Phishing scammers utilizing crypto drainers are no longer directing stolen funds to centralized exchanges, opting instead for swap protocols and bridges.

Cybercriminals operating drainers have shifted their strategy, with the majority of stolen funds now flowing into decentralized finance (DeFi) protocols. This marks a significant change from 2020, when centralized exchanges were the primary destination for stolen assets.

According to data from Chainalysis, in 2023, nearly 75% of funds stolen via crypto drainers were funneled into DeFi protocols. This is a stark contrast to 2020, where over 90% of such funds ended up in centralized exchanges. Analysts at Chainalysis also observed that certain drainers appear to be using gambling services, although on a much smaller scale.

Data from Chainalysis reveals a significant shift in the laundering methods of stolen crypto funds.

The New York-headquartered blockchain intelligence firm notes that the quarterly growth rate in value stolen by these drainers has even exceeded the value stolen by ransomware, a category previously noted for its rapid growth.

The true scale of phishing activity remains unclear, according to Chainalysis, due to the difficulty in tracking the total amounts stolen by drainers, as many crypto drainer scams go unreported.

Earlier reports indicated that ransomware attacks involving payments decreased by 46% in 2023 due to an increasingly saturated ransomware market and lower barriers to entry. Chainalysis attributes the 46% decline in ransomware payments partly to enhanced cyber resilience among organizations, noting that companies now have a better understanding of the threats they face.

Stay updated with the latest news and developments in the world of cryptocurrencies and finance on Global Crypto News.

Post Views: 6