Financial Crime World

Haiti Confronts Decentralized Finance Risks as Losses Soar to $12 Billion

Rapid Growth, Significant Risks

Port-au-Prince, Haiti - The decentralized finance (DeFi) sector has experienced astonishing growth, with total capital locked in DeFi services skyrocketing by over 1,700% to $247 billion in just one year. However, this explosive expansion comes with a warning: DeFi’s openness and innovation also pose significant risks.

The Dark Side of DeFi

Hackers have exploited the relative immaturity of DeFi technology to steal users’ funds, while deep pools of liquidity have enabled criminals to launder proceeds from ransomware and fraud - a phenomenon dubbed “Decrime” by Elliptic. As a result, DeFi users and investors have already suffered losses totaling $12 billion due to theft and fraud.

Accelerating Trend

The trend is accelerating, with losses reaching $10.5 billion in 2021 alone, up from just $1.5 billion in 2020. As DeFi becomes a more significant part of the global financial system, its risks will inevitably impact traditional financial institutions. It’s no longer possible to mitigate these risks through industry abstention alone.

Elliptic Report: Understanding DeFi Risks

In this report, Elliptic examines the concept of DeFi, including its services, governance, incentives and platforms, as well as the criminal exploitation of DeFi. The report also delves into how DeFi is regulated - or not - and what potential compliance and controls are needed to prevent financial crime.

Why Regulators and Institutions Must Take Action

With DeFi’s growth showing no signs of slowing down, it’s imperative that regulators, institutions, and individuals understand the risks and implications of this rapidly evolving landscape. Download the Elliptic DeFi report today to stay ahead of the curve and learn how to mitigate these risks.

Key Findings:

  • Total capital locked in DeFi services has skyrocketed by over 1,700% to $247 billion in just one year.
  • Losses due to theft and fraud have reached $12 billion.
  • The trend is accelerating, with losses reaching $10.5 billion in 2021 alone.
  • Traditional financial institutions will inevitably be impacted by DeFi risks.

Take Action Today

Don’t wait until it’s too late. Download the Elliptic DeFi report now to learn more about the risks and implications of decentralized finance and how you can stay ahead of the curve.