The year 2025 recorded a loss record due to security breaches in the crypto ecosystem, but the biggest irony is happening: on-chain protocols are becoming increasingly difficult to breach. The key to this paradox lies in a fundamental shift in how attackers operate. They are no longer focusing on exploiting smart contracts but are targeting the weakest link—the human element itself.
Mitchell Amador, CEO of on-chain security platform Immunefi, highlights a crucial difference in an exclusive interview. “Although 2025 is recorded as the worst year for hacks, most of the losses do not originate from blockchain protocols; rather, from Web2 operational failures—credential theft, social engineering, and user negligence,” he said. This observation changes how we understand the threat landscape in crypto.
Concerning Phenomenon: Scams Starting to Outpace Traditional Hacks
Recent data from Chainalysis reveals the scale of the transformation underway. Approximately $17 billion worth of crypto assets were lost due to scams and frauds during 2025, with identity impersonation scams, AI-based social engineering, and social manipulation playing dominant roles. Identity impersonation scams alone show an annual growth spike of 1,400%, while AI-supported scam schemes are proven to be 450% more profitable than traditional methods.
Concrete cases underscore this alarming trend. In January 2026, blockchain researcher ZachXBT revealed a sophisticated social engineering attack where hackers drained $282 million in crypto assets from a single individual. The victim lost 2.05 million LTC and 1,459 BTC, which were then immediately exchanged for Monero across various instant exchange platforms. This incident is not an anomaly but a symptom of an evolving strategy: target individuals, not infrastructure.
On-Chain Security Improves, But Human Vulnerabilities Widen
Amador’s contradictory view reflects the complex reality of the industry today. “On-chain protocol security has improved dramatically, and this trend will continue,” he said. From the perspective of DeFi and blockchain-based protocol code, defense mechanisms are becoming more sophisticated, audits more comprehensive, and security incentive systems better structured.
However, these advances are forcing attackers to innovate. As code systems become harder to exploit, the main attack surface shifts to humans—the most unpredictable factor and the hardest to fully secure. “The attack surface in 2026 is no longer on protocols but on user interfaces, corporate control systems, and individual behaviors,” Amador clarified.
But the current state is still far from ideal. Amador released concerning findings: over 90% of crypto projects still harbor critical vulnerabilities that can be exploited. Worse, adoption of defense tools remains very low—less than 1% of the industry uses blockchain firewalls, and only under 10% implement AI-based detection systems.
AI Agents: The Next Generation Security Threat
A new dimension of threats emerges as AI technology advances. Amador identifies a fundamental shift: “By 2026, artificial intelligence will change the pace of security game on both sides.”
Defenders will increasingly rely on algorithm-driven monitoring and response, operating at machine speed without pause. Simultaneously, attackers will use the same AI tools for vulnerability research, exploit development, and large-scale social engineering.
However, Amador’s most visionary warning points to a different phenomenon: what happens when crypto systems start making autonomous decisions. On-chain AI agents can operate faster and more powerfully than human operators but also carry unique vulnerabilities—especially if their access pathways or control layers are compromised. “We are still in the early stages of learning how to properly secure these agents,” Amador added. “This will be one of the most significant crypto security challenges in the next cycle.”
Synthesizing insights from Chainalysis and Amador’s observations reveals a future of crypto security that differs from what most players anticipate. The battle is no longer solely on-chain but also through user interfaces, corporate control systems, monitoring protocols, and user education. The success of future crypto security will depend not only on engineers’ ability to write secure code but also on the collective ability to protect the most unpredictable factor: humans.
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Gaya Doge Cryptocurrency Security 2026: The Code Gets Safer, Humans More at Risk
The year 2025 recorded a loss record due to security breaches in the crypto ecosystem, but the biggest irony is happening: on-chain protocols are becoming increasingly difficult to breach. The key to this paradox lies in a fundamental shift in how attackers operate. They are no longer focusing on exploiting smart contracts but are targeting the weakest link—the human element itself.
Mitchell Amador, CEO of on-chain security platform Immunefi, highlights a crucial difference in an exclusive interview. “Although 2025 is recorded as the worst year for hacks, most of the losses do not originate from blockchain protocols; rather, from Web2 operational failures—credential theft, social engineering, and user negligence,” he said. This observation changes how we understand the threat landscape in crypto.
Concerning Phenomenon: Scams Starting to Outpace Traditional Hacks
Recent data from Chainalysis reveals the scale of the transformation underway. Approximately $17 billion worth of crypto assets were lost due to scams and frauds during 2025, with identity impersonation scams, AI-based social engineering, and social manipulation playing dominant roles. Identity impersonation scams alone show an annual growth spike of 1,400%, while AI-supported scam schemes are proven to be 450% more profitable than traditional methods.
Concrete cases underscore this alarming trend. In January 2026, blockchain researcher ZachXBT revealed a sophisticated social engineering attack where hackers drained $282 million in crypto assets from a single individual. The victim lost 2.05 million LTC and 1,459 BTC, which were then immediately exchanged for Monero across various instant exchange platforms. This incident is not an anomaly but a symptom of an evolving strategy: target individuals, not infrastructure.
On-Chain Security Improves, But Human Vulnerabilities Widen
Amador’s contradictory view reflects the complex reality of the industry today. “On-chain protocol security has improved dramatically, and this trend will continue,” he said. From the perspective of DeFi and blockchain-based protocol code, defense mechanisms are becoming more sophisticated, audits more comprehensive, and security incentive systems better structured.
However, these advances are forcing attackers to innovate. As code systems become harder to exploit, the main attack surface shifts to humans—the most unpredictable factor and the hardest to fully secure. “The attack surface in 2026 is no longer on protocols but on user interfaces, corporate control systems, and individual behaviors,” Amador clarified.
But the current state is still far from ideal. Amador released concerning findings: over 90% of crypto projects still harbor critical vulnerabilities that can be exploited. Worse, adoption of defense tools remains very low—less than 1% of the industry uses blockchain firewalls, and only under 10% implement AI-based detection systems.
AI Agents: The Next Generation Security Threat
A new dimension of threats emerges as AI technology advances. Amador identifies a fundamental shift: “By 2026, artificial intelligence will change the pace of security game on both sides.”
Defenders will increasingly rely on algorithm-driven monitoring and response, operating at machine speed without pause. Simultaneously, attackers will use the same AI tools for vulnerability research, exploit development, and large-scale social engineering.
However, Amador’s most visionary warning points to a different phenomenon: what happens when crypto systems start making autonomous decisions. On-chain AI agents can operate faster and more powerfully than human operators but also carry unique vulnerabilities—especially if their access pathways or control layers are compromised. “We are still in the early stages of learning how to properly secure these agents,” Amador added. “This will be one of the most significant crypto security challenges in the next cycle.”
Synthesizing insights from Chainalysis and Amador’s observations reveals a future of crypto security that differs from what most players anticipate. The battle is no longer solely on-chain but also through user interfaces, corporate control systems, monitoring protocols, and user education. The success of future crypto security will depend not only on engineers’ ability to write secure code but also on the collective ability to protect the most unpredictable factor: humans.