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- The FBI released a document for raising awareness against cybercriminals.
- Malicious actors have stolen 1.3 Billion worth of cryptocurrencies.
- Hackers have exploited Decentralized Finance ecosystems primarily.
Cybercriminals Using Vulnerabilities
The Federal Bureau of Investigation (FBI) has issued a warning against the cybercriminals exploiting DeFi ecosystems. The announcement says that the malicious actors are taking advantage of the loopholes in smart contracts governing DeFi ecosystems to steal crypto assets from the investors.
According to the data gathered from blockchain analysis company, Chainalysis, attackers wiped out 1.3 Billion USD worth of crypto assets during January 2022 and March 2022. DeFi ecosystems account for 97% (around 1.26 Billion USD) of the stolen funds.
The document states that attackers used flash loans to steal digital assets worth 3 Million USD and signature verification vulnerabilities to wipe 320 Million USD. They also manipulated the crypto prices to lure the investors in their traps and left them holding the bags.
The FBI suggested the investors take preventive measures to stay clear of such frauds. Folks should conduct thorough research before throwing their money into any ecosystem. They should confirm that the smart contracts are audited by independent auditors. The audits are performed to analyze and identify vulnerabilities in coding. They also recommended the citizens to remain aware of DeFi pools with limited time periods.
Finally the bureau recommended the DeFi platforms to perform real time analysis, monitoring and thorough testing of underlying codes. The organizations should develop a contingency plan in case of any loopholes or any other malicious activity is found in the system.
Decentralized cryptosphere may eliminate the central entities from the space — the prime aspect attracting the users into the sector. But here’s the perils of decentralization: it invites malicious actors along with the investors. They enter the system to take advantage of the loopholes presented by the developers on a silver platter.
There are a plethora of crypto coins and tokens in the market and it becomes really difficult to identify an authentic asset to make an investment. This is why the investors are required to conduct a thorough research before investing their funds into the project.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
