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- Crypto investors lost $59.5M in March, with minimal recovery.
- Wallet compromises and phishing made up over 80% of attacks.
- Social engineering is now a leading threat in crypto security.
Crypto security risks remained a major concern in March 2026, with new data from CertiK revealing nearly $60 million lost to hacks, scams, and exploits. While the headline figure marks a continuation of industry losses, a deeper look shows a troubling shift in how attackers are targeting users—moving away from code vulnerabilities and toward human manipulation.
Wallet Compromises and Phishing Dominate Losses
According to CertiK’s report, total losses reached $59.5 million in March, with only a small fraction—just over $21,000—recovered. Wallet compromises accounted for the largest share at $26.8 million, followed closely by phishing attacks at $21.4 million. Combined, these two methods made up more than 80% of all losses during the month.
The largest single incident involved Resolv, where attackers drained $26.8 million through a wallet breach. Meanwhile, decentralized finance (DeFi) protocols were the most affected sector overall, suffering $32.8 million in losses.
Q1 2026 Losses Reach $501M Despite Yearly Drop
Looking at the broader picture, Q1 2026 recorded $501 million in losses across 145 incidents. While this is significantly lower than the $1.67 billion reported in Q1 2025, the comparison is somewhat misleading.
Last year’s figures were heavily skewed by a single event—the massive $1.4 billion hack involving Bybit. When excluding that anomaly, the improvement in 2026 appears less dramatic, suggesting that underlying security challenges remain largely unresolved.
Kraken Incident Highlights Rise of Social Engineering
As the report was released, another high-profile attack was already unfolding. An unidentified user on Kraken lost $18.2 million in a suspected social engineering scheme.
On-chain investigator ZachXBT reported that the attacker manipulated the victim into granting access, rather than exploiting a technical flaw. The stolen funds were then bridged from Ethereum to Bitcoin using THORChain.
THORChain has increasingly appeared in major 2026 thefts due to its decentralized and permissionless nature, which makes it nearly impossible to freeze or recover stolen assets once they are transferred.
The March data underscores a clear trend: attackers are focusing less on breaking code and more on exploiting human behavior. Social engineering has emerged as a dominant threat vector, with users often becoming the weakest link in security.
Also Read: NEAR and XRP Drop Again—Is a Bigger Crypto Crash Coming?
As crypto adoption grows, this shift highlights the urgent need for better user education and stronger personal security practices alongside technical safeguards.
While overall losses in 2026 may appear lower than last year, the evolving tactics of attackers paint a more complex picture. The rise of social engineering and persistent wallet vulnerabilities suggest that the crypto industry still faces significant security hurdles—ones that cannot be solved by code alone.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
