The Federal Bureau of Investigation (FBI), in a Monday announcement, warned investors about the security risks associated with DeFi platforms. The FBI asked anyone who suspects that their investments were stolen to contact the FBI via the Internet Crime Complaint Center or the local FBI office.
According to Chainalysis, the FBI released a Public Service Announcement Monday stating that cybercriminals had stolen $1.3 billion worth of cryptocurrencies between January and March 2022. Nearly 97 percent of the seized cryptocurrencies were taken from Defi platforms.
This represents a significant increase over the 72% and 30% respectively in 2020 and 2021.
Cybercriminals seek to exploit DeFi platform’s open-source nature and complex cross-chain functionality, as well as investors’ interest in digital assets. They exploit vulnerabilities in flash loans, signature verification, and crypto price pairs, according to the agency.
Recommendations of the FBI
An announcement includes a list of recommendations. It begins with a warning that investments can be risky. It recommends seeking out advice from licensed financial advisors. Investors are also warned about code flaws in crowdsourced solutions and decentralized platforms.
The FBI offered some suggestions to Defi platforms for protecting themselves against cyberattacks and the theft of funds. These include the installation of real time analytics and strict code audit.
Not just in the USA
Two weeks ago, the Securities and Exchange Commission of Thailand (“Thai SEC”) issued a similar warning to domestic investor against DeFi platforms. The associated risks included rug-pulls and overleveraged collaterals.
The FBI stated in April that cyber-criminals APT38 (also known as Lazarus Group) were responsible for hacking Ronin Bridge. $625 million was stolen.
A few days prior to this heist the FBI, Treasury Department and Cybersecurity and Infrastructure Security Agency had issued a joint advisory warning investors about cyberattacks on their crypto funds.
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