Crypto security incidents generated approximately $1.26 billion in losses during the third quarter of 2026, a 53.9% increase from $819.4 million in the previous quarter. The number of incidents also rose, reaching 247, but attack frequency grew more slowly at 12.8% quarter over quarter. The gap between incident growth and financial damage suggests attackers focused on higher-value protocols (blockchain-based systems) and used more sophisticated exploits despite ongoing security efforts.