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DeFi have lost $500 million to attacks and fraud

 

According to CipherTrace, a blockchain analytics startup, decentralised financial systems (DeFi) lost $471 million between January and July of this year owing to attacks and fraud.

 

According to the Report on Cryptocurrency Crimes and Money Laundering, which was released today, August 10, the DeFi suffered losses of USD 329 million in piracy and fraud in the second quarter of 2021.

 

Furthermore, the attacks resulted in losses of USD 35.6 million in the first month of the third quarter, totaling USD 471 million as of the time the paper was presented.

 

According to the data supplied by the corporation, the number of attacks until July 2021 climbed 2.7 times over the previous year, and this figure is expected to rise further.

 

Furthermore, DeFi-related fraud accounts for 54 percent of the volume of cryptocurrency fraud, a significant rise over 2020, when it accounted for only 3 percent of the total.

 

CipherTrace, on the other hand, believes that overall bitcoin fraud and criminality have decreased in comparison to past years. According to the corporation, it was USD 4.5 billion in 2019, USD 1.9 billion in 2020, and USD 681 million in the first seven months of 2021.

 

Crimes against DeFi are classified into two types, according to CipherTrace. The first are cyberattacks on DeFi protocols carried out by external agents, while the second are robberies carried out by platform employees.

In that regard, they ensure that external agent attacks account for 76% of all attacks, with the remaining 24% being rugpulls or “carpet pulls,” a tactic in which cryptocurrency engineers abandon a project and flee with investor funds.

Part of the cryptocurrency intelligence firm’s report outlines several of the most notorious hacks in recent months.


One of these is the attack on the American pipeline controlled by Colonial Pipeline in Texas, in which the Russian gang DarkSide encrypted the network’s equipment and took unencrypted materials, threatening to reveal them to the public if the firm did not pay the ransom of 75 BTC.