In February 2026, the cryptocurrency sector faced significant security challenges, with total losses from security incidents reaching approximately $228 million. Of these, $126 million were due to hacker attacks and smart contract vulnerabilities, while $102 million were linked to phishing scams and Rug Pulls. Notably, AI-driven phishing scams accounted for over $10 million in fraud losses, highlighting a shift towards sophisticated social engineering attacks. The month saw 18 protocol hacks, a 9.2% decrease from January, with notable incidents including a $3 million loss from a CrossCurve cross-chain bridge vulnerability and a $10 million oracle manipulation attack on YieldBloxDAO. Phishing and authorization hijacking incidents comprised 41.9% of all security breaches, with AI-generated phishing pages increasingly targeting individual investors and smaller projects. The ZeroTime Security Team advises heightened vigilance and improved security measures across the industry to combat these evolving threats.