The US Federal Bureau of Investigation issued a warning to DeFi platform users on Monday about the ongoing cyber-criminal activity. The flaws of these decentralized finance platforms are being constantly exploited to plunder digital assets and blockchain technology.
The FBI agency notified the public that DeFi platforms are vulnerable to hackers and cyber-criminals. Users who invest in cryptocurrencies and other digital assets must exercise extreme caution.
Cybercrimes are being conducted in several ways while the hackers plan on stealing digital assets through flash loans, which trigger the vulnerabilities in a platform’s smart contracts. The hackers use loopholes in signature verification systems by withdrawing all the investments through token bridges.
The #FBI warns that cyber criminals are increasingly exploiting vulnerabilities in decentralized finance (DeFi) platforms to steal investors cryptocurrency. If you think you are the victim of this, contact your local FBI field office or IC3. Learn more: https://t.co/fboL1N17JN pic.twitter.com/VKdbpbmEU1
— FBI (@FBI) August 29, 2022
Hackers Manipulate Cryptocurrency Prices Before Stealing
The FBI suggested that these hackers are also manipulating the prices of the crypto pairs, or assets, which can be traded for one another through the exchanges. This enables them to exploit vulnerable loopholes, bypassing the slippage checks. Using such exchange methods, the attackers have nearly stolen $35 million from the digital funds.
The attackers are taking advantage of the public’s growing interest in investing in digital assets and operating through DeFi platforms. Again, the FBI wanted to suggest that the hackers were preying on opportunistic notions.
Most of the DeFi attacks worldwide have been linked to the hackers of North Korea—the Lazarus Group, who have been accused of stealing more than $1 billion through the DeFi platform hacks.
Law enforcement authorities asked the users to base their financial objectives and decisions on reliable sources; in any confusion, the public is advised to take recommendations from a licensed financial advisor.