February 2026 saw $37.7M lost in crypto exploits, with YieldBlox and IoTeX hit hardest, highlighting wallet and DeFi risks. Wallet compromises caused $16.6M in losses, while phishing, code bugs, and price manipulation added to crypto’s ongoing security concerns. Mt. Gox BTC recovery proposal sparks debate: $5.2B at stake, raising questions about Bitcoin’s immutability and legal intervention. In a separate development, Mark Karpelès, former Mt. Gox CEO, proposed a hard fork on the Bitcoin network to recover 79,956 BTC locked in the infamous ‘1Feex’ address.
Valued at over $5.2 billion, these funds have remained untouched since the 2011 hack, likely due to lost private keys. It will allow Japanese courts to monitor the funds. However, the proposal has sparked controversy, with critics arguing that it is dangerous to change the ledger. Proponents of the proposal argue that it is an exceptional case of clear theft.
Besides, it is possible that it may undermine the immutability of Bitcoin. The plan has triggered debate over Bitcoin’s core principles and legal challenges. The cryptocurrency space faced a turbulent February 2026, with losses totaling roughly $37.7 million across multiple platforms. Security incidents affected major DeFi and AI projects, revealing ongoing vulnerabilities in digital asset management.
The highest loss was incurred by YieldBlox, which lost $10.6 million, followed by IoTeX, which lost close to $8.9 million. Other prominent projects such as Foom, Ploutos, and CrossCurve also lost between $1.4 million and $2.3 million. A security company, CertiK, reported that the loss due to the hacking of wallets was over $16.6 million in total. Furthermore, price manipulation caused $11.4 million in damages, while phishing attacks cost roughly $8.6 million.
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