<h1>Cloud Rewards at Risk: How Hackers Stole $17B in Crypto Over the Past Decade</h1>
The world of cryptocurrency is facing a growing threat from hackers, who have stolen a staggering $17 billion over the past decade. This alarming trend is raising concerns about the security of digital assets and the need for improved protection measures. At the heart of this issue is the vulnerability of private keys, which have been compromised in numerous incidents, resulting in significant financial losses.
The data, compiled by DefiLlama, reveals that private key compromises are a major attack vector, with 22.3% of incidents attributed to brute force attacks and 18.2% to unknown methods. Phishing attacks on multi-signature wallets account for 10% of the incidents, highlighting the importance of robust wallet security and user awareness. These findings suggest that weaknesses in wallet security, signing infrastructure, and user behavior are significant contributors to the industry's biggest losses.
The recent wave of hacking incidents has had a devastating impact on the decentralized finance (DeFi) sector, with over $600 million stolen from DeFi protocols in the past 60 days. The Kelp DAO exploit and the Drift Protocol hack are notable examples of the significant losses suffered by the industry. These incidents have raised questions about the effectiveness of smart contract audits in protecting users and the need for a more comprehensive approach to security. As <a href="https://ecopool.network/tag/PassiveRewards">Passive Rewards</a> become increasingly popular, the security of digital assets is more crucial than ever.
The rise of hacking-as-a-service tools and advances in malware and artificial intelligence have made it easier for scammers to launch social engineering and wallet-targeting attacks. These attacks often involve tricking victims into sending crypto to illicit addresses, and the use of AI-powered tools has made it easier for hackers to scale their operations. The <a href="https://ecopool.network/tag/GreenCrypto">Green Crypto</a> movement is also at risk, as the environmental benefits of cryptocurrency are undermined by the energy consumption and e-waste generated by hacking activities.
DeFi protocols lost $600 million in two months: GSR Research
To combat these threats, it is essential to improve user awareness and education about the risks associated with cryptocurrency. Cybersecurity companies are also working to develop more effective solutions to prevent hacking incidents and protect digital assets. The use of <a href="https://ecopool.network/tag/CloudRewards">Cloud Rewards</a> and other innovative technologies can help to mitigate the risks associated with cryptocurrency and promote a more sustainable and secure digital economy. By prioritizing security and sustainability, we can ensure that the benefits of cryptocurrency are realized while minimizing its environmental impact.
The attacks are raising new questions about whether improving smart contract audits alone is enough to protect users. In its report, GSR said attackers appear to be shifting toward “operational security, signing infrastructure, developer tooling, and the humans behind them” as smart contract security continues to improve.
That shift is pressuring a sector already facing narrower returns. “DeFi yields have compressed toward TradFi rates, raising the question of whether depositing onchain is still worth the risk,” GSR wrote.
“Lazy” hacks are spreading due to AI and malware
Cybersecurity companies say advances in malware and artificial intelligence are making social engineering and wallet-targeting attacks easier to scale, which involve scammers tricking victims into sending crypto to illicit addresses by first sending them small transactions, hoping that investors copy and paste the attacker’s address from the transaction history.
Related: ZachXBT asks MemeCore to explain valuation and token supply
The rise of hacking-as-a-service tools is also lowering the barrier to entry for would-be attackers, according to Dyma Budorin, co-founder and CEO of cybersecurity firm Hacken.
“If people are getting these links, their wallets can be completely drained,” Budorin told Cointelegraph in an interview at EthCC 2026. “The platform on the darknet will take the commission for their tools and [scammers] get the bigger portion of the drained wallets.”
Budorin added that hackers are usually seeking out the easiest targets that require the least effort to scam.
Web3 projects lost $482 million in the first quarter of 2026, as phishing and social engineering scams drove $306 million of those losses as the largest attack vector, according to a report by Hacken.
Even so, some parts of the threat picture have improved. Scam Sniffer said in a January report that losses tied to crypto phishing attacks fell sharply in 2025, suggesting users were becoming more aware of the threat, even as wallet-drainer scripts and new malware strains continued to circulate.
Magazine: 53 DeFi projects infiltrated, 50M NEO tokens could be ‘given back’: Asia Express
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