Andre Cronje says much of decentralized finance is “no longer DeFi” in the strict sense, as builders debate whether circuit breakers and other emergency controls are now necessary to protect users from exploits.

The Flying Tulip founder told Cointelegraph in an interview that many protocols are no longer immutable public goods, but rather “teams running for-profit businesses” with upgradeable contracts, offchain infrastructure and operational controls.

That shift changes the security model, he said. While early DeFi protocols were mostly defined by immutable smart contracts, newer systems often depend on proxy upgrades, multisigs, infrastructure providers, admin processes and human response teams, according to Cronje. 

“I think what we have today, Flying Tulip included, is no longer DeFi. It’s not decentralized finance. It’s not immutable code,” Cronje said. “It’s teams running for-profit businesses.” 

The comments come as April’s DeFi exploits pushed security narratives beyond smart contract audits and into questions of operational risk. On Thursday, Flying Tulip added a withdrawal circuit breaker designed to delay or queue withdrawals during abnormal outflows. The move follows major incidents involving decentralized exchange Drift Protocol and restaking platform Kelp, with estimated losses of about $280 million and $293 million, respectively. 

Flying Tulip’s Andre Cronje (left) and Cointelegraph’s Ezra Reguerra (right). Source: Cointelegraph

DeFi risks move beyond smart contracts

Cronje said the industry focuses on audits when many systems can be changed by developers or controlled through administrative processes. 

“The focus over all of the industry is still very much so on the contract side and not sort of the more TradFi side,” Cronje told Cointelegraph, adding that many recent exploits have involved “traditional Web2 stuff” such as infrastructure access, compromises and social engineering.

He said protocols with upgradeable contracts need traditional checks and balances around who can upgrade code, who approves changes and whether there are proper timelocks and multisig controls. 

Related: Ethereum backers pledge up to 30,000 ETH to rsETH recovery after bridge incident

Curve Finance and Yield Basis founder Michael Egorov shared the view that recent incidents show the risks are increasingly tied to centralization and offchain dependencies rather than only smart contract bugs.

“The vast majority of the most recent DeFi exploits happened not due to errors in code,” Egorov told Cointelegraph. “They happened because of centralization risks — single points of failure which live off-chain.”

Egorov said Aave, Kelp and LayerZero smart contracts were not hacked in the recent rsETH incident, arguing that the compromise came from offchain infrastructure. He said DeFi protocols can be exposed to “a whole tree of risks,” with the largest risks often tied to humans rather than code. 

Circuit breakers divide DeFi builders

Cronje said Flying Tulip’s circuit breaker is not designed to permanently block withdrawals, but to create a response window when outflows exceed normal parameters. “Our circuit breaker isn’t actually designed so that we can stop or prevent anything from happening,” he said. “It’s to give us time to react.”

Flying Tulip’s system gives the team about six hours, although Cronje said smaller or less geographically distributed teams may need 12 to 24 hours, or even longer. He said the tool makes sense for contracts that hold user funds, but should be viewed as one layer among audits, distributed multisigs, timelocks and other controls.

“Security is always a layered approach,” Cronje said. “It’s never a ‘this is the one thing’ that makes you invulnerable.”

Related: Aave asks Arbitrum to send 30K ETH from Kelp exploiter to ‘DeFi United’

Egorov was more cautious. He said circuit breakers can make sense in theory, but only if they are implemented in a way that does not create a new privileged attack surface. “The circuit breakers are controlled by humans, which means they could become a potential vulnerability themselves,” Egorov told Cointelegraph. 

He warned that if emergency controls allow signers to change contract code or block withdrawals, compromised signers could turn the safeguard into a drainer or a centralized freeze mechanism. In his view, the better long-term answer is to design systems that can keep running safely without manual intervention. 

“The goal of DeFi design should be to minimize human-centric points of failure, not add to them,” Egorov said. “DeFi needs to be safe, and safety comes from decentralization.” 

Standard Chartered says Kelp episode shows DeFi resilience 

Standard Chartered framed the Kelp episode as a sign of DeFi’s growing pains rather than a fatal failure. 

In a Wednesday research note seen by Cointelegraph, the bank said the April 18 theft exposed systemic risks after the impact spread to Aave, but said the more than $300 million raised by the DeFi United coalition and structural changes such as Aave V4 and the Ethereum Economic Zone suggest the sector is developing stronger defenses. 

DeFi United site shows over $321 million raised or committed. Source: DeFi United

The bank said those upgrades could reduce reliance on bridges, which it described as a major attack vector in recent crypto hacks.

Magazine: AI-driven hacks could kill DeFi — unless projects act now

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• AAVE price consolidates as market awaits recovery clarity.
• rsETH recovery plan addresses $246M bad debt from the Kelp DAO exploit.
• The immediate resistance sits at $100 as governance execution drives the outlook.

AAVE token is currently priced at $97.13, down 0.3% over the past 24 hours, while the broader market has remained slightly positive.

That difference has kept AAVE in focus, not because of broad weakness, but because traders are waiting to see whether the proposed recovery plan designed to restore rsETH collateral after the Kelp DAO exploit can be executed cleanly.

The key question is whether the recovery effort can remove uncertainty fast enough to allow the token to reclaim the $100 mark and hold above it.

rsETH collateral recovery plan takes centre stage

The main driver behind AAVE’s current setup is the technical plan proposed to rebuild rsETH collateral after the exploit linked to Kelp DAO.

The exploit left about $246 million in bad debt across Aave and Compound, creating pressure for a coordinated solution rather than a simple market fix.

The proposed plan is designed to restore backing for rsETH and reduce the fallout without spreading the losses across users.

https://t.co/9eUfrt0ESE

— Aave (@aave) April 28, 2026

At the centre of the proposal is a governance-led process across Ethereum and Arbitrum.

The plan calls for temporary oracle adjustments and the liquidation of the attacker’s positions in a controlled way. That makes the recovery effort more structured, but also more dependent on execution.

Advertisement

Traders are now watching the proposal as a practical test of whether Aave Protocol can repair collateral damage without introducing more risk.

In the short term, that uncertainty has kept sentiment measured, even though the plan itself is aimed at stabilising the system.

AAVE price outlook

AAVE’s near-term outlook now depends heavily on how the recovery plan unfolds.

On a technical standpoint, the immediate support is near $96. The token has already spent time close to that area, and a failure to hold it could shift the market tone back toward caution.

Advertisement

A drop below $94 would be more concerning because it would suggest the market is no longer treating the recovery effort as a near-term stabilising force.

The broader technical picture also shows that AAVE is consolidating rather than trending aggressively.

Its current level is close to the 30-day simple moving average of $96.95, which supports the idea that the market is waiting for confirmation before committing to a stronger directional move.

What matters next

Market participants will be looking for approval of the temporary changes needed to support the recovery, as well as signs that collateral restoration is progressing without delays.

If those milestones are reached, AAVE could gain enough confidence to challenge the $100 level again.

Advertisement

Trading volume also shows that the market is engaged but not yet convinced.

The latest 24-hour volume of $254.39 million reflects active participation, but not a broad rush into the token. That usually means the market is waiting for a clearer signal before taking stronger positions.

---

Share this article

---

Categories

---

Tags

Advertisement

Bitcoin price fell back towards the $77,000 level after facing rejection at the $78K mark as investors remained cautious ahead of the FOMC decision today.

According to data from crypto.news, Bitcoin (BTC) price faced rejection at around $80,000 on Monday, after which it fell 4% to an intraday low of $75,850 on Tuesday. This came as uncertainty surrounding the opening of the Strait of Hormuz amid stalled peace negotiations between the U.S. and Iran continues to keep investors in risk-off mode.

While investors bought the dip, helping push Bitcoin back to $77,800, it fell short of surpassing the $80K figure as investors entered a wait-and-watch mode ahead of the Fed rate decision set to be announced later today.

Both the CME FedWatch tool and predictions platform Polymarket showed that the odds of the Federal Reserve keeping the interest rates at 3.5% to 3.75% stood at 100%, reflecting a total consensus among market participants.

While the markets had already priced in no rate cuts for April, the ongoing hawkish stance from central bankers has dulled their appetite for Bitcoin and the broader crypto market as a whole, as borrowing costs remain elevated.

Looking ahead, the next key milestone for Bitcoin is the Core PCE data set to be revealed tomorrow. As the Fed’s preferred inflation gauge, this data will be crucial for determining if price pressures are cooling. Early estimates suggest that any surprise in this report could lead to significant volatility across all risk assets.

Despite the short-term dip, some analysts suggest that the current retracement in Bitcoin is typical behavior ahead of major monetary policy announcements. They believe that Bitcoin could still be in a phase of strong market conditions, suggesting that the current consolidation phase may give way to renewed strength once macro clarity emerges.

Bitcoin price analysis

On the daily chart, Bitcoin price has confirmed a bearish breakdown from an ascending channel pattern that has been forming since late March. Historically, such a move indicates that the previous upward momentum is fading and that a deeper correction might be on the horizon.

Adding to the bearish outlook, the MACD has printed a bearish crossover, indicating that short-term momentum has shifted in favor of sellers. This suggests caution for traders considering fresh long positions at current levels.

However, the Aroon indicator offers a mixed signal. While Aroon Up remains elevated at 85.71%, Aroon Down is still relatively low. This implies that despite the recent pullback, the broader uptrend has not fully lost strength, and buyers may still be attempting to maintain control.

For now, $80,000 serves as a formidable psychological resistance, especially with no rate cuts expected in the immediate future. However, if bulls manage to break through this barrier, the next targets would sit at $85,000 and potentially $90,000.

On the downside, a sustained drop below $75,000 would confirm further weakness and could push Bitcoin toward the $70,000 support zone.

• XRP is currently trading at $1.38, down over 3% in the past week.
• The XRP Ledger has attracted over $3 billion in tokenized real-world assets.
• XRP could retest $1.25 or lower if bearish pressure persists.

Ripple cryptocurrency XRP is trading largely flat over the past 24 hours, as buyers struggle to decisively breach the $1.40 level following an intraday uptick from lows of $1.36.

The price performance—showing XRP down on the weekly timeframe and up just 5% over the past month—contrasts with a sharp spike in the value of tokenized real-world assets (RWAs) on the XRP Ledger.

XRP Ledger hits $3 billion RWA value

While XRP continues to struggle for upside momentum, bullish sentiment appears to be building around the XRP Ledger (XRPL).

The network has reached a milestone of $3 billion in total tokenized real-world asset value, marking a notable 55% increase over the past 30 days.

According to data from rwa.xyz, XRPL’s growing RWA ecosystem now includes more than 290 active projects.

On-chain activity is also reflected in 3,819 unique RWA holders, while the stablecoin market capitalization on XRPL exceeds $508 million.

Among specific projects, the largest RWA on XRPL is Justtoken’s JMWH token, a tokenized commodities asset valued at over $1.76 billion.

Meanwhile, Ripple’s native RLUSD stablecoin accounts for more than $400 million in tokenized value, while Ondo Finance’s short-term US Treasury products and VERT Capital’s asset-backed credit contribute approximately $323 million and $139 million, respectively.

Market experts view XRPL’s RWA growth as a sign of increasing institutional adoption and confidence, with the potential to drive further network utility.

XRP price analysis

Despite the surge in RWA activity, XRP’s price remains capped below $1.50, as bulls face persistent pressure from macroeconomic headwinds and profit-taking.

The token has been in a broader downtrend since peaking at $3.67 in July 2025, with declines accelerating during major market sell-offs on October 10, 2025, and February 5, 2026, when prices dropped to lows of $1.58 and $1.13, respectively.

Recent weakness—including a pullback to $1.36—highlights the importance of the 50-day simple moving average as a key technical level.

From a chart perspective, XRP is trading within a descending triangle pattern on the daily timeframe.

The relative strength index (RSI) is hovering around 48 and trending lower, while a bearish MACD crossover reinforces near-term caution.

Despite the cautious technical outlook, potential inflows from a future XRP ETF and improving macro or geopolitical conditions could lift broader crypto sentiment.

If RWA growth continues, strengthening on-chain metrics—such as rising holder counts and stablecoin total value locked—may provide additional support.

In the short term, XRP risks a move toward $1.25 if downside pressure persists.

However, a sustained break above $1.45 could open the door to $1.70. In a more bullish, RWA-driven scenario, $2.00 and the key $3.00 level emerge as major resistance zones.

 

Musk Testifies in OpenAI Court Fight

Elon Musk appeared in federal court in Oakland as testimony began in his lawsuit against OpenAI and its leadership team. Musk told jurors that the case extends beyond a business dispute and focuses on how artificial intelligence companies should operate. He said advanced AI could create economic benefits while also bringing risks if companies fail to follow their original goals.

Musk accused OpenAI CEO Sam Altman and president Greg Brockman of moving away from the company’s nonprofit mission. He argued that OpenAI changed direction after introducing a profit-focused structure supported by outside investment. Additionally, Musk claimed the company benefited from resources that he helped provide during its early years.

Key Insights

• Musk testified that OpenAI moved away from its nonprofit purpose after leadership expanded commercial deals and investor-focused growth strategies.
• OpenAI argued Musk left after leadership disagreements and now challenges the company while building a competing artificial intelligence business.
• Court evidence including emails and call records may influence decisions about OpenAI’s structure, governance, and long-term leadership direction.

OpenAI Rejects Musk’s Claims

OpenAI denied the allegations and argued that Musk filed the lawsuit because he now competes in the same industry. Company attorney Bill Savitt told jurors that Musk supported discussions about a for-profit model before leaving the company. However, OpenAI said disagreements over leadership control led to Musk’s departure in 2018.

The lawsuit asks the court to award about $130 billion in damages and restore OpenAI to nonprofit status. Musk also wants Altman and Brockman removed from the company’s board. Consequently, the case could affect OpenAI’s long-term business plans as the company prepares for a possible public offering.

Judge Yvonne Gonzalez Rogers warned Musk about comments he posted on social media before the trial. She said public statements about the case could complicate the legal process. Hence, Musk agreed to reduce online discussion about the lawsuit, while Altman and Brockman accepted similar limits.

Emails and Records Become Key Evidence

Lawyers plan to present emails, text messages, and internal records collected from OpenAI’s early years. These documents may show how company leaders discussed funding, structure, and governance during major decisions. Moreover, the evidence could explain how internal disagreements developed before Musk separated from the company.

Musk cofounded OpenAI in 2015 and said he contributed at least $44 million to support the nonprofit. A year after his departure, OpenAI created a for-profit arm to secure additional funding. Significantly, the company later adopted a public benefit structure under its nonprofit foundation.

Attorneys representing Microsoft also entered the case after Musk named the company as a co-defendant. Microsoft rejected Musk’s claims and argued that the lawsuit lacked detailed factual support. Besides, court filings show both sides plan to rely heavily on private communications to support their arguments.

Elon Musk arrived at Oakland Federal Court today for opening statements in his $150B+ lawsuit against OpenAI, accusing it of betraying its nonprofit mission by going for-profit pic.twitter.com/letOpsWSAh

— Dima Zeniuk (@DimaZeniuk) April 28, 2026

Advertisement

IBM and Massachusetts Institute of Technology have launched the MIT-IBM Computing Research Lab, expanding their long-standing collaboration to focus on next-generation computing technologies.

According to reports, the new lab builds on the foundation of the MIT-IBM Watson AI Lab, established in 2017, and reflects the rapid evolution of both artificial intelligence and quantum computing.

While the earlier initiative focused primarily on AI, the updated lab will integrate quantum computing into its core research agenda. This will allow researchers to unlock computational methods that go beyond the limits of classical systems.

Leaders from both institutions said the initiative is designed to bring together academic and industrial expertise to tackle increasingly complex scientific and engineering challenges.

IBM Research director Jay Gambetta noted that the collaboration will focus on rethinking how models, algorithms, and systems are built in an era shaped by the convergence of AI and quantum technologies.

Expanding research across AI, algorithms, and quantum

The MIT-IBM Computing Research Lab will act as a central hub for joint research across three core areas: artificial intelligence, advanced algorithms, and quantum computing. A key focus will be on developing hybrid systems that combine quantum hardware with classical computing and AI techniques.

Researchers will also work on improving efficient and modular AI models, as well as designing enterprise-grade systems that can be deployed reliably in real-world environments. At the same time, the lab will explore new quantum algorithms aimed at solving complex problems in fields such as chemistry, biology, and materials science.

Beyond technical development, the initiative will contribute to training the next generation of scientists by involving MIT faculty and students across disciplines. The collaboration is expected to drive innovation with applications ranging from improved weather forecasting to more accurate financial modeling.

The new lab also aligns with broader strategic initiatives at MIT, including efforts to expand the impact of generative AI and quantum research, while leveraging IBM’s roadmap toward building a fault-tolerant quantum computer by the end of the decade.

Decentralized finance (DeFi) was “bent, not broken” after a $292 million exploit on April 18 exposed systemic risks, according to investment bank Standard Chartered.

The attack on KelpDAO spilled into AAVE, the largest DeFi lender, after stolen tokens were used as collateral to borrow other assets. The episode sparked a sharp liquidity crunch, with the liquidity protocol seeing deposits fall by roughly 38% and active loans by 31%, in what the bank described as a bank-run dynamic.

Despite the shock, tokenized real-world assets are still expected to reach a $2 trillion market cap by end-2028, driven by continued growth in DeFi lending and stablecoin liquidity, the report said.

“We still project that tokenised real-world assets (RWAs) will reach a market cap of $2 trillion by end-2028, up from $35 billion in October 2025,” wrote Geoff Kendrick, head of digital assets research at Standard Chartered, in the Wednesday report.

Hacks and exploits remain a core risk in crypto, undermining trust in systems built on code rather than intermediaries. Smart contract bugs, phishing and cross-chain bridge flaws can expose large pools of locked assets, where a single weak point can trigger outsized losses.

These risks are amplified by the complexity and interconnected nature of blockchain infrastructure. Cross-chain bridges, while expanding functionality, also widen the attack surface and have accounted for billions in losses due to intricate designs, shared systems and, in some cases, weak validation.

Beyond the immediate damage, repeated exploits erode confidence across the ecosystem. Major hacks can push users and institutions to the sidelines, invite tighter regulation and slow adoption, making security a key constraint on crypto’s growth.

AAVE and a coalition of DeFi firms moved quickly, committing more than $300 million to stabilize the system. According to the report, the intervention helped normalize conditions, with yields easing and deposits recovering.

The bank added that the incident is accelerating structural upgrades. AAVE’s V4 upgrade and the forthcoming Ethereum Economic Zone aim to reduce reliance on cross-chain bridges, a frequent target in major crypto hacks, including this one.

Wall Street bank JPMorgan (JPM) said hacks and stagnant capital levels in decentralized finance continue to weigh on DeFi’s institutional appeal, highlighted by a $20 billion hit from the KelpDAO exploit.

Read more: JPMorgan says persistent security flaws curb DeFi’s institutional appeal