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Ciphertrace: crypto crime is shifting to DeFi

The growth of decentralized finance also attracts the attention of hackers

Crypto-related crime would be massively shifting to decentralized finance. At least that's the conclusion of the report dedicated by ciphertrace, a company that studies this kind of phenomena, to what happened during the first four months of the year. The study is titled "Report on cryptocurrency and anti-money laundering crime" and provides an extremely interesting picture on the evolution of crimes related to cryptocurrency against last year.

hacking - Ciphertrace: crypto crime is shifting to DeFi

What does the Cryptocurrency and Anti-Money Laundering Crime Report Says?

The company, one of the largest in its field, so much so as to have relations with the United States government in terms of combating criminal activities related to digital assets, started from an interesting discovery: during the four months of the current year , in fact, the crypto sector would reveal itself much less exposed compared to what had happened last year. Faced with more than $ 1,9 billion stolen from cybercrime in that time frame, now the total would stand at 432 million.
The other discovery of some importance is precisely related to the shift in perspective of the criminal gangs which have been raging on the web for some time now. If simple hacking prevailed until last year, now the hackers are focusing on DeFi. Which is clearly considered a much easier and more profitable hunting ground.

Decentralized finance is the new target

To better understand what is happening, just take a quick look at the figures highlighted by the Ciphertrace report. In fact, it would amount to a 156 million dollars the total subtracted with this kind of operations in the first quarter of 2021. A figure that already goes beyond the loot collected during the whole previous year. Which had stopped below the 100 million mark.
The most sensational scam related to decentralized finance, at least at the moment, is that of the rete PAID, which allowed hackers to coin well 150 million dollars in currency. The developers of the project eventually spotted the scam and withdrew cash in order to mint another currency, but in the meantime PAID has lost more than 85% of its value, with damage extended to all investors.
On the other hand, the booty in the case of Easyfi was limited to 80 million dollars, a Polygon-based protocol. The result of a vulnerability in the security system whereby hackers were able to steal the private keys of the wallet from the computer of a member of his team.

The Ciphertrace alarm

Precisely on the basis of what emerged during the drafting of the report, the analysts of Ciphertrace have formulated a forecast which provides for a notable elevation of the figures that will be illegally stolen by hackers from decentralized finance investors over the next few months.
Not only due to the foreseeable growth of the sector, which is already underway, but also due to the consolidated habit of many users to underestimation of the possible dangers associated with this kind of activity. A habit that in fact risks opening real prairies to computer piracy. Which, for its part, has already realized how inviting decentralized finance is. And she's just waiting to be able to join the party, in her own way, of course.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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