Crypto News: FBI Pressures Crypto Projects to Place More Focus on Security


  • The FBI is warning DeFi developers to implement more safety measures for investors.
  • A recent statement shows the agency’s continued interest in policing the unregulated crypto world.
  • In the first half of 2022, $2 billion worth of crypto was stolen through hacks and exploits.
An image of a hacker on a laptop with icons of messages and data behind him
Source: jossnat / Shutterstock

Today’s crypto news continues to follow an ongoing trend of U.S. intervention in the crypto market. Much like the country plays a central role in global affairs, the United States is also entering a vital role in reining in crypto. Over the past few months, the U.S. Securities & Exchange Commission (SEC), Federal Reserve, U.S. Treasury and FBI have all become more and more at odds with crypto faithfuls who would rather see a laissez-faire approach to regulation. Now this week, the FBI is continuing to put pressure on the industry.

Right now, most eyes are falling on corners of government outside of the FBI. The U.S. Treasury is taking the majority of the heat from crypto bulls after its sanctions against Tornado Cash. These sanctions have sparked a debate over freedom of speech within the blockchain world. The Fed, always an enemy to the market, is also still attracting ire as rate hikes hamper the growth of crypto prices. And nobody can forget the SEC, of course; the body is poking and prodding any project it sees fit. This has led to a bevy of legal challenges and road bumps.

Now, the FBI is joining these other agencies more aggressively in 2022. In February, the agency formed a crypto task force branch. The FBI has pulled out the handcuffs on dozens of scammers and criminals this year as well, arresting two Manhattan business magnates-turned-crypto launderers, for instance. The agency even helped make the first-ever crypto insider trading arrests and dismantle a $59 million crypto Ponzi scheme.

Crypto News: FBI Warns DeFi World to Lock Down Security

The FBI’s recent involvement in cryptocurrency doesn’t come as a surprise. The blockchain world is becoming a haven for money laundering, as the U.S. Treasury crypto news evidences. Hacks are also proving more costly than ever for everyday Americans. That now has the FBI warning both investors and developers.

As crypto cybersecurity company CertiK points out in its security report for the first half of 2022, this year is unprecedented in terms of losses. Between January and June, assets worth $2 billion have been stolen from users so far. The vast majority of this theft comes from exploitation of weaknesses in projects’ coding. Since the report has come out, several more huge hacks have occurred, including the theft of $100 million in crypto from the Harmony (ONE-USD) network.

The FBI obviously has plans to crack down on this space and begin punishing these thieves. As of now, a vast majority of the hackers in these attacks have been able to get away scot-free. Oftentimes, they even do so without losing any of the stolen crypto.

In a statement issued late yesterday, the FBI just warned investors and developers to be proactive in preventing these attacks. Just like CertiK, the agency calls on developers to take more time securing their projects in order to keep future attacks from happening. The FBI’s statement prioritizes real-time analytics and warning investors of suspicious activity. The FBI is also calling for investors themselves to thoroughly research before buying into a project. Developers should also heed CertiK’s advice and have their code audited prior to publishing; any vulnerabilities can’t be fixed if they are rushed to market too quickly.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC