Security companies are attempting to make it more difficult for criminals to perpetrate Defi project attacks
While no project can completely exclude the possibility of unscrupulous actors invading the Defi domain, security experts believe there are methods to inhibit such behaviour.
The growth of community-based blockchain security businesses may be making it more difficult for accused bad actors to disappear without being discovered.
CertiK published a community notice early Wednesday about Flurry Finance, whose smart contracts were reportedly compromised by hackers, resulting in the theft of $293,000 in money. CertiK disclosed the wallet addresses of the suspected perpetrator, the fraudulent token contract’s address, and a PancakeSwap pair address reportedly engaged in the attack shortly after the occurrence, prompting BscScan to issue a warning. While the business reviewed the smart contracts for the project, it seems as if the vulnerability was caused by external dependencies.
On Feb. 20, social media users stated that Avalanche (AVAX)-based project Atom Protocol had devolved into a rug-pull within hours after introduction, with a snapshot from the project’s supposed Twitter account (since removed) stating:
“There is a problem/error in the contracts; we are unable to correct it. As a result, we are forced to terminate the project.”
According to a study released Tuesday, Assure DeFi, a verification organisation that performs Know Your Customer, or KYC, checks on project developers, has one French citizen on file as the Atom Protocol’s responsible party. The company performs these assessments and then publishes publicly accessible compliance material. Assure DeFi noted in a statement to Cointelegraph that it’s important to remember that knowing someone’s identity, address, country, and so on does not prevent them from committing a crime. However, Assure DeFi representatives elaborated:
“However, it establishes an avenue for pursuing legal remedies against rogue actors…which is the value provided by the Assure DeFi KYC Verification procedure.”
The report details the theft of $87,440 via the alleged rug pull and believes that the total number of “injured parties” exceeds 1,000. Assure DeFi advises victims to contact Binance support and request that the accused perpetrator’s wallet be frozen, as well as to inform French law enforcement authorities over the suspected crime.