Nearly 75% of stolen funds via crypto drainers funneled into defi in 2023

Approximately 75% of stolen funds through crypto drainers were redirected to decentralized finance (defi) protocols in 2023, according to data from blockchain intelligence firm Chainalysis. This marks a notable shift from 2020, when the majority of stolen funds ended up in centralized exchanges. Phishing scammers utilizing crypto drainers have changed their strategy, now favoring swap protocols and bridges instead of centralized exchanges. Chainalysis analysts also noticed that certain drainers are utilizing gambling services, albeit on a smaller scale. The quarterly growth rate in value stolen by these drainers has even surpassed that of ransomware attacks. However, the full extent of phishing activity remains uncertain, as many crypto drainer scams go unreported. The decrease in ransomware payments in 2023, which dropped by 46%, is partially attributed to enhanced cyber resilience among organizations, as they are now more aware of the threats they face.