FBI Issues Warning Regarding the Use of DeFi Platforms

1 year ago 53

The Federal Bureau of Investigation has issued a warning to the public, outlying the potential dangers of using decentralized finance (DeFi) platforms.

FBI cites the report made by blockchain analysis company, Chainalysis, claiming that $1.3 billion worth of crypto was stolen between January and March 2022. And 97% of that sum was taken from DeFi platforms.

The agency has identified three common methods of theft: flash loans (as was the case with, for example, bZx), token bridge attacks (Nomad), and manipulating crypto prices (Deus Finance). The attackers are exploiting the open-source nature of DeFi platforms and the complexity of their cross-chain functioning.

In order to stay protected, FBI suggests careful research. Red flags include a lack of code audits made by independent auditors, as well as investment pools having extremely narrow timeframes for joining and deploying smart contracts. In short – stay vigilant.

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