Total Integrity for Your Stablecoin

Newsletter - April 2026

In April 2026, the DeFi ecosystem experienced three major security incidents. KelpDAO lost ~$290M due to an insecure 1-of-1 DVN bridge configuration exploited via RPC infrastructure compromise, Drift Protocol suffered ~$285M from a multisig governance takeover leveraging Solana's durable nonce mechanism, and Rhea Finance incurred ~$18.4M following a business logic flaw in its margin-trading module that allowed circular swap path manipulatio

~$7.04M Lost: GiddyDefi, Volo Vault & More | BlockSec Weekly

This BlockSec weekly security report covers eight attack incidents detected between April 20 and April 26, 2026, across Ethereum, Avalanche, Sui, Base, HyperLiquid, and MegaETH, with total estimated losses of approximately $7.04M. The highlighted incident is the $1.3M GiddyDefi exploit, where the attacker did not break any cryptography or use a flash loan but simply replayed an existing on-chain EIP-712 signature with the unsigned `aggregator` and `fromToken` fields swapped out for a malicious contract, demonstrating how partial signature coverage turns any historical signature into a generic permit. Other incidents include a $3.5M Volo Vault operator key compromise on Sui, a $1.5M Purrlend privileged-role takeover, a $413K SingularityFinance oracle misconfiguration, a $142.7K Scallop cross-pool index injection, a $72.35K Kipseli Router decimal mismatch, a $50.7K REVLoans (Juicebox) accounting pollution, and a $64K Custom Rebalancer arbitrary-call exploit.

The Decentralization Dilemma: Cascading Risk and Emergency Power in the KelpDAO Crisis

This BlockSec deep-dive analyzes the KelpDAO $290M rsETH cross-chain bridge exploit (April 18, 2026), attributed to the Lazarus Group, tracing a causal chain across three layers: how a single-point DVN dependency enabled the attack, how DeFi composability cascaded the damage through Aave V3 lending markets to freeze WETH liquidity exceeding $6.7B across Ethereum, Arbitrum, Base, Mantle, and Linea, and how the crisis forced decentralized governance to exercise centralized emergency powers. The article examines three parameters that shaped the cascade's severity (LTV, pool depth, and cross-chain deployment count) and provides an exclusive technical breakdown of Arbitrum Security Council's forced state transition, an atomic contract upgrade that moved 30,766 ETH without the holder's signature.