Crypto Hacks Drop to $26.5M in February Amid Security Gains

• The $1.5 billion Bybit hack in February last year did not inflate last month’s statistics and market volatility.
• Capital is shifting to become more selective, rewarding protocols with mature security frameworks. 

Last month recorded the lowest level of crypto hacks and scams since March 2025, having $26.5 million stolen since February, as reported by the blockchain security company PeckShield. 

Around 15 cases were reported in the month, in which two accounted for the majority of the losses, with the biggest accounting for the $10 million theft from YieldBlox’s DAO-managed lending pool through a price manipulation hack on February 21, as reported by PeckShield at X on March 1. 

The second-biggest hack targeted the decentralised identity protocol IoTeX, which lost around $8.9 million to a private key exploit on Feb 21. In total, February indicates a 69.2% month-on-month fall from January, which listed more than $86 million in losses. 

What Did the Spokesperson Mention?

A spokesperson from PeckShield mentioned that mega-hacks, like the $1.5 billion Bybit hack in February last year, did not inflate last month’s statistics, and market volatility resulted in a significant cooling period in exploit activity. 

The spokesperson further mentioned that a sharp market correction in early February, having Bitcoin slip below $70,000, moved the focus of the industry toward institutional deleveraging and math-based sell-offs. 

At the time of high-volatility periods, the tactical aim mostly shifts away from protocol exploits toward navigating market liquidity. Dominick John, a Kronos Research analyst, mentioned that the shift could also show tighter risk controls, stronger counterparty standards and amplified real-time monitoring over major venues. 

He further went on, mentioning that Capital is shifting to become more selective, rewarding protocols with mature security frameworks. John mentioned losses could carry on to slip by the year as audits, monitoring, and institutional risk frameworks mature. 

AI might also intensify the shift, backing automated code reviews, anomaly detection, and pre-deployment attack simulations to catch vulnerabilities earlier in the lifecycle. Crypto security is intensifying, and protocols are doubling down on audits, formal verification, and real-time monitoring. 

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