The new year delivered a stark reminder: people are still the weakest link. Reports indicate that roughly $370 million in cryptocurrency was stolen in January, a sharp increase from previous months.
That surge was driven largely by one massive social-engineering scam, which drained approximately $284 million from a single victim. This time, simple lies and clever messages proved more effective than breaking code.
Phishing Dominates Losses
According to security firm CertiK, phishing-style scams accounted for about $311 million of January’s total losses. This means most funds were stolen by tricking users and insiders, rather than by exploiting cryptographic systems. Attackers used social pressure, fake links, and impersonation to convince victims to move their funds. People clicked, money was transferred, and accounts were emptied.
A Pattern of Monthly Swings
January’s total is nearly four times the $98 million stolen in January 2025 and more than triple December’s figure of about $118 million. It marks the largest monthly loss since February 2025, when roughly $1.5 billion was taken—primarily due to the major Bybit heist. These large-scale events show how a single breach or scam can skew an entire month’s statistics. The numbers can appear calm one month and explode the next, creating ongoing uncertainty for wallets and project treasuries.
Major Technical Exploits Hit Treasuries
PeckShield highlighted several significant protocol attacks. Step Finance lost nearly $29 million after its treasury wallets were compromised, resulting in the loss of over 261,000 SOL. Truebit suffered a $26.4 million loss when a smart contract flaw allowed tokens to be minted at almost no cost, which also crashed its token price. Other victims included SwapNet and Saga, with losses of approximately $13.3 million and $7 million, respectively. These hacks were technical, aggressive, and executed quickly.
Why This Matters Now
Reports indicate there were 40 exploit and scam incidents in January, though the majority of the value lost was concentrated in just a few cases. This pattern shows that the raw number of incidents doesn’t tell the full story; a single, well-executed scam can outweigh many smaller breaches combined. Some months see numerous small thefts, while others are defined by one enormous fraud.
What Needs to Change
Security teams and project treasuries must strengthen both human and technical safeguards. More rigorous wallet controls, staged transaction approvals, and stronger identity checks could help mitigate social-engineering attacks. Simultaneously, independent code audits and faster response plans can limit the damage from smart contract vulnerabilities. Educating staff and users is a relatively low-cost measure compared to the price of a single major loss.
The recent spike in losses sends a clear message: attackers are blending social engineering with technical expertise. The current playbook often begins with a message in a chat app or an email, which then leads to code-level theft. While patching software is important, teaching people how to recognize scams can stop many attacks before they ever reach the technical stage.
Frequently Asked Questions
Of course Here is a list of FAQs about the reported surge in crypto hacks designed to be clear and helpful for everyone from beginners to more experienced users
Beginner General Questions
1 What exactly happened I keep hearing about crypto hacks
In January alone cybersecurity researchers tracked that hackers stole approximately 370 million worth of cryptocurrency from various exchanges platforms and individual wallets This is a significant spike compared to previous months
2 Why is so much crypto being stolen now
There isnt one single reason but a combination increased value in the market attracts more criminals continued vulnerabilities in some DeFi protocols and sophisticated social engineering attacks
3 Is my money safe on big exchanges like Coinbase or Binance
Major regulated exchanges have strong security measures and often insure customer funds However no platform is 100 hackproof The recent surge has targeted a mix of large and small platforms as well as individual users
4 Whats the difference between a hack and a scam
Hack Technically breaking into a systems security
Scam Tricking people into voluntarily giving up access or funds
In news reports both are often grouped under hacks but knowing the difference helps you protect yourself
5 If my crypto is stolen can I get it back
Unfortunately its very difficult Crypto transactions are mostly irreversible While investigators can sometimes trace stolen funds recovering them depends on identifying the hacker and often involves complex legal processes across borders
Intermediate Technical Questions
6 What is a private key and why is it so important
Think of your private key as the ultimate password to your crypto wallet Anyone who has it has complete control over your funds Many hacks and scams succeed by tricking users into revealing their private keys or seed phrases
7 What is a smart contract exploit and why is it common in DeFi hacks
A smart contract is selfexecuting code that runs on a blockchain An exploit is when a hacker finds a bug or logic flaw