Crypto already loses $1.36 billion to hacks in 2026: how to protect yourself

The crypto sector has already lost more than $1.36 billion to hacks and exploits in 2026. In just eight months, more than 240 incidents have been recorded, mainly in the DeFi space. That raises the question of how investors can best protect their crypto.

In short:

• In 2026, there have already been more than 240 hacks and exploits in DeFi, with total damage exceeding $1.36 billion.
• Well-known protocols such as KelpDAO, Drift and Humanity Protocol have fallen victim to attacks worth millions of dollars.
• A layered system with different types of wallets can help limit the damage in the event of a hack.

Record Number of Attacks Hits DeFi Protocols

The scale of the damage in 2026 is striking. In just eight months, online sources have recorded more than 240 attacks on DeFi protocols. Well-known names such as KelpDAO, Drift, Ostium and Humanity Protocol are among the victims, each with millions of dollars in damage for their users.

This raises the question for many people of whether a new bull run with new investors is at all feasible as long as the number of attacks keeps rising. The harsh reality is that users have no control over whether a protocol is hacked. What is possible, however, is limiting the consequences if something goes wrong.

Layered Wallet System as Protection

AltCryptoGems explains an approach on X that revolves around using multiple wallets, each with its own purpose. The first category consists of so-called “Gem Wallets”: wallets intended exclusively for long-term storage that never connect to dApps. The more of these wallets someone holds, the better.

In addition, there are “Daily DeFi Wallets”, specifically for activities such as swapping, staking, liquidity providing and lending through trusted protocols. Finally, there are “Burner Wallets”, disposable wallets filled with small amounts and used only for risky matters such as new memecoins, airdrops and NFT mints. The advice is to keep at least five of these wallets on hand.

Such a layered approach ensures that an exploit or hack never puts the entire portfolio at stake. Spreading your crypto across multiple wallets with clear functions significantly limits the potential damage. Recently, Atomic Green lost well over $29.000 to a signature replay attack, an example of how quickly things can go wrong. This was also the case at Coinkite, maker of Coldcard wallets, where a hack led to an extensive investigation.