The crypto industry is once again grappling with a rising wave of security breaches as new data from blockchain security firm PeckShield reveals that hackers drained $86.01 million across 16 separate incidents in January 2026.
While the total represents a modest 1.42% decline year-over-year compared to January 2025, it marks a sharp 13.25% increase month-over-month from December’s $75.95 million, signaling that attack activity is accelerating rather than slowing.
At the same time, phishing scams continue to devastate users at scale, with losses soaring beyond $300 million in just one month, highlighting a growing divide between protocol security improvements and user-level vulnerabilities.
PeckShield detailed the findings in a public breakdown of January’s major exploits, outlining both the scale and concentration of losses across a handful of high-profile incidents.
#PeckShieldAlert In Jan. 2026, the crypto space saw 16 hacks totaling $86.01M in losses, representing a slight 1.42% YoY decrease compared to Jan. 2025 ($87.25M) but a notable 13.25% MoM surge from Dec. 2025 ($75.95M).
Meanwhile, #phishing remains staggering with losses… pic.twitter.com/pxugbsPcZ7
— PeckShieldAlert (@PeckShieldAlert) February 1, 2026
Together, the numbers paint a clear picture: while smart contract defenses may be improving incrementally, the overall threat environment across crypto remains intense.
Month Over Month Losses Jump Despite Slight Yearly Improvement
On the surface, the year-over-year dip from $87.25 million in January 2025 to $86.01 million in January 2026 might appear encouraging.
But a closer look reveals a far more concerning trend.
Losses surged more than 13% from December 2025, breaking a brief period of lower activity and confirming that attackers are quickly adapting to evolving security practices.
This pattern has become familiar across the crypto industry: temporary declines followed by sharp rebounds as hackers identify new vulnerabilities, exploit operational weaknesses, or shift focus to softer targets such as treasuries, bridges, and authentication systems.
Rather than a steady improvement curve, crypto security continues to move in volatile cycles, with brief relief often followed by intensified attack waves.
Step Finance And Truebit Lead January’s Biggest Breaches
The majority of January’s losses came from just a few high-impact incidents.
At the top of the list was Step Finance, which suffered a $28.9 million treasury breach after attackers compromised multiple protocol wallets.
Close behind was Truebit Protocol, which lost $26.4 million in a separate exploit, placing the two incidents alone at over $55 million, nearly two-thirds of total January losses.
Other major attacks included:
- SwapNet: $13.3 million
- Saga: $7 million
- Makina Finance: $4.13 million, with approximately $2.7 million later recovered
This concentration of damage highlights a growing trend in crypto crime: attackers increasingly target protocol-owned funds rather than individual users.
Large treasuries now represent some of the most lucrative single-point opportunities in decentralized finance, often holding years of accumulated fees, incentives, and development capital in a small number of wallets.
Phishing Losses Cross $300 Million And Keep Rising
While hacks dominate headlines, phishing scams remain the industry’s most destructive threat by sheer volume.
In January alone, users lost over $300 million to malicious links, fake interfaces, wallet drainers, and social engineering attacks, far exceeding the damage caused by protocol exploits.
These scams increasingly mimic real projects with high-quality websites, cloned smart contracts, and convincing social media impersonations.
Unlike smart contract hacks, which target infrastructure, phishing attacks exploit human trust, making them harder to eliminate through audits or code fixes.
As more users enter crypto through mobile wallets and social platforms, attackers are finding it easier than ever to lure victims into signing malicious transactions or revealing private keys.
The result is a parallel security crisis where even as protocols harden their systems, everyday users remain exposed to sophisticated digital fraud.
Treasury Attacks Signal A Shift In Hacker Strategy
One of the most important takeaways from January’s data is the growing focus on protocol treasuries.
Instead of hunting for vulnerable smart contracts with complex exploits, many attackers now pursue:
- Compromised multisig wallets
- Stolen private keys
- Phishing of protocol contributors
- Operational security failures
- Governance loopholes
Treasury breaches often require less technical sophistication than smart contract exploits, but deliver far higher payouts.
With some DeFi protocols holding tens or even hundreds of millions in reserves, a single successful compromise can surpass months of smaller hacks combined.
This strategic shift explains why January’s losses are heavily concentrated among a few large incidents rather than dozens of smaller ones.
As DeFi matures and treasuries grow, these protocol-owned funds are becoming the new high-value targets across the crypto threat landscape.
The Crypto Security Arms Race Shows No Sign Of Slowing
January 2026’s numbers reinforce a hard truth for the industry: crypto remains in a constant arms race between builders and attackers.
Audits, formal verification, bug bounties, and improved wallet infrastructure have raised the cost of exploitation, but they have not eliminated it.
Instead, attackers adapt by shifting tactics, exploiting human weaknesses, and targeting operational security rather than code.
The rising month-over-month losses suggest that while defenses are improving in some areas, the overall attack surface continues to expand as crypto adoption grows.
More capital, more protocols, more users, and more cross-chain systems inevitably create more opportunities for exploitation.
Until treasury management, user education, and real-time threat detection evolve as quickly as smart contract security has, large-scale losses are likely to remain a recurring feature of the crypto economy.
A Persistent Risk Reality For The Digital Asset Industry
Despite a slight year-over-year improvement, January’s surge in losses makes one thing clear: crypto security challenges are far from being solved.
With over $86 million lost to hacks and $300 million drained through phishing in just one month, the industry continues to pay a heavy price for rapid innovation and expanding complexity.
The concentration of damage in major treasury breaches also signals a new phase of risk, where entire protocols can be destabilized by a single security failure.
As 2026 unfolds, the focus is likely to shift further toward strengthening operational security, improving treasury safeguards, and protecting everyday users from increasingly sophisticated scams.
For now, January stands as another reminder that in crypto, growth and risk continue to rise side by side.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
