The 40% of all crypto hacks carried out in the first half of 2020 were targeted at Decentralized Financing Protocols (DeFi) and cryptocurrency exchanges, the company said in a report released by research firm Blockchain CipherTrace.
DeFi are non-custodial financial products, many of which are new and easy prey for hackers and can be used for “money laundering” since based on the protocols they use they have no clear regulatory compliance allowing anyone access to the information. KYC. The products became popular in the summer as they offered big bonuses to investors.
The hackers from the “dForce” protocol in April managed to extract a total of 25 million dollars, while with another “Harvest Finance” protocol they extracted 34 million dollars where a small part of the amount was returned.
CipherTrace reports that the percentage of money lost in the second half of the year from DeFi intrusions and thefts fell due to the attack on the crypto exchange KuCoin, whose stolen amount reached $ 281 million. The research firm says that DeFi will continue to suffer from the vulnerabilities that arise if it does not find a way to maintain the form of its smart contracts.
