Lack of intensive regulation

[YellowSwap]

It's been like how many years already? That same thing keeps happening over and over, the crazy part is in every bear market, it's too accurate to look normal.

It's like some group of people saying let's just steal money from our own pond and make it look like we got attacked.

I am talking about the hacks happening on DeFi projects, it's getting too accurate that every four years or let me say every bear market some hacks happens on DeFi.

And once recovery starts to take place every just disappears.
In 2026 over 250million in dollars is gone via DeFi hacks.

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

[_act_]

I am talking about the hacks happening on DeFi projects, it's getting too accurate that every four years or let me say every bear market some hacks happens on DeFi.

Defi and Bridges exploits are happening both during bull and bear market.

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same?

What that DeFi and Bridges need is more than just crypto regulations. If bitcoin blockchain can not be hacked in a way that the hackers will successfully go away with bitcoin, you should know that the DeFi and Bridges developers are getting something wrong, but they might be the bad people just like you meant.

[IjawMan]

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

It needs the regulation to some limit and not the intense regulation you are suggesting cause there is a level of regulation so intense that is can scare away many project developers including the genuine ones therefore killing competition and, leaving it to a small group who by their big size may easily be manipulating the market more than what we experiencing.

May be if a lot of this projects can be revealing a proof of their reserves to pay victims in case of any unexpected incidents which is not the users fault then it can help reduce these hacks exploits.

[348Judah]

We can genuinely establish the facts on weather a hug is made as being proclaimed on it wasn't the exact situation concerned that the public will be told, you can only save ourselves from any further occurrence in such manner by avoiding all distort party services, we are giving our assets to them for them to manage and they can come up with any story, claiming our asset loss oh hack, and there's nothing you can do about it because they are centralized custodials, now you can see the relevance of going from non-custodial storage and taking charge of our asset by ourselves and avoiding investing on random projects.

[Dex_master25]

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

It needs the regulation to some limit and not the intense regulation you are suggesting cause there is a level of regulation so intense that is can scare away many project developers including the genuine ones therefore killing competition and, leaving it to a small group who by their big size may easily be manipulating the market more than what we experiencing.

May be if a lot of this projects can be revealing a proof of their reserves to pay victims in case of any unexpected incidents which is not the users fault then it can help reduce these hacks exploits.

Will the proof of reserve funds not also be a target to be hacked by these people?
However it would be weird trying to regulate DEFi which is supposed to be permissionless, open source smart contracts by forcing kyc requirements on it. Also I think only the front end can even be regulated if at all while the codes living on the Blockchain can't.
 I think for regulations to work it should be better targeted at the exchanges and stablecoins issuers who are the enablers of the hackers ability to cash out successfully their hacked proceeds, instead of the DEFi being regulated itself.

[Alpha Marine]

I think the lack of proper regulation may be a reason for this, but the regulation should not be "intensive". If the regulation is too much, it would choke the industry.
Hacks in Defi happen in any season, but in bear and bull markets. I can't tell if it's something fishy or if they are genuinely being hacked, but I know that if there are proper regulations, the hacks will be reduced.

Lack of regulation can make people not really pay attention and cross every T.
It's like how it is in the memecoins market. Anybody can just launch a token without properly considering everything. They don't care if people lose money, if the token has utility, or if it can survive such a volatile market. In the end, people lose money, and they get paid, and nothing happens.
But somehow, the authorities are not paying attention to those sectors.

[noorman0]

I don't believe hacks happen on a scheduled basis as bear market phases are largely influenced by the level of exploit cases. If you monitor defi hacking cases on defillama, at least they contain newsworthy cases with sizable losses every quarter throughout the year, regardless of market trends. The last major hack actually occurred during feb 2025, at the first bullish peak of this cycle.

[crwth]

]In a way, I think this could be lessened or somewhat given some insurance that could help alleviate the pain of losing money. I think there's an increase in complexity when it comes to attacks on Defi, but because of that, it could exponentially affect the exploit with the attack. Like an increase in attack.

From what I have read, it's always the cross-chain bridges that become vulnerable. Is it time to just really push one chain to prevent this kind of thing?

