FBI Warns Against DeFi Crimes

by in DeFi News

FBI warns against DeFi crimes

On August 29, The Federal Bureau of Investigation released an announcement warning investors that the number of exploits in DeFi platforms has been growing resulting in investors' losing money.

Related: OneCoin Founder Ruja Ignatova In FBI's Most Wanted List

The authority encouraged investors who suspect criminals that have stolen their investments to contact the Internet Crime Complaint Center or their local FBI field office.

FBI mentioned that from January to March 2022, cyber criminals stole about $1.3 bln in crypto, almost 97% of which was stolen from DeFi platforms. In 2021, the percentage was 72 and in 2020 it was 30. The most common hacks are: initiating a flash loan finding a vulnerability in a DeFi platform's smart contract ($3M stolen), exploiting a signature verification vulnerability ($320 M stolen), and manipulating crypto price pairs ($35 M stolen).

The FBI recommended investors to make their decisions based on financial objectives and resources, do research, and make sure that platforms have conducted code audits. The agency also recommended DeFi platforms to institute real time analytics, monitoring, and code testing, also implementing incident response plans and informing investors about smart contract exploitation.