Ripple CTO Criticizes DeFi's 'Abandonment of Security' Practice... "Lost $290 Million for Convenience"

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David Schwartz, Ripple's Honorary Chief Technology Officer, strongly criticized the culture of neglecting security prevalent throughout the decentralized finance market, warning that the practice of sacrificing security for the sake of convenience has led to massive asset outflow incidents.

According to U.Today, a cryptocurrency specialized media outlet, on April 20 (local time), Schwartz cited the recent Kelp DAO hacking incident as an example, pointing out structural problems in bridge security. Approximately $290 million worth of assets were stolen in the incident, which Schwartz characterized as a preventable accident.

This hack occurred with the outflow of approximately 116,500 rsETH from the Ethereum (ETH) and Arbitrum networks. The attackers seized control of the contract by exploiting a private key leak and withdrew a massive amount of funds in a short period. Schwartz analyzed that Kelp DAO intentionally did not use LayerZero's core security features, explaining it as a typical case where security was sacrificed for operational convenience and scalability.

He particularly raised issues with the business practices of bridge providers. He pointed out that while they outwardly emphasize strong security, they actually promote scalability and ease of use, thereby encouraging the circumvention of security procedures. This structure is eroding overall market trust and, consequently, creating a vicious cycle where operational negligence leads to asset loss, according to the analysis.

During the preparation for the launch of RLUSD, Ripple reportedly reviewed various bridges and found that many providers recommended relaxing security protocols. As a result, the company revised its strategy to further strengthen its security standards. Schwartz emphasized that protecting user assets must be the top priority, and no compromise should be allowed between security and convenience.

This incident is sounding an alarm across the entire decentralized finance ecosystem. The Kelp DAO case clearly demonstrates how choosing to bypass security protocols can lead to fatal consequences. The argument that operational integrity is more important than technical completeness is gaining traction.

For the virtual asset market to advance to a mature stage, the re-establishment of standards for bridge security is inevitable. Ripple, using this incident as an opportunity, is demanding stricter security principles across the industry and emphasizing the need for fundamental changes to build long-term trust.

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