'DeFi is dead': crypto community scrambles after this year's biggest hack exposes contagion risk

'DeFi is dead': crypto community scrambles after this year's biggest hack exposes contagion risk

Search/NewsVideoPricesResearchConsensus 2026Data & IndicesSponsoredSearch/enNews AnalysisShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmail'DeFi is dead': crypto community scrambles after this year's biggest hack exposes contagion riskDevelopers and traders warn of structural risks as a cross-chain exploit spreads fear and prompts billions to flee DeFi platforms.By Aoyon AshrafUpdated Apr 20, 2026, 2:55 a.m. Published Apr 19, 2026, 5:49 p.m. Make preferred on (Getty Images)What to know: A $292 million exploit of Kelp DAO's rsETH token triggered a broad liquidity crunch across DeFi, sparking heavy withdrawals from major lending platforms, including Aave.Developers claim the hack stemmed from a misconfigured cross-chain verification setup in LayerZero-based infrastructure, exposing how flexible "modular" security, without strong minimum standards, can create systemic ri

Source: https://www.coindesk.com/news-analysis/2026/04/19/defi-is-dead-crypto-community-scrambles-after-usd292-million-hack-exposes-cross-chain-risks