In January 2026, the cryptocurrency landscape experienced significant security breaches, with total losses from hacks amounting to $86.01 million across 16 separate incidents. This figure represents a 13.25% increase from the previous month, December 2025, which saw losses of $75.95 million, although it reflects a slight decline of 1.42% compared to January 2025″s total of $87.25 million.
The most significant breach during this period occurred at Step Finance, resulting in a staggering loss of $28.9 million. This incident stemmed from a treasury breach that compromised internal controls. Following closely was the Truebit Protocol, which suffered a loss of $26.4 million shortly after the new year began. The impact of these attacks was compounded by a notable drop in token prices and a slowdown in trading activity as exchanges worked to assess the damages.
Phishing schemes, however, overshadowed these protocol hacks, with losses exceeding $300 million in January. Unlike previous broad-target email scams, these phishing attacks were more sophisticated and targeted, employing direct contact methods and leveraging trusted platforms to deceive victims. A significant incident on January 10 led to a loss of over $282 million in Bitcoin and Litecoin, executed through a hardware wallet social engineering scheme that used impersonation tactics.
Security analysts have noted a worrying trend: the increasing use of advanced technologies, including deep fake audio and video, alongside AI-generated messages, to enhance the legitimacy of these scams. Such tactics are designed to reduce suspicion and bolster the success rates of these malicious activities.
In the broader context, 2025 was a year marked by extensive losses, with total theft in the cryptocurrency sector surpassing $3.4 billion. A significant portion of these losses was attributed to the notorious $1.5 billion breach involving Bybit in February 2025. Law enforcement agencies managed to recover or freeze approximately $334.9 million in stolen funds last year, a recovery rate that has been declining due to the complexities of cross-border transactions and the rapid movement of funds.
As we move further into 2026, security teams are on high alert, especially with the continued utilization of deceptive domains like *.vercel.app to distribute malicious tools. These tactics are expected to persist and adapt in the evolving landscape of cryptocurrency security.
