NEW YORK & LONDON, Nov 19 (Bernama-BUSINESS WIRE) — Billions of dollars have been stolen from decentralized finance (DeFi) protocols, a flourishing alternative financial system that replaces traditional intermediaries with software running on blockchains, according to new research by Elliptic, the global leader in cryptoasset risk management.
Elliptic’s report DeFi: Regulation, Compliance and the Growth of DeCrime reveals that as of November 2021 just over $12 billion in losses have been suffered by DeFi users and investors, due to the malicious exploitation of flaws in decentralized applications (DApps) such as decentralized exchanges (DEXs), lending protocols and asset management offerings. These losses include direct loss of funds stolen from DApps, as well as losses suffered by holders of tokens associated with these protocols.