INSUBCONTINENT EXCLUSIVE:
Opinion by: Orest Gavryliak, chief legal officer, 1inch LabsThe Bybit breach in February smashed the record for the biggest hack in crypto
More than $1.4 billion was stolen by North Korean cybercriminals in the blink of an eye, with the audacious heist making headline news
Now, as TRM Labs reports, $2.1 billion worth of crypto has been lost to attacks in the first half of 2025
make changesFor the trading platforms relied on by millions of users worldwide, significant changes must be made to how transactions are
Only then can executives be confident that funds moving from a cold wallet will reach their intended destination.Other cutting-edge
before signatures take place, coupled with real-time threat intelligence that flags high-risk call data
prove to be a compelling alternative to smart contracts.In recent crypto hacks, interfaces were manipulated
Bad actors deceived executives into accidentally authorizing malicious transactions
Over 80% of crypto stolen across 75 hacks so far this year was taken in so-called infrastructure exploits, which, on average, made off with
response to this established threat
DeFi must defy hackersThe first step is to make it prohibitively difficult for hackers to treat exchanges like their own personal piggy
bank, with robust safeguards that close off attack vectors
into countless little shards
On the When Shift Happens podcast, he described attempting to contact the platforms where the crypto had been moved, but by the time he
received a response, the funds had been transferred to somewhere else.This is why DeFi protocols need to ramp up efforts to prevent hackers
from taking advantage of their infrastructure
compromising on decentralization.Related: Crypto seed phrase, front-end hacks drive record losses in 2025: TRM LabsSome solutions use 24/7
real-time intelligence, while others also incorporate human-based intelligence to rapidly respond to incidents as they unfold
When paired with an advanced, multitasking risk management dashboard tailored for DeFi, this technology can screen interactions and
approach allows for detecting malicious activity within seconds, empowering security teams to interpret behavioral anomalies, collaborate
with external intelligence providers, and take swift action in complex or ambiguous situations where human judgment is essential
Every hack dents consumer confidence, and if they keep happening, regulators may be left with no choice but to impose restrictions that also
A non-custodial approach means DeFi developers cannot freeze illicit funds going through their platform
Responsible DeFi developers must rally together to create sound governance and security models that keep up with technological advancements
Careful protocol design, layered defense systems and continual security reviews have the potential to make crypto hacks no longer worthwhile
If crypto fails to self-regulate, it could become one of the most compelling counterarguments against the free market itself.Despite its
acts as a buffer against systemic risk and crime
DeFi, in contrast, prides itself on eliminating intermediaries and embracing pure market dynamics
Ongoing events show that absolute freedom may not be sustainable without even a thin layer of coordination or safeguards.Perhaps the ideal
is not a 100% free market but an 85% one, where the remaining 15% serves as a programmable rule layer designed to uphold security, prevent
Laundering, fraud detection and risk attribution.Think of it not as top-down control but as protocol-level guardrails: smart, modular layers
that allow DeFi to preserve openness while ensuring accountability
without responsibility may invite chaos
Yes, it will take investment
And yes, it will require experimentation and a few false starts
But in the long run, the dividends will be enormous.Opinion by: Orest Gavryliak, chief legal officer, 1inch Labs.This article is for general
information purposes and is not intended to be and should not be taken as legal or investment advice
