Security firms want to make it harder for scammers to get away with hacking DeFi projects

The emergence of community-oriented blockchain security companies may be making it difficult for suspected bad actors to disappear without a trace.

First thing Wednesday, CertiK issued an alert to the community regarding Flurry Finance, where their smart contracts were allegedly breached by hackers, leading to the theft of assets valued at $293,000. Shortly after the incident, CertiK published the wallet addresses of the alleged perpetrator, the address of the malicious token contract, and an address of the PancakeSwap pair allegedly implicated in the attack, leading to a warning. issued in BscScan. Although the company audited the project’s smart contracts, it appears that the exploit was the result of external dependencies.

In another case, on February 20, users of social networks reported that the Atom Protocol project, based on Avalanche (AVAX), reportedly became a rug-pull hours after its release, with a screenshot of the project’s purported Twitter account (now deleted) reading:

“There is a problem/error in the contracts, we can’t do anything. So we have to close the project, sorry.”

in a report published On Tuesday, Assure DeFi, a verification company that offers Know Your Customer (KYC) service as well as checks on project developers, lists a French citizen in its files as responsible for Atom Protocol. The company performs these checks and then makes compliance content available to the public. Through a statement to Cointelegraph, Assure DeFi explained that it is important to understand that knowing the name, address, nationality, etc. of someone does not prevent them from committing a crime. However, Assure DeFi representatives said:

“However, it does create an avenue of accountability to pursue legal recourse against bad actors…which is the value Assure DeFi’s KYC verification process provides.”

The report indicates that USD 87,440 has been stolen through the alleged rug-pull and estimates that the number of “injured” exceeds 1,000. According to Assure DeFi, victims are urged to contact Binance helpdesk to ask for the alleged perpetrator’s wallet to be frozen and to contact French law enforcement authorities regarding the alleged crime.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.