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Reiterating centralized coinjoin (Wasabi & Samourai) deanonymization attacks

Reiterating centralized coinjoin (Wasabi & Samourai) deanonymization attacks

Original Postby Peter Todd

Posted on: January 23, 2025 16:25 UTC

In a recent examination of Wasabi and other coinjoin implementations, concerns have been raised about the effectiveness and vulnerabilities associated with these platforms, particularly focusing on lite clients and their potential misdirection in addressing security challenges.

The discourse opens by acknowledging that sybil attacks, where an adversary floods the system with coinjoin requests to monopolize the transaction process, cannot be entirely prevented in anonymous participation environments such as coinjoin protocols. However, it is noted that Wasabi has implemented measures to make such attacks costly by utilizing user-settable centralized coordinators, which manage transactions involving hundreds of inputs and outputs, encompassing millions of USD worth of BTC per round. This setup makes it financially burdensome for attackers to simulate genuine transaction volumes.

Furthermore, the discussion delves into attacks through failed rounds, highlighting how these can serve as a means for attackers to gain insights into transaction linkages without incurring costs, given no transaction fees are spent in such scenarios. There's an indication that this vulnerability might be less of a concern if outputs from failed rounds are not reused in subsequent attempts, a practice confirmed to be avoided by JoinMarket, thereby minimizing the risk. This segment raises the issue of implementation gaps within HD wallet constructs and suggests exploring solutions akin to Silent Payment functionalities to mitigate these risks.

The conversation also critiques the focus on lite clients' ability to verify unspent coins in coinjoin rounds, arguing that such verification is irrelevant for ensuring transaction integrity. It outlines two critical outcomes: either a transaction fails due to invalidity, rendering the attack moot, or it succeeds, thereby validating the coin's existence through the Bitcoin consensus mechanism, irrespective of the lite client's verification capabilities. This point underscores the unnecessary emphasis on lite client validations in the face of inherent protocol safeguards.

Additionally, the potential for MITM (Man-In-The-Middle) attacks via sybil tactics is explored, suggesting that an attacker could manipulate transaction processes by pretending to be multiple participants simultaneously. Yet, the feasibility of mitigating such risks through the validation of round ID consistency post-transaction signature and confirmation is acknowledged. Wasabi's existing framework for evaluating output anonymity scores is cited as a basis for implementing checks against sybil attacks, contingent on the cryptographic security of signature validation across alternate public keys—a subject left open for further expert analysis.

The dialogue encompasses references to external sources, including a reply in a Google Groups thread and personal communication channels, indicating a broader community engagement around these technical challenges and considerations within the cryptocurrency development ecosystem.

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