Why did crypto losses fall in the first half of 2026 despite ongoing attacks?

CertiK reported that crypto losses fell 46.8% year-on-year to US$1.32 billion in the first half of 2026. However, the company said the decline mainly reflects the absence of another record-sized hack rather than an improvement in overall security.

What caused the biggest crypto losses in the second quarter of 2026?

According to CertiK, wallet compromises caused US$807.5 million in losses during the second quarter of 2026. More than 70% of those losses came from the KelpDAO and Drift Protocol exploits, which have been linked to North Korean state-sponsored hackers.

Why does CertiK believe the crypto industry is still at high risk?

CertiK said attackers are becoming more sophisticated and financially destructive despite lower overall losses. The company warned that the industry is experiencing a higher rate of attacks, with incidents becoming more targeted and causing greater damage per event.

What security measures did CertiK recommend for crypto projects?

CertiK urged crypto protocols and institutions to strengthen private key management through hardware security, multisignature governance and geographically distributed signers. The company said protecting private keys remains one of the most effective ways to reduce attack risk.

What did TRM Labs find about crypto attacks in the first half of 2026?

TRM Labs reported that the number of crypto security incidents increased from 83 to 207 during the first half of 2026. The firm said smart contract exploits accounted for 125 incidents and cautioned that lower losses should not be interpreted as a safer ecosystem.

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Crypto losses fall despite rising attack sophistication

Written by Jon CuthbertPublished Jul 7, 2026, 1:58 AM

Crypto losses fell 46.8% year-on-year to US$1.32 billion in the first half of 2026, according to CertiK.
CertiK and TRM Labs said the decline does not indicate a safer ecosystem, as attacks became more frequent and destructive.
Security researchers urged firms to strengthen private key management as North Korean-linked hackers remained a major threat.

CertiK reported that cryptocurrency losses fell 46.8% year-on-year to US$1.32 billion in the first half of 2026, but the company said attackers have become more sophisticated despite the lower overall losses.

Phishing caused US$508.2 million in losses during the first quarter, while wallet compromises accounted for US$807.5 million in the second quarter, with more than 70% of Q2 losses linked to the KelpDAO and Drift Protocol exploits.

“A headline reading of ‘losses down nearly 50%’ would suggest a meaningfully safer ecosystem. The data does not support that conclusion,” said CertiK.

The company said attacks are becoming more targeted and financially destructive, while TRM Labs reported that the number of crypto security incidents more than doubled from 83 to 207 during the first half of 2026, with smart contract exploits accounting for 125 incidents.

CertiK said strengthening private key protection and multisignature wallet management remains the most effective defence against attacks, and as the company is privately held there is no share price available.

The report said North Korean-linked hackers remain one of the crypto industry's biggest threats, with TRM Labs estimating they have stolen more than US$6 billion in digital assets since 2017.

CertiK also urged institutions to strengthen hardware security, distribute multisignature signers across different locations and improve private key management, while hardware wallet providers continue to recommend storing seed phrases offline to reduce phishing risks.