Crypto audits give investors false sense of security as Q3 hacks cost $1.18 billion, Hacken says

A comprehensive security report by Hacken revealed that cryptocurrency exploits cost the industry a staggering $1.18 billion during the third quarter alone. The findings suggest that standard smart contract audits often provide investors with a false sense of security regarding overall project safety. Specifically, 77% of the recorded losses stemmed from compromised third-party suppliers, delayed software patches, or infrastructure components that fell outside the scope of recent security evaluations. Malicious actors are increasingly bypassing core protocol defenses by targeting vulnerable auxiliary services and operational dependencies. This trend underscores the urgent need for continuous security monitoring rather than relying on one-time audit certificates prior to token launches. DeFi protocols and institutional investors are now under pressure to adopt more rigorous, holistic risk management strategies to curb systemic vulnerabilities.