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arXiv:2608.09867cs.CR

Stealing Reasoning Traces from Proprietary LLM APIs

Alexander Panfilov, David Schmotz, Ilia Shumailov, Luca Beurer-Kellner, Joachim Schaeffer, Ameya Prabhu, Jonas Geiping, Maksym Andriushchenko

Abstract

Leading large language model providers now conceal their models' step-by-step reasoning, or chain-of-thought, to protect intellectual property and limit information leakage. Rather than storing these traces server-side, providers return them to the client as blocks of encrypted text, which the client passes back with each subsequent request. Building on prior research, we identify an architectural vulnerability: these encrypted blocks are fully compatible and interchangeable across different sessions, users, and models within a provider's ecosystem. We exploit this compatibility to develop a scalable decryption jailbreak. By injecting an encrypted reasoning trace from a given model into a weaker, and less safeguarded model from the same provider, we force it to decode and output the trace verbatim in plaintext, without ever jailbreaking the more capable model directly. This vulnerability enables four distinct attack vectors. First, it circumvents anti-distillation mechanisms, allowing adversaries to extract a proprietary model's reasoning, as we demonstrate across Anthropic, OpenAI, and Google. Second, it allows for large-scale private data extraction. Developers frequently share session logs publicly, unaware of contents of the encrypted blocks. By decoding 315,320 reasoning blocks scraped from public repositories, we recovered 367 Personally Identifiable Information (PII) artifacts and 182 credentials. Third, it inadvertently reveals hazardous information hidden within the reasoning process, even in cases where the model's final, visible output safely rejects a malicious request. Fourth, attackers can leverage this flaw to execute invisible prompt injections, embedding malicious payloads entirely within encrypted blocks to poison public agentic rollouts. Following responsible disclosure, we propose concrete cryptographic and system-level mitigations to secure client-side reasoning.

arXiv comments
Journal reference
DOI
Subjects
cs.CRCryptography and Security cs.AIArtificial Intelligence cs.LGMachine Learning

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Linked by 4 identifiable commenters in 5 comments across 4 threads, from Aug 2026 to Oct 2026. Found in 9 HN submissions from Aug 2026 to Sep 2026. Open submission discussions.

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Discussed in comments4 threads

    • I noticed last night that openai had fallen way down the index, and I allowed myself to think for a minute that maybe AA aren't as biased as I thought. Then a few hours later they push this fix which sees openai rise again. This update is even worse than usual because it now…

      irthomasthomasView on HNParent context

    • According to the paper "Stealing reasoning traces from proprietary llms" [0] all frontier models overthink. Thinking is good. You just don't see it in proprietary harnesses because it's literally cryptographically hidden from you. [0] https://arxiv.org/pdf/2608.09867

      johnnyApplePRNGView on HNParent context

    • Have you seen the news about decrypting the hidden COT in U.S. models? [0] The decoded logs revealed instances where Claude memorized answers to test questions beforehand while making its final output look like it had derived the answer step-by-step—hiding the memorization from…

      irthomasthomasView on HNParent context

    • pdf https://arxiv.org/pdf/2608.09867 for some reason I couldn't find any way to download it from that website.

      xmcqdpt2View on HNParent context

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