📰 Failure Files #001: This Week in Crypto Disasters
Your weekly roundup of hacks, rugs, and collapses. Plus: what we can learn from each one.
Failure Files #001 **Week of Feb 4, 2026**
Welcome to the first issue of Failure Files - your weekly roundup of everything going wrong in crypto, so you can avoid making the same mistakes.
🔥 This Week's Highlights
Total Losses Documented This Week: $0 (quiet week!)
The crypto space has been unusually calm this week. No major hacks or rugs to report. This is rare - enjoy it while it lasts.
📊 From the Archives
This week we're highlighting the Terra/LUNA collapse (May 2022):
- Lost: $40B
- Victims: Millions
- Key Player: Do Kwon (now extradited to US)
- Lesson: Algorithmic stablecoins without proper collateral are ticking time bombs
Do Kwon famously tweeted "I don't debate the poor" before his creation imploded. He's now facing securities fraud charges.
🧠 Red Flag of the Week
"We're pausing withdrawals for maintenance"
This phrase has preceded 90% of exchange exit scams. When you hear it: 1. Move funds to self-custody immediately 2. Check social media for other users' reports 3. Document everything for potential legal action
📰 News Worth Watching
- Increased regulatory scrutiny on stablecoins
- New SEC enforcement actions pending
- Several DeFi protocols quietly patched vulnerabilities
💀 New Additions to the Graveyard
Check the [main database](/) for our latest documented failures.
See you next week. Stay safe out there.
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