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HomeDeFiFBI alerts US investors on using DeFi platforms over increase in cybercriminal...

FBI alerts US investors on using DeFi platforms over increase in cybercriminal activity

The US Federal Bureau of Investigation in their Public service announcement on August 29, warned DeFi investors and revealed that the DeFi platforms exploit caused a drain of $1.6 billion from these platforms in 2022.

In official PSA, the FBI also requests users to cross-check the DeFi platforms prior to utilising them. It additionally encouraged protocols to enhance their observing and thoroughly test the platforms.

FBI further cautioned and said due to an increased interest of investors in cryptos, cybercriminals were forcefully focusing on the DeFi sector to exploit the investors. The FBI continued and said cybercriminals are taking advantage of the loopholes in the smart contract to govern DeFi protocols to take cryptocurrencies.

The FBI in February said that to steal $321 million from the Wormhole bridge, hackers utilise the “signature verification vulnerability.” It said in July that in order to cause an exploit on the Solana DeFi platform, a flash loan attack was used.

However, an attack on the Wormhole bridge is just a drop in the ocean. As per CertiK, more than $1.6 billion was taken from the DeFi platforms, greater than the aggregate sum taken in 2020 and 2021.

FBI expressed that all investment types come with certain levels of risk. The organisation also urged investors and said before investing in any DeFi platforms, do a search about the platform and seek guidance from authorised monetary organisations.

Moreover, the FBI said to protocols that it is vital for them to ensure that they have an audit of their code and independent auditors should do this process. The code audit also incorporates looking into the basic code to recognise shortcomings and weaknesses.

DeFi platforms should periodically check the code to find weaknesses and play their role in enhancing the security of the platform. One more proposal incorporates informing clients about weaknesses, exploits, hacks and other doubtful activities.

FBI also asked US targeted users, who are falling for the hacking activity, to contact the office by the local FBI office or Internet Crime Complaint Center.

Lisa Monaco, US Deputy Attorney General announced that the FBI was supporting its endeavors to address wrongdoing inside the crypto space by making the Virtual Asset Exploitation Unit.

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