Over $2.45 billion stolen in DeFi – FBI

The U.S Federal bureau of investigation in its latest statement, issued a warning to investors on DeFi platforms informing of a series of exploitation carried out by cyber hackers within the DeFi ecosystem to siphon cryptocurrencies.

The statement noted,

“Cyber Hackers seek to take advantage of investors’ increased interest in cryptocurrencies, as well as the complexity of cross-chain functionality and open source nature of DeFi platforms”.

The agency stated that in January and March this year, a whopping $1.3billion in crypto was stolen of which 97% was from DeFi platforms. Crypto theft on DeFi platforms has constantly been on the rise yearly from 30% in 2020 and 72% in 2021.

The Federal bureau of investigation said it had observed criminals exploiting and manipulating signature verifications, bypassing slippage checks, and treading on the flash loan route.

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Flash loans in the past were a way to steal funds from projects in the DeFi ecosystem but in recent times, the majority of the theft have been executed without using flash loans. As of today, Ethereumremains the most targeted blockchain for exploitation.

The FBI after carrying out research and ensuring DeFi platforms have conducted audit checks, made certain recommendations to investors. The FBI encouraged investors to carry out detailed research on DeFi platforms, protocols, and Smart contracts and be aware of the risks associated with DeFi investments.

In the same vein, DeFi platforms were asked to implement real-time analytics, monitor closely, and rigorously test code to single out vulnerabilities and react to indicators of suspicious activity of any kind.

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