A new report from Tiger Research shows crypto-related hacks accelerating in 2026, with at least 12 incidents recorded in April alone. The findings highlight growing pressure on the Web3 sector as repeated breaches continue to expose weaknesses in decentralized finance infrastructure.
Losses are increasingly driven by non-technical attacks, showing a shift in how crypto platforms are being targeted.
— Tiger Research (@tiger_research_) April 20, 2026
Social engineering dominates crypto exploit landscape
According to the report, social engineering now accounts for nearly 75% of total losses in early 2026, making it the leading cause of crypto breaches. Rather than exploiting smart contract vulnerabilities, attackers are targeting individuals with access to systems.
Recent attacks show how threat actors infiltrate teams over time, gaining trust before executing high-value exploits. This approach allows attackers to bypass audited code entirely, focusing instead on human entry points within crypto projects.
The trend reflects a broader evolution in attack methods across digital finance, where compromising users or insiders is often easier than breaking protocol-level security.
Weak recovery rates limit trust in crypto markets
The report also underscores a critical issue for the crypto sector: most stolen funds are never recovered. Recovery rates have remained below 10% since 2020, as blockchain transactions cannot be reversed once confirmed.
In decentralized finance, this creates a structural problem. When funds are drained, protocols typically lack mechanisms to compensate users or halt losses. This contrasts with centralized platforms, which can rely on reserves or coordinated industry responses.
As crypto markets push toward institutional adoption, persistent security failures and low recovery outcomes remain a major concern. The report notes that without stronger risk controls and response systems, large-scale capital inflows into Web3 may continue to face resistance.
Crypto-related exploits picked up sharply in March 2026, with more than $52 million stolen across 20 major incidents, almost double the $26.5 million lost in February.
The trend worsened in April, which saw the biggest spike so far, driven by large attacks on platforms like KelpDAO and Drift Protocol. Losses during the month surged well above earlier levels. Much of this rise is tied to tactics such as social engineering and access control weaknesses, with some attacks linked to groups like Lazarus Group. Beyond the immediate losses, these breaches are adding pressure on DeFi, disrupting platforms, and weakening investor confidence across the market.
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