DeFi Security Weekly: Privacy Under Attack, Wallet Vulnerabilities, and Infrastructure Trust Crisis

DeFi Security Weekly: Privacy Under Attack, Wallet Vulnerabilities, and Infrastructure Trust Crisis The first week of April 2026 has exposed critical vulnerabilities in the foundations of decentralized finance. From broken social recovery mechanisms to sophisticated MEV manipulation schemes, this week's developments signal a maturation of attack vectors that target the very trust models DeFi was built upon. Key Incidents: When Core Assumptions Break Down Social Recovery Wallets: A False Sense of Security The week's most alarming revelation came from Rekt News's deep dive into social recovery wallet vulnerabilities. These wallets, once hailed as the solution to private key management, are showing fundamental design flaws that attackers are beginning to exploit systematically. The core issue lies in the trust assumptions around recovery guardians. Recent attacks have demonstrated how social engineering can compromise multiple guardians simultaneously, or how guardians themselves can coll