$35M Crypto Hacks Bring DeFi FUD Back to the Surface

The DeFi sector is once again facing security concerns after a series of exploits resulted in $35.55 million in losses. The attacks targeted three cross-chain bridges, with AFX suffering the largest loss at $24.2 million. BSquared Network lost around $3.9 million, and VerusCoin suffered a bridge exploit worth roughly $7.5 million.

The timing of these exploits is particularly concerning as it comes just as DeFi was starting to regain momentum. In July, DeFi TVL climbed by more than $10 billion, marking the strongest monthly increase since the Q1-Q2 hack wave. However, the latest hacks have injected fresh uncertainty into that recovery.

The hacker behind the $285 million Drift exploit has also started moving stolen funds again, adding to the market's concerns. The attacker is funneling ETH through the Tornado Cash Router in repeated 100 ETH batches, with multiple transactions being executed every minute.