Skip to content Skip to sidebar Skip to footer

Crystal Blockchain: DeFi is crypto crime’s main arena

According to the latest report, scammers and hackers have moved on from centralised entities and are targeting decentralised platforms to commit crimes. Since 2011, hackers have attacked centralised platforms and have collected a ransom of $14.5 billion.

According to Crystal Blockchain analytics released recently, the scammers have shifted their focus to the decentralised finance units to target and collect a ransom. Within 11 years, more than 167 hacks have been made on the DeFi Protocols, and 123 times the security has been breached on the centralised exchanges.

These hackers have funnelled more than $4 billion from the DeFi projects, and the scammers benefited from the remaining billion dollars. Since the advent of decentralised protocols in 2021, hackers have attacked the projects not less than 20 times more than they did the centralised entities.

CoinDesk - Unknown

The report released by Crystal Blockchain states that the top 10 DeFi platforms were the ones exposed to most of the attacks and that more than $2 billion in funds have been stolen from them within a year.

Why have hackers shifted their attention to DeFi platforms?

The director of Crystal Blockchain’s intelligence and data, Nick Smart, has informed our sources that the main reason why hackers are more interested in the decentralised platforms now is because of the growth that the digital asset industry is currently experiencing.

These decentralised finance units are being exposed to such ransom attacks because they rush into the market without conducting proper tests. Also, meanwhile, DeFi platforms are exposed to vulnerability; most centralised entities have bowed to the norms of the regulators and are paying serious attention to security breaches.

However, Smart further stated that nothing is unhackable—with some creativity, talent, and proper timing and execution, a hacker can easily get through the toughest of security. Also, some nation-backed hacking systems are very focused and effective in creating targeted opportunities. One such illegal hacking group—Lazarus—is supported by North Korea.