Cryptocurrency theft is not in decline, not even in the slightest. In fact, it is on the rise. How bad is it? And are investors turning to traditional finance to hold crypto instead of hackable exchanges?

According to CertiK’s latest report on hacked and stolen crypto, some $1,315,676,432 was lost across 344 blockchain incidents in the first half of 2026. The average amount holders lost per hack so far this year was a whopping $3.8 million with the median amount stolen being $138,703, well above the average yearly salary in the U.S.

April was the most costly month so far. CertiK estimates that $650.9 million was lost across 61 incidents. The second quarter of 2026 saw the most losses, with $807.5 million stolen in 194 hacks, scams, and exploits. 

Worth noting, not a single SEC registered security was hacked. No one lost their SpaceX (NASDAQ:SPCX) shares to hackers and fraud. And funds like the Grayscale Bitcoin Trust (NYSE:GBTC) also did not have to tell their investors that their money was stolen.

"Many people have likely lost faith in holding cryptocurrency, though theft is not the sole cause," said Natalie Newson, CertiK’s Senior Blockchain Investigator.  CertiK is a New York-based blockchain security company founded in 2017 by professors from Yale University and Columbia University. Its core mission is to make on-chain investing more secure by finding software vulnerabilities before hackers do.

Newson said that regulations have also hurt the cryptocurrency market, but added that "when combined with thefts, which are unprotected in the event of a loss, it’s enough to scare off all but the biggest believers in crypto."

When It’s Gone, It’s Gone

Anyone who has ever sought help for stolen Bitcoins (CRYPTO: BTC) has been let down. Or worse. Social media platforms, led by X, are loaded with scammers who prey on people complaining about cryptocurrency theft. They promise they are honest, and "not like the other scammers," and can recover people’s stolen goods. This usually comes with upfront payments, followed by more requests for payment. 

When cryptocurrency is stolen, more often than not, it is gone for good.

"Once cryptocurrency has been stolen and successfully laundered through cross-chain bridges, mixers, or exchanges, victims rarely recover their funds," Newson said. "Law enforcement has occasionally seized stolen assets before they were fully laundered, or exchanges have frozen funds that passed through their platforms, but these cases are relatively rare regarding the number of incidents and the amounts stolen."

Many FTX users got their money back years later, but this is a rare case of A-list level scandal with media attention. Arguably, only the blockchain media likely ever wrote any articles about the millions of dollars stolen this year, as noted by CertiK in their report.

Kelp DAO was the biggest reported incident in 2026, followed by Drift Protocol (CRYPTO: DRIFT). These two have received some media attention over the last several months due to their roughly $600 million combined heist.

Other exploits include Humanity Protocol ($32.9 million); Step Finance ($27.3 million) and Resolv ($26.8 million). Step Finance’s token (CRYPTO: STEP) has lost all of its value, down 100% from its all-time-high and now trading at under half a cent.

Ethereum: Most Hacked Blockchain

Ethereum (CRYPTO: ETH) is the biggest blockchain so it makes sense that it would be the biggest target.  Ethereum suffered some 153 incidents this year, most of it code vulnerabilities and phishing attacks.  The BNB Smart Chain, best known as BSC, came in second with 107 attacks.

Hackers targeted Ethereum 64 times in the first quarter, rising to 89 times in the second quarter.

Ethereum is not alone. Incident counts rose through Q2 2026, with the quarter recording 194 incidents overall, well above Q1’s 150 and consistent with, and in some months exceeding, the elevated cadence observed throughout 2025. 

"The industry is absorbing a structurally higher rate of attack activity," CertiK report authors said.

CertiK noted that the most consequential trend so far this year is the pace at which incidents are exceeding $1 million in losses (excluding phishing) for cryptocurrency investors. 

"Through the first half of the year, 2026 has already recorded a substantial share of such incidents relative to prior years, even though those years represent twelve months of data and 2026 has only recorded six," CertiK said.

Given that the second quarter recorded an increase in large values of stolen cryptocurrencies, driven by Kelp and Drift Protocol exploits, the second half of 2026 bears close watching, Certik analysts said. 

Attacks are becoming more frequent, more targeted and more financially destructive for investors.

The writer of this article is invested in GBTC and Ethereum. Artwork created by the author using Canva.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.