FBI Issues Warning to Investors About the Vulnerability of DeFi Platforms to Exploits 616v46 Technology News

Almost 97 percent of stolen crypto between January and March 2022 happened from decentralised finance platforms. 3t1k2p

By Shomik Sen Bhattacharjee | Updated: 30 August 2022 18:13 IST

FBI Issues Warning to Investors About the Vulnerability of DeFi Platforms to Exploits

Photo Credit: CoinMarketCap 6h4j6c

The FBI highlighted smart contracts managing DeFi systems as a specific source of worry

Highlights

The FBI request DeFi platforms to contribute to security
The FBI advises investors to thoroughly examine DeFi platforms
Criminals are known to exploit flash loan vulnerabilities

ment

The Federal Bureau of Investigation (FBI) has issued a fresh warning regarding attacks on decentralised finance (DeFi) platforms, claiming that hackers are taking advantage of flaws in the smart contracts that control these platforms. The domestic intelligence and security service organisation of the United States reveals, citing an April 2022 report by blockchain analysis firm Chainalysis, that cybercriminals stole crypto worth $1.3 billion (roughly Rs. 10,400 crore) between January and March 2022. A staggering 97 percent of stolen crypto was from DeFi platforms.

The cryptocurrency price pairs, get around slippage checks, and use flash loans as a payment method. Regarding the latter, the FBI provided an example and made a note.

Even while the FBI acknowledged that "all investments carry some risk," the agency has advised that investors should thoroughly examine DeFi platforms before using them and, if in doubt, consult a qualified financial adviser. The agency stated that it was crucial the platform's protocols were robust and they had undergone one or more independent code audits. A code audit often entails a review of the platform's underlying code to find any holes or flaws that might have a chance of exploitation.

Meta Lets Limited s Cross-Post NFTs Across Instagram and Facebook

The FBI advises caution when dealing with any DeFi investment pools with a "minimum period to " or "rapid deployment of smart contracts," mainly if they have not conducted a code audit.

According to the FBI, DeFi platforms can also contribute to security by routinely testing their code to find vulnerabilities and using real-time analytics and monitoring. The guidelines also include developing an incident response strategy and warning s of potential platform flaws, hackers, exploits, or other questionable behavior.

Ava Labs CEO Denies Allegations Involving Payout to Sue Competitors

This week, we discuss Android 13 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

links may be automatically generated - see our ethics statement for details.

Comments

For the latest reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.