The FBI has issued warnings for investors in decentralized finance platforms, which have been targeted with $1.6 billion in exploits in 2022.
In a public service announcement on the FBI’s Internet Crime Complaint Center, the agency said the exploits have caused investors to lose money and advised investors to conduct diligent research about Defi platforms before using them, while also urging platforms to improve monitoring and conduct m rigorous code testing.
The law enforcement agency warned that cybercriminals are out in force to take advantage of “investors’ increased interest in cryptocurrencies, and the complexity of cross-chain functionality and open source nature of Defi platforms. The FBI observed cybercriminals exploiting vulnerabilities in smart contracts that govern DeFi platforms in order to steal investors’ cryptocurrency.
The FBI mentioned cases where hackers used a signature verification vulnerability to plunder $321 million from the Wormhole token bridge back in February. It also mentioned a flash loan attack that was used to trigger an exploit in the Solana DeFi protocol Nirvana in July.
However, that’s just a drop in a vast ocean; according to an analysis from blockchain security firm CertiK in M, since the start of the year, over $1.6 billion has been exploited from the DeFi space, surpassing the total amount stolen in 2020 and 2021 combined.
While the FBI admitted that all investment involves some risk,the agency has recommended that investors research DeFi platforms extensively before use, and when in doubt, seek advice from a licensed financial adviser.
