cryptonews.com
The alarming rate of DeFi hacks has caught the attention of the US Department of Justice.
A recent Financial Times report disclosed that the DoJ referred to these thefts and hacks as a “pretty significant issue.”
Apart from other bad actors’ hacks and exploits, the North Korean hackers have recently looted billions of funds from DeFi.
A January 2023 report by De.Fi Security revealed that $49 billion was lost in crypto in 2022.
In another report, researchers disclosed that 97% of all crypto thefts came from DeFi protocols.
Out of all the stolen funds, North Korean hackers reportedly stole $1.7 billion in 2022 from crypto.
These billion-dollar worth of thefts have pushed the US DoJ to begin a manhunt for DeFi thieves and hackers.
Department Of Justice Kicks Off a Manhunt For DeFi Bad Actors
Based on the Financial Times report, DOJ Director Eun Young Choi stated the department would focus on DeFi thefts and hacks related to chain bridges.
In Choi’s words, the issue is significant given that North Korean “state-sponsored hackers” are now the top players in crypto hacks and exploits.
Eun Young Choi was the first director of the DOJ’s National Cryptocurrency Enforcement Team (NCET).
The department announced on February 17, 2022, revealing that Ms. Choi is a seasoned prosecutor with nearly ten years of experience.
In the announcement, the DOJ stated that criminals had seen an increase in the illicit use of distributed ledger technology and digital assets as the technology advanced.
Criminals utilize these technologies to facilitate all sorts of atrocities, including narcotics trafficking, hacking tools, extortion schemes, fuel cyberattacks, ransomware, online sale of illicit contraband, commit thefts and frauds, laundering crime proceeds, etc.
As such, the DOJ arm NCET will be the “focal point” to track cybercrime, crypto thefts, money laundering & forfeiture.
Notably, the DOJ didn’t mention that it would clamp down on DeFi hackers and thieves at the time. But it stated the agency will focus on “mixing and tumbling services”
The DOJ Will Target Firms That Commit Or Facilitate Crimes, Choi
While speaking at the Financial Times Crypto and Digital Assets Summit, Choi stated that the Department of Justice would clamp down on firms that commit crimes or turn a blind eye to the crimes.
Choi mentioned that some firms that obscure transaction trails allow these crimes to happen, thereby facilitating money laundering.
Therefore, targeting the source of the crime will have what she termed a “multiplier effect” preventing bad actors from profiting easily from their criminal activities.
Further, the NCET director reiterated that the rate at which bad actors use digital assets for illegal activities had skyrocketed alarmingly within the past four years.
Apart from the reports of DeFi hacks in 2022, bad actors have also stolen massively from these platforms in 2023, with Euler Finance topping the list for losing $196 million worth of DAI, USDC, stETH, and WBTC on March 13.