This article was first published on TurkishNY Radio.
The number of crypto hacks reached an all-time high during the first six months of 2026, yet the total value stolen fell sharply compared with last year.
While that may appear to be positive news at first glance, new blockchain intelligence suggests the industry’s biggest security challenge has simply shifted.
According to TRM Labs’ H1 2026 Crypto Hacks Report, cybercriminals carried out 207 crypto hacks between January and June, the highest number the firm has ever recorded over a six-month period.
Even so, total losses dropped to $972 million, less than half the $2.3 billion stolen during the first half of 2025.
The report points to an important change in how attackers operate. Instead of relying primarily on flaws in smart contracts, many of the largest thefts now stem from weaknesses in operational security, including compromised private keys, signing systems, custody infrastructure, and approval processes.
That distinction matters because it changes where blockchain projects need to focus their security budgets.
Crypto Hacks Shift Toward Smaller Attacks
The latest figures show that attackers are targeting a wider range of decentralized applications and blockchain protocols than ever before.
TRM Labs found that 125 of the 207 crypto hacks involved smart contract exploits, making them the most common attack method. However, most of these incidents resulted in relatively limited financial damage.
The median loss from a hack was only around $219,000, while the average climbed to $4.7 million because a handful of massive breaches skewed the overall figures.
In simple terms, blockchain projects are dealing with more frequent attacks, but most are relatively small. The industry’s largest financial setbacks continue to come from a completely different category of risk.
Rather than breaking smart contract code, sophisticated attackers are increasingly finding ways to compromise the systems responsible for authorizing transactions and protecting digital assets.
Crypto Hacks Shift to Operational Failures
The report shows why crypto hacks are no longer just a software problem.
Although infrastructure-related compromises represented only about 15% of all recorded incidents, they accounted for roughly 76% of the total funds stolen during the first half of the year.
These attacks typically target:
- Private keys
- Wallet custody systems
- Signing infrastructure
- Approval workflows
- Administrative privileges
- Third-party service providers
Unlike traditional smart contract exploits, these attacks often combine technical intrusion with phishing campaigns, credential theft, and social engineering.
For security teams, that means an audited smart contract alone is no longer enough to protect protocol funds.
North Korea-Linked Groups Continue to Dominate Major Crypto Hacks
One of the report’s most notable findings involves state-sponsored cybercrime.
According to TRM Labs, North Korea-linked hacking groups accounted for approximately $643 million, representing nearly two-thirds of all crypto funds stolen during H1 2026.
Most of those losses came from just two attacks.
The breach involving Drift Protocol resulted in losses of approximately $285 million, while KelpDAO suffered another attack worth roughly $292 million.
Together, the two incidents accounted for nearly $577 million in stolen assets.
These operations reportedly relied on compromising surrounding infrastructure instead of exploiting blockchain code alone, reflecting a strategy that has become increasingly common among sophisticated threat actors.
The findings also suggest that lower overall losses this year should not be interpreted as weaker attackers. Instead, the industry simply avoided another mega-hack on the scale seen in 2025.
Blockchain Security Must Move Beyond Smart Contract Audits
The latest wave of crypto hacks highlights a broader lesson for decentralized finance.
Smart contract audits remain one of the most important security practices, but they represent only one layer of defense. Projects also need stronger operational controls that reduce the chances of unauthorized fund movement.
Security experts increasingly recommend combining code reviews with:
- Hardware-backed key storage
- Multi-signature approval systems
- Continuous monitoring of privileged accounts
- Independent vendor security reviews
- Cross-chain transaction monitoring
- Regular incident-response exercises
These measures can significantly reduce the impact of infrastructure breaches, particularly when attackers gain access to internal systems rather than blockchain code itself.
As blockchain ecosystems become more interconnected through bridges, custodians, and shared infrastructure, protecting operational processes has become just as important as protecting software.
The Next Phase of Crypto Security Has Already Begun
The record number of crypto hacks recorded during the first half of 2026 sends a clear message: blockchain security risks are becoming more complex, not less.
While fewer dollars were stolen overall, attackers continue to expand their reach across the digital asset ecosystem.
The biggest losses now come from operational failures rather than coding mistakes, forcing protocols, exchanges, and custodians to rethink how they protect user funds.
According to TRM Labs, future security strategies must focus not only on writing secure code but also on strengthening the infrastructure that controls access to assets.
As blockchain adoption grows, success will depend on making fund transfers harder to manipulate, detecting suspicious activity faster, and responding quickly when attacks occur.
Summary
- Crypto hacks hit a record 207 attacks in the first half of 2026, but total losses dropped to $972 million, showing that more incidents do not always mean bigger financial damage.
- While smart contract bugs remain common, the largest thefts now come from compromised private keys, custody systems, and transaction approval processes rather than flaws in blockchain code.
- TRM Labs found that North Korea-linked hackers were behind most major thefts, reinforcing the need for stronger operational security alongside regular smart contract audits.
Glossary of Key Terms
Blockchain Security
The tools, practices, and safeguards used to protect blockchain networks, wallets, and digital assets from hackers, fraud, and unauthorized access.
Crypto Hacks
Cyberattacks that target cryptocurrency platforms, wallets, exchanges, or blockchain protocols to steal digital assets or disrupt their operations.
Custody
The secure storage and management of cryptocurrency. It focuses on protecting digital assets by keeping private keys safe from theft or misuse.
DeFi (Decentralized Finance)
A collection of blockchain-based financial services that lets people lend, borrow, trade, and earn rewards without using traditional banks.
Operational Security
The processes and controls that keep cryptocurrency systems secure, including protecting private keys, approving transactions safely, and managing user access.
Private Key
A secret digital code that gives the owner full control of a crypto wallet. If someone gains access to it, they can move the wallet’s funds.
Smart Contract
A program that runs on a blockchain and automatically carries out transactions or agreements once the required conditions are met.
Smart Contract Exploit
A type of attack where hackers take advantage of weaknesses in a smart contract’s code or design to steal funds or manipulate transactions.
FAQs About Crypto Hacks
1. Why are crypto hacks increasing in 2026?
Crypto hacks are becoming more common as attackers target a growing number of blockchain projects. Fortunately, most recent attacks have caused smaller losses than previous billion-dollar breaches.
2. Why is operational security now a bigger concern?
Many of the biggest losses now happen when attackers compromise private keys, custody systems, or transaction approvals instead of exploiting smart contract vulnerabilities.
3. Are smart contract audits enough to stop crypto hacks?
No. Audits remain important, but projects also need stronger key protection, secure approval processes, continuous monitoring, and well-tested response plans to reduce overall risk.
4. What can crypto projects do to prevent future hacks?
Projects can lower their risk by securing operational infrastructure, limiting privileged access, using multi-signature approvals, monitoring suspicious activity, and preparing for incidents before they happen.
