FATF Warns DeFi Sector Vulnerable to Money Laundering and Fraud
The Financial Action Task Force (FATF) has issued a warning regarding the increasing use of decentralized finance (DeFi) by fraudsters, ransomware operators, and money laundering networks. According to a recent report, 93% of the 143 jurisdictions surveyed have not implemented FATF's anti-money laundering standards for DeFi. The report highlights vulnerabilities in the DeFi sector, such as permissionless access and limited user identification, which make it susceptible to criminal exploitation. Notably, two cyberattacks attributed to North Korea in April 2026 accounted for 76% of virtual asset hacking losses this year, totaling over $570 million. FATF President Giles Thomson emphasized the need to prevent the misuse of emerging technologies while supporting their legitimate use. 
