Crypto institutions look beyond audits as trust signals falter: Hacken

Institutional due diligence is shifting toward continuous monitoring, signer controls and incident readiness after operational failures accounted for most crypto losses.

Institutional investors are looking beyