DeFi Protocols Now The Biggest Recipient And Target Of Illicit Activities- Chainalysis
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 million Ronin Bridge assault that took place at the end of March and the $320 million Wormhole attack in February. In addition, DeFi protocols have emerged as the primary beneficiary of illegally obtained funds, receiving 69% of the total amount of money transmitted from addresses known to be involved with illicit activities, an increase from the 19% share they had in 2021.
