- DeFi platforms are using the Security Alliance’s Safe Harbor Agreement to protect white hat Hackers from prosecution during cyberattacks.
- These legal agreements encourage ethical hackers to recover funds lost in active exploits without fear of legal consequences.
- As of September 1, 12 major DeFi protocols with $20 billion in deposits have adopted Safe Harbor Agreements.
- Crypto theft reached $2.2 billion so far in 2025, including $1.5 billion from a Bybit exchange hack.
- Safe Harbor applies to white hat intervention during ongoing or imminent attacks, with strict requirements for fund recovery and return.
Decentralised finance (DeFi) protocols are adopting the Security Alliance’s Safe Harbor Agreement to offer legal protection for white hat hackers who intervene during ongoing cyber exploits. The move aims to reassure ethical hackers that they will not be prosecuted if they recover funds from active attacks and return them to the correct addresses.
Twelve DeFi platforms, representing $20 billion in user deposits, have signed these Safe Harbor Agreements as of September 1, according to DefiLlama. Leading projects such as Pendle, with $10 billion in deposits, and Uniswap, holding almost $6 billion, are among the early adopters.
So far in 2025, hackers have stolen $2.2 billion from crypto platforms—a 6% increase compared to all of 2024, reported DefiLlama. $1.5 billion of this was taken in a February attack on the Bybit exchange by North Korean cybercriminals.
DeFi protocols run on blockchains like Ethereum to enable activities such as trading and lending without permission or a central authority. They have become frequent targets for hackers looking to steal funds. During an exploit, white hat hackers can sometimes remove threatened assets before an attacker does, but fear of legal action has often prevented them from acting—even when their sole intent was to help.
The Safe Harbor Agreement only applies when a security incident is underway or imminent. White hats must not cause the exploit and must send rescued funds to the official recovery address within 72 hours. Security Alliance began drafting this agreement after the 2022 Nomad hack, when “over $190 million was drained…while white hats stood by, willing to help, but unable to act without legal protection,” according to their website.
Major industry groups, including a16z Crypto, Cooley, Debevoise & Plimpton, Filecoin Foundation, and Paradigm, have provided legal review and feedback on the framework. The Safe Harbor initiative highlights continuing efforts within the crypto industry to address ongoing security concerns.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitcoin Retreats From Record $124K Amid Fed Crisis, Turmoil Persists
- Crypto Industry One Growth Cycle Away From 5 Billion Users, Experts Say
- North Korean APT37 Targets S. Korea With RokRAT in New Attacks
- Avino Silver & Gold Mines (ASM) Soars 360% YTD, Bullish Outlook
- Solv Protocol Integrates Chainlink for Real-Time BTC Reserve Proof
