According to a report from London-based firm Elliptic, about $10.5 billion worth of user funds has been stolen in cases of fraud and theft on DeFi products. DeFi platforms have become increasingly popular in recent years, but the platforms are not regulated. The “total value locked” (TVL), a measure of the liquidity of DeFi services, increased by a factor of nearly 500, from $500 million in November 2019 to just over $247 billion today. The overall losses caused by DeFi theft and fraud have totaled $12 billion so far in 2021. In addition, the report suggests that in the past two years, $2 billion has been stolen directly from decentralized applications. An additional $10 billion in losses are due to declining token value because of fraud or theft, which results in decreased consumer confidence in the products. The vast majority of losses from the last two years, $8.6 billion, have …