$4B in crypto losses – Can Ethereum’s $1mln audit push make difference?

The Ethereum Foundation (EF) has unveiled an aggressive plan to help improve the security of apps across its mainnet. Dubbed the ‘Ethereum audit subsidy,’ the $1 million initiative brings over 20 security providers, alongside Nethermind, Areta, and Chainlink Labs. 

Ethereum-based projects of all sizes will be able to access the program. According to the team, the program will enhance the broader Ethereum ecosystem security based on the principles of CROPS (censorship, resistance, open source, privacy, and security).  

Commenting on the program, Areta Market CEO Findlay Boothroyd, said 

The update follows a similar move by Solana Foundation’s STRIDE security program after the $285 million Drift breach. In other words, leading Layer 1 networks aren’t taking security for granted amid surging institutional interest in the sector. 

Crypto hacks in March surge 96%

Crypto breaches have intensified in the past year and haven’t slowed down so far in 2026. In 2025 alone, over $4 billion was lost in the industry, with a whopping $2.67 billion from hacks. Scams contributed to a $1.37 billion loss, marking a 64% annual increase from 2024. 

Overall, the $4B lost funds was 34% jump from 2024’s $3.01 billion. 

In 2026, a PeckShied report showed that there were 20 hacks, leading to a $52M loss in March. This was a 96% month-on-month (MoM) surge from February’s $26.5 million.

Intriguingly, the $285 million Drift breach alone has made April’s losses jump by nearly four times that of March. 

Still, there have been attempts to compromise Cow Swap and even Kraken. This underscores the constant security threats the industry faces across centralized exchanges and even decentralized platforms. 

But stakeholders seem to be ready to tackle the issue.

Last week, the U.S Treasury extended the actionable cybersecurity information regularly shared with traditional financial institutions to cover digital asset firms. This would help players to detect and prevent early threats. 

In fact, that’s the same reasoning behind Solana Foundation’s STRIDE security program, also launched last week. Now that the Ethereum Foundation has jumped on the trend, it remains to be seen whether these security efforts will help reduce the rising number of crypto hacks. 

Final Summary

• The Ethereum Foundation launched a $1 million audit subsidy program, following a similar move by Solana and the U.S. Treasury 
• In March, crypto hacks surged 96%, leading to $52M loss, and the Drift’s $285 million breach has nearly quadrupled last month’s losses.