Chainalysis CEO warns DeFi sector faces major security risks
Chainalysis CEO Jonathan Levin warned about rising security risks in decentralized finance (DeFi). In an interview with the Financial Times, Levin said DeFi platforms are increasingly exposed to cyberattacks as rapid growth outpaces basic security practices.
His remarks follow the $129 million exploit of Balancer on November 3, 2025 - the year’s largest DeFi hack. Levin cautioned that many on-chain projects have scaled quickly without experienced security leadership or rigorous controls. He added that teams often focus on “increasing value” rather than strengthening core systems - a gap that sophisticated actors can exploit.
According to Chainalysis, about $2.2 billion worth of crypto was stolen in the first half of 2025, marking a record high for the year. The amount already exceeds what was taken in all of 2024. North Korean hackers stole $1.5 billion from exchange Bybit in February, in the biggest-ever crypto heist.
North Korean groups remain a major threat to the sector. U.S. authorities have attributed the Bybit theft to DPRK-linked “TraderTraitor” actors, highlighting continued targeting of high-value crypto services.
Levin noted that security remains overlooked in the industry: “Everyone in on-chain finance is just focused on [increasing value in the sector], rather than the security that’s actually locked on these platforms,” he said.
DeFi protocols now hold around $139 billion in crypto assets, according to DefiLlama data. TVL in the recently hacked Balancer sits near $344 million. Following the exploit, Berachain validators temporarily halted their network to prepare an emergency hard fork aimed at isolating affected contracts and protecting user funds. BAL, the native token of Balancer, has fallen 12.72% in the past 24 hours, trading at $0.80 with a market cap above $55.6 million.
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