FBI Issues Warning Over Cyber Criminals Targeting DeFi Platforms 

The United States FBI (Federal Bureau of Investigation) has issued another warning to the crypto community. However, this time it is for investors in DeFi (decentralized finance) platforms. 

According to the report, cybercriminals are targeting DeFi platforms. Meanwhile, the DeFi sector has lost over $1.6 billion to cyberattacks in 2022.

The FBI Warns About Attack On DeFi Platforms 

On August 29th, the FBI made an announcement on its Internet Crime Complaint Center. The report stated that DeFi exploits by cybercriminals have caused investors to lose millions of dollars.

Therefore, the agency cautioned investors on the kind of DeFi platforms they invest in. It advised investors to do their research before investing in any platform.

The FBI also urged DeFi platforms to improve security and conduct thorough testing. According to the report, cybercriminals are looking for ways to exploit the increased interest of investors in crypto. They are also exploiting the open-source nature of decentralized platforms.

Over the past months, there have been numerous cases of hackers taking advantage of loopholes in smart contracts governing DeFi platforms. This has led to the loss of crypto assets on these platforms. 

The FBI report mentioned the exploitation of the Wormhole token bridge in February. Hackers exploited a vulnerability in the signature verification to siphon $321 million.

Additionally, the report mentioned the flash attack on Nirvana, a Solana-based DeFi protocol, in July. Several investors lost their assets following the attack.

According to CertiK, a blockchain security company, hackers have exploited more than $1.6 billion from the DeFi sector in 2022. This is more than the total amount exploited in 2021 and 2020 combined.

FBI’s Recommendation For Investors And DeFi Platforms 

Meanwhile, the FBI acknowledged that there is some level of risk in all investments. However, it advised investors to do research on any platform before using it. 

The agency added that DeFi platforms should ensure their protocols are well secured. DeFi platforms should also audit their codes regularly so they can detect and fix loopholes quickly.

A code audit entails an inspection of the network’s underlying code to find any weaknesses or flaws that may be exploited.

Other recommendations by the agency for DeFi platforms include a response plan in the case of an attack, informing investors of exploits, suspicious activity, or hacks on the platform.

At the beginning of 2022, Lisa Monaco, the United States Deputy Attorney General, revealed that the FBI was intensifying efforts to address crypto crime. As a result, the agency formed a team for Virtual Asset Exploitation.

The team is committed to fighting crime in the crypto sector and has experts that can perform blockchain analysis. This is part of the agency’s new drive to disrupt global criminal networks. It would no longer dwell on only prosecuting them.