Decentralized Finance platforms have become vulnerable to exploits via smart contracts, cross-chain functionality, and open-source nature. Chainanalysis says 97% of cybercrimes were directed to DeFi.
The increasing worth of cryptocurrencies and investors spending thousands of dollars just to invest in this growing digital economy without proper regulation has motivated hackers to steal assets.
The FBI has asked investors to remain on guard when spending money on DeFi platforms and also to report to the organization if their assets are stolen by cybercriminals.
According to the FBI, most DeFi platforms exploit happened via a flash loan, signature verification vulnerability, or by manipulating cryptocurrency price pairs.
For every exploit, criminals stole millions of dollars leaving crypto investors empty and hopeless while the DeFi platforms struggled with recovering those funds.
The FBI instructs investors to research on DeFi platforms, ensure they are code audited by independent auditors, and be aware of the potential risk.
Cybercriminals have become more active in the crypto industry this year. As cryptocurrency and DeFi grow, more exploits are most likely to happen.