Crypto’s ‘decentralised finance’ sector hit by investor exodus after hacks

High-profile hacks have triggered a sharp investor exodus from decentralised finance (DeFi), pulling nearly $14bn from the sector, according to DefiLlama. North Korean-linked attackers stole about $290mn via a scheme that left Aave with up to $230mn in bad debts and prompted a high-profile bailout to prevent contagion; this followed a $280mn theft from DeFi exchange Drift. The DeFi market has contracted to roughly $86bn, and token prices have tumbled—Aave’s token is down ~20% since April 18 (50% year-on-year) and Uniswap’s token is down about 34% over the past year. The events have eroded confidence in DeFi’s security model, spurred scrutiny from lawmakers and regulators, and may accelerate calls for tighter oversight, increasing short-term outflows and downside pressure on DeFi tokens and related crypto assets.