Crypto-related hacks and scams slowed sharply in February, with total losses falling to their lowest level since March 2025.

Blockchain security firm PeckShield reported that attackers stole $26.5 million during the month, marking a clear decline from January’s figures.

The data, shared in an X post on Sunday, showed that fewer high-impact exploits and stronger security practices across platforms contributed to the drop.

February’s total also reflected a broader shift in focus within the market as volatility reshaped risk priorities across the digital asset sector.

PeckShield recorded 15 hacking and scam incidents in February.

However, the majority of losses were concentrated in just two cases.

The largest exploit involved a $10 million theft from YieldBlox’s DAO-managed lending pool on Feb. 21.

The attacker used a price manipulation strategy to drain funds from the protocol.

On the same day, decentralised identity protocol IoTeX suffered a separate breach.

About $8.9 million was lost in a private key exploit.

Combined, the two incidents accounted for most of the month’s total losses.

Overall, February’s $26.5 million in stolen funds represented a 69.2% month-on-month decline from January, when losses exceeded $86 million.

According to PeckShield’s update on X, February marked the lowest monthly loss figure since March 2025.

The slowdown in exploit activity coincided with significant market turbulence.

In early February, Bitcoin dipped below $70,000 during a sharp correction.

PeckShield said that periods of high volatility often shift the industry’s tactical focus.

Instead of exploiting protocols, attention tends to move toward navigating liquidity pressures and institutional deleveraging.

With algorithm-driven sell-offs and tighter capital conditions dominating trading activity, risk management becomes a central concern.

In such an environment, exploit activity may take a back seat to broader market dynamics.

Analysts suggest structural changes in security practices may also be contributing to the decline.

The drop in losses could reflect stronger counterparty standards, tighter risk controls, and improved real-time monitoring across major venues.

Capital allocation is becoming more selective, favouring protocols with established security frameworks.

As institutional participation grows, expectations around audits and compliance have also increased.

Losses could continue to trend lower as monitoring tools, audits, and institutional risk frameworks mature further through the year.

Artificial intelligence is also playing a growing role.

Automated code reviews, anomaly detection systems, and pre-deployment attack simulations are increasingly being deployed to identify vulnerabilities earlier in the development cycle.

At the same time, the fast pace of innovation means that risks remain present despite enhanced safeguards.

While large protocol exploits declined, phishing continues to pose challenges.

Losses linked to wallet drainer attacks have fallen sharply in 2025, dropping from $494 million to $83.85 million.

Even so, social engineering remains persistent.

PeckShield said phishing attacks, where scammers impersonate trusted individuals or organisations to obtain sensitive information, continue to target users directly rather than smart contracts.

The firm stressed the importance of multi-signature cold storage solutions and strict protection of private keys for institutions and large holders.

As platforms reinforce technical defences, the human layer remains a critical area of risk within the crypto ecosystem.

The post Crypto scams drop to yearly low as platforms strengthen defences appeared first on Invezz

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