2025 has been recorded as the worst year for cryptocurrency hacks, but the real hell didn’t come from where many expected. As losses from scams and fraud increase, security experts are emerging in dismay that the best defensive tools are simply used by a few. The critical reality is this: most attacks didn’t start with code vulnerabilities but with ongoing Web2 compromises such as stolen passwords, compromised devices, and impersonating messengers.
According to the Chainalysis 2026 Crypto Crime Report, scammers received $17 billion in 2025, with a 1,400% increase in impersonation scams and a 450% rise in AI-enabled attacks. This widespread trend reflects a shift in tactics: criminals are no longer targeting foundational elements like DeFi protocols or smart contracts—they are attacking the teams and platforms themselves.
Why Defensive Tools Are Relying on Hope
The most important discovery came from Immunefi CEO Mitchell Amador: while cryptocurrency code is becoming stronger and harder to target, human-enabled attacks have become an epidemic. “On-chain security is improving tremendously,” Amador said, “but people remain the weaker link.” The major problem isn’t the lack of tools—they exist—but the lack of usage.
Less than 1% of the industry currently uses firewalls specifically designed for crypto operations. Even fewer deploy AI detection tools for suspicious transactions. Reliance on traditional Web2 security practices has left a devastating gap—where social engineering attacks and credential theft remain the most effective entry points.
One example highlights the importance of protection: last week, researcher ZachXBT identified a social engineering campaign where $282 million in Litecoin and Bitcoin was stolen. The victim lost 2.05 million LTC and 1,459 BTC, which were quickly converted to Monero for privacy. The attack didn’t exploit protocol flaws—it used humans as the vector.
The Rise of AI: Two Sides of the Equipment
By 2026, artificial intelligence will become a dual-edged weapon for both defenders and attackers. Defensive teams will employ AI-powered monitoring that operates at machine speed to detect anomalies and stop attacks in real-time. Third, attackers will use AI to scan for vulnerabilities, develop exploits, and launch widespread social engineering campaigns.
Even more alarming, on-chain AI agents—autonomous systems making decisions without human intermediaries—are opening a new battlefield for attacks. “These agents can be faster and more powerful than human operators,” Amador said, “but they rely on deep protection if their access layers are compromised.” This sophistication calls for a new kind of defensive tool—systems designed for autonomous system security, not just traditional smart contract auditing.
The Future of Protection: From Code to Culture
The collected insights reveal a clear connection: while code-level tools have become more sophisticated, human-level defenses remain underdeveloped. No deep firewalls, less than 10% with AI detection, no organized security protocols like those seen in traditional tech.
The direction for 2026 isn’t toward stronger infrastructure code—it’s toward smarter attacks and better user training tools. The focus isn’t only on technology but on integrating tools into processes and culture. Every project must audit not only their code but their defensive tools: What is their firewall setup? What is their AI monitoring? What is their protocol for compromised keys? What is their social engineering defense training?
As long as these tools remain marginalized, the 2025 disaster pattern will continue into 2026 and beyond. True security begins with understanding that code can be secure, but people need better tools.
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The Main Solution to the 2025 Security Crisis: Unique Tools for Unique Challenges
2025 has been recorded as the worst year for cryptocurrency hacks, but the real hell didn’t come from where many expected. As losses from scams and fraud increase, security experts are emerging in dismay that the best defensive tools are simply used by a few. The critical reality is this: most attacks didn’t start with code vulnerabilities but with ongoing Web2 compromises such as stolen passwords, compromised devices, and impersonating messengers.
According to the Chainalysis 2026 Crypto Crime Report, scammers received $17 billion in 2025, with a 1,400% increase in impersonation scams and a 450% rise in AI-enabled attacks. This widespread trend reflects a shift in tactics: criminals are no longer targeting foundational elements like DeFi protocols or smart contracts—they are attacking the teams and platforms themselves.
Why Defensive Tools Are Relying on Hope
The most important discovery came from Immunefi CEO Mitchell Amador: while cryptocurrency code is becoming stronger and harder to target, human-enabled attacks have become an epidemic. “On-chain security is improving tremendously,” Amador said, “but people remain the weaker link.” The major problem isn’t the lack of tools—they exist—but the lack of usage.
Less than 1% of the industry currently uses firewalls specifically designed for crypto operations. Even fewer deploy AI detection tools for suspicious transactions. Reliance on traditional Web2 security practices has left a devastating gap—where social engineering attacks and credential theft remain the most effective entry points.
One example highlights the importance of protection: last week, researcher ZachXBT identified a social engineering campaign where $282 million in Litecoin and Bitcoin was stolen. The victim lost 2.05 million LTC and 1,459 BTC, which were quickly converted to Monero for privacy. The attack didn’t exploit protocol flaws—it used humans as the vector.
The Rise of AI: Two Sides of the Equipment
By 2026, artificial intelligence will become a dual-edged weapon for both defenders and attackers. Defensive teams will employ AI-powered monitoring that operates at machine speed to detect anomalies and stop attacks in real-time. Third, attackers will use AI to scan for vulnerabilities, develop exploits, and launch widespread social engineering campaigns.
Even more alarming, on-chain AI agents—autonomous systems making decisions without human intermediaries—are opening a new battlefield for attacks. “These agents can be faster and more powerful than human operators,” Amador said, “but they rely on deep protection if their access layers are compromised.” This sophistication calls for a new kind of defensive tool—systems designed for autonomous system security, not just traditional smart contract auditing.
The Future of Protection: From Code to Culture
The collected insights reveal a clear connection: while code-level tools have become more sophisticated, human-level defenses remain underdeveloped. No deep firewalls, less than 10% with AI detection, no organized security protocols like those seen in traditional tech.
The direction for 2026 isn’t toward stronger infrastructure code—it’s toward smarter attacks and better user training tools. The focus isn’t only on technology but on integrating tools into processes and culture. Every project must audit not only their code but their defensive tools: What is their firewall setup? What is their AI monitoring? What is their protocol for compromised keys? What is their social engineering defense training?
As long as these tools remain marginalized, the 2025 disaster pattern will continue into 2026 and beyond. True security begins with understanding that code can be secure, but people need better tools.