JPMorgan and Jefferies: "DeFi Hacks Brake Blockchain Adoption"... Tokenization Itself Won't Stop

KelpDAO $293 billion hack suspected North Korean Lazarus involvement... institutional DeFi adoption speed adjustment inevitable

JPMorgan and Jefferies have consecutively warned about DeFi (decentralized finance) hacking risks, stating that major banks' blockchain adoption plans could be reconsidered. Jefferies warned that recent hacking incidents could put the brakes on real-world asset tokenization (RWA) and overall on-chain settlement plans.

The immediate trigger was the KelpDAO hack. Approximately $293 million (about 400 billion won) was stolen from KelpDAO, an Ethereum-based liquid restaking protocol. On-chain security researchers suspect North Korea's Lazarus Group was involved in the hack. Lazarus is a North Korean state-sponsored hacking organization that has been identified as the perpetrator of some of the largest crypto hacks in recent years, including Binance-related hacks in 2024 and Bybit hacks in 2025.

Tokenization Continues, DeFi Monetization Is the Issue

Experts believe the tokenization trend itself will not be broken. SEC Chairman Paul Atkins stated that "everything will be tokenized and on crypto rails by the end of 2026." The Depository Trust & Clearing Corporation (DTCC) is also proceeding with transitioning to a tokenized settlement system by the end of 2026 after receiving a no-action letter from the SEC. DTCC is effectively the clearing and settlement institution for the entire US stock market, settling $4.5 quadrillion worth of trades annually.

Tokenization itself won't stop because it's faster, cheaper, and eliminates intermediaries. The question is whether to put those tokenized assets into DeFi to generate returns.

Scott Melker, Host of 'The Daily Wolf'

Melker predicted that major institutions will eventually move toward building their own closed, centralized protocols instead of public DeFi.

Lazarus DeFi Infiltration Poses Greater Threat

The more fundamental problem is that Lazarus's DeFi infiltration methods are becoming increasingly sophisticated. Melker said, "We've called DeFi modular LEGO, but it's actually more like Jenga." This metaphor suggests that removing just one piece from the protocol structure built like LEGO blocks could bring down the entire system. Lazarus, with nation-state level resources and organization, is systematically targeting these vulnerabilities.

Indeed, Lazarus's DeFi hacking damages have surged to billions of dollars since 2024. This is why warnings suggest this KelpDAO hack could be "just the beginning." It's against this backdrop that JPMorgan and Jefferies have issued official warnings to institutional investors about DeFi risks.

InteliView Editorial | 2026.04.25