A monthly report from blockchain security firm ZeroShadow Technology said the crypto sector lost about $215 million to security incidents in August 2026, with attack activity staying elevated and risk shifting away from traditional smart contract bugs. The report, based on data compiled by several blockchain security monitoring platforms, put losses tied to hacking attacks and contract flaws at roughly $173.5 million, while phishing accounted for about $41.5 million. More than 16 protocol-related incidents were recorded during the month, pushing August well above July’s $97 million and making it the third-worst month of 2026 by losses so far. The report said the attack mix changed in a visible way. Price manipulation overtook conventional contract exploits as the leading source of damage, led by the roughly $75 million Tectonic incident on Cronos. Governance abuse and upstream dependency flaws also featured prominently, including the $8.5 million Term Finance case and a Cosmos EVM bug that affected six chains and caused $5.7 million in losses. ZeroShadow said the shift shows attackers moving toward governance privilege abuse, oracle and pricing manipulation, and shared component vulnerabilities, rather than relying only on exploitable code in contracts.

August 2026 saw a total of $215 million in crypto security losses, a sharp increase from July's $97 million, making it the third-highest month of the year. Price manipulation attacks emerged as the top threat, with the Tectonic incident alone causing $75 million in damages. Governance vulnerabilities and upstream dependency exploits also played significant roles, with Term Finance losing $8.5 million and Cosmos EVM bug affecting six chains. Phishing scams evolved, including expired domain hijacking and a fake Trump-themed rug pull. ZeroTech Security recommends stronger governance controls, multi-source oracle pricing, and user vigilance against phishing links.

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Flow said depositors in MORE Markets and ankrFLOW did not lose funds in the exploit, and holders of FLOW were not affected. The project also said earlier reports from some media outlets that put WFLOW losses at roughly $9.3 million were inaccurate, adding that the actual value of affected tokens was about $410,000. According to Flow, Ankr and MORE Markets have suspended the relevant contracts, while some exchanges have temporarily paused FLOW deposits as a precaution. Flow Foundation said it will work with Ankr to refill the drained WFLOW reserves and rebalance the liquidity pool. AnkrFLOW staking and borrowing on MORE Markets will remain paused until Ankr completes a contract upgrade. Flow added that users will be able to withdraw funds once services resume and will not need to take any extra steps.

Blockchain security firm Blockaid said on Aug. 31 that it detected an exploit affecting More Markets, also referred to as More Labs, on Flow EVM. According to Blockaid, the attacker abused a combination of Ankr’s bonded liquid staking token, or LST, and the protocol’s E-Mode mechanism to empty More Markets’ WFLOW lending reserves. Blockaid’s monitoring found that roughly 15.5 million WFLOW was transferred out of the mFlowWFLOW reserve, with the detected impact valued at about $9.3 million. The security firm also said the related attack transaction cluster included post-exploit fund movements. The exact loss and the destination of the attacker’s funds were still being confirmed at the time of the report.

Blockchain security firm Blockaid said it detected an exploit affecting More Markets, a product tied to More Labs, on Flow EVM. According to Blockaid, the attacker used Ankr’s bonded liquid staking token, or LST, together with the platform’s E-Mode mechanism to drain More Markets’ WFLOW lending reserves. Blockaid said roughly 15.5 million WFLOW was transferred out of the mFlowWFLOW reserve. The firm estimated the detected impact at about $9.3 million. It also said the related cluster of attack transactions included post-exploit fund transfers. The full extent of losses has not yet been confirmed. The destination of the attacker’s funds is also still being verified, based on the information available in the source report.