This Is What FBI Recommends to DeFi Investors

cryptonews.com:

With cybercrime increasingly hurting the DeFi sector, the US Federal Bureau of Investigation (FBI) is taking steps to warn investors and platforms about these risks, and is also recommending a set of precautions that could prevent them from losing their assets to criminals.

“Cyber criminals are increasingly exploiting vulnerabilities in the smart contracts governing DeFi platforms to steal cryptocurrency, causing investors to lose money,” the bureau said. “Cyber criminals seek to take advantage of investors’ increased interest in cryptocurrencies, as well as the complexity of cross-chain functionality and open source nature of DeFi platforms.”

With this in mind, the FBI recommends investors implement the following measures to protect their assets:

At the same time, the FBI cautions DeFi platforms to take the following precautions:

A recent report by blockchain analysis company Chainalysis indicates thatsome forms of crypto-based crime, including hacking and theft of funds, have so far increased in occurrence this year. The company’s analysts claim that much of this can be attributed to the rise in funds stolen from DeFi protocols, a trend that began last year.

“Through July 2022, USD 1.9bn worth of cryptocurrency has been stolen in hacks of services, compared to just under USD 1.2bn at the same point in 2021,” the company said._____Learn more: - What DeFi Offers Beyond Lending for Crypto Speculation- NFT Market Rises in a Day; Over USD 100M in NFTs Got Stolen in a Year, Says Elliptic- How to Spot the Next Celsius Before It’s Too Late- Nomad DeFi Bridge Drained of At Least USD 150M in 'Chaotic' 'Decentralized Robbery'- 7 DeFi Risks You Should be Aware of According to CoinShares- DeFi Suffers from Too Much Centralization, What