Why the FBI Alert Crypto Investors About the Increase in Cyber ​​Attacks

Why the FBI Alert Crypto Investors About the Increase in Cyber ​​Attacks

In 2022, bad actors turned their attention to the crypto and decentralized finance (DeFi) sectors. Cybercriminals have stepped up their efforts to steal money from users by attacking various protocols. As a result, hackers have managed to cash out more than $2 billion from their criminal activities.

US Federal Bureau of Investigation (FBI) export Warning of another potential rise in cyberattacks against crypto and DeFi. The law enforcement agency and other legal entities in this country have identified several hacker groups that have ties to rogue states.

As reported by Bitcoinist, North Korean-backed hacker groups appear to be the most prolific in attacking DeFi and crypto projects. The notorious Lazarus Group and others have made more than $1 billion in cryptocurrency theft. The money is allegedly used to support the country’s nuclear programme.

The US Federal Bureau of Investigation said the following about the alleged increasing trend of cyber attacks from malicious actors to the crypto and DeFi sector:

The FBI has noted that cybercriminals are exploiting vulnerabilities in the smart contracts governing DeFi platforms to steal cryptocurrency for investors. The FBI encourages investors who suspect that cybercriminals have stolen their DeFi investments to contact the FBI via the Cybercrime Complaint Center or their local FBI field office.

Data provided by the FBI indicates that hackers managed to steal about $1.3 billion in cryptocurrency from January to March 2022 alone. This is a 72% increase compared to the first quarter of 2021. DeFi platforms are the main focus of these attacks.

US authorities believe that the sudden rise in DeFi adoption, the “complexity” of using smart contracts and DeFi protocols, and the open source nature of the sector have made it particularly vulnerable to bad actors.

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ETH price is moving sideways on the 4 hour chart. source: ETHUSDT TradingView

Infamous 2022 Crypto Hacks, According to the FBI

The law enforcement agency has highlighted some of the methods hackers use to steal from cryptocurrency investors. Protocols known as “bridges,” which enable users to trade assets from different blockchains, have been among the most affected in the surge in cyberattacks.

Hackers were able to exploit a “signature verification vulnerability” in the DeFi bridge and granted permission to withdraw more than $320 million from the platform. Other attacks target protocols that provide “quick credits”.

The FBI said the hackers were able to manipulate other vulnerabilities in the sector, including price oracles and product trading with “price calculation errors.” For users, the FBI recommended researching potential investment and the DeFi protocol before sending funds to the platform.

Additionally, the FBI has recommended users to consider project security audits to check their level of security. For developers, the law enforcement agency recommended:

Create real-time analytics, monitoring, and rigorous code testing in order to more quickly identify vulnerabilities and respond to indicators of suspicious activity. Develop and implement an Incident Response Plan that includes alerting investors when intelligent contract exploits, vulnerabilities, or other suspicious activity are detected.

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