Crypto Protocol Hacks Hit Record 83 Incidents in Second Quarter of 2026
Crypto protocols rely on smart contracts and cross-chain bridges to transfer assets, but exploited software vulnerabilities can allow funds to be moved within a short period. Security incidents involving major protocols including KelpDAO and Drift Protocol also underscore how cross-chain infrastructure has become a central source of market risk.
There were 83 crypto security incidents in the second quarter of 2026, from April 1 through June 30, the highest quarterly total on record. Combined losses reached $755 million. Cross-chain bridge vulnerabilities were the main attack vector, with the KelpDAO hack and the Drift Protocol vulnerability accounting for a very large share of the quarter’s losses.
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The history behind this eventKelp DAO’s $292 Million Hack Is 2026’s Largest Crypto Exploit
Kelp DAO is an Ethereum liquid-restaking protocol that issues tradable rsETH when users deposit ETH and uses the LayerZero bridge to deploy the token across more than 20 chains. The incident exposed concentration risks in a single verification network and in cross-chain infrastructure. It also disrupted lending markets including Aave, SparkLend and Fluid, and became the largest DeFi hack of 2026 to date.
On April 18, 2026, the attacker used forged cross-chain messages to withdraw 116,500 rsETH, then worth about $292 million and representing roughly 18% of the circulating supply. Kelp DAO said on May 26 that rsETH had been restored. By June 1, however, nearly all of the roughly $220 million in unfrozen stolen funds had been laundered, leaving only about $1.7 million in the originally flagged wallets. Another $71 million had been frozen.
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