Phishing scammers using crypto drainers are no longer sending stolen funds to centralized exchanges. Instead, they’re turning to decentralized finance (DeFi) platforms like swap protocols and bridges.
Cybercriminals have shifted their tactics, with most stolen funds now flowing into DeFi protocols. This is a significant change from 2020, when centralized exchanges were the main targets.
According to data from Chainalysis, in 2023, nearly 75% of funds stolen through crypto drainers ended up in DeFi platforms. This is a big shift from 2020, when over 90% of stolen funds went to centralized exchanges. Analysts at Chainalysis also noted that some scammers are using gambling services, but on a much smaller scale.
Chainalysis, a blockchain intelligence firm based in New York, reported that the quarterly growth rate of value stolen by these drainers has even surpassed the growth rate of ransomware theft, which was previously known for its rapid increase.
The true extent of phishing activity remains unclear, according to Chainalysis, because many crypto drainer scams go unreported, making it difficult to track the total amounts stolen.
Summary Review: The trend of cybercriminals moving stolen crypto funds into DeFi platforms instead of centralized exchanges marks a significant shift in the landscape of digital theft. With nearly 75% of stolen funds now being funneled into DeFi in 2023, up from less than 10% in 2020, it’s clear that the methods of laundering stolen crypto assets are evolving. This shift poses new challenges for tracking and recovering stolen funds, as DeFi protocols offer more anonymity and less regulatory oversight compared to centralized exchanges. As the tactics of cybercriminals continue to adapt, so must the strategies for combating these crimes and securing the crypto ecosystem.
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