The cryptocurrency sector faced significant security challenges in January 2026, with losses surpassing $400 million due to a wave of phishing attacks and treasury breaches. According to blockchain security firm CertiK, 40 incidents resulted in approximately $370.3 million in losses, with a single phishing attack accounting for $284 million of this total. This attack targeted a hardware wallet user, leading to the theft of 1,459 Bitcoin and 2.05 million Litecoin. The month concluded with a $30 million exploit of the Solana-based platform Step Finance, bringing the total losses to over $400.3 million. The Step Finance breach involved the compromise of several treasury wallets. Additionally, smart contract vulnerabilities contributed to the losses, with Truebit and Swapnet losing $26.6 million and $13 million, respectively. These incidents highlight ongoing security vulnerabilities in the crypto industry, emphasizing the need for enhanced user-level security measures.