What did the FBI say in the DeFi investment reminder?

The FBI is also paying attention to DeFi crime. On August 29, 2022, the FBI Internet Crime Complaint Center (IC3) issued a DeFi investment reminder on its official website. IC3 stated that the FBI has observed that cybercriminals are increasingly using smart contracts that manage DeFi platforms. Vulnerability steals investor’s cryptocurrency. The FBI encourages investors who suspect cybercriminals to steal their DeFi investments to contact the FBI through the Internet Crime Complaint Center or their local FBI field office.

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What does the FBI’s investment reminder say? Golden Finance will take you at a glance.

threaten

Cybercriminals are increasingly exploiting vulnerabilities in smart contracts that govern DeFi platforms to steal cryptocurrencies, resulting in losses for investors. A smart contract is a self-executing contract in which the terms of the agreement between buyers and sellers are written directly into code that exists in a distributed, decentralized blockchain network. Cybercriminals are trying to capitalize on the growing investor interest in cryptocurrencies, as well as the complexity of cross-chain capabilities and the open-source nature of DeFi platforms.

According to US blockchain analysis firm Chainalysis, between January and March 2022, cybercriminals stole $1.3 billion in cryptocurrency, nearly 97% of which was from DeFi platforms. This is an increase from 72% in 2021 and 30% in 2020, respectively.

Additionally, the FBI observed cybercriminals defrauding DeFi platforms by:

  • The flash loan triggered an attack on the smart contract vulnerability of the DeFi platform, causing investors and project developers to lose about $3 million in cryptocurrency due to theft.
  • Taking advantage of the signature verification vulnerability in the DeFi platform’s Token Bridge, all investments on the platform were withdrawn, resulting in a loss of approximately $320 million.
  • Stealing approximately $35 million in cryptocurrency by exploiting a series of vulnerabilities to manipulate cryptocurrency prices , including the use of a single price oracle by the DeFi platform, which then conducts leveraged trades that bypass slippage checks and benefit from price calculation errors.

Suggest

Investing involves risk. Investors should make their own investment decisions based on their financial objectives and financial resources and should seek advice from a licensed financial advisor if in doubt. Additionally, the FBI recommends that investors take the following precautions:

  • Research DeFi platforms, protocols, and smart contracts before investing, and understand the specific risks involved in DeFi investing.
  • Make sure that the DeFi investment platform has undergone one or more code audits performed by independent auditors. Code auditing typically involves a thorough review and analysis of the platform’s underlying code to identify vulnerabilities or weaknesses in the code that could negatively impact the platform’s performance.
  • Be wary of the addition of DeFi investment pools and the rapid deployment of smart contracts , especially without a sizable code audit.
  • Be aware of the potential risks crowdsourced solutions bring to vulnerability identification and remediation. Open source code repositories allow unrestricted access to all individuals, including those with nefarious intentions.

The FBI recommends DeFi platforms take the following precautions:

  • Code is analyzed, monitored, and rigorously tested in real-time to identify vulnerabilities and respond to indicators of suspicious activity faster.
  • Develop and implement an incident response plan, including alerting investors when smart contract exploits, vulnerabilities, or other suspicious activity are detected.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-did-the-fbi-say-in-the-defi-investment-reminder/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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