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97% of Crypto Hacks Were Against DeFi Projects

The majority of DeFi-related crime funds are linked to North Korean-backed organizations.

Chainalysis has reported on illegal Blockchain activities. According to the report, the rate of money laundering has increased in recent years.

DeFi as Hackers’ Primary Target

The DeFi boom happened in 2020. Illegal DeFi activities were increasing every year. The biggest crimes are money laundering and DeFi hacking.

In 2022, $1.7 billion in digital assets were stolen. 97% of this theft comes from DeFi protocols. Most of the stolen funds ($840 million) went to hackers linked to North Korea.

DeFi-based money laundering rates (69%) increased tremendously.

The lack of KYC requirements in the DeFi project is the biggest factor in the increase in the crime rate. North Korea-linked Lazarus Group laundered $91 million worth of cryptocurrencies. The group exchanges the stolen tokens for BTC and ETH, transfers them to central exchanges, and then turns them into cash.

NFT Wash Trading

Another pitfall is NFT Wash Trading, a form of market manipulation that artificially inflates a non-binary asset. This event means that wallets controlled by the same entity can trade NFTs between them, giving market participants a false perception that the demand for the asset is higher than its actual level.

RELATED : Billionaire Bill Miller Still Trusts Bitcoin

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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