Hackers drain $ 10 million a month from DeFi projects

Hacks and scams in the cryptocurrency arena does not stop, changes its appearance according to the new innovative projects in the crypto field in general and in the new decentralized financing section in particular.

Yesterday, CipherTrace published a report showing that 40% of all hacks in the cryptocurrency arena in the first half of 2020 targeted decentralized financing protocols (DeFi) and cryptocurrency trading platforms.

CipherTrace found that $ 51.5 million of projects related to DeFi funding were stolen from January to June.

From July until the moment, this theft amounted to 47.7 million dollars.

DeFi projects refer to decentralized financial products, such as decentralized lending protocols, decentralized trading platforms, and other decentralized protocols.

These projects became particularly popular and popular this summer after they began to offer lucrative rewards to investors, who have pumped more than $ 14 billion in cryptocurrencies with these protocols in the past months until the moment.

For your information, many of these products are new, very experimental and unregulated, which makes them vulnerable to hack.

CipherTrace said in its report: "Decentralized financing protocols and projects usually come in a decentralized form, which means that they lack any clear regulatory compliance and can be accessed by anyone in any country with little information gathered about them and sometimes users enter them without knowledge at all. Another downside about decentralized financing projects is that they have become vulnerable to money laundering for many criminals."

Earlier this year the bZx margin lending protocol was hacked three times.

Twice, two million were stolen from the project in February, and the third theft occurred in September, at a cost of $ 8.1 million.

Also, $ 25 million was stolen from the dForce project in April of this year, but the hackers returned the money after it was blacklisted.

Another project that has been exhausted is the "Harvest Finance" project, from which $ 34 million was stolen.

CipherTrace said that the percentage of money lost due to the breaches of decentralized financing projects, DeFi and theft rose in the second half of the year due to the attack on the KuCoin digital currency trading platform, where nearly $ 281 million in cryptocurrencies were stolen from the platform.

According to CipherTrace, if the DeFi decentralized finance industry does not find a way to keep its smart contracts in shape, it is likely that decentralized finance projects will continue to suffer from the consequences of vulnerabilities, hacks and money laundering.