The decentralized finance (DeFi) sector experienced a notable downturn in cryptocurrency thefts during the first quarter of 2026. According to DefiLlama's data, hackers managed to steal $168.6 million from 34 DeFi protocols, representing a substantial decrease from the $1.58 billion figure in Q1 2025.
Market fluctuations are cited as one of the primary factors contributing to this decline. As Nick Percoco, Kraken's chief security officer, notes, attackers often target areas with high concentrations of value, and market events can create opportunities for exploitation.
The data highlights a few notable exploits in Q1 2026. The largest was the $40 million private key leak targeting portfolio management platform Step Finance in January. Additionally, a smart contract manipulation on January 8 resulted in the loss of $26.4 million in ether (ETH) from Truebit.