[Taklimakan Blog] Hackers Laundered $34 Million via DeFi Platforms in 2020
In 2020, about $144.3 billion passed through the protocols of decentralized finance, of which almost $34 million is associated with criminal activity
Decentralization plays into the hands of criminals
In 2020, more than $144 billion passed through the DeFi protocols. Most often, users made transactions on the decentralized exchanges Uniswap, Sushiswap, and Curve. This is evidenced by the statistics of the resource The Block.
Of these, $34 million are associated with fraudulent transactions. This is the conclusion reached by analysts at Chainalysis.
At first glance, the figure of $34 million may not seem so great — after all, it is only 0.02% of the total transferred funds. However, experts say that this figure will rise in 2021. In many ways, criminals are attracted by the complete decentralization of sites and the ability to transfer funds anonymously without going through the KYC procedure.
Illum analysts cite another reason for the increase in DeFi activity: cybercriminals drew attention to DeFi smart contracts, which send funds to users’ wallets, depending on the conditions specified in the code. There is no human control over transactions and this is just perfect for fraudsters.