Crypto Drainers Funnel Nearly 75% of Stolen Funds into DeFi in 2023

Crypto Drainers Funnel Nearly 75% of Stolen Funds into DeFi in 2023

In 2023, cybercriminals employing crypto drainers have increasingly funneled stolen funds into decentralized finance (DeFi) protocols, moving away from centralized exchanges. Data from Chainalysis indicates that nearly 75% of funds stolen via crypto drainers this year ended up in DeFi, a significant shift from 2020 when over 90% of such funds were directed to centralized exchanges.

Chainalysis analysts also noted that some drainers are using gambling services, albeit on a much smaller scale. This trend marks a strategic change among cybercriminals, who are now leveraging the anonymity and complexity of DeFi protocols.

The blockchain intelligence firm, headquartered in New York, reports that the quarterly growth rate of funds stolen by crypto drainers has outpaced that of ransomware, a category previously noted for rapid growth. However, the full scale of phishing activity remains elusive due to the difficulty in tracking the total amounts stolen by drainers, many of which go unreported.

Chainalysis highlighted that ransomware attacks involving payments decreased by 46% in 2023. This decline is attributed to an increasingly saturated ransomware market and lower barriers to entry. Enhanced cyber resilience among organizations has contributed to this reduction, with companies now better equipped to understand and defend against these threats.

The shift towards DeFi by crypto drainers underscores the evolving landscape of cybercrime in the cryptocurrency sector, posing new challenges for regulators and cybersecurity professionals alike.

Powered by Crypto Expert BD

Follow us on Twitter:

Join our Telegram channel:


No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *