Crypto Hacks Skyrocket: $14B Lost Since 2016

Crypto hacks and exploits have been on the rise in recent years, with over $14.27 billion lost since 2016. According to CoinGecko's data, the costliest year on record was 2022, with losses totaling $2.77 billion.

However, 2026 has seen a significant number of incidents, with 164 separate hacks through early August. This is more than any full prior year, although some experts suggest that better detection and tracking may be contributing to this increase.

The most notable hack in 2026 was the one on Kelp, which caused structural damage throughout DeFi. Attackers exploited a weakness in the LayerZero bridge, minting $293 million of unbacked rsETH and dumping it into Aave as collateral. This led to a decline in Aave's TVL from $25.93 billion to $14.40 billion by July 21.

The hack also had a significant impact on governance tokens, with many losing value due to the market reaction. For example, Step Finance's token lost 99.4% of its value after the protocol was left insolvent. Drift and Resolv have also seen their tokens decline in value, with DRIFT down 80.2% and RESOLV down 71.7% since their respective hacks.