A new report from Grayscale says crypto hacks have fallen to a nine-year low. The decline, detailed in the firm's latest security review, marks a sharp reversal from the record-breaking thefts of recent years. Grayscale argues the trend reflects real improvements in how exchanges, wallets, and protocols protect user funds.
The nine-year low
Grayscale's data shows that the total value and frequency of successful crypto hacks in 2026 are the lowest they've been since 2017. That's a big shift from 2022 and 2023, when billions were lost to bridge exploits and social-engineering attacks. The report doesn't name specific incidents, but it's clear the industry has been cleaning up its act.
What's driving the decline
Better security measures are the main reason, according to Grayscale. More exchanges now use multi-signature wallets, hardware security modules, and real-time monitoring. Bug bounty programs have expanded, and many projects now require third-party audits before launch. The report also credits improved incident response — teams are faster to freeze stolen funds and coordinate with law enforcement.
Investor confidence and institutional adoption
Grayscale says the drop in hacks could be a turning point for the market. Fewer headline-grabbing thefts mean less fear for retail investors. But the bigger prize is institutional money. Big banks and pension funds have stayed on the sidelines partly because of security concerns. If the trend holds, that could change. The report notes that a safer ecosystem makes it easier for compliance teams to sign off on crypto allocations.
The timing matters. With spot Bitcoin ETFs now trading in the U.S. and Europe, institutions have more ways to get exposure. Grayscale's report suggests that the security improvements are removing one of the last big barriers to wider adoption.
