Hackers laundered $ 34 million via DeFi platforms in 2020

Hackers laundered $ 34 million via DeFi platforms in 2020

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Hackers laundered $ 34 million through DeFi platforms in 2020

  • Hackers used DeFi protocols to withdraw stolen funds

  • In 2021, the number of cases of DEX fraud will increase, experts predict

  • Scammers fake websites and mobile apps to steal funds

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In 2020, about $ 144.3 billion passed through the protocols of decentralized finance, of which almost $ 34 million are associated with criminal activity

Decentralization plays into the hands of criminals

In 2020 through DeFi protocols Decentralized finance (DeFi) – this is financial services, built on blockchain technology, which offer users access more than $ 144 billion have gone to open, efficient and … More. Most often, users made transactions on the decentralized exchanges Uniswap, Sushiswap and Curve. This is evidenced by the statistics of the resource The Block.

The Block Resource Data

Of these, $ 34 million are associated with fraudulent transactions. This is the conclusion reached by analysts at Chainalysis.

Hackers laundered $ 34 million via DeFi platforms in 2020

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Chainalysis data

At first glance, the figure of $ 34 million may not seem so great – after all, it is only 0.02% of the total transferred funds. However, experts say that this figure will rise in 2021. In many ways, criminals are attracted by the complete decentralization of sites and the ability to transfer funds anonymously without going through the KYC procedure.

Read also: Top 5 decentralized exchanges to watch out for in 2021

Illum analysts cite another reason for the increase in DeFi activity: cybercriminals drew attention to DeFi smart contracts, which send funds to users’ wallets, depending on the conditions specified in the code. There is no human control over transactions and this is just perfect for fraudsters.

The third essential condition for the growth of DEX fraud will be the development of darknet resources. For example, Televend uses encrypted automated chatbots in Telegram to communicate with buyers and suppliers. Buyers place orders in the seller’s automated chat and then receive the BTC wallet address for the transfer of funds, generated by the bot. 

“Televend gets a commission on every sale, but never really touches the funds, so there is no central organization that law enforcement can control through blockchain analysis,” Illum explained..  

Read about the biggest hacks of DeFi projects here.

Fraudsters are improving technology to steal funds

The growing popularity of decentralized finance has attracted the interest of not only investors, but also hackers. Last year, scammers hacked multiple DeFi protocols and stole millions of dollars worth of cryptocurrency..

However, hackers did not stop at remote attacks and developed new schemes for withdrawing user funds from exchange wallets. The most popular way among fraudsters is phishing sites, which are used by criminals to steal money from unsuspecting victims..

Also, hackers used fake mobile applications and platforms, viral QR codes, and also stole API keys. We told you more about fraudulent traps here..

Hackers laundered $ 34 million through DeFi platforms in 2020

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