The month of December saw a significant and rapid decline in crypto losses due to hacks and exploitation. Total losses amounted to just about US$76 million, as opposed to the US$194.2 million of November.
This translated to a 60% drop in total damage throughout the whole sector. The analysts attributed the slump to upgraded security measures along with quicker detection of threats.
The improved auditing and monitoring tools were also considered to be a factor in the limitation of major breaches. The drop gave an idea of improvement, but not complete safety at least, in the case of decentralised platforms and digital wallets.
December recorded a sharp fall in crypto-related losses. [Source: BFSI News]
Why Did One Scam Still Dominate Headlines?
A scam, however, managed to overshadow the overall improvement despite the reduced amounts. A single address poisoning incident caused a loss of US$50 million. Although it is a technical exploit, address poisoning is based on deceit only.
The attackers make really small transactions from the wallet addresses that look similar to the victim’s. Later, the victim is copying the wrong address and transferring the funds without even knowing it.
This method has shown how human error still plays a major role in the losses. The industry was alerted by the magnitude of this case. It demonstrated that fewer attacks do not necessarily translate into lower risks for each.
Are Crypto Losses Really Under Control Now?
The figures for December gave a hint of improvement, but experts still advised to be careful. Large protocol breaches are less frequent, but smaller ones are still happening. Losses resulted from more than 20 different incidents, which were not very large. This behaviour pattern indicates that the attackers are modifying their strategies rather than giving up.
Security teams might be getting better at blocking major exploits. But scammers still go to the users directly. This causes the threat landscape to remain active. Numbers improved, but risks did not disappear.
Attack patterns shifted rather than vanished. [Source: Finance Magnates]
December Losses Highlighted Diverse Attack Methods
Various types of attacks caused the losses in December. A huge incident occurred when the private keys supposedly linked to a multi-sig wallet got out. This single event led to a loss of ten thousand dollars, worth twenty-seven million three hundred thousand.
Among the rest of the incidents were hacked browser extensions and faulty updates. These cyberattacks did not think of smart contracts at all. They rather focused on the users’ devices and points of access. This change in direction shows the shifting of risk from the blockchain code to the code in the user’s behaviour and software tools.
Wallet Security Became A Key Industry Concern
A crypto wallet service incident that became very famous took place at the end of December. Users affected lost about six million and one hundred thousand dollars within a very short period.
The cause of the problem was a browser extension update that was corrupted. Then the wallet provider announced to pay back the money to the users. However, confidence was still in doubt. Wallets through the browser are still easy to use, yet still the most exposed.
This incident highlighted the necessity of having tight controls over updates and of having stringent verification procedures. It also made clearer the use of cold storage for large quantities of money.
Wallet-related risks stayed in focus during December. [Source: OneSafe]
What Does This Mean For Crypto Market Risk 2026?
The fall of December cannot be taken as a guarantee of future safety. The consensus among analysts is that the risk in the crypto market in 2026 will depend on user education as much as on technology.
Hackers are becoming more and more skilled in applying social engineering tactics, while at the same time, the markets are being subjected to tighter regulatory scrutiny. Stronger compliance may lower the chances of systemic risks.
However, each innovation is also a new attack surface. The sector has to deal with a dilemma of security and growth. Lower losses are a good sign, still the need for vigilance is still there.
Investor Confidence Hinges On Smarter Security
The December decline helped stabilise sentiment across global crypto markets. Investors viewed the data as a sign of improving resilience. However, confidence remains fragile amid evolving scam techniques.
Institutions now prioritise custody safeguards and transaction monitoring. Retail users are also becoming more cautious with wallet activity. Education is proving to be as critical as technology. Sustained confidence will depend on reducing human-driven errors alongside technical flaws.
Also read: Trump Crypto Influence: How 2025 Shaped the Cryptocurrency Market 2026
FAQs
Q1. What Does Crypto Losses Drop 60% Indicate?
A1: It shows total monthly losses fell significantly compared with November levels.
Q2. Are Crypto Hack Losses Declining Permanently?
A2: Not necessarily, as attackers continue adjusting methods and targets.
Q3. Why Are Address Poisoning Scams So Dangerous?
A3: They exploit human error rather than technical flaws.
Q4. How Can Users Reduce Crypto Market Risk in 2026?
A4: Users should verify addresses carefully and limit reliance on browser wallets.
