Study reveals exploited Defi protocols facing an uphill battle
A study revealed that the majority of the Defi protocols are struggling to see an increment in total value lock (TVL), after a hack attack.
In 2020, a number of Decentralised Finance (Defi) concepts based on several crypto platforms emerged in the crypto sector. The Defi sector so far completed more than 3 years but still, this sector is not highly secure for crypto Investors citing unknown & hidden bugs. In 2022, the majority of the hack attacks targeted Defi protocols to make money.
Recently a crypto news website Defiant investigated the situation of Defi protocol following hacking attacks. The study excluded the hacking attacks on cross chain bridges & centralised crypto exchanges. Study data revealed that almost all such Defi protocols are struggling to see an increment in net TVL citing a lack of trust level among the investors.
In March of this year, Defi protocol Euler Financial faced a hack attack & lost around $200 million worth of crypto assets. Later hacker returned almost all the stolen funds to the Euler Finance team but still Euler Finance is facing an uphill battle.
In the last 12 months, the top victims of Defi hack attacks were Beanstalk, Cream Finance, BonqDao, Dadger Dao, and Magno Markets.
All these Defi protocols faced overall TVL downfall by around 99%.
Crypto mixers help Hackers
It has been found in almost every hack attack that hackers use the Crypto mixing platforms to use the stolen crypto assets with full freedom anonymously.
According to crypto experts, crypto mixing platforms play an important role for the crypto investors to maintain privacy with public blockchain transactions but bad actors use such neutral tools to abuse the crypto sector.
In 2022, The United States Office of Foreign Assets Control (“OFAC”) imposed sanctions on the popular crypto-mixing platform Tornado Cash. In the present time, Tornado Cash use is fully prohibited & illegal under the jurisdiction of the US but non-US citizens are still free to use & also they are using.
Read also: Now Telegram users can buy, sell & withdraw Bitcoin
