Former U.S. Department of Justce prosecutor Ari Redboard, highlights worries about security risks in the DeFi sector and urges that the level of protection be heightened.
Concerns Over Hack Attacks
Since this year, the Decentralized Finance sector has seen numerous hacks, the majority of which occurred in October.
With the number of hackers and security breaches recorded in the month of October, it was nicknamed “Hacktober.”
DeFi platforms such as Wintermute and Mango Market suffered greatly as a result of this hack in October, losing millions of dollars to these hackers.
Leaked private keys, system manipulation of futures contracts, and other hacking tactics are one of the many tricks hackers use to infiltrate these DeFi platforms.
The Department of Justice in the United States is concerned about this series of cyber attacks that have led up to December.
Former U.S. Department of Justice prosecutor Ari Redboard has not remained silent on these cyber attacks, expressing his worries and advocating for tighter security levels on DeFi platforms.
Redboard believes that these hackers have no plans to retire soon and will devise new ways to use their expertise to drain more funds from platforms; and this necessitates serious actions on the parts of these platforms.
Also read:These efforts will involve the development of more powerful blockchain tools that will aid in the safeguarding and protection of firms from the claws of these hackers.
These tools will also need to be efficient enough to detect hack attempts and also trace these hackers to whatever IP address they may operate from.
Redboard mentioned that these hackers are getting more skillful and sophisticated with their techniques and so should the DeFi platforms.
Billions Lost in Cyber Attacks This Year
According to reports, more than $3 billion in cryptocurrency was lost this year alone, and more than 80% of these funds were lost to DeFi hacks and cyberattacks.
However, theories suggest that because the DeFi sector is new and has underdeveloped security systems to guard it against these intrusions, it may have been easier for these hackers to penetrate.
The vice president of Chinalysis also discussed this issue and revealed that asset transfers are when most hacks take place. When assets are transferred from one platform to another through bridges, hackers see it as a window to operate.
He raises concern over the increasing prevalence of this behaviour and the fact that more hackers are now migrating to centralized exchanges to compromise the system.
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