How can DeFi facilitate malicious operations?

5 min readNov 24, 2022

DeFi is revolutionizing the concept of finance and opening flourishing opportunities for all crypto-savvy. But how always happens for good things; everything has its downsides. The same goes for DeFi and its dark side, which always favors more malicious operations, going against the first purpose for which it was created: to democratize finance.

Decentralization and the lack of regulation

We’ve already spoken about DeFi and its related benefits, downsides, and solutions. But today, due to the sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on the virtual currency mixer Tornado Cash, it’s become essential to talk about the lack of regulation that distinguishes the world of Decentralized Finance, and how to recognize all DeFi’s red flags.

DeFi protocol security and malicious operations