This FBI warning comes after a number of hacks on DeFi this year, which caused investors to lose crypto worth billions of dollars.
The Federal Bureau of Investigation (FBI) has asked decentralized finance (DeFi) platforms to improve their security and warned investors about the holes in these platforms.
The FBI’s warning comes as DeFi platforms, which don’t use third parties to handle financial transactions on the blockchain, have been hit by a number of major attacks this year, including the huge Ronin bridge exploit that cost close to $650 million earlier this year.
Cybercriminals stole $1.3 billion worth of cryptocurrencies between January and March 2022. Almost all of the money was taken from DeFi platforms, according to a report from the blockchain analysis firm Chainalysis, which the FBI used to make its claim.
The FBI said that criminals usually use DeFi platforms by taking advantage of a flash loan vulnerability, taking advantage of signature verification, or manipulating trading pairs. So, the agency told investors to do their research before using DeFi platforms and to use ones that have been audited or have been around for a while.
The bureau said that DeFi platforms should start to use real-time analysis, monitoring, and testing. The bureau also said that the platforms should have a plan for dealing with scams and letting investors know about them.
The FBI worked with LinkedIn (LNKD) earlier this year to stop scammers from using the professional networking site to get people to invest in cryptocurrency schemes.
