Hacken Warns Crypto Audits Offer False Security as Q3 Losses Hit $1.18B

crypto audits — Blockchain security firm Hacken has warned that security audit badges can create a false sense of safety for investors, as crypto hacks in the third quarter of 2026 resulted in losses of $1.18 billion.

The firm’s report, released on October 18, found that the $1.18 billion in losses from 107 incidents marked a 55% increase from the previous quarter. A significant portion, approximately $900 million, was attributed to attacks on compromised suppliers or developer tools, security fixes that were not installed, and system components that were excluded from the latest security reviews.

Hacken cautioned that many security audits do not cover critical infrastructure like wallets, signing systems, and third-party software, which are frequent targets for attackers. This gap means that projects can display audit badges while remaining vulnerable in areas outside the scope of the review.

The report underscores a systemic issue where the perceived security from an audit does not equate to comprehensive protection, as attackers increasingly exploit weaknesses in the broader software supply chain and peripheral systems.