Blockchain security firm SlowMist reported that crypto losses from security incidents fell sharply during the first half of 2026, even as the number of attacks increased and hackers adopted more advanced tactics.
According to the company’s latest Mid-Year Blockchain Security and AML Report, the industry recorded 182 security incidents between January and June, resulting in about $956 million in losses. That marks a significant drop from the roughly $2.37 billion lost across 121 incidents during the same period in 2025.
🚨 SlowMist presents the 2026 Mid-year Blockchain Security & AML Report!
1/ In H1 2026, blockchain security entered a new phase. AI-driven scams, supply chain attacks, and cross-chain infrastructure exploits expanded the attack surface beyond smart contracts, while global… pic.twitter.com/oFFpe7nwML
— SlowMist (@SlowMist_Team) July 7, 2026
The report noted that the figures were calculated using token prices at the time of each incident and may not reflect the full impact because of price changes, undisclosed breaches, and individual user losses.
DeFi remains the biggest target as Ethereum leads losses
Decentralized finance (DeFi) remained the most targeted sector, accounting for 116 incidents and nearly $490 million in losses. Cross-chain bridges followed with 20 attacks that resulted in about $346 million in stolen funds, including a breach of around $292 million involving Kelp DAO.
Among blockchain networks, Ethereum recorded the highest losses at approximately $134 million. BNB Chain followed with about $36.35 million, while Arbitrum recorded nearly $4.93 million in losses.
Most attacks still came from smart contracts and logic flaws, which accounted for 85 incidents. Another 17 incidents involved compromised private keys or credentials, while 12 were linked to supply chain attacks.
Why are crypto attacks becoming more complex?
SlowMist said attackers are increasingly moving beyond exploiting code vulnerabilities and are now targeting users, software infrastructure, and AI-powered systems.
The report highlighted a rise in phishing campaigns using fake browser extensions, search advertisements, emails, and fraudulent security verification pages. Criminals also relied more on social engineering through fake partnerships, job scams, AI-generated content, and deepfakes to trick victims.
Supply chain attacks also increased, with hackers compromising software packages, development pipelines, content delivery networks, and AI agent plugin marketplaces to spread malicious code to a wider number of users.
The company also identified growing risks from AI-related attacks, including prompt injection, memory poisoning, and abuse of AI tool permissions. It warned that threats are expanding into wallets, bridges, multi-party computation systems, and other core cryptographic infrastructure.
Recovery efforts improve as criminals change tactics
The report said regulators continued to strengthen oversight of digital assets through updated rules covering stablecoins, anti-money laundering standards, digital asset custody, cross-border transactions, and virtual asset service providers.
Around $118 million, representing 12.3% of stolen funds across 18 incidents, was frozen or recovered during the first half of the year. SlowMist said its InMist Lab threat intelligence network helped freeze or recover about $5.16 million.
The report also identified the Lazarus Group as one of the most active cybercrime groups, using privacy protocols, cross-chain bridges, mixers, OTC networks, and DeFi platforms to move stolen assets.
Meanwhile, PeckShield reported that hackers stole $81.7 million from crypto platforms in May 2026 indicating an 87 per cent drop from April, when losses reached $646.89 million, the highest monthly total so far this year.
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