Crypto Sleuth TRM Labs Challenges DeFi Platforms to Improve Cyber Defenses
The lead executive at the crypto sleuth TRM Labs is challenging the DeFi platform to harden their defenses against cybercrime.
TRM executive Ari Redbord directed DeFi platforms to consider deploying strategies with the capacity to detect and trace illicit activities through the development of intelligent blockchain-based tools that can proactively spot new mixers at their onset before hurting the community.
Vulnerability of DeFi
Redbord drew on his experience as a prosecutor to admit that bad actors are reinforcing their tactics to a sophisticated capacity. He added that such awareness should inform investigators and law enforcement to match the sophistication.
The TRM official regretted that over $3.6 billion were drained by exploiters. Rebord emphasizes that 80% of the proceeds, translating to $3 billion, occurred within the decentralized finance (DeFi). He explained that most DeFi platforms exploited are new ventures yet to develop solid cybersecurity measures. Moreover, the exploiters identify DeFi platforms as obvious targets for their liquidity.
Crypto Mixers Aiding Cybercrime
Subsequent analysis conducted by Chainalysis acknowledged that decentralized finance is vulnerable to exploitation within the bridges. The crypto sleuthing firm considers that bridge vulnerability arises from their functionalities of facilitating crypto assets transfer into other platforms.
Chainalysis head of investigations Erin Plante illustrated that the crypto ecosystem is vulnerable to sophisticated money laundering. Plante laments that illicit money laundering activities have become complex to decipher as bad operators leverage the presence of crypto mixers to conceal their exploits. He considers that bad operators often target centralized crypto exchanges and wallets since the firms take time to detect the funds’ theft. Plante considers such is possible as the perpetrators leverage multiple crypto mixers to erase transaction trails.
Plante considers that crypto mixers mirror black boxes where users can anonymously initiate inbound and outbound crypto transactions. The anonymity prompts Plante to challenge regulators and DeFi platforms to beef up their defenses against cybercrime. He admits that new sophisticated crypto mixers are emerging daily, presenting endless challenges to DeFi platforms.
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