Hacken links audit gaps to $1.18 billion in crypto losses
The security firm counted 107 incidents in the third quarter and said much of the damage involved overlooked suppliers, tools or fixes.
Key takeaways
- Hacken counted $1.18 billion in crypto losses across 107 third-quarter incidents.
- The firm attributed $906.8 million in losses to security gaps including compromised suppliers and uninstalled fixes.
- Hacken said audits may not cover wallets, signing systems or third-party software.
Hackers stole $1.18 billion from crypto projects in 107 incidents during the third quarter, according to blockchain security firm Hacken. The total was 55% higher than in the previous quarter.
Hacken attributed $906.8 million in losses to compromised suppliers or developer tools, security fixes that were not installed, and components left out of recent reviews. The firm said audit badges can give investors a false sense of protection.
Audits may examine only specific smart contracts, leaving wallets, signing systems and third-party software outside their scope. Hacken co-founder Andrii Matiukhin said teams sometimes limit reviews because examining all systems that affect funds or project economics is expensive.
The quarter’s largest incident was an attack on crypto exchange Bitget in September. Hackers stole at least $352 million after exploiting a vulnerability in a third-party security product to reach its withdrawal infrastructure, according to Hacken.
The firm also reviewed 12 derivatives exchanges and prediction markets. It found that more than $700 million in secure assets at two unnamed venues relied on signing arrangements or administrative keys whose holders were not publicly identified. Matiukhin said Hacken found no evidence of an active vulnerability at the venues.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
