$600 million stolen in 24 days… Crypto market breached by North Korean hackers, will it collapse?

▲ North Korea, Hacking, Ethereum (ETH)/AI Generated Image ©

With an astronomical sum exceeding $600 million evaporating due to hacking in just 24 days, a massive security scare has swept through the decentralized finance (DeFi) market, fueling an investor exodus and shaking the cryptocurrency ecosystem.

According to investment media outlet The Motley Fool on April 26 (local time), crypto protocols lost a staggering $606 million to hacks and exploits throughout April. This marks the worst damage since the $1.4 billion Bybit hack in February 2025, significantly escalating market anxiety.

95% of the losses originated from just two fatal attacks. Solana (SOL) ecosystem projects were hit on April 1, followed by Ethereum (ETH) ecosystem projects on April 18. Both incidents were attributed to North Korea's notorious hacker group, Lazarus Group. These attacks were not simple code flaws or indiscriminate cyber intrusions but rather the result of sophisticated operations combining legitimate protocol activities with elaborate social engineering techniques over several months.

The shock quickly spread across the entire affected ecosystem. In just 48 hours after the attacks, over $8.4 billion in deposits flowed out of AAVE alone, and the total value locked (TVL) in DeFi plummeted by $13 billion. The Ethereum ecosystem, in particular, suffered a direct hit, experiencing a capital outflow of $1.6 billion in a single day on April 24.

This massive outflow of funds was even more shocking as it occurred at a time when investor pessimism about DeFi's investment value and security was at its peak. The outlet analyzed that investors, who had been wavering without finding a safe haven for returns, are now completely exiting the market due to this incident, exacerbating downward price pressure.

However, there is also a positive side. Since this security incident stemmed from vulnerabilities in third-party projects rather than fundamental flaws in the Ethereum and Solana networks themselves, the damage did not lead to the collapse of the entire ecosystem. The outlet emphasized that historically, price drops due to hacking have always presented buying opportunities, advising investors to safely store their assets in financial institutions or cold wallets rather than DeFi protocols for the time being.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*