- FBI warns cyber criminals, who govern DeFi platforms and steal crypto from investors.
- The agency also encourages the investors to raise the voice against their stolen DeFi investments.
The Federal Bureau of Investigation (FBI) shared a Public Service Announcement (PSA) on August 29, 2022. It includes the threats by cyber criminals and recommendations for investors as well.
FBI recommends the people as “be alert to DeFi investment pools with extremely limited timeframes to join and rapid deployment of smart contracts, especially without the recommended code audit.”
‘Threat’ for The Cyber Criminal
In the PSA, the FBI firstly warned the cyber attacker who exploited vulnerabilities in the smart contracts. They govern the DeFi platforms to steal crypto which costs investors to lose money.
According to the FBI, the cyber criminal took advantage of investor’s massive interest in cryptocurrencies, and the complexity of cross-chain functionality and the open source nature of DeFi platforms.
The cyber criminals stole around $1.3 billion in crypto that is almost 97% of stolen crypto from DeFi platform. It was calculated between the months of January and March 2022. The data is collected from the U.S. blockchain analysis firm, Chainalysis.
‘Recommendations’ for DeFi Investors and Platforms
In addition, DeFi shared its recommendations for DeFi investors and its platforms. It added that “Investment involves risk. Investors should make their own investment decisions based on their financial objectives and financial resources and, if in any doubt, should seek advice from a licensed financial adviser.”
While for DeFi platforms, the FBI added the precautions that includes “Institute real time analytics, monitoring, and rigorous testing of code in order to more quickly identify vulnerabilities and respond to indicators of suspicious activity. Develop and implement an incident response plan that includes alerting investors when smart contract exploitation, vulnerabilities, or other suspicious activity is detected.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.