In 2021, crypto thieves and fraudsters snatched a record N5.810 trillion in cryptocurrency, primarily by breaching into blockchain platforms. Many scammers obtained access to loans through Decentralised Finance (DeFi), which cut out middlemen and lawyers.
Theft and scams, according to Chainalysis, increased losses by 79 percent. In 2021, it was the most common type of crypto-based crime, followed by theft, which usually occurred by hacking crypto-based organizations.
China analysis says; “But DeFi is unlikely to realize its full potential if the same decentralization that makes it so dynamic also allows for widespread scamming and theft.”
The wild world of DeFi.
It’s a rising section of the cryptocurrency market that aims to eliminate middlemen from traditional financial transactions, such as acquiring a loan, such as banks and lawyers. DeFi uses a piece of code known as a smart contract to replace traditional banks and lawyers. It’s written on a blockchain like ethereum or solana and executes when certain criteria are met, eliminating the need for a middleman.
