Stealing Reasoning Traces from Proprietary LLM APIs
Authors: Alexander Panfilov, David Schmotz, Ilia Shumailov, Luca Beurer-Kellner, Joachim Schaeffer, Ameya Prabhu, Jonas Geiping, Maksym Andriushchenko
Organizations: MATS Research · ELLIS Institute Tübingen · Max Planck Institute for Intelligent Systems · Tübingen AI Center · AI Sequrity Company · Snyk · University of Tübingen
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.
Reasoning traces have become a valuable form of learning signals for improving and transferring the capabilities of large language models. In particular, detailed traces can help distill reasoning behavior from stronger teacher models into weaker student models. The value of capability transfer has motivated many deployed systems with reasoning models to hide raw internal traces and expose at most summaries and answers to users. As a result, we ask whether such interface-level trace hiding prevents users from obtaining useful reasoning supervision through prompting. We study this question with Reasoning Exposure Prompting (REP), a lightweight in-context elicitation method that uses shadow-model-generated demonstrations wrapped in auxiliary code-like formats to raise user-visible reasoning traces from a victim model. Across the common reasoning dataset, different victim models, and different student model distillation, REP substantially increases similarity between exposed and REP-conditioned internal traces while preserving useful reasoning signals.
A key question for AI safety is whether a language model expresses all of its reasoning in its output tokens. We demonstrate a concrete failure mode where frontier models exhibit invisible reasoning by leveraging semantically irrelevant filler tokens to improve performance on synthetic reasoning tasks. We evaluate 13 frontier language models across three tasks and find that many models benefit significantly from filler tokens, with accuracy improvements of up to 13 percentage points. The benefit depends on which tokens are used and differs across models. We further show that filler tokens enable Claude Opus 4.5 to satisfy a hidden modular arithmetic constraint without sacrificing accuracy on its primary task, demonstrating that invisible reasoning can serve objectives entirely invisible to CoT monitoring. Reinforcement learning gives Qwen3-235B strong preferences over filler token content, but neither RL nor supervised fine-tuning produces a filler token benefit that persists at test time. Our results indicate that frontier models already perform consequential computation with no interpretable trace in their output tokens.
Large language model safety and security research is preoccupied with, among other things, detecting and preventing jailbreak attacks: alignment bypasses that allow an adversarial user to elicit unwanted or harmful outputs from models. Arbitrary cipher, or covert communication, attacks are one such type of jailbreak and have previously been demonstrated against the fine-tuning APIs of commercial models. In these attacks, target models are trained on a corpus of encrypted harmful questions and responses and subsequently respond to harmful requests through the learned encryption scheme. In this paper, we show that newer frontier models do not require fine-tuning to acquire cipher-based communication skills. Instead, they can learn these skills through prompting and, when necessary, through in-context learning. Furthermore, model alignment is significantly weakened or entirely bypassed when communication occurs through the learned cipher. To the best of our knowledge, this constitutes a novel attack vector against commercial black-box large language models. We demonstrate successful jailbreaks against frontier models developed by Anthropic, Google, and OpenAI. Our attack bypasses commercial harmfulness classifiers because harmful content is encrypted and therefore appears as nonsensical text or gibberish.