FBI Alerts the Investors Regarding the Recent DeFi Scams

August 31, 2022 World Blockchain

Following the DeFi attack warning from the U.S Federal Bureau of Investigation (FBI), the latest data reveals that, since the beginning of decentralized finance (DeFi), approximately $2.45 billion has been stolen. The FBI has recently issued a warning to investors that cybercriminals are highly increasing in DeFi platforms to steal cryptocurrencies. This will result in financial loss for investors, as per the FBI.

Scam Activities Increasing in DeFi
The FBI has noted that the cybercriminals stole $1.3 billion in cryptocurrencies between January and March 2022, almost all of which came via DeFi networks. There is also an increase from 72% in 2021 to 30% in 2020. Additionally, they pointed out that criminals take advantage of flash loans, signature verifications, manipulate cryptocurrency prices, and slippage checks.

FBI stated:
Initiating a flash loan that triggered an exploit in the DeFi platform’s smart contracts, causing investors and the project’s developers to lose approximately $3 million in cryptocurrency as a result of the theft. Exploiting a signature verification vulnerability in the DeFi platform’s token bridge and withdraw all of the platform’s investments, resulting in approximately $320 million in losses.

Additionally, the FBI proposes some recommendations to the DeFi investors and suggests being aware of the risk around DeFi investments. Apart from this, the agency also recommends the DeFi platforms create and implement an incident response strategy that involves notifying investors of any exploitation of smart contracts, vulnerabilities, or other unusual activities.