[ColdLava40]

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

Regulations only might not be the solution. These hacks are very common in Defi, but who is working to solve the problems?

The government regulations would not protect the network from getting hacked, it will only restrict investors from using it. People don't want to go through stress to access a network that's not supposed to be difficult. But some technical inspection might be enough to solve few of the problems.

I don't believe hacks happen on a scheduled basis as bear market phases are largely influenced by the level of exploit cases. If you monitor defi hacking cases on defillama, at least they contain newsworthy cases with sizable losses every quarter throughout the year, regardless of market trends. The last major hack actually occurred during feb 2025, at the first bullish peak of this cycle.

The hacks are simply random and not targeted on a particular season of the market.

[Dunamisx]

All these of gone beyond regulation because government cannot do everything for us, it goes beyond what they can do or are capable of, that is why if you look at the incidence of scam that are happening, not all of them were being apprehended by the government despite the regulations that are in place, and those affected have already lost their assets and can recover it any longer, everyone should know what they are going for and be able to understand the risk involved as well before they started.

[Fortify]

It's been like how many years already? That same thing keeps happening over and over, the crazy part is in every bear market, it's too accurate to look normal.

It's like some group of people saying let's just steal money from our own pond and make it look like we got attacked.

I am talking about the hacks happening on DeFi projects, it's getting too accurate that every four years or let me say every bear market some hacks happens on DeFi.

And once recovery starts to take place every just disappears.
In 2026 over 250million in dollars is gone via DeFi hacks.

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

It seems like you have a conspiracy mindset, which is doomed to leaving you feeling hopeless and constantly blaming someone else. There can be numerous different agendas (millions even) all competing for different aims and sometimes they all just happen to turn against you, but constantly feeling like a victim will eventually turn you into a victim. No, not every DeFi hack is somehow connected and conspiring against you, so get over that idea. Maybe crypto has just had it's short term peak and what's remaining is a more slow/steady gradual climb rather than volatility, which would actually be better for serious investors instead of day traders who are hoping for different coins to jump 1000% in a day.

[shinratensei_]

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

Too many rugs and backdoored smart contract is a problem indeed. From manipulation of prices to insider hacking, it does feels like this space is begging for massive regulation.
It feels bad how the space that was supposed to nurture a new financial sector truly decoupled from centralized responsibility ended up being taken advantage by scammers. People scam other and they get away with it because there is no clear regulation.

Most of the defi hacks that I've seen so far make no freaking sense on my end. From taiko's prover key leak to a multisig's signer key leak on employee laptop. All of them feels strange.

[YellowSwap]

It's been like how many years already? That same thing keeps happening over and over, the crazy part is in every bear market, it's too accurate to look normal.

It's like some group of people saying let's just steal money from our own pond and make it look like we got attacked.

I am talking about the hacks happening on DeFi projects, it's getting too accurate that every four years or let me say every bear market some hacks happens on DeFi.

And once recovery starts to take place every just disappears.
In 2026 over 250million in dollars is gone via DeFi hacks.

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

It seems like you have a conspiracy mindset, which is doomed to leaving you feeling hopeless and constantly blaming someone else. There can be numerous different agendas (millions even) all competing for different aims and sometimes they all just happen to turn against you, but constantly feeling like a victim will eventually turn you into a victim. No, not every DeFi hack is somehow connected and conspiring against you, so get over that idea. Maybe crypto has just had it's short term peak and what's remaining is a more slow/steady gradual climb rather than volatility, which would actually be better for serious investors instead of day traders who are hoping for different coins to jump 1000% in a day.

If this is what you feel like it's happening then no problem, I respect everyone's opinion, instead of talking about me having some conspiracy mindset you could have just asked what I saw that makes me even write this up.

I've been a long time investors and I've seen too many good projects closing down and some even announced it, after they have raised millions of dollars, and what they have delivered so far before closing down isn't worth the amount.

Things aren't adding up for real and they failed to refund all investors, it's a scam all along I believe, this is not just blaming someone, crypto space is pretty messed up that Devs would rather give out a short term hope on a utility to raise money and run.

