A significant hack involving nearly $300 million has shaken confidence in decentralized finance (DeFi), leading to $9 billion in withdrawals from Aave, the largest lending platform in this sector. Following the hack, the total value locked on Aave fell by more than a third, now standing at $17.5 billion. The hackers reportedly deposited stolen tokens as collateral on Aave, triggering concerns about the legitimacy of these assets. Portfolio manager Pratik Kala described the situation as a 'bank run' in the DeFi space, where users rushed to withdraw their funds amid fears of potential losses. The attackers are believed to have connections to North Korea, based on the sophistication of the hack, which targeted a cross-chain bridge operated by Kelp DAO. In response to the crisis, Aave has frozen its rsETH markets while assuring users that the rsETH traded on the Ethereum blockchain remains backed. However, the incident underscores the persistent security vulnerabilities in the DeFi ecosystem, prompting urgent action from investors.