CipherTrace: "The number of crimes in the DeFi sector is on the rise"

According to the analytical company Ciphertrace, Losses from cryptocurrency fraud decreased this year, However, the number of crimes in the Defi industry has grown.

As reports Reuters with reference to Ciphertrace data, Losses from thefts, hacks and fraud in cryptocurrency Industry decreased to $1.8 billion in the first ten months of the year compared to 2019 year, When this indicator has reached $4.5 billion.

“We noticed, that exchanges and other cryptocurrency industry players have introduced more safety measures ", – Said CEPHERTRACE Director General Dave Jevans (Dave Jevans). “They introduced the procedures, To better secure assets. Now we will encounter a smaller number of large hacks ".

At the same time, the number of crimes in the decentralized finance sector (DeFi) Grows. So far this year, losses from cryptocurrencies of thefts and hacks related to cryptocurrencies, Excluding fraud, grew up to $468 Milln at the end of October, What's on 30% more, than $361 Milln for the entire last year.

Around 20% losses, on $98 million, associated with crimes in the Defi industry. According to Defi Pulse, The total cost of crypto assets blocked in the defi protocols $12.6 billion. The overwhelming part of these crypto assets came to the industry in 2020 year. At the beginning of the year, this indicator barely exceeded $1 billion. The growth of the popularity of Defi attracted hackers, who have repeatedly used vulnerabilities in protocols.

“Companies and private individuals hastily launched Defi products on the market, which have not passed the proper security verification ", – Jevans said. "Therefore, scammers found vulnerable places in protocols".

Recall, that recently hackers attacked
Harvest Finance decentralized finance protocol and were able to bring crypto assets to $25 million. This year, a decentralized BZX lending protocol was hacked three times. Damage from the first two attacks
did not exceed $1 million, But during the third attack, attackers were able to steal
Cryptocurrencies for the amount $8 million.