Someone said that Defi rugs do happen in the bull market too, I accept this, but it's very common in a bear market, Luna for example was a rugpull, if anyone remembers what happened at the time, something similar like Luna always happens when in bear market year.

1000% in a day is exaggeration, honestly there is no investor that wish to buy a coin in the morning and by night they cash out 1000% gain, that's a lie.

[EarnOnVictor]

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

I thought people say crypto space should be self-regulating, thereby nothing like regulation should come near it? 
If you know how wicked the heart of most people are, one would reconsider about freedom that we all yearn form. Freedom is good, but in excess, could be abused, as human nature will always surface.

Most companies, organization and developers should rot in jail if what they are doing are exposed.

[r_victory]

It needs to be proven that this is being done intentionally; otherwise, we’re veering into conspiracy theory territory. I have my doubts; many projects rely on AI-generated code, and even older ones are likely doing the same with theirs. It’s no surprise to me that there are so many security vulnerabilities.

[TastyChillySauce00]

It needs to be proven that this is being done intentionally; otherwise, we’re veering into conspiracy theory territory. I have my doubts; many projects rely on AI-generated code, and even older ones are likely doing the same with theirs. It’s no surprise to me that there are so many security vulnerabilities.

Even without AI codes there would be security vulnerabilities. New AI and Fable 5 is so good at finding exploit and even being considered a concern for national security by the USA and limit access to foreign nationals. Truth is, most codes on the chain that got exploited was written by human .

A code written by human can have security flaw all the same as code written sloppily with AI. But too much regulation isn't a good thing either, it will slow down the growth of defi. What it needs is a solution for people to report a scam and have a protection against it.

[viljy]

The whole point of DeFi is that it should function without regulators. Cryptography was supposed to perform this function. However, the inevitable vulnerabilities and intentional fraud have undermined the security of decentralized finance. In practice, the idea of decentralized finance has proven to be far from theoretical.

However, this does not necessitate regulation. The solution lies in the natural outflow of customer funds to more secure and legally regulated platforms. This should be a natural process of capital flight from DeFi. If this doesn't happen, then the situation isn't as dire as it seems. That's all.

[Haunebu]

The special thing about crypto and BTC in general is the fact that they are way less regulated when compared to FIAT and you want more regulation? What the blazing heck? You seem like one of those people who appreciates KYC in all forms.

Silly thinking! Also, hacks won't magically stop just because of better regulation. If that were the case, FIAT hacks would have been 0 since eons, but that is clearly not the case. Think!

[Dave1]

It's been like how many years already? That same thing keeps happening over and over, the crazy part is in every bear market, it's too accurate to look normal.

It's like some group of people saying let's just steal money from our own pond and make it look like we got attacked.

I am talking about the hacks happening on DeFi projects, it's getting too accurate that every four years or let me say every bear market some hacks happens on DeFi.

And once recovery starts to take place every just disappears.
In 2026 over 250million in dollars is gone via DeFi hacks.

I can't help but think that this crypto space is the most suffering space begging for intense regulation than ever or you don't think the same ?

You're wrong, regardless of what cycle we have, there will be exploits and there are obviously loopholes on Defi. Although I will agree that the cyber criminals are ramping their attacks right now. Perhaps it's due to AI as well, because they can used it to look for exploits, similar to the projects who uses it to look for loopholes.

So yeah, as the market is getting bigger by every year, the money involve that is going to be lost from this hacks are going up as well. I don't what to say that we should accept this fact, but if there is something that this protocol can do, is to make it hardened from this attacks.

[joniboini]

I'm sure someone mentioned this already, but a better way to solve this would be to encourage people to actually learn and avoid using money they can't afford to lose on some random projects. Sure, it's impossible to know any exploits even if you're a skilled coder, especially when you don't know whether some employee are doing dumb things behind your back, but it should reduce the number of loses.

Even if that's the case already, it means the market is just so big that the number of funds being deposited on some random bridge is so huge that it'll attract attackers no matter what you do. At the end of the day crypto users should rely on themselves and reduce the risk of being scammed because something like this.