DeFi Protocols Now The Biggest Recipient And Target Of Illicit Activities- Chainalysis

It is common knowledge that criminals and illegal activities often aim their attention toward cryptocurrencies and the protocols that underpin decentralized financial systems. Due to this, DeFi protocols seem to be increasingly under the threat of attacks via illicit activities, according to a recent analysis published by Chainalysis. Over the course of the last three years, however, this kind of activity has become a less major component of the larger cryptocurrency ecosystem, which will surely be a cause of worry for several crypto enthusiasts. From the report, out of the $1.68 billion worth of cryptocurrencies stolen from the start of this year till May 1, 97% of it has come from DeFi protocols. This is due to the fact that their decentralized nature makes it more difficult to monitor the flow of cash. Where Exactly Is All of That Money Going? The majority of the losses have been caused by the theft of funds via hacking, which has been accompanied by a rise in the use of DeFi protocols for money laundering as well, with the majority of them going to hacker organizations that are affiliated with the government of North Korea. These groups have stolen over $840 million in just this year alone via breaches of DeFi protocols. The number of thefts committed using DeFi protocols has been steadily increasing since the previous year, reaching their peak in the first three months of this year. This is mostly the result of the $622 m...