The Federal Bureau of Investigation has advised investors to be wary of investing in decentralized finance (DeFi) projects as they are too susceptible to hacking.
The agency notes the high risk of losing funds in DeFi protocols and recommends conducting a thorough research of the project and its security before investing money. The FBI also urges developers of such projects to pay maximum attention to security and conduct rigorous code testing.
“The FBI warns that cybercriminals are increasingly exploiting vulnerabilities in decentralized finance platforms to steal investor funds. If you think you have been the victim of such an attack, please contact your local FBI office,” the document says.
The agency also reminded developers of the need to create an incident response plan, as well as informing users about the presence of possible vulnerabilities. The FBI even cited several examples, such as the theft of $321 million worth of assets from the Wormhole bridge and the Nirvana project hack.
At the end of July, the FBI notified cryptocurrency investors that an investment strategy called “liquidity mining” often becomes a tool for fraud.
Source: Bits
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