BlockBeats News, May 14th. According to official sources, the smart contract auditing platform Code4rena has announced that it will gradually cease operations, with the Web3 security company Immunefi taking over its clients and security researchers. Code4rena posted on social media that it has made the decision to shut down, stating that all ongoing competitions and bounty programs will be completed as usual, and existing partnerships will be "properly concluded." Immunefi has stated that it will assist in migrating Code4rena's bounty programs, reward structures, and researchers to its platform.

Code4rena is known for its "competitive auditing" model, where independent researchers compete to find smart contract vulnerabilities in exchange for rewards. The shutdown comes less than two years after the blockchain security company Zellic acquired Code4rena in 2024. Previously, Code4rena had raised $6 million from Paradigm in 2023 for audit incentives and platform expansion.

This shutdown comes at a challenging time for DeFi protocols and the security sector. DefiLlama data shows that there were over 20 crypto vulnerability incidents in April alone, setting a monthly record. Morgan Stanley analysts believe that ongoing DeFi security incidents are hindering major institutional investor participation. Meanwhile, the total value locked in DeFi has dropped from around $1.6 trillion in October to approximately $830 billion currently.