Crypto Industry Sees Spike in Cyberattacks, Total Losses Decline Significantly

The cryptocurrency market has experienced a surge in cyberattacks, with a significant increase in incidents reported during Q1 2026.

A recent report from Shard, an AML/KYT provider, reveals that the number of attacks in the crypto industry doubled compared to the same period last year, exceeding 80 incidents. This rise in attacks has been accompanied by a decrease in total losses, which dropped by 69% year-over-year to $496 million.

The report highlights a change in the nature of these attacks, with losses in Q1 2026 being more dispersed and targeting DeFi protocols, infrastructure services, and individual users. In contrast, the majority of losses in Q1 2025 were due to a major theft at one exchange, which resulted in approximately $1.4 billion in losses.

The breakdown by month shows that January saw 29 attacks with losses exceeding $392 million, February had 26 attacks with losses over $22 million, and March experienced 27 attacks with losses of $81 million.