Crypto Security Breaches Surge with $651M April Losses

April hacks show attackers now target people and systems, not just code, increasing systemic risks across DeFi.

April 2026 delivered one of the harshest months for crypto security in recent years. Hackers drained over $650 million across dozens of incidents, shaking confidence across DeFi markets. Losses surged more than 10-fold from March, signaling a sharp escalation in both scale and sophistication. Mounting evidence shows attackers are shifting tactics, targeting not just code but entire operational systems.

KelpDAO and Drift Exploits Dominate as Crypto Losses Near 2022 Highs

Data from CertiK Alert places total confirmed losses near $651 million, including $3.5 million from phishing attacks. Around 40 major exploits occurred during the month, with two incidents accounting for the majority of damage.

The largest breach involved KelpDAO, where attackers extracted roughly $292 million. Close behind, Drift Protocol lost about $285 million. Both exploits now rank among the top ten crypto hacks recorded since 2021.

Attackers in the KelpDAO case manipulated rsETH collateral on Aave, borrowing large amounts of ETH before converting funds into Bitcoin. That sequence introduced potential bad debt risks within Aave’s ecosystem. In response, DeFi United began coordinating liquidity support to contain further damage.

Additional incidents included Rhea Finance at $20 million and Grinex at $13.7 million. Combined losses pushed April close to March 2022 levels, which saw $715 million in damages. Excluding the February 2025 Bybit breach, this marks one of the worst months on record.

The market reaction was swift and severe, with billions flowing out of DeFi protocols. Within weeks, lending platforms came under visible liquidity strain. Investor sentiment deteriorated alongside those outflows, further pressured by regulatory uncertainty and unstable macro conditions.

Human Error Emerges as Key Vulnerability in Modern DeFi Hacks

Attack methods are changing, and hackers are no longer relying mainly on coding mistakes like reentrancy bugs. Instead, they spend time gaining access through people and systems.

Hackers now trick employees, exploit weak internal processes, or break into supporting infrastructure. These weaknesses often give them easier access than attacking the code itself.

Groups such as Lazarus Group play a central role in this transition. These actors rely on social engineering, phishing campaigns, and compromised infrastructure rather than direct code exploits. Reports indicate months of preparation, including the use of impersonation tactics and supply-chain attacks.

April’s spike in crypto hacks is a warning sign. Even though DeFi is meant to be decentralized, it still relies heavily on people and some centralized systems. That creates weak points attackers can exploit. 

Because of this, stronger protections like multi-signature wallets and hardware security keys are now becoming basic requirements. At the same time, involvement from nation-state groups makes the situation more serious. 

Since crypto is being used as a funding source, there’s growing pressure on projects, security teams, and regulators to work together and improve defenses.

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