Defi Receives Almost Three-Quarters of Crypto Drainers’ Stolen Funds in 2023
Phishing scammers are changing their tactics by redirecting stolen funds from centralized exchanges to decentralized finance (defi) protocols. This shift in strategy is evident in the data provided by Chainalysis, which shows that in 2023, around 75% of funds stolen via crypto drainers were funneled into defi, a significant change from 2020 when over 90% ended up in centralized exchanges. The blockchain intelligence firm also observed that some drainers are utilizing gambling services, albeit on a smaller scale.
According to Chainalysis, the growth rate in value stolen by these drainers is surpassing that of ransomware attacks, which were previously known for their rapid growth. However, the true extent of phishing activity remains uncertain as many crypto drainer scams go unreported, making it challenging to track the total amount stolen.
As previously reported, ransomware attacks involving payments decreased by 46% in 2023 due to market saturation and lower entry barriers. Chainalysis attributes this decline, in part, to the improved cyber resilience of organizations, as companies now have a better understanding of the threats they face.
In related news, the ransomware gang BlackCat has exit scammed affiliates, absconding with millions in Bitcoin.
