese military-industrial complex capable of rapidly advancing China's military capabilities. On the other hand, it could exacerbate tensions between China and the U.S. as the competition for global military and economic dominance intensifies. Furthermore, the increased centralization of power in China could lead to domestic issues, including potential inefficiencies and a decrease in economic freedom, which could ultimately undermine the country's long-term stability and prosperity.
FROM THE MEDIA: The rise of a new group of autocrats, military-industrial technocrats, under Xi Jinping's leadership in China has been attracting attention from the West. This development has significant implications for Chinese economic development and the militarization of the People's Liberation Army (PLA) over the next decade, and consequently, China's growing rivalry with the U.S. Xi Jinping's search for this group of military-industrial specialists became apparent around the time of the 20th Party Congress. At the Congress, Xi emphasized the need for the PLA to safeguard China's dignity and core interests, indicating his desire for rapid modernization of the military. At the end of the Congress, 13 new members, including five rising stars with backgrounds in military-industrial engineering and high-level managerial experience in China's military-industrial sector, joined the Politburo, the Communist Party's top leadership body.
READ THE STORY: DTNEXT
Beijing releases white paper for Web3 innovation and development
Analyst Comments: The release of the "Web3 Innovation and Development White Paper" by Beijing's municipal government reflects China's recognition of the importance of Web3 technology for the future of the Internet industry. By allocating significant funding and emphasizing policy support, Beijing aims to position itself as a leading global innovation hub in the digital economy. The timing of the white paper release, coinciding with Hong Kong's cryptocurrency regulations, suggests a potential shift in China's stance towards the cryptocurrency industry. While China banned the use of cryptocurrencies in 2021, this recent development indicates a growing openness to exploring the potential of blockchain and Web3 technologies. It remains to be seen how China's approach will evolve in the coming years and how it will impact the broader Web3 industry.
FROM THE MEDIA: Beijing's municipal government has released the "Web3 Innovation and Development White Paper" to promote innovation and advance the Web3 industry. The white paper recognizes Web3 technology as a crucial trend for the future development of the Internet industry. With the aim of establishing Beijing as a global innovation hub for the digital economy, the government plans to allocate a minimum of 100 million yuan annually until 2025. The funding will support policy support and technological advancements in the Web3 industry. The timing of the white paper release coincides with Hong Kong's new cryptocurrency regulations, which are set to begin on June 1. This move by Beijing signals a potential opening up to the cryptocurrency industry, in contrast to the current crackdown on cryptocurrencies in the United States.
READ THE STORY: Cointelegraph
Items of interest
Chinese Vessels Disregard Vietnam's Request to Depart Proximity of Russian-Operated Gas Fields
Analyst Comments: The tensions between Vietnam and China over the South China Sea are not new and have been a point of contention for years. China's recent activities, including the presence of research and escort vessels in Vietnam's EEZ, seem to indicate a continuation of its assertive posture in the region. The involvement of Russian companies adds another layer of complexity to the issue. The blocks being explored by the Chinese vessel are licensed to joint ventures involving Russian companies. This could potentially draw Russia more directly into the dispute. The incursion into Vietnam's EEZ has been labeled a "worrying escalation" by Ray Powell, who leads Stanford University's Project Myoushu on the South China Sea. This suggests a concern that the situation could further strain relations between the countries involved and potentially destabilize the region.
FROM THE MEDIA: A Chinese research vessel, the Xiang Yang Hong 10, along with five escort ships, have been operating within Vietnam's exclusive economic zone (EEZ) near gas blocks run by Russian companies in the South China Sea. The Chinese vessel started operations in the area on May 7, marking the most significant incursion since a 2019 standoff. This prior dispute lasted over three months and was primarily focused on a block operated at the time by the Russian state oil firm Rosneft. Since May 7, the Xiang Yang Hong 10 has been navigating mainly across gas block 04-03, operated by Vietsovpetr, a joint venture between the Russian state-owned firm Zarubezhneft and PetroVietnam. It has also been regularly crossing blocks 132 and 131, which Vietnam has licensed to Vietgazprom, a joint venture between the Russian giant Gazprom and PetroVietnam. China has launched competing bids to license these two blocks. China's foreign ministry spokesperson Mao Ning claimed China's actions were legitimate and lawful, asserting that the ships were operating under China's jurisdiction.
READ THE STORY: gCaptain
When Chinese Industrial Espionage Goes Wrong (Video)
FROM THE MEDIA: Dr. Shannon You, a former chemical engineer for Coca-Cola, was arrested by the FBI for stealing trade secrets worth $120 million. The case highlights China's use of industrial espionage as a key component of its economic growth. Driven by the Thousand Talents Program, which incentivizes Chinese individuals abroad to return and start businesses in China, critics argue that it facilitates the theft of foreign technology. The FBI interrogates Dr. You, uncovering lies and evidence of her involvement in a scheme to share the stolen formulas. The interrogation reveals her intention to launch a company in China and profit from the stolen information. The case sheds light on China's extensive efforts to engage in espionage beyond defense technology, impacting various sectors of the economy.
Made in Beijing: The Plan for Global Market Domination (Video)
FROM THE MEDIA: The FBI's Office of Private Sector, Counterintelligence Division, and Training Division presents this 30-minute film entitled Made in Beijing: The Plan for Global Market Domination. In the world of global adversaries, the People’s Republic of China stands at the forefront with its sustained and brazen campaign of industrial espionage, posing the single greatest threat to our freedom, national security, and economic vitality. Made in Beijing: The Plan for Global Market Domination sounds the alarm, helping private sector partners recognize the urgent need to protect their crown jewels against industrial espionage.
These open-source products are reviewed by analysts at InfoDom Securities, providing possible context about current media trends related to the realm of cyber security. The stories selected to cover a broad array of cyber threats and are intended to aid readers in framing key publicly discussed threats and overall situational awareness. InfoDom Securities does not endorse any third-party claims made in their original material or related links on their sites; the opinions expressed by third parties are theirs alone. For further questions, please contact InfoDom Securities at dominanceinformation@gmail.com.