Why Calling Out Bad Security Practices in DeFi Isn't 'Grave Dancing'

Description

A $300 million exploit at Kelp DAO exposed a liability question the DeFi industry has no good answer to: when infrastructure fails, who is responsible? Katherine Kirkpatrick Bos, General Counsel at StarkWare, Jessi Brooks, General Counsel at Ribbit Capital, and Vy Le, General Counsel at Veda break down the Kelp and LayerZero finger-pointing, ask whether offering an insecure default configuration to 47% of your users creates legal duty of care, and argue that DeFi's composable architecture may be its greatest legal vulnerability — not just a technical one. This clip is from a longer conversation covering the Ninth Circuit's prediction markets oral arguments, Amex's agentic commerce launch, and what DeFi needs to do before regulators decide for it. Full episode here: https://youtube.com/live/UGjB2ncMxbc We go live every Tuesday at 12:00 PM ET — subscribe to catch it live. Chapters 🔥 0:00 How DeFi hacks in 2026 already exceed all of them in 2025: Resolv, Drift, and now Kelp DAO 🗣️ 1:52 Why criticism after hacks gets silenced — but shouldn’t be ⚠️ 3:09 These aren’t just DeFi hacks; DPRK is using this money for real-world harm 🌉 3:56 The Kelp DAO exploit explained: bridge, one-of-one verifier, contagion 📊 4:56 47% of teams chose this configuration — is it standard architecture now? ⚖️ 7:09 Who’s liable: who had a duty and didn't meet it? 👥 9:29 Why it matters that retail users, not just degens, are entering DeFi 🏦 10:18 The BaaS analogy — if you have the customer relationship, you're liable 📋 12:37 DOJ prosecutors ask "what is DeFi?" when you can always find a subpoena target? _______________________________________________________ #bitcoin #ethereum #crypto #cryptocurrencies ++++++++++++++++++++++++++++++++++++++++++++++++ Subscribe to our channel! Website → https://unchainedcrypto.com Unchained Daily Newsletter (FREE!)→ https://unchainedcrypto.beehiiv.com/subscribe/ Unchained X → https://x.com/unchained_pod Apple → https://podcasts.apple.com/us/podcast/id1123922160?ls=1 Spotify → https://open.spotify.com/show/1cJrrfGY1SKBIRn5noKSAf?si=6SI4qIcRTEO7EhOe0V9n4w RSS Feed → https://feeds.megaphone.fm/LSHML4761942757 Unchained: Your no-hype resource for all things crypto!