Jesse Powell, chief executive of the U.S.-based cryptocurrency exchange Kraken, has lashed out at the decentralized finance (DeFi) sector in the aftermath of Monday's $24 million arbitrage exploit of Harvest Finance.
"Stop f**king up your bulls**t DeFi scams and expecting exchanges to bail you out," Powell said. "Invest in audits, insurance and please [do your own research]."
The comments come after several DeFi projects suffered some form of an exploit or major management failure, while some have opened to investors with faulty or negligible audits of their code.
Still, the incident highlighted the danger of placing trust, and money, in projects run by unknown individuals.
Despite all this, the DeFi sector is still drawing investors seeking yield, reaching a new milestone of $12.45 billion in total value locked up in smart contracts on Oct. 25.
It's not clear why Powell suggested exchanges are having to "bail out" DeFi failures. CoinDesk reached out to clarify but did not receive a reply by press time.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.