Sometimes, the law is the law, industry experts say.
Microsoft Listing Fake Ledger App Leads to $590K of Bitcoin Stolen by Hackers
Hackers managed to steal 16.8 bitcoin [BTC] over the weekend after a fake Ledger Live app was posted on the Microsoft app store.
Borneo authorities seize illegal crypto miners running off stolen power
A Malaysian energy supplier uncovered an illegal cryptocurrency mining operation stealing power from the local grid on the island nation of Borneo.
Borneo authorities seize illegal crypto miners running off stolen power
A Malaysian energy supplier uncovered an illegal cryptocurrency mining operation stealing power from the local grid on the island nation of Borneo.
Canadian police warn crypto investors on growing home robbery trend
Perpetrators have impersonated delivery drivers in order to break into the homes of victims to steal cryptocurrency.
Scary stats: $3B stolen in 2022 as of ‘Hacktober,’ doubling 2021
Blockchain security firm Peckshield shared the stats on Halloween night, but also added the month saw $100 million in crypto returned.
Over $10 Billion Has Been Lost To DeFi Exploits In 2021
Decentralized finance (DeFi) platforms have been the target of criminal attacks this year. Investors in the blockchain-based form of finance have lost billions of dollars to criminals that target the platforms.
The total amount of money deposited at DeFi services has spiked from just $500 million in 2019 to $247 billion this year.
Related Reading | Dog-Themed DeFi Project Mysteriously Loses Fundraised $60 Million
According to a report from London-based firm Elliptic, the overall losses caused by DeFi exploits have totaled $12 billion in the past year. Out of that amount, fraud and theft accounted for $10.5 billion, seven times the amount last year.
DeFi, which has drawn in billions of dollars in investor funds, has also been a frequent target by hackers. They exploit poorly protected protocols, mostly using flash loans.
Related Reading | Poly Network Confirms Hacker Has Returned Most Of The Stolen Crypto
One of the popular attacks this year was the Poly Network hack. Hackers exploited a vulnerability in the multi-chain interoperability protocol. And they took off with roughly $600 million worth of various cryptocurrencies. They however returned most of the stolen funds.
DeFi – The Wild West Of Cryptocurrencies
Elliptic is a firm that tracks movements of funds on the digital ledgers that underpin cryptocurrencies. It recently reported that DeFi exploits amounted to $12 billion this year.
DeFi is often called the “Wild West” of cryptocurrencies because it is still the most unregulated area of crypto. DeFi platforms allow users to lend, borrow and save – usually in cryptocurrencies – without any involvement from middlemen like banks.
“The DeFi ecosystem is an incredibly exciting and fast-moving space, with financial services innovation happening at light speed,” said Tom Robinson, chief scientist at Elliptic. “This is attracting large amounts of capital to projects that are not always robust or well-tested. Criminal actors have seen the opportunity to exploit this.”
According to the report, the underlying technology of DeFi is built on open infrastructure. However, that technology is “relatively immature and untested.” There are bugs in code as well as design flaws that enable criminals to target the platforms.
DeFi market cap at $165.47B | Source: Crypto Total DeFi Market Cap on TradingView.com
“Decentralized apps are designed to be trustless in that they eliminate any third-party control of users’ funds,” said Robinson. “But you must still trust that the creators of the protocol have not made a coding or design mistake that could lead to a loss of funds.”
Criminals can also easily launder proceeds of crime while leaving few traces. “The irreversible nature of crypto transactions make it very challenging to recover these funds,” says the report.
Call For Regulation
With the alarming number of exploits the space is facing, there are calls for DeFi regulation. Regulators are now also turning attention to the sector. However, the actions of regulators in the coming months will play a significant role in determining how well they thrive in the future.
Featured image by Aergo, Chart from TradingView.com
What Yearn Finance’s ‘Blue Kirby’ Incident Means for Pseudonymity
DeFi investors are reeling from another case of pseudonymous treachery as Yearn.Finance community leader Blue Kirby allegedly absconded with ill-gotten gains.
What Yearn Finance’s ‘Blue Kirby’ Incident Means for Pseudonymity
DeFi investors are reeling from another case of pseudonymous treachery as Yearn.Finance community leader Blue Kirby allegedly absconded with ill-gotten gains.
Australian Woman Jailed for Theft of More Than 100,000 XRP
The 25-year-old received an over two-year sentence for the 2018 theft of XRP worth around $300,000 at the time.
Malaysian Thieves Drill Through Wall to Steal 85 Crypto Machines
Authorities arrested five suspected in the theft of almost 100 bitcoin machines.
Fusion Network Loses Millions in Private Wallet Hack
A private wallet operated by the Fusion Foundation was drained of its funds, accounting for roughly 25 percent of the total FSN token supply.
US Sanctions Three Alleged Crypto Hacking Groups from North Korea
The U.S. Treasury mentioned cryptocurrency thefts as one of the reasons for the action against the Lazarus Group, Bluenoroff and Andariel.
Bitmain Sues Alleged Bitcoin Thief in US Federal Court
Bitmain has filed a lawsuit against an anonymous thief in a US federal court, who allegedly stoled 617 bitcoin from the crypto mining giant.
Iceland’s ‘Big Bitcoin Heist’ Suspect Has Been Arrested
Iceland’s alleged bitcoin mining computer thief Sindri Thor Stefansson, who escaped from prison last week, was arrested in Amsterdam Monday.
Alleged Bitcoin Miner Thief Says Police Held Him ‘Without Evidence’
Sindri Thor Stefansson, the alleged thief behind the “Big Bitcoin Heist,” says he was free when he escaped from prison and flew to Sweden.
Bitcoin Mining Hardware Thief Escapes from Prison
Sindri Thor Stefansson, the alleged culprit behind the theft of 600 cryptomining computers, escaped from prison earlier this week.
Icelandic Police Are Hunting for Hundreds of Bitcoin Miners
Roughly 600 cryptomining computers were stolen from four Icelandic data centers, police report.
Crypto Regulation? Not Anytime Soon, Says White House Official
The White House cybersecurity coordinator said crypto regulation is still far from becoming a reality.