Author Topic: FBI Issued Warning Regarding Cyber-Criminal Vulnerabilities Targeting DeFi  (Read 187 times)

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FBI Issued Warning R
[/color]The U.S Federal Bureau of Investigation (FBI) has issued a fresh warning to investors in decentralized finance (DeFi) systems, which have been targeted with $1.6 billion in vulnerabilities in 2022.[/color]The FBI stated in an Aug. 29 public service announcement on the Internet Crime Complaint Center that the exploits have caused investors to lose funds, advising investors to conduct diligent research about Defi platforms before using them, as well as urging platforms to improve monitoring and conduct rigorous code testing.[/color][/size]
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The law enforcement agency cautioned that cybercriminals are out in force to take advantage of investors' rising interest in cryptocurrencies, as well as the intricacy of cross-chain capabilities and the open source nature of Defi platforms.[/color][/size]The FBI observed cybercriminals stealing cryptocurrencies from investors by exploiting flaws in smart contracts that regulate DeFi systems.[/size]In one specific case, the FBI identified situations in which hackers leveraged a signature verification vulnerability to steal $321 million from the Wormhole token bridge in February. It also disclosed a flash loan attack in July that was used to trigger a vulnerability in the Solana DeFi protocol Nirvana.[/size]However, it's just a drop in a large ocean; according to a report by blockchain security firm 'CertiK in M', over $1.6 billion has been exploited from the DeFi sector since the beginning of the year, surpassing the entire amount stolen in 2020 and 2021 combined.[/size]FBI recommends due diligence and testing[/size]While the FBI acknowledges that all investments carry some risk, the agency has advised investors to thoroughly examine DeFi platforms before using them, and to seek counsel from a qualified financial adviser if in doubt.[/size]The agency stressed the importance of the platform's policies and the fact that they have undergone one or more code audits performed by independent auditors.[/size]Typically, a code audit entails an examination of the platform's underlying code to uncover vulnerabilities or flaws that might be exploited.[/size]According to the FBI, "any DeFi investment pools with an exceptionally short timeline to join or quick implementation of smart contracts should be treated with great caution, especially if no code audit has been performed."[/size]The law enforcement agency also identified crowdsourced solutions, which generate ideas or material by asking for input from a large group of individuals.[/size]"Open source code repositories provide unrestricted access to all users, even those with malicious intent."[/size]The FBI said DeFi platforms may help increase security by routinely testing their code for vulnerabilities and providing real-time analytics and monitoring.[/size]An incident response strategy and warning users about potential platform vulnerabilities, hacks, exploits, or other suspicious activities are also recommended.[/size]However, if everything else fails, the FBI encourages American investors who have been targeted by hackers to contact them via the Internet Crime Complaint Center or their local FBI field office.[/size]Earlier this year, U.S. Deputy Attorney General Lisa Monaco announced the introduction of the Virtual Asset Exploitation Unit as part of the FBI's efforts to combat crime in the digital asset area.[/size]The specialized team is dedicated to cryptocurrency and includes experts to assist with blockchain research as part of a shift in focus toward disrupting international criminal networks rather than merely prosecuting them.[/size]Read also: [/size]Terra Introduces a Governance Alert Feature, Driving Up Prices for LUNA and LUNC[/size]

 

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