$320 Million Bitcoin Hack Exposes Flaws in DeFi Infrastructure
· Business · LiveMint, Bloomberg
A $320 million hack of the Bitcoin-linked Liquid Network highlights persistent vulnerabilities in decentralized finance (DeFi), where fragmented infrastructure and cross-chain links remain prime targets for attackers. The breach, part of a broader trend of 250 hacks in 2026—up from 146 in 2025—has stolen $1.4 billion so far this year, with 26% of attacks now focusing on cross-chain bridges. Experts warn that decentralization, while touted as a strength, has left users reliant on unvetted platforms with weak cybersecurity, undermining institutional trust in crypto. The Liquid Network hack follows similar breaches on Kelp DAO and Drift Protocol, which together cost $588 million. Nikhil Raghuveera of Predicate cautions that DeFi lacks the safeguards of traditional finance, making it unready for mainstream adoption.
Why it matters
Institutional investors and global fintechs are increasingly skeptical of crypto’s viability as a mainstream financial tool, with repeated hacks eroding confidence in decentralized systems. For Indian investors and startups, this raises concerns about security risks in emerging DeFi platforms and the potential for regulatory scrutiny to tighten further.
Read the original report — LiveMint
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