Crypto
Stillwater police raise alert about scams requiring crypto payments
Stillwater police raise alert about scams requiring crypto payments
The City of Stillwater is considering possible restrictions or even an outright ban on cryptocurrency machines, according to city officials.
Stillwater police are reporting scams where residents have been targeted to make cash transactions to digital accounts using cryptocurrency machines.
“Some of them are pretty scary and pretty convincing,” said Stillwater Police Chief Brian Mueller. “We have individuals in our community that are scared out of their wits, and they are bringing wads of money.”
A crypto machine allows a person to purchase digital currency by putting cash into the device, and then the funds are transferred to someone’s account.
Chief Mueller described some of the scams the department has investigated: “Individuals that are told that their loved ones are being hurt, arrested… or the federal or local government has warrants out for their arrests.”
The scammers tell the person to go to a machine, put in cash and then send the cryptocurrency to settle the issue, according to police.
In a recent letter to Stillwater’s mayor and City Council, Chief Mueller wrote that since 2023, Stillwater police have taken more than 30 crypto-related scam reports — totaling $156,442 of loss — and $73,092 of that had been deposited into various crypto ATMs in the city.
One example Mueller wrote about included a woman who received a phone call that she had received an overpayment into an account that she held.
Stillwater police said the victim was told by the scam artist to deposit $20,000 cash into an Athena Bitcoin ATM located inside the Amoco Gas Station downtown.
“Thankfully, we had a very alert clerk at that particular gas station and they called 911,” said Detective Sgt. David Wulfing, with Stillwater police. Officers arrived and were able to stop her from putting more of her money into the machine.
Detectives were able to get some of the victim’s money back.
The gas station owner told 5 EYEWITNESS NEWS that he trains staff if they see someone with a lot of cash at the crypto machine, to speak up and ask questions, adding he “cares about his customers.”
The machine is operated by a separate company, which 5 EYEWITNESS NEWS reached out to for comment.
“The most difficult part of these cryptocurrency investigations is many of the perpetrators are outside of the United States,” said Wulfing. “It’s very difficult to get that money back once it’s deposited.”
Stillwater police said if residents receive emails or phone calls demanding they pay someone, their department is there to help determine if the message is real — just reach out at (651) 351-4900.
“Unfortunately, they prey on the more vulnerable folks, the elderly and the more trusting people,” Wulfing said.
The Minnesota Legislature passed a law last year that required cryptocurrency kiosks to be registered and offer some consumer protections.
According to the Minnesota Department of Commerce, 230 machines are licensed in the state.
Since August, state officials report that 40 consumers who reported losses related to fraud totaling $437,983 have been able to get back $29,894.
Distributed on behalf of 01 Quantum Inc.
The multi-trillion-dollar cryptocurrency market may have a major quantum computing problem on its hands moving forward. In fact, according to Tech Radar, “Sooner or later, quantum computers will be able to break through today’s encryption, and when that happens, critical industries such as defense, critical infrastructure, telecommunications, and others, will be at risk of nation-state attackers with enough resources to use the advanced tech for nefarious purposes such as espionage or data theft, research has warned.”
Unfortunately, quantum could have the potential to break down the codes that keep cryptocurrencies safe. They could decrypt private keys, ultimately allowing others to control and access others’ cryptocurrency holdings, creating a nightmare for investors.
“Quantum computers are posing a serious challenge to the security of the Bitcoin blockchain. Presently, about 25% of the Bitcoins in circulation are vulnerable to a quantum attack,” according to Deloitte. “Even if everyone takes the same protection measures, quantum computers might eventually become so fast that they will undermine the Bitcoin transaction process. In this case the security of the Bitcoin blockchain will be fundamentally broken.”
So, protection is essential from companies, such as 01 Quantum Inc. (TSXV: ONE) (OTCQB: OONEF), Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), Okta (NASDAQ: OKTA), and Zscaler (NASDAQ: ZS).
01 Quantum and qLABS, For Example, Just Provided Further Details of the qLABS Token – The Foundation of Quantum-Safe Web3 Infrastructure on Hyperliquid
01 Quantum (TSXV: ONE) (OTCQB: OONEF), one of the first-to-market, enterprise-level cybersecurity provider for the quantum computing era, and qLABS, a crypto foundation focused on quantum resilience, today announced the economic utility and value exchange in preparation for the launch of the qLABS Token, the first quantum-resistant governance and ecosystem token designed to secure the next generation of Web3 infrastructure on the Hyperliquid blockchain.
