North Korea's Lazarus Group linked to $635 million in April 2026 crypto protocol losses
CoinDesk reports:
Market overview
Derivatives pricing implies a 0.4% probability of Ethereum reaching $4,000 in April, down from about 1% over the past 24 hours. For Bitcoin, markets assign a 0.6% chance of hitting $79,000 by April 30, also lower than prior levels.
What's driving sentiment
A wave of cryptocurrency protocol breaches has weighed on confidence in core infrastructure, with traders marking down the odds of near-term upside targets for both Ethereum and Bitcoin. Attention has centered on recurring security gaps across DeFi and the alleged role of North Korea's Lazarus Group, underscoring persistent systemic risk.
April 2026 losses
Crypto protocols recorded $635 million in losses in April 2026, with attacks largely attributed to the Lazarus Group. Two incidents dominated the tally: a Solana exploit used to target Drift Protocol that led to $285 million in losses, and a $292 million theft from Kelp DAO routed through the LayerZero bridge on Ethereum. In total, 12 attacks accounted for nearly 95% of the month's losses.
As the month unfolded, continued breaches coincided with a $13 billion drop in DeFi total value locked (TVL), highlighting the broader spillover from protocol-level incidents into ecosystem liquidity.
Market impact
The hacks were assessed as having a high impact on Ethereum pricing, with market-implied probabilities signaling a sharply reduced chance of ETH reaching $4,000 within April. Bitcoin has seen a more moderate hit, reflecting broader risk-off positioning that lowers the odds of $79,000 by April 30.
What to watch
Further large-scale incidents could deepen negative sentiment and pressure ETH and BTC pricing. Market participants are watching for potential regulatory responses, including actions by the U.S. Securities and Exchange Commission, and for initiatives from major industry figures aimed at rebuilding confidence. Geopolitical developments involving North Korea remain another key variable for crypto market dynamics.
