As the cryptocurrency ecosystem generated a lot of money, it ended up becoming the target of cybercriminals. Thus, the year 2020 will have been marked by numerous cases of wallet hacking and cryptocurrency scams. However, recent data suggests that all crime in this ecosystem is on the decline. Only here, the DeFi sector does not seem to have followed this trend thus becoming a new hotbed of criminal activity.
20% of crypto losses due to theft and hacks come from DeFi
According to the analysis company CipherTrace, the total losses due to crypto theft, hacks and fraud in 2020 currently stand at $ 1.8 billion. A marked decline compared to the 4.4 billion losses reported the previous year. CipherTrace data confirms supplier data Atlas VPN who signaled a drop of more than 50% in cases of blockchain hacks at the end of the first semester of the current year.
A feat that the company attributes to the efforts made in terms of safety by the main players in the industry. “What we found is that exchanges and other players in the cryptosphere have implemented more security procedures. […] They followed the advice and implemented the procedures to better secure their funds. So you will see less large-scale hacks “.
These words which are those of Dave Jevans, CEO of CipherTrace, almost make us forget another much less happy reality. Indeed, the same structure pointed out that there was a significant increase in cases of hacking in DeFi. There would be 20% of crypto losses due to thefts and hacks that come from DeFi. The report of CipherTrace thus specifies that a greater number of hackers have been attracted by the crazy growth of DeFi making it their new target.
New stronghold of money laundering
The interest of criminals in DeFi is not only to spoil users, but also to launder their money. This is particularly what suggests Mr. Jevans which regrets the lack of security verification tools for the various projects in this sector. “Businesses and individuals have brought DeFi products to market that have not undergone security verification and validation. […] So people realize that there is a weakness here He declared in particular.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
DeFi’s exposure to cybercriminals was indeed predictable considering that the industry has based its success on communicating relentless speculation. The mere mention of the huge sums ingested in the sector was already sufficient reason to attract hackers. However, they should look to another target now that DeFi is running out of steam.