How Hackers Stole Over $6 Billion From DeFi Protocols In Just One Year

B. Ali
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It has been reported that hacks of the DeFi sector rose in the year 2022, with Bug Bounty Hunting Training’s crypto analyst Kofi Mensah stating on February 4th, 2023 that hackers had stolen in excess of $6 billion using DefiLlama data. In 2022, the Ronin attack was the most prominent DeFi hack and other significant security vulnerabilities were also seen. It is worth mentioning these incidents as they are crucial to shaping the future of DeFi platforms.

Ari Redbord, Head of Legal and Government Affairs, Issues a Warning

Moving on, the community must be cautious and aware of the possibility of hacks and security breaches as the DeFi ecosystem expands. Ari Redbord, former US Department of Justice (DoJ) prosecutor and head of legal and government affairs of TRM Labs, issued a warning in December 2022 that hackers are upgrading their techniques. He suggested that DeFi systems keep up with the times by improving and upgrading their security protocols.

However, the “blockchain intelligence technologies” are allegedly required to find and monitor cryptocurrency mixers before they can be used for money laundering to locate and identify criminal behavior on DeFi platforms.

Nevertheless, blockchain intelligence tools are necessary to find and monitor cryptocurrency mixers to track down and spot unlawful activity on DeFi platforms. However, the use of these technologies will increase trustless protocols’ security and dependability, enabling law enforcement and cybersecurity experts to detect and stop criminal activity.

Illegal Cryptocurrency Trades Totaling $20 Billion

According to a recent analysis from New York-based analytics company Chainalysis, illegal cryptocurrency transactions reached a new high of $20.1 billion in 2022, a 40% increase from the previous year. The article claims that a significant portion of this money was stolen by North Korea.

As previously noted, criminals and hackers use both centralized and decentralized methods to move and launder illicit funds. Although those who seek to engage in illegal activities in the DeFi and crypto space are becoming more skilled, legislation, tools, and people are also developing as a countermeasure.

Recently, a global investigation coordinated by French, American, and Europol law enforcement brought down the cryptocurrency trading platform Bitzlato. According to investigations, 46% of all Bitzlato transactions—or around $1 billion—were linked to criminal operations such as money laundering, con games, cyber-attacks, and the sale of materials that violate children’s rights.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.