Phishing scammers utilizing crypto drainers are increasingly diverting stolen funds into decentralized finance (DeFi) protocols, moving away from centralized exchanges, a shift that marks a significant change in cybercriminal tactics over the past few years.
Data from blockchain intelligence firm Chainalysis reveals a striking trend: in 2023, nearly 75% of funds stolen via crypto drainers were funneled into DeFi, a sharp increase from 2020, when over 90% of such funds ended up in centralized exchanges. This pivot towards DeFi marks a notable evolution in the behavior of cybercriminals, who now exploit the relative anonymity and decentralized nature of these platforms.
Chainalysis analysts have also noted the use of gambling services by some drainers, albeit on a much smaller scale. “The quarterly growth rate in value stolen by these drainers has even exceeded the value stolen by ransomware,” the firm stated, underscoring the growing sophistication and scale of these phishing scams.
Tracking the full scope of phishing activity remains a challenge, Chainalysis acknowledges, due to the clandestine nature of many crypto drainer scams. “Given that many crypto drainer scams are not reported, the real scale of phishing activity remains unclear,” the firm noted.
A report by crypto.news highlighted a 46% decrease in ransomware attacks involving payments in 2023, attributed to an increasingly saturated ransomware market and lower barriers to entry. Chainalysis attributes this decline partly to enhanced cyber resilience among organizations, as companies now possess a better understanding of the threats they face.
As traditional cryptocurrencies like Solana (SOL) and Ethereum (ETH) navigate market volatility, new players like Borroe Finance (ROE) are capturing investor interest with innovative DeFi solutions.
Solana has experienced a tumultuous year. Despite starting 2024 with bullish momentum, SOL saw a significant price drop since early April. The price fell from a yearly high of $202 to $145 in mid-May, marking a 28% decline. Solana’s price chart indicates a consolidation phase, with SOL trading within a symmetrical triangle near its apex, suggesting a potential breakout. “If Solana triggers a breakout, SOL will surge past $200 in the coming months,” experts predict.
Ethereum is also facing its own set of challenges. The approval of Ethereum ETFs by the US SEC seems unlikely, as the regulatory body views Ethereum as a security rather than a commodity. This classification poses significant hurdles for the approval of Ethereum ETFs. SEC chairman Gary Gensler has been a notable figure behind the declining interest in Ethereum ETFs. Consequently, ETH has experienced a downtrend, trading at around $3,340 in late April and dropping to $2,890 by mid-May, a 13.4% dip. Technical indicators like MACD and RSI suggest a bearish outlook, with experts forecasting further declines to $2,600 in the coming months.
Amidst these market fluctuations, Borroe Finance (ROE) emerges as a beacon of hope. With significant progress in its presale stages, Borroe Finance is set to dominate trading sessions in decentralized exchanges. Investors are optimistic about ROE’s long-term prospects, seeing it as a reliable crypto investment in an otherwise volatile market.
As the landscape of cryptocurrency continues to evolve, the shift of stolen funds to DeFi underscores the dynamic nature of cyber threats and the ongoing adaptation required by regulators and investors alike. The rise of new, innovative solutions like Borroe Finance highlights the resilience and potential of the crypto market, even in the face of significant challenges.
