PeckShield reports $86M Crypto Losses as Market Weakness Deepens

PeckShield reports Rising Hacks and Phishing Amid Falling Crypto

Highlights:

PeckShield reports 16 crypto hacking incidents in January 2026, causing $86M in losses, with phishing scams alone crossing $300M

Crypto losses rise month-on-month from December 2025, worsening sentiment during an already declining market phase

Ongoing hacks and phishing attacks continue to pressure investor confidence and slow overall crypto market recovery

Reports From Official X account:

The latest warning on digital asset safety comes from PeckShield reports, shared through its official X account. The report states that January 2026 recorded 16 hacking incidents, with cumulative damage of $86 million. This marks a 1.42% year-on-year decline from January 2025 losses of $87.25M, yet still reflects a month-on-month increase, as December 2025 losses were $75.95M. Alongside these exploits, PeckShield reports highlighted a far bigger concern: phishing attacks crossed $300M, showing how user-focused scams continue to dominate damage figures.

Top 5 Hacks Reported by PeckShield

1. Step Finance – $28.9M

2. Truebit Protocol – $26.4M

3. SwapNet – $13.3M

4. Saga – $7M

5. Makina Finance – $4.13M ($2.7M recovered)

These incidents affected different layers of the ecosystem, from analytics tools to protocol infrastructure, proving that attackers are no longer focused on one single segment.

Weak Market Conditions Make the Situation Worse

1. Falling prices, low volume, fragile sentiment across major tokens

2. Security losses amplify fear during an already declining phase

The digital asset market is currently moving through a weak cycle, with declining valuations and reduced investor confidence. In such conditions, fresh exploit reports intensify pressure. Loss data released during a downtrend sends a negative signal, as participants link falling prices with rising risk. Instead of recovery narratives, the market faces a feedback loop where fear, sell-offs, and security concerns strengthen each other.

Why Are Attacks Still Increasing?

1. Phishing, social engineering, compromised keys, and rushed integrations

2. Complex smart-contract logic expanding faster than audits and testing

Despite decentralization, systems still rely on human decisions. Attackers increasingly target users rather than code, exploiting fake links, wallet approvals, and misleading interfaces. Protocol founders and chain maintainers have repeatedly stated that decentralization does not eliminate responsibility; instead, it shifts risk to users, developers, and validators. Many leading blockchain teams argue that security must be treated as continuous infrastructure, not a one-time audit, while exchange operators stress stronger wallet warnings and transaction simulation tools to reduce mistakes.

Why These Hacks Happen and Why They Matter

1. Root causes: phishing scams, private-key leaks, rushed deployments, unchecked permissions

2. Industry view: security must evolve continuously, not reactively

Leading exchange operators and blockchain founders often state that decentralization does not equal immunity. They acknowledge that human behavior, wallet approvals, and interface design remain the weakest links. Many chain owners emphasize better user education, transaction simulation, and ongoing audits, while protocol teams argue for slower rollouts with stronger testing.

These incidents matter because trust drives adoption. Repeated losses during a bearish phase delay capital inflow, discourage new users, and raise regulatory attention. For investors, exploiting trends influences risk assessment. For builders, they define credibility. Future progress will depend on phishing-resistant tools, clearer safeguards, and shared responsibility across the ecosystem.

Conclusion: PeckShield reports highlight how rising hacks and massive phishing losses are intensifying pressure on an already weak crypto market. These incidents underline why stronger security, user awareness, and long-term trust remain critical for sustainable growth and investor confidence.

YMYL Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice. Readers should conduct independent research and consult qualified professionals before making any investment or security-related decisions.