Why Crypto Losses Hit $370M as Scams Overtake Code Exploits

Cryptocurrency theft in January 2026 marked a turning point for Web3 security as losses surged to the highest level in nearly a year. Instead of code-level failures, attackers exploited human behavior at scale, reshaping how risk is distributed across DeFi, CeFi, and personal wallets.

The data shows that cryptocurrency theft in January is no longer driven by smart contract bugs alone. Social engineering, phishing, and wallet compromise now define the dominant threat vector across the crypto economy.

Why January 2026 Crypto Losses Hit ~$370M

Cryptocurrency theft in January reached ~$370.3M because attackers shifted from protocol exploits to direct psychological manipulation of users. This single-month total represents the highest level in 11 months and reflects a structural change in how crypto crime operates.

Losses rose 214% month-over-month and nearly quadrupled year-over-year, showing that one high-impact scam can now outweigh dozens of smaller hacks combined.

A single social engineering incident alone drained ~$284M, accounting for over 75% of all January losses, making cryptocurrency theft in January unusually concentrated in one event.

Exploits and scams: phishing, social engineering, wallet drainers, flash loan attacks

Cryptocurrency theft in January was driven primarily by phishing and social engineering rather than smart contract failures. These user-targeted attacks accounted for the majority of the month’s damage.

• Phishing campaigns: alone caused ~$311.3M in losses, with attackers impersonating wallet providers and exchanges to trick victims into revealing private keys or seed phrases.

• Wallet drainers: have evolved into automated toolkits that scan balances and withdraw the most liquid assets first. These tools turn fake airdrops and NFT mints into high-speed theft engines.

• Flash loan: exploits remain a persistent risk, allowing attackers to manipulate prices and drain liquidity in seconds, even though they were not the primary driver in January.

• Smart contract exploits: Despite the phishing dominance, protocol hacks still caused ~$86M in losses. The most severe cases were: Step Finance (Solana)~$28.9M from compromised treasury wallets, Truebit Protocol ~$26.4M from an overflow vulnerability, SwapNet: ~$13.3M.

Where losses hit: DeFi vs CeFi, exchanges, bridges, cross-chain, private key compromise

Cryptocurrency theft in January hit DeFi hardest at the protocol level, but user wallets absorbed the largest financial impact. This imbalance highlights how risk has migrated from code to key management.

• DeFi: ~$86M from 16 hacks, primarily Step Finance and Truebit.
• CeFi & Exchanges: Fewer incidents, but often catastrophic in scale, as seen in historical Bybit-related breaches.
• Bridges & Cross-chain: CrossCurve bridge lost ~$3M via forged cross-chain messages.

Across all segments, private key compromise was the common root cause, reinforcing that cryptocurrency theft in January is now primarily a human security failure.

Methodology and recoveries: how CertiK compiles monthly totals

Reporting scope, on-chain analytics, incident counts; rug pulls; MoM/YoY context

CertiK tracks cryptocurrency theft in January using Skynet monitoring, on-chain analytics, and community intelligence. All incidents are cross-checked with firms like PeckShield and SlowMist. Each case is classified as an exploit, scam/rug pull, or phishing attack, then compared MoM and YoY to reveal ecosystem-wide security trends.

Recovery treatment, caveats; figures may update as investigations conclude

Only funds returned to victims or projects are deducted from cryptocurrency theft in January totals. Whitehat returns and frozen assets are updated retroactively. In January 2026, recovery remained below 5%, as most stolen funds were rapidly laundered through mixers and privacy protocols.

What to do now: user and team security checklist

User actions

Users can reduce cryptocurrency theft in January risk by eliminating single points of failure. Cold storage and strict access hygiene are essential. Hardware-based MFA, routine approval revocation, and assuming all DMs are scams significantly reduce exposure to phishing and wallet drainers.

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Org controls

Organizations must treat cryptocurrency theft in January as a systemic governance risk. Multisig treasuries, key isolation, and MPC are now baseline standards. Bug bounties, real-time monitoring, and cooperation with regulators and law enforcement help contain damage and improve recovery outcomes.