Definition ∞ This describes the illicit removal of funds from a system. ‘Fund Exfiltration’ pertains to the unauthorized transfer of assets, often occurring through security vulnerabilities or fraudulent activities within digital finance. Such actions represent a significant risk to investors and platform stability.
Context ∞ Reports of ‘Fund Exfiltration’ are common in cryptocurrency news, detailing instances where hackers or malicious insiders have drained significant amounts of digital assets from exchanges or decentralized protocols. Analyzing these events provides critical insights into the security weaknesses prevalent in the digital asset space and the ongoing efforts to mitigate such risks. The frequency and scale of these incidents often shape regulatory discussions.
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