FBI Warns About Decentralized Finance Exploits and the Losses Associated With Them – Bitcoin News

Federal Bureau of Investigation in the United States has released a statement about an exploit used by attackers to steal cryptocurrency from those who have invested on decentralized financial (defi), platforms. It advised investors in crypto to conduct their own research, and ensure that decentralized finance platforms they choose have been audited independently.

FBI Investigates Defi platforms

FBI is starting to observe the amount of attention that scammers are paying to decentralized finance platforms (defi) in an effort to take advantage of their operation. This is why the FBI has made a public announcement to warn investors and defi platform owners about it and issued recommendations on how they can prevent this from ever happening.

FBI observed three hacks recently by hackers that allowed them to break into decentralized finance systems. According to reports, these exploits caused investors and defi platform owners to lose $358 millions.

Advice for Defi Platforms and Investors

Although the service announcement clearly states that there is risk in investing and that those who use these platforms should seek out advice from financial advisers, the FBI offers a number of tips to help avoid questionable sites.

This includes researching platforms and investing in only platforms that have independent audits to reduce risk of exploits. It also recommends being familiar with the potential changes crowdsourced code can experience due to multiple actors having access to repositories.

Investors are not the only ones who should be receiving these recommendations. However, decentralized protocols have the same responsibility to minimize the probability and gravitas of such incidents. Decentralized finance protocols should be implemented to detect potential threats and to develop strategies for dealing with them. Investors will also be notified.

The FBI issued a warning in July about the risks of liquidity mining scams, and fake crypto apps that could be used to steal cryptocurrency from investors.

Let us know your thoughts on the FBI’s latest warning about decentralized finance. Comment below.

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. He is a Venezuelan computer engineer with a background in social engineering and has been impacted by cryptocurrency’s boom on a personal level.

Images CreditsShutterstock.com, Pixabay. Wiki Commons. Mark Van Scyoc.

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