Built on 01 Quantum’s Quantum Crytpo Wrapper (QCW) technology as unveiled in the Company’s September 25, 2025 press release and incorporating 01 Quantum’s IronCAP™ post-quantum cryptographic engine, the qLABS Token is at the core of the initiative to make the Hyperliquid ecosystem fully resistant to the threat of quantum computing. This is the next step in moving from technical readiness into economic utility and value exchange as now the instrument of participation and utility, the qLABS Token is defined.
“The arrival of quantum computing represents a fundamental shift for cybersecurity,” said Andrew Cheung, Chief Executive Officer of 01 Quantum. “With qLABS, we are embedding NIST-approved post-quantum cryptography directly into Web3 infrastructure. The qLABS Token unites security, utility, and governance in a single architecture that future-proofs the blockchain economy. We are now moving from technical readiness into economic utility and value exchange.”
The qLABS Token is a fixed-supply governance and utility token deployed on the Hyperliquid network. Its economic model is designed to align long-term value creation with adoption of quantum-safe infrastructure:
· Capped Total Supply. The token supply is fixed, ensuring long-term scarcity and avoiding inflationary dilution.
· Revenue-Backed Buybacks. A portion of protocol revenue from wrapping, staking, and vault operations will be used to repurchase qLABS Tokens from the open market, reducing supply over time.
· Deflationary Burn Mechanisms. Token supply is further reduced through automatic burns triggered by early unstaking events or major quantum-security milestones—such as new NIST PQC standards or credible hardware breakthroughs toward fault-tolerant quantum computing.
· Governance Rights. Holders participate in key ecosystem decisions, including treasury allocation, fee models, and integration priorities, ensuring community-driven evolution of the protocol.
· Utility Integration. qLABS Tokens are required for core ecosystem functions such as creating quantum-resistant tokens via the qLABS Token Generator SDK, wrapping existing $HYPE assets, and offering new staking or vault strategies for quantum-resistant $HYPE holders.
“This design directly links token value to measurable ecosystem growth milestones,” said Ada Jonuse, Executive Director of qLABS. “As adoption scales and quantum-risk awareness increases, the deflationary model ensures long-term alignment between network security and holder value.”
The qLABS Token supports the rollout of a comprehensive quantum-resistant product suite built on IronCAP™ and Quantum Crypto Wrapper (QCW) technology, including:
· Quantum-Resistant Verification Protocol: on-chain validation using post-quantum signatures and Zero-Knowledge Proofs (ZKPs).
· qLABS Wallet: a multi-key wallet for individuals and institutions offering dual classical/quantum-resistant key pairs.
· Quantum-Resistant $HYPE: a 1:1 wrapped version of Hyperliquid’s native token providing yield generation, DeFi composability and protection against quantum attacks.
· Developer SDK and Stablecoin Infrastructure: tools enabling builders to issue and manage fully quantum-safe tokens and stablecoins directly on Hyperliquid.
“We are building the missing security layer for the world’s most innovative DeFi ecosystem,” said Antanas Guoga (Tony G), President of qLABS. “qLABS ensures that Hyperliquid’s financial applications will stay secure and operable well beyond Q-Day.”
Other related developments from around the markets include:
Palo Alto Networks, the global cybersecurity leader, announced Prisma® SASE 4.0, the industry’s most advanced AI-driven secure access service edge (SASE) solution. It sets a new standard with innovations in Prisma Browser that neutralize sophisticated web threats in real-time directly within the browser, where legacy solutions have critical blind spots. It’s designed to intercept and neutralize encrypted, evasive attacks that assemble inside the browser and bypass traditional secure web gateways. The browser is becoming the new operating system for the enterprise, the primary interface for AI and cloud applications. Securing it is not optional. As more critical applications and data reside within the browser, traditional consumer-grade browsers are no longer sufficient for businesses as they lack the necessary security controls to protect against the increasing number of cyberattacks. With Prisma SASE 4.0, Prisma Browser’s new in-browser advanced web protection identifies and neutralizes malware in real-time before it can do harm.
According to the 2025 State of Ransomware Survey from CrowdStrike, 76% of global organizations struggle to match the speed and sophistication of AI-powered attacks. With 89% viewing AI-powered protection as essential to closing the gap, the findings make clear that the future of stopping breaches will be decided by who holds the AI advantage – adversaries or defenders. “From malware development to social engineering, adversaries are weaponizing AI to accelerate every stage of attacks, collapsing the defender’s window of response,” said Elia Zaitsev, CTO at CrowdStrike. “The 2025 State of Ransomware Survey reinforces that legacy defenses can’t match the speed or sophistication of AI-driven attacks. Time is the currency of modern cyber defense – and in today’s AI-driven threat landscape, every second counts.”
Okta, the leading independent identity partner, today announced financial results for its second quarter ended July 31, 2025. “Okta’s unified identity platform is winning customers ranging from the world’s largest global organizations to massive government agencies,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta. “Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta’s independence and neutrality will continue to give organizations the freedom to innovate securely and on their own terms.”
Zscaler, the leader in cloud security, announced financial results for its fiscal fourth quarter and fiscal year ended July 31, 2025. “We had an outstanding Q4, in which we achieved a new milestone of more than $3 billion of Annual Recurring Revenue while achieving our highest ever operating margin for a quarter. We believe Zscaler’s Zero Trust and AI security solutions are imperative in today’s world and are driving robust demand,” said Jay Chaudhry, Chairman and CEO of Zscaler. “We recently delivered AI Guardrails for Public and Private apps, and we are rapidly expanding our AI security portfolio to address the emerging risks of AI models and applications.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for 01 Quantum Inc. by 01 Quantum Inc. We own ZERO shares of 01 Quantum Inc. Please click here for full disclaimer.
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ST. PAUL — A former Northland resident will repay more than $45,000 to his former employer for misusing their computer systems to mine cryptocurrency for personal gain.
Joshua Paul Armbrust, 45, was sentenced Tuesday by U.S. District Judge Jerry Blackwell to three years of probation following his
April guilty plea to a felony count of computer fraud.
Armbrust, according to court documents, continued to use the resources of Digital River, a Minnetonka-based global e-commerce and payment processing company, for more than a year after he resigned in February 2020.
Through the scheme known as “cryptojacking,” he took advantage of the now-defunct company’s computing power to obtain and liquidate $5,895 worth of Ethereum — while forcing Digital River to absorb $45,270 worth of web service fees.
“The defendant’s conduct strikes at the core of digital trust and security in the modern economy,” Assistant U.S. Attorney Bradley Endicott told the court. “Companies rely on former employees to act ethically, even after separation, and to respect corporate systems and data.
“Unauthorized access to corporate cloud infrastructure not only creates financial harm, as in this case, but also exposes sensitive systems to potential compromise and opens the door to more severe cyber threats.”
Armbrust was
living in Orr when he was indicted by a federal grand jury last November.
Records indicate he has since relocated to St. Paul and is working for an insurance company.
Endicott said the scheme came to light only because Digital River, which went out of business in January, conducted an internal investigation and discovered the unauthorized activity, which was then traced back to Armbrust’s IP address.
Defense attorney William Mauzy told the court Armbrust had been given a code to access Amazon Web Services, which hosted programs that Digital River was using to mine cryptocurrency.
After leaving the job, the defendant used that same code to build a program to generate cryptocurrency for himself — leveraging the services between 6 p.m. and 7 a.m. daily, and then transferring the Ethereum into a digital wallet he controlled.
Endicott said it was “not a momentary lapse in judgment” but a “calculated and covert misuse of enterprise-level computing resources for private enrichment.” It “resulted in real monetary losses, investigative costs and operational disruption to a private company.”
“The defendant is clearly a capable and technically skilled individual,” the prosecutor said. “But instead of using those talents for constructive and lawful purposes, he chose to exploit his former employer for personal gain. It is disappointing that someone with this ability used his skills to steal.”
Mauzy, though, noted the scheme occurred “during a time of extreme financial need and considerable emotional distress,” as Armbrust was caring for his mother, who was in deteriorating health and has since died.
The attorney said the evidence clearly shows his client was not a “malicious hacker” who set out to disable his former employer’s computer systems. He made no efforts to cover his tracks and has accepted responsibility for the financial losses.
“Armbrust’s conduct, while criminal, was an act of desperation and despair,” Mauzy wrote, “not a crime of greed.”
The probationary term was expected, as both sides jointly recommended it under the plea agreement. Armbrust has no prior criminal history.
The FBI handled the investigation.
Tom Olsen covers crime and courts and the 8th Congressional District for the Duluth News Tribune since 2013. He is a graduate of the University of Minnesota Duluth and a lifelong resident of the city. Readers can contact Olsen at 218-723-5333 or tolsen@duluthnews.com.
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