scorecardresearch

Warnings issued by FBI over DeFi crime exploits

According to Cointelegraph, in a public service announcement on the FBI’s Internet Crime Complaint Center, the agency stated that the exploits have caused investors to lose money

Warnings issued by FBI over DeFi crime exploits
US Deputy Attorney General Lisa Monaco announced that FBI was increasing efforts to address crime in the digital asset space through formation of the Virtual Asset Exploitation Unit

The US Federal Bureau of Investigation (FBI) has released new warnings for investors in decentralised finance (DeFi) platforms which have been targetted with $1.6 billion in exploits in 2022, as reported by Cointelegraph.

According to Cointelegraph, in a public service announcement on the FBI’s Internet Crime Complaint Center, the agency stated that the exploits have caused investors to lose money, and suggested investors to do research on DeFi platforms befor their usage while also urging platforms to improve monitoring and conduct code testing. FBI warned that cybercriminals aim to take advantage of investors interest in cryptocurrencies, and the complexity of functionality around open source nature of DeFi platforms. The FBI has seen behavior among cybercriminals to exploit vulnerabilities in smart contracts which govern DeFi platforms for stealing investors’ cryptocurrency. 

On the basis of information by Cointelegraph, since the start of 2022, over $1.6 billion has been exploited from the DeFi space, which surpassed the total amount stolen in 2020 and 2021 combined. FBI has recommended that investors should conduct proper research of DeFi platforms and seek advise from a licensed financial advisor. The agency referred to the conducting of code audits performed by independent auditors, which refers to a review of the platforms underlying code to identify vulnerabilities to be exploited. “Open source code repositories allow access to all individuals, to include those with intentions,” FBI said in a statement.

Moreover, Cointelegraph noted that FBI spoke on how DeFi platforms can play a part in increasing security by testing their code to identify vulnerabilities, along with real-time analytics and monitoring. FBI has urged American investors, targeted by hackers, to contact them through the Internet Crime Complaint Center or their local FBI field office. Earlier, US Deputy Attorney General Lisa Monaco announced that FBI was increasing efforts to address crime in the digital asset space through formation of the Virtual Asset Exploitation Unit.

(With insights from Cointelegraph)

Also Read: Rugby player Siya Kolisi collaborates with Luno to launch new cryptocurrency campaign

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.