Escalating EVM hacks and emerging defensive practices

EVM Under Siege

Escalating EVM Hacks and Emerging Defensive Practices in 2024–2026: A Comprehensive Update

The Ethereum Virtual Machine (EVM) ecosystem, historically regarded as the backbone of decentralized finance (DeFi), Non-Fungible Tokens (NFTs), and enterprise blockchain solutions, is experiencing an unprecedented surge in security challenges. As we progress through 2024 and into 2026, the landscape reveals a complex arms race: malicious actors deploying increasingly sophisticated, multi-layered, and cross-protocol exploits—often leveraging cutting-edge technologies like AI—while the community races to develop innovative primitives, systemic reforms, and advanced security architectures. This evolving scenario underscores the critical importance of adaptive security measures to safeguard the ecosystem’s integrity.

The Escalation of Multi-Layered Exploits (2024–2026)

The first half of 2024, along with subsequent years, has seen a dramatic increase in high-impact breaches, with losses frequently exceeding tens of millions of dollars. Attack strategies have become more intricate, exploiting vulnerabilities across multiple layers—spanning cross-protocol, cross-chain, hardware, operational, and even AI-assisted exploits. Several recent incidents serve as stark lessons:

Major Incidents and Their Lessons

Permission & Upgrade Flaws
- The Truebit protocol was compromised due to permission control weaknesses, resulting in a $26 million token minting exploit. This highlights the necessity for rigorous audits, formal verification, and layered permission safeguards, particularly around upgrade mechanisms.
- Step Finance suffered a $30 million breach stemming from insecure upgradeable contracts, exposing systemic risks in upgrade governance and multi-signature controls. The key takeaway: upgrade processes must incorporate multi-layered permission safeguards, continuous security reviews, and formal verification.
Cross-Protocol & DeFi Breaches
- The Matcha/SwapNet attack led to losses of approximately $16.8 million, illustrating how interconnected DeFi protocols can amplify systemic risks. This underscores that proper isolation and rigorous security protocols are vital to prevent cascading failures.
- Despite ongoing security measures, protocols like Futureswap experienced reentrancy attacks, reaffirming that security controls require continuous monitoring, testing, and comprehensive implementation.
Oracle & External Data Manipulation
- The Makina Protocol incident drained $5 million via oracle data manipulation using flash loans, exposing vulnerabilities in external data sources. The solution: cryptographically secure, decentralized oracles and robust data aggregation mechanisms are more critical than ever.
- Moonwell experienced its third oracle malfunction within six months, mispricing cbETH at $1.12 instead of nearly $2,200, leading to approximately $1.8 million in losses. Root causes include AI-powered oracle failures and data poisoning, exposing vulnerabilities in AI-dependent data feeds and emphasizing the need for diverse, cryptographically secure oracle networks.
Operational & Hardware Security Lapses
- Exploits like the Linux Snap Store bug, which exposed cryptocurrency seed phrases, demonstrate operational security lapses that have direct and severe impacts on blockchain assets. These vulnerabilities expand the attack surface beyond code flaws into hardware and operational layers.
Asset Laundering & Privacy Obfuscation
- Attackers continue utilizing mixers such as Tornado Cash to launder stolen funds—recently moving $6.2 million—complicating forensic investigations and law enforcement efforts. While privacy techniques bolster user confidentiality, they also pose significant regulatory and compliance challenges.

Emerging Attack Tactics

Malicious actors are deploying stealthier, coordinated strategies, often combining multiple techniques:

Cross-Chain & Stealth Operations
- Groups like DeadLock exploit vulnerabilities across chains such as Polygon using covert techniques involving data exfiltration, malicious payload deployment, and blending activities across ecosystems. These multi-layered operations complicate attribution and defense strategies.
AI-Assisted Exploits & Infrastructure Risks
- AI tools are now central to both attack and defense. Incidents involving Claude Opus 4.6, an AI language model, demonstrated how AI can generate vulnerable smart contract code, leading to a $1.78 million exploit. This dual role of AI underscores the importance of automated security vetting and rigorous manual reviews for AI-generated code.
Supply Chain & Hardware Security Lapses
- Vulnerabilities like the Linux Snap Store bug exemplify operational weaknesses extending into hardware and infrastructure, broadening the attack surface and highlighting that comprehensive security must encompass operational resilience.

New Frontiers in Risk: AI & Post-Quantum Challenges

AI-Generated Exploits and Their Growing Impact

The Claude Opus 4.6 incident is emblematic of a larger, burgeoning threat: AI models capable of autonomously generating vulnerable smart contract code. As AI-driven code generation tools become more accessible, the risk of inadvertently introducing exploitable vulnerabilities increases exponentially. To counter this, automated security analysis tools leveraging AI are now essential for vetting AI-generated code, alongside rigorous manual review protocols.

Oracle Failures Driven by AI & Data Manipulation

Recent episodes, such as Moonwell’s oracle malfunction, reveal how AI-powered oracle systems can malfunction, leading to significant mispricings. The case where cbETH was mispriced at $1.12 instead of $2,200 resulted in losses of approximately $1.8 million, exposing systemic fragility. Strengthening cryptographic security, diversifying data sources, and deploying decentralized oracle networks like DIA are vital strategies to mitigate such risks.

Post-Quantum Cryptography & Future Risks

The systemic threat posed by quantum computing remains an urgent concern. Ethan Heilman, co-author of BIP-360, estimates that Bitcoin's transition to post-quantum cryptography could take up to 7 years, considering ongoing research timelines. This extended horizon underscores the necessity for ecosystem-wide adoption of post-quantum standards to future-proof assets, as future quantum computers could compromise current cryptographic schemes, risking systemic failures across EVM-compatible chains and beyond.

Defensive Innovations and Systemic Reforms (2024–2026)

In response to escalating threats, the community has introduced cutting-edge primitives, systemic reforms, and best practices to bolster security:

Advanced Primitives & Protocols

Permit2:
A permission-management primitive enabling off-chain cryptographic permits for token approvals. It offers granular, dynamic permission control, reducing risks associated with stale or excessive allowances, and empowers users with better control over their assets.
Zero-Knowledge Privacy & Insurance Protocols
- Projects like Brevis and USD8 utilize Zero-Knowledge (ZK) proofs to establish trustless, privacy-preserving safety nets. These protocols verify claims without exposing sensitive data, strengthening security, privacy, and regulatory compliance—especially crucial for high-value or institutional assets.
Ethereum’s ZK Roadmap
The Ethereum Foundation’s ongoing investment in zkSNARKs and zkSTARKs aims to improve scalability, privacy, and security across the ecosystem. These advancements facilitate broader adoption of privacy-preserving solutions and bolster layer-2 security architectures.

Systemic Reforms & Best Practices

Formal Verification & Code Hygiene:
Emphasizing formal verification, comprehensive audits, and eliminating obsolete code to minimize vulnerabilities.
Wallet & Allowance Management Tools:
Modern wallets now feature real-time allowance monitoring, automatic revocation, and alert mechanisms, enabling swift responses to suspicious activities.
Post-Quantum & Account Abstraction (AA):
Recognizing quantum threats, significant R&D efforts are underway toward post-quantum cryptography and native account abstraction solutions. Deployment is projected around 2026, aiming to secure assets against quantum attacks.
Oracle Transparency & Data Security:
Projects like DIA are developing cryptographically secure, transparent data feeds to combat oracle manipulation and data poisoning.
Privacy & Confidential Transactions:
Innovations such as StarkWare’s EY Nightfall enable confidential transactions on Starknet, reducing laundering risks and enhancing user privacy.

The Shift Toward Native Layer-2 & Rollups

A defining trend from 2024 onward is embedding security directly into Layer-2 (L2) solutions:

Native Rollup Architectures:
Projects like Arbitrum and Optimism are advancing toward native rollup architectures that incorporate on-chain validation and cryptographic proofs. This approach reduces reliance on external cross-chain bridges, significantly mitigating associated vulnerabilities and enhancing scalability and resilience.

This shift reflects a growing consensus that security embedded at the Layer-2 level is essential for a resilient and trustworthy ecosystem.

Recent Industry Movements and Standards

The Balancer v3 Security Overhaul

On 23 February 2026, Balancer announced a comprehensive security overhaul for Balancer v3, including new guardrails, enhanced audit protocols, and the integration of automated safety checks. These measures aim to prevent exploits similar to previous incidents, exemplifying a proactive security stance that emphasizes continuous improvement.

OWASP Smart Contract Top 10 2026

The OWASP Smart Contract Top 10 2026 update broadens the vulnerability taxonomy to include AI-assisted code vulnerabilities, cross-chain exploits, and privacy obfuscation techniques. This guide serves as a crucial resource for developers aiming to craft more resilient smart contracts and adopt best security practices.

Current Status, Implications, and the Road Ahead

The security landscape from 2024 to 2026 vividly illustrates a landscape marked by both vulnerabilities and resilience. Attackers exploit cross-chain, AI-assisted, and privacy-obfuscated techniques; however, the community’s response—through innovative primitives, systemic reforms, and secure architecture designs—demonstrates remarkable adaptability and vigilance.

Key developments include:

Permission primitives like Permit2 enabling granular, dynamic control over token allowances.
Zero-knowledge privacy solutions and trustless insurance protocols that bolster security and compliance.
The rising importance of formal verification as a standard practice for smart contract development.
The ongoing transition to post-quantum cryptography to future-proof assets.
The strategic shift toward native Layer-2 solutions embedding security into the core protocol.

This ongoing arms race emphasizes that security in the blockchain ecosystem remains a shared, dynamic effort—requiring continuous vigilance, innovation, and collaboration. The future of the ecosystem depends on proactive defense strategies, responsible development, and systemic reforms.

Actionable Recommendations for Stakeholders

Regularly review and revoke token allowances using blockchain explorers or DeFi dashboards.
Exercise caution when granting permissions, particularly for large allowances or untrusted protocols.
Utilize permission management tools in wallets for real-time oversight and rapid response.
Segregate high-value assets into dedicated wallets with minimal permissions.
Vet AI-generated code thoroughly, combining automated security analysis with manual reviews before deployment.
Diversify oracle data sources and prioritize cryptographically secure, decentralized feeds.
Prioritize native Layer-2 solutions that embed security into the protocol, reducing reliance on bridges.
Stay informed about industry standards like the OWASP Top 10 and Balancer v3 security practices.

Final Perspective

From 2024 to 2026, the security landscape exemplifies a persistent duel: attackers leveraging cross-chain stealth tactics, AI-powered exploits, and privacy obfuscation techniques, countered by a community committed to advancing primitives, systemic reforms, and secure architectures. The trajectory underscores that building a resilient, trustworthy blockchain ecosystem necessitates responsible innovation, rigorous standards, and collaborative vigilance.

In this evolving arms race, staying proactive, sharing knowledge, and continuously improving security practices are paramount to safeguarding assets and ensuring the long-term health of decentralized systems.

Stay vigilant, innovate responsibly, and contribute to a secure blockchain future for all.

Additional Context: Ethereum’s Long-Term Roadmap

Recently, the Ethereum Foundation released the Strawmap, a comprehensive technical document outlining the roadmap for Ethereum’s upgrades through 2029. This strategic plan emphasizes layer-1 enhancements, scalability, and security improvements, providing a clear pathway for future upgrades aligned with evolving security needs. The Strawmap’s timeline indicates a focus on post-quantum readiness, advanced cryptography, and robust upgrade processes, ensuring that Ethereum remains resilient against emerging threats for years to come.

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