Moonwell, a decentralized finance (DeFi) protocol, suffered a $1.78 million loss on February 19, 2026, due to a critical governance update failure. The exploit occurred when an update mispriced the Coinbase Wrapped Staked ETH (cbETH) oracle at approximately $1.12 instead of its actual market value of around $2,200. Security auditor Pashov publicly noted that multiple pull requests for the affected contracts were co-authored with AI and that the misconfiguration "could have been caught with a proper integration test." This incident highlights risks at the intersection of AI-assisted development, governance, and insufficient end-to-end validation.
On the same day, AMLBot's 2025 report revealed sobering statistics on crypto security threats. Drawing on over 2,500 internal investigations, the report found that more than 65% of crypto incidents in 2025 stemmed from social engineering. Phishing alone accounted for over $370 million in losses in January 2026. Investment scams led case counts at over 25%, followed by phishing (over 18%) and device compromises (over 13%). AMLBot CEO Slava Demchuk stated attackers are running "a ruthless game of charades," often impersonating exchange support and project managers.
Amid these security concerns, market attention turned to XRP's price action and a new AI project. XRP was trading around $1.47, holding the 61.8% Fibonacci retracement level after recovering from a February 6 low of $1.12. On-chain data showed exchange supply at a five-year low of over 12.9 billion XRP, positive spot taker CVD, and XRP ETFs attracting over $33 million in net inflows for the week ending February 13, reversing a four-week outflow trend.
Concurrently, the AI contract-auditing platform DeepSnitch AI was promoted as a solution to such security gaps, with its presale ongoing at $0.04064 and a public launch imminent. The project, which features AI agents for contract auditing and risk analysis, was heavily advertised across the provided news texts with claims of "1000x potential" and presale bonus codes.
