Crypto Hacks Surge 55% in Q3 as Security Audits Fail to Protect Investors
Crypto losses reach $1.18 billion in third quarter
Crypto projects lost $1.18 billion to hackers during the third quarter of 2026. This is a 55% increase from the previous three months, according to a new report from the blockchain security firm Hacken. A blockchain is a digital ledger used to record crypto transactions.
The report warns that \"audit badges\"—signs that a project's code has been reviewed—often give investors a false sense of security. Many losses occurred because hackers targeted parts of the system that were not included in those security reviews.
Key facts from the security report
- Total losses reached $1.18 billion across 107 different incidents.
- Approximately 77% of losses involved compromised suppliers, delayed security fixes, or systems not covered by recent audits.
- $906.8 million was lost due to these specific security gaps.
- Hackers stole $352 million from the Bitget exchange in the largest single incident of the quarter.
The problem with incomplete security audits
Hacken found that projects often advertise themselves as audited even when the review only covers a small part of their system. Andrii Matiukhin, co-founder of Hacken, stated that teams often \"cut corners\" because it is expensive to audit every component. They may only review critical smart contracts—programs that run automatically on a blockchain—while ignoring wallets and third-party software.
Because of this, investors may see an audit badge and assume the entire platform is safe. In reality, hackers frequently find ways into systems through the tools or settings that were never tested during the audit process.
Major hacks and technical vulnerabilities
The report highlighted several large-scale thefts. The crypto exchange Bitget lost $352 million after hackers exploited a vulnerability in a third-party security product to access its withdrawal system. An exchange is a platform where people trade digital assets.
Other significant incidents included $319 million taken from the Liquid Network and $75 million from the lending app Tectonic. Additionally, hardware wallet maker Ledger discovered a \"spy\" chip in devices sold by a specific reseller. This chip transmitted private keys—codes that allow users to access their funds—over a mobile network, leading to $93 million in losses.
Confirmed security information
It is confirmed that $1.18 billion was stolen in the third quarter across 107 incidents. It is also confirmed that the July exploit of three crypto bridges—tools used to move assets between different blockchains—resulted in a $35 million loss within six hours. Furthermore, Ledger has confirmed the existence of unauthorized hardware implants in certain devices sold in Southeast Asia.
Why this matters for crypto users
This report highlights that a security audit does not guarantee a project is fully protected. If an audit is limited in scope, it may leave out the very systems that hackers are most likely to target. For investors, this means that seeing an audit badge is not enough to prove a platform is secure against all types of attacks.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.