Crypto intelligence firm reveals fraudulent activities and theft attacks have plunged by 60% in 2020 as compared to the last year.
According to the latest data revealed by on-chain blockchain intelligence firm Cipher Trace, almost $1.8 billion has been last in different crypto scams and theft attacks since the beginning of 2020. While throughout 2019, the firm noticed a loss of $4.5 billion. If we compare the statistics of 2020 with 2019, the crypto crimes have reduced by 60%. But there is a clear growth in DeFi scams this year.
As reported by Reuters, Dave Jevans, CEO of CipherTrace, noticed that firms dealing with cryptocurrency and crypto exchanges have updated their platforms with advanced secure technology. As in the past years, digital assets platforms became victims of theft attacks or cyberattacks, these firms have now implemented advanced security measures to avoid stealing attacks. Jevans said:
“Exchanges and other cryptocurrency players have implemented more security procedures. They have taken the guidance and implemented the procedures to secure their funds better. So you’re going to see less mass-scale hacks.”
DeFi Sector is the Latest Victim of Theft Attacks
Till October, nearly $468 million has been washed away in different theft attacks, and 20% ($98 million) of this amount lost in fraudulent actions that are related to decentralized finance (DeFi). As the total volume locked over various DeFi protocols has reached $13 billion, the cyber attacks have also surged. Last year, the DeFi sector was not grown much as the total locked value on decentralized platforms accounted for only $680 million and criminal activities attached with DeFi were minimal.
DeFi sector has not reached its maturation stage as there are many weaknesses in it. CipherTrace has pointed attention to many issues or loopholes in the DeFi protocols. For instance, there is no clear regulatory framework around decentralized finance, and anyone can access DeFi platforms with “little to no customer-verification hurdles involved.”
The decreasing rate of criminal activities in the major crypto space shows it is moving towards a stage where people will start trusting cryptocurrency and the companies dealing with crypto assets.