AI-Powered DeFi Security: Can Machine Learning Prevent the Next $100M Protocol Hack?
The post AI-Powered DeFi Security: Can Machine Learning Prevent the Next $100M Protocol Hack? appeared on BitcoinEthereumNews.com.
Khushi V Rangdhol
Oct 27, 2025 18:58
DeFi protocols lost over $3.1 billion to hacks in 2025. AI is emerging as a key tool for security, with potential to prevent large-scale attacks by 2026-2027.
Decentralized Finance (DeFi) protocols have lost billions to hacks and exploits over the past few years. As attack vectors grow more complex, the industry’s best hope for reducing risk at scale may be artificial intelligence (AI)—especially when harnessed for smart contract auditing, anomaly detection, and real-time threat response. While multiple startups and researchers are piloting AI-based DeFi security models, no single system has been confirmed to fully prevent nine-figure attacks as of Q4 2025. However, the technology’s rapid evolution is prompting optimism, and analysts expect widespread implementation in major protocols within the next two years. As of 2025, cumulative DeFi losses due to hacks and exploits exceeded $3.1 billion for the current year alone—a figure propelled by major incidents like the Wormhole bridge exploit ($325 million), the Euler Finance flash-loan attack ($197 million), and the Sui ecosystem Typus hack ($44 million). Most attacks exploit bugs, flawed logic, and inadequate access control in smart contracts—making comprehensive code review and continuous monitoring vital. Leading DeFi security startups and academic labs are building machine learning systems capable of auditing smart contract code, simulating attack scenarios, and monitoring transaction networks for suspicious behavior. Emerging approaches include:
Automated Vulnerability Scanning: AI-powered engines like Microsoft’s AI4Sec, Trail of Bits’ Manticore, and Immunefi’s ML-based bounty review systems can review millions of code lines per day to detect risky patterns missed by humans.
Database Training: Projects like Forta and OpenZeppelin deploy neural networks trained on past hacks, success/failure logs, and threat intelligence to identify critical bugs in real time.
Transaction Monitoring: On-chain analytics…
Filed under: News - @ October 28, 2025 3:23 am