DeFi
Nearly 75% of funds stolen via cryptocurrency drainers were funneled to Defi in 2023.
Phishing scammers using crypto drainers no longer appear to be directing stolen funds to centralized exchanges, instead turning to exchange protocols and bridges.
Cybercriminals operating drainers have significantly changed their strategy, with the majority of stolen funds now being directed to decentralized finance (challenge), a notable change from 2020, when centralized exchanges were the primary destination.
Data from On-Chain Analysis reveals that in 2023, almost 75% of funds stolen via crypto drainers were funneled into defi, a stark contrast to 2020, where over 90% ended up in centralized exchanges. Chainalysis analysts also observed that some drainers appear to be using gambling services, “albeit on a much smaller scale.”
Services used by crypto drainers to launder funds | Source: Chainalysis
The New York-based blockchain intelligence firm notes that the quarterly growth rate of value stolen by these drainers “even exceeded the value stolen by ransomware,” a category previously noted for its rapid growth.
The true scale of phishing activity remains unclear, Chainalysis acknowledged, citing the difficulty of tracking the total amounts stolen by drainers “given that many crypto drainer scams go unreported.”
Like crypto.news earlier reported, ransomware attacks involving payments decreased by 46% in 2023 due to an increasingly saturated ransomware market and decreasing barriers to entry. Chainalysis says the 46% drop in ransomware payments can be partly attributed to “increased cyber resilience among organizations,” adding that businesses now better understand the threats they face.