Chainalysis, a blockchain analytics company Publishes New Report Focusing on Illegal Activities Occurring on Blockchain Noting that the DeFi protocol is the most popular target of hackers. And it is likely that local money laundering has increased in the past two years.
DeFi is the main target of hackers.
Since the DeFi Boom emerged in the summer of 2020, illicit DeFi transactions have continued to increase. Money laundering and DeFi hacking are two of the major criminal activities in the protocol.reportof Chainalysis shows
Overall, $1.7 billion of digital assets were stolen by perpetrators in 2022, 97% of which came from DeFi protocols, such as the $600 million Ronin bridge attack at the end of March and the $320 million Wormhole attack last month. February The report states that as of 2022, the most stolen funds were worth more than $840 million. by hackers with connections to North Korea
In addition to hacking Money laundering carried out through DeFi has also grown steadily over the years, with the DeFi protocol taking up 69% of crypto-related funds for criminal activity.
The report states that the nature of most such protocols This allows users to exchange one token for another. This is due to the difficulty in tracking the movement of digital assets. Additionally, the lack of KYC requirements for most DeFi projects makes them more enticing to criminals.
The report uses the example of North Korea-linked Lazarus Group, which laundered $91 million worth of cryptocurrencies last year across multiple protocols. The stolen tokens were reportedly swapped into ETH and BTC and transferred to accounts on centralized exchanges. Then withdraw money from the asset.
Another notable contribution to the report is NFT Wash Trading, a form of market manipulation that inflates assets. Where the same person-controlled wallet trades NFTs between them, market participants mistakenly believe that demand for the asset is higher than it actually is.
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