Anthropic’s latest public AI release has revived concerns in the crypto sector that advanced language models could make it much easier to uncover software vulnerabilities and exploit them at scale. The company introduced Claude Mythos 5, also referred to as Fable 5, on Tuesday, describing it as suitable for general use while retaining safeguards that divert some cybersecurity-related requests to a separate model.
The move follows Anthropic’s earlier disclosure that Mythos had identified more than 10,000 high- or critical-severity vulnerabilities in important software systems. That finding has prompted debate over whether a model with that level of capability should be widely available, even with restrictions in place. Anthropic acknowledged that releasing such a powerful system carries risks if its abilities are used to cause harm.
Crypto market participants have been especially alert to the announcement because AI tools are already being used in attacks against digital-asset platforms. In April, the value of crypto stolen in hacks reached $629.7 million, the highest monthly total since February 2025, with analysts partly blaming the growing use of AI in offensive operations.
Simon Dedic, founder of Moonrock Capital, argued that the cost and technical skill needed to identify exploitable flaws in smart contracts could fall sharply. He warned that unaudited protocols could become easy targets and that known vulnerabilities could be repeatedly exploited across forks and smaller projects.
Not everyone in the industry sees the threat as immediate. Michael Egorov, co-founder of Curve Finance, said the model’s success in large-scale software analysis may not translate directly to DeFi smart contracts, which are generally much smaller and may already be within the reasoning range of human developers and existing AI tools.
Anthropic also said a limited group of cybersecurity and infrastructure firms will receive access to a version of the model with fewer safety limits, underscoring the company’s view that the technology has legitimate defensive applications even as its offensive potential worries crypto users.The US Dollar Index held modest gains near 100 during Asian trading on Wednesday, supported by a sharp rise in geopolitical risk. Demand for the dollar strengthened after the United States carried out fresh strikes on Iran in response to the downing of a US helicopter gunship near the Strait of Hormuz.
Tensions in the Middle East intensified further as Iran’s Islamic Revolutionary Guard Corps said it had launched drone attacks against the US Fifth Fleet in Bahrain, as well as the Ali Al Salem base in Kuwait. It also said a US base in Jordan was targeted by missile fire. The back-and-forth strikes have raised concerns that the confrontation could spread across the region.
The prospect of a broader conflict has reinforced the dollar’s appeal as a safe-haven currency. In periods of heightened uncertainty, investors often move into assets perceived as more stable, and the greenback tends to benefit from that shift.
Attention is also turning to US consumer inflation data due later on Wednesday. The report is expected to provide fresh clues on the Federal Reserve’s policy path at a time when markets remain sensitive to interest-rate expectations. A stronger-than-expected reading would likely increase speculation that the central bank may need to keep rates elevated for longer, which would generally support the dollar.
Rate expectations have already moved higher in recent weeks. According to CME FedWatch data, traders are now pricing in a 47% probability of a quarter-point rate increase in December, up from about 14% a month earlier. That change reflects both firmer inflation concerns and a more cautious view of the policy outlook.
