The USD 150 bn decentralized finance (DeFi) market is facing a mounting security crisis as hackers increasingly target vulnerabilities in blockchain-based platforms, Chainalysis CEO Jonathan Levin told the Financial Times. The head of the world’s largest crypto-tracing firm warned that security “hasn’t really been considered” by the startups driving DeFi’s explosive growth — leaving bns of USD in digital assets exposed to attacks.

DeFi platforms are prioritizing growth over safety, with the industry mostly made up of small, fast-moving teams without professional oversight or experienced security officers, leaving them open to exploitation, according to Levin. These platforms, which let users lend, borrow, and trade crypto without intermediaries, have become multi-bn USD ventures backed by major investors. But despite their growing scale, they remain highly exposed to attacks due to their reliance on complex smart contracts and decentralized governance.

Security breaches have intensified this year. Earlier this week, hackers drained over USD 100 mn from DeFi protocol Balancer, while another USD 200 mn was stolen from the Cetus Protocol earlier in 2025. Chainalysis data shows that crypto thefts hit a record USD 2.2 bn in the first half of the year — already exceeding all of 2024 — with North Korean-linked groups responsible for the largest-ever heist, a USD 1.5 bn theft from exchange Bybit.

The growing frequency of attacks underscores how DeFi’s expansion has created easy targets for cybercriminals. Levin warned that major decentralized protocols could face increasing threats from state-sponsored actors if security continues to be overlooked. Levin said the company’s focus remains on tackling DeFi’s structural vulnerabilities, stressing that the risks embedded in onchain systems and smart contracts must be addressed before the next major breach hits.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning with strong earnings drawing investors back after elevated valuations left them spooked. The Hang Seng is leading gains, up 1.3%, with Japan’s Nikkei trailing behind. The Shanghai Composite and Kospi are also in the green.

ADX

10,015

-0.4% (YTD: +6.3%)

DFM

5,992

-0.3% (YTD: +16.1%)

Nasdaq Dubai UAE20

4,837

-1.1% (YTD: +16.1%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.7% o/n

3.8% 1 yr

Tadawul

11,257

-1.2% (YTD: -6.5%)

EGX30

39,132

+0.2% (YTD: +31.6%)

S&P 500

6,796

+0.4% (YTD: +15.6%)

FTSE 100

9,777

+0.6% (YTD: +19.6%)

Euro Stoxx 50

5,669

+0.2% (YTD: +15.8%)

Brent crude

USD 63.52

0.0%

Natural gas (Nymex)

USD 4.26

+0.7%

Gold

USD 3,987

-0.2%

BTC

USD 103,466

+2.9% (YTD: +10.6%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.8

+0.5% (YTD: +9.1%)

S&P MENA Bond & Sukuk Index

152.04

+0.1% (YTD: +8.7%)

VIX (Volatility Index)

18.01

-5.2% (YTD: +3.8%)

THE CLOSING BELL-

The ADX fell 0.4% yesterday on turnover of AED 1.0 bn. The index is up 6.3% YTD.

In the green: Hayah Ins. Company (+2.7%), Hily Holding (+2.0%) and Apex Investment (+1.8%).

In the red: Gulf Medical Projects Company (-3.4%), Abu Dhabi National Hotels Co. (-3.3%) and NMDC Group (-3.2%).

Over on the DFM, fell 0.3% on turnover of AED 631.8 mn. Meanwhile, Nasdaq Dubai was down 1.1%.

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