Crypto security losses continued to outpace available insurance in 2026. CoinGecko’s 2026 State of Crypto Security Report, released August 27, found active on-chain coverage had declined 20.2% from $163.2 million to $130.2 million, while platforms lost more than $3.63 billion across 245 incidents from January 2025 through July 2026. CertiK separately reported approximately $215 million in confirmed August 2026 losses, including $131.6 million from price manipulation, $41.5 million from phishing and $144.6 million in DeFi losses. Tectonic accounted for $120.4 million of CertiK’s August impact estimate after an attacker inflated the thinly traded TONIC token and borrowed against the higher collateral value following Cronos’s August 30 network halt. About $110.7 million of August losses was later classified as returned or frozen. Audited protocols represented more than 88% of the capital drained in CoinGecko’s dataset, while cumulative insurance payouts remained near $33 million, covering roughly 0.9% of stolen funds. The reports highlight continuing exposure from private-key failures, phishing, infrastructure weaknesses and illiquid collateral, even where no conventional smart-contract bug is identified.