DeFi threatens U.S. security, Treasury says

The Treasure US states that the decentralized crypto services threaten the security of the country. From Rogue states and cybercriminals are taking advantage of theopacity offered by the DeFi to move and whitening of fondsaccording to the American department.

The United States Department of the Treasury released a lengthy report this week on risks posed by decentralized finance (DeFi) services and has announced plans to further monitor this ecosystem, reports the Wall Street Journal.

This risk assessment explores how illicit actors abuse what are commonly known as decentralized finance services (DeFi) […] The assessment reveals that illicit actors, including cyber criminals, thieves, scammers, and cyber actors in the Democratic People’s Republic of Korea, are using DeFi services in the process of transferring and laundering their illicit proceeds,” the document’s preamble reads.

The DeFi services refer to protocols built on blockchains like Ethereum, operating without intermediaries and which are governed by DAOThese are decentralized autonomous entities.

Read:  Bitcoin maxi Michael Saylor sells $216m worth of MicroStrategy shares

Today, the most large DeFi protocols in terms of locked value are LidoMakerDao, Aave, Curve and Uniswap, depending on the data provider Defillama.

Treasury states that DeFi departments that do not implement monitoring measures adequate to combat bad actors risk sanctions.

The private sector should use the department’s findings to inform its own risk mitigation strategies,” said Treasury Under Secretary Brian Nelson.

At the same time, the U.S. federal authority says it recognizes that “the most of the activities related to money laundering or terrorist financing by volume and value of transactions are conducted with fiat currency ” and take place outside the crypto ecosystem.

Read:  FTX owed $8.7 billion to its customers, according to a new report

Follow Corners.en on Twitter, Linkedin, Facebook or Telegram to not miss anything.

The Best Online Bookmakers May 23 2024

BetMGM Casino

Bonus

$1,000