CipherTrace announced that the hacking attacks on DeFi platforms cost the cryptocurrency platform and its users $ 100 million in 2020. According to the report, 40% of the hacking attacks in the first half of 2020 took place on DeFi platforms.
Blockchain company CipherTrace found that hacks and attacks on DeFi platforms in the first half of 2020 accounted for 40% of all attacks on cryptocurrency platforms. The company explained that DeFi protocols are vulnerable to many cyberattacks, such as hacking, money laundering, and making them attractive to hackers.
Attacks in 2019 were almost non-existent
CipherTrace said $ 51.1 million was stolen from the thefts on DeFi between January and June 2020. It has been stated that there has been a loss of 47.7 million dollars since July. It was stated that in 2020, DeFi attackers accounted for 21% of all hacks and attacks during the year. In the KuCoin attack, which was emphasized in the report, it was said that $ 281 million was laundered.
Noting that DeFi attacks were almost non-existent in 2019, the company linked the increasing hacks and attacks to the period when DeFi was seeing rally. The company suggested that attackers who see KuCoin as a way out are increasing the risk of money laundering and hacking.
DeFi can become a haven for hackers
CipherTrace said that DeFi protocols are weak at regulation and there is a possibility that anyone can access data with zero KYC knowledge. Saying that unchecked smart contracts have many vulnerabilities, the company stated that DeFi platforms can become a haven for hackers and attackers.
In Decrypt’s report on the subject, he stated that the DeFi protocol bZx was hacked 3 times this year. The platform, which lost $ 1 million in February, lost $ 8.1 million in September. In the report, it was stated that 25 million dollars were stolen from the dForce protocol in April. In addition, the hack attack that Harvest.Finance lost $ 34 million was also mentioned.
It was stated that the US Securities and Exchange Commission (SEC) had noticed the attacks on DeFi platforms, while the European Union was also discussing to introduce new regulations for decentralized exchanges. CipherTrace recently highlighted the need to increase the security of DeFi smart contracts.