DeFi Hacks: How Smart Contract Scams Break and How to Avoid Them
When you hear DeFi hacks, exploits in decentralized finance where attackers steal funds by targeting flaws in smart contracts. Also known as smart contract exploits, these aren’t theoretical risks—they happen every week, and they’re getting smarter. The $600 million Ronin Bridge breach in 2022? That was a DeFi hack. The $100 million Poly Network exploit? Also a DeFi hack. These aren’t random glitches. They’re targeted attacks on code that was supposed to be unbreakable.
Smart contract exploits, specific vulnerabilities in blockchain-based code that allow attackers to drain wallets or mint fake tokens. Also known as reentrancy attacks, they’re often caused by sloppy coding—like forgetting to check balances before transferring funds. One line of bad code can wipe out millions. And no, it’s not always the developer’s fault. Some attacks use logic flaws nobody saw coming, like the 2020 bZx flash loan attack that manipulated price oracles to fake asset values. Then there’s blockchain security, the practice of protecting decentralized systems from theft, fraud, and manipulation. Also known as on-chain defense, it’s not just about firewalls—it’s about auditing, limiting permissions, and designing contracts that fail safely. Most DeFi hacks succeed because projects skip audits or trust third-party libraries without checking them. And let’s not forget crypto scams, fraudulent projects disguised as legitimate DeFi platforms that trick users into giving up their keys or funds. Also known as rug pulls, these are different from hacks—they don’t break code. They *are* the code. Projects like Coloniume Network, WSPP, and ZWZ weren’t hacked. They were built to disappear.
What you’ll find here isn’t theory. It’s real cases—like how a fake airdrop named ORI Orica Token fooled thousands, or how WBF Exchange hid wash trading to look legit. You’ll see how Saber DEX stays safe by limiting what it supports, and why trusted bridges like the ones used by USDD are built differently than trustless ones. These aren’t just stories. They’re warning signs. Every post here shows how a project failed, who got hurt, and what you can do differently next time. If you’re using DeFi, you’re already at risk. The question isn’t if you’ll see a hack—you already have. The real question is whether you’ll learn from it before you lose money.
