FBI Issues Warning As Crypto Crimes On DeFi Increases

FBI Issues Warning As Crypto Crimes On DeFi Increases

The U.S Federal Bureau of Investigation (FBI) has recently alerted Crypto investors to be wary of ongoing crypto crimes. The warning was issued as a public service announcement, especially for Crypto investors who fund decentralized finance (defi) platforms. The authority has also suggested crypto investors conduct their own research and ensure that an independent body has audited their preferred decentralized financial platform.

Due to increasing Crypto crimes, the investigation agency had put DeFi platforms under surveillance. During that period, the FBI noticed that hackers were planning to exploit the operation of decentralized finance (defi) platforms. So, the department made a public service announcement alarming investors and defi platforms about the development. Additionally, the department also suggests preventing these exploits from occurring.

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According to the FBI, hackers have successfully compromised the decentralized financial protocols in three recent hacks: launching flash loans, and taking advantage of signature verification to empty cross-platform bridges and cryptocurrency prices. 

Oracle exploits were used to update real-time cryptocurrency price pair manipulation assets. According to reports, the defi platform and its investors lost $358 million due to these exploits. The service announcement clarifies that investing carries risk and that users of these platforms should consult financial advisors before making any decisions.

In order to reduce the risk of exploitation, the FBI recommendations include researching platforms before investing money, investing only in platforms that have been audited by independent parties, and investing in those platforms. This includes taking into account the alterations the underlying crowdsourced code might go through due to the numerous actors with such access. 

Earlier in July, the FBI issued a false warning about the risks of liquidity mining scams. The Us FBI has long been tracking the crypto crimes related to the decentralized Finance (DeFi) platforms. 

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