Hacken report warns audit badges create false security as Q3 crypto losses hit $1.18B
Hacken reported that crypto hacks stole $1.18 billion across 107 incidents in the third quarter, up 55% from the previous quarter. It attributed $906.8 million to compromised suppliers or developer tools, uninstalled security fixes, and components omitted from audits. The firm warned that audit badges may create a false sense of security because reviews often cover only selected smart contracts, not wallets, signing systems, or third-party software. The largest reported incident was a $352 million attack on Bitget’s withdrawal infrastructure via a third-party security product. Hacken also flagged potentially inadequate key-management arrangements at two major derivatives or prediction-market venues, while saying it found no active vulnerability there. It urged firms to broaden security oversight and apply fixes promptly.
