FBI Issues Warning Regarding the Use of DeFi Platforms

30.08.2022 09:57
by Gabriel Cross
1 min read

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.

Author

  • Gabriel Cross used to be a bank officer for an international bank for many years. From this point of view, he says the time spent obtaining a degree in economics was a waste of time. A few years back, he decided to quit his job and start trading. He is obsessed with decentralized finance, but he often plays with the stock market, investing with great pleasure into ground-breaking tech solution startups.

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