Hoskinson Sounds Alarm on AI-Driven Security Risks After Liquid Hack

Charles Hoskinson, founder of Cardano, has expressed concern about the impact of artificial intelligence (AI) on software security after a recent hack on the Liquid Network.

The incident saw approximately 4,000 BTC worth around $320 million removed from the federation wallet using SideSwap's Peg-out Authorization Key service.

Liquid and SideSwap both stated that the PAK itself was not compromised, but instead attributed the breach to a vulnerability in Elements, the Bitcoin-based software used by Liquid.

Hoskinson suggested that AI could make it easier for attackers to discover and exploit vulnerabilities in software, potentially outpacing traditional testing methods.

He also emphasized the importance of formal methods in software development, which use mathematical specifications and proofs to check whether code follows its intended design before release.