Crypto Hacks Skyrocket 1,140% in April
Analysis
Price Impact
HighThe massive increase in crypto hacks, particularly the kelpdao and drift protocol exploits totaling over $570 million, directly impacts the defi sector. this event erodes investor confidence, can lead to sell-offs, and potentially cause systemic contagion within defi protocols. the laundering of funds into eth and btc means these major cryptocurrencies are indirectly affected by the security concerns.
Trustworthiness
HighPrice Direction
BearishA significant surge in hacks and stolen funds creates fear and uncertainty in the market. investors may move their assets to safer havens, leading to selling pressure on riskier assets like defi tokens, eth, and even btc as a safe haven within crypto.
Time Effect
ShortThe report specifically details losses for april. the immediate aftermath of such a significant hack event typically has a short-term impact on price as markets react. however, prolonged security issues could lead to longer-term effects.
Original Article:
Article Content:
Cover image via U.Today The cryptocurrency sector experienced a devastating month of security breaches in April, with total funds lost to hacks skyrocketing by an astonishing 1,140% compared to the previous month. Advertisement According to data released by blockchain security firm PeckShield, the industry suffered 40 major exploits in April, resulting in a staggering total loss of $647 million. There has been a simply unprecedented month-over-month surge from March 2026, which saw comparatively lower losses of $52.25 million. HOT Stories OpenAI Foundation CFO Joins $1 Billion XRP Treasury; Bitcoin's Worst Case by May 2026 Detailed by Expert Trader; $183 Million 'Capital Flight' Hits Ethereum ETFs Amid DeFi Hack Wave - Morning Crypto Report Ripple Vet Doubts $10K XRP Price Target Devastating damage April's $646.89 million in losses dwarf the combined total of January ($86.01 million), February ($26.52 million), and March ($52.25 million). Advertisement KelpDAO ($292 million) and Drift Protocol ($285 million) account for the vast majority of the stolen funds. Rhea Finance ($20 million), Grinex ($13.74 million) are also in the top 5. The scale of the KelpDAO and Drift exploits is so immense that they have reshuffled the historical rankings of crypto thefts. According to PeckShield's "Top 10 Hacks" chart covering January 2021 to April 2026, the KelpDAO exploit now ranks as the 7th largest crypto hack of all time, while the Drift exploit takes the 9th spot. The fallout from the $292 million KelpDAO breach extends far beyond the protocol itself. In fact, it has threatened the broader systemic contagion across the decentralized finance (DeFi) ecosystem. Advertisement As reported by U.Today, the attacker took the stolen rsETH and supplied it as collateral to the Aave lending protocol. The exploiter was able to borrow massive amounts of Ethereum (ETH) and subsequently laundered the liquidity into Bitcoin (BTC).