DeFi Risk & Exploits
20 stories
21Shares Ethereum ETF Faces $48M Redemptions With Most ETH Still Locked
The 21Shares Ethereum ETF processed $48 million in redemptions in early 2026, but kept over 86% of its ETH staked, raising questions about liquidity and redemption timing for investors as market volatility persists
Crypto Liquidation Data Gaps Expose Risks in Solana, Binance Crash
Conflicting reports on October's crypto crash reveal major gaps in liquidation data, with billions in losses and unclear risk mechanisms across Solana, Binance, and DeFi platforms. Regulators face challenges in tracking systemic failures and user impact.
Study Links 65,000 Crypto Addresses to $574 Million in Losses
A new security study has identified tens of thousands of Ethereum and BNB Smart Chain addresses tied to risky activity, revealing how contract and key misuse have led to hundreds of millions in lost funds
Tron Inc. Faces Major Risk as 91% of Assets Locked in JustLend
Tron Inc. has staked nearly all of its TRX treasury through JustLend, leaving over 90% of its assets uninsured and exposed to protocol and smart-contract risks as its holdings continue to grow
Harmony Considers Blockchain Rollback After Billions in ONE Minted Illegally
Harmony has halted further unauthorized minting of its ONE token after a protocol flaw allowed billions to be created and sent to exchanges, but the fate of the excess supply and possible transaction rollback remains unresolved
Drift Protocol Attack Exposes Limits of Multisig Wallet Security
Multisig wallets are designed to prevent single-point failures, but the $285M Drift Protocol exploit shows that valid signatures alone can't stop social engineering or malicious transactions when thresholds are low and oversight is weak
Crypto Audit Badges Fail to Protect Investors From Major Security Risks
Crypto platforms often display 'audited' badges as a sign of safety, but recent billion-dollar losses reveal these labels can mislead users about the true scope of security protections
Wall Street's $7B Tokenized Funds See Minimal DeFi Adoption
Despite Wall Street pouring billions into tokenized funds, less than 1% of these assets are actively used in DeFi protocols, raising questions about composability, security, and the future of real-world asset integration
Bybit Hack Shows Why Stolen Crypto Is So Hard to Recover
A $1.5 billion crypto theft tied to North Korea highlights the limits of legal action and blockchain transparency, as most stolen funds vanish before courts can intervene and only a fraction is ever frozen or recovered
Matrixdock RWA Tokens Face Reserve, Audit, and Custody Risks
Matrixdock's XAUm and XAGm tokens bring gold and silver onto blockchains, but their value depends on off-chain reserves, third-party audits, and complex custody. Gaps in verification, supply tracking, and legal clarity create risks for users and DeFi protocols
Researchers Find Over 4,200 Malicious Smart Contracts Draining Crypto
A new study links thousands of deceptive smart contracts to millions in crypto losses, exposing how wallet simulations can mislead users and reroute funds to attackers across major blockchains
Crypto Trading Risks That Can Wipe Out Capital
From liquidations and exchange freezes to private-key loss and DeFi hacks, crypto trading carries layered risks. Practical steps can reduce exposure without promising safety
XRPL Validators Block Exploit, Forcing Rewrite of Key Ledger Upgrades
A critical flaw in proposed XRP Ledger amendments could have let attackers drain user accounts through transaction fees. Validators intervened before mainnet activation, prompting a rewrite and delaying new features.
Zcash Seals Critical Supply Flaw as $926M in Leverage Pressures Price
Zcash's Ironwood upgrade has closed a major supply-risk loophole, but ZEC remains under $500 as nearly $1 billion in open interest and heavy derivatives activity test the market's confidence in the protocol's repair.
Crypto Projects Lost Over $1B to Hacks in Early 2026
Crypto security firm Blockaid reports over $1 billion in losses from hacks and exploits in the first half of 2026, with nearly $600 million attributed to North Korea-linked groups. Ethereum and Solana projects were among the hardest hit.
How AI-Powered Smart Contract Audits Are Changing Web3 Security
AI-driven platforms like Cecuro are reshaping smart contract security by automating code analysis, vulnerability detection, and risk validation-raising new questions about the future role of human auditors in the Web3 ecosystem
Flash Crash on Hyperliquid Raises Oversight Questions for Perpetuals
A sudden two-minute plunge in the SKHX perpetual contract on Hyperliquid, tied to South Korea's SK Hynix, exposed vulnerabilities in equity-linked crypto derivatives and left traders questioning the reliability of price feeds and risk controls.
Critical x402 Payment Flaws Expose Crypto Merchants to Theft Risk
A new security study has uncovered 31 vulnerabilities in x402 crypto payment facilitators, affecting nearly all observed transactions and putting merchants at risk of asset theft, free shopping, and increased operational costs.
SEC Flags Human-Controlled DeFi Vaults for Potential Scrutiny
Crypto yield vaults with human-managed strategies, like Morpho Vault V2, may face increased SEC attention as regulators examine whether such oversight constitutes financial management under U.S. securities law
Bridge Hacks Drive $7 Billion in Crypto to Chainlink's CCIP
A surge in cross-chain bridge exploits has pushed major crypto projects and institutions to migrate over $7 billion in assets to Chainlink's CCIP, reshaping how value moves between blockchains and raising new questions about LINK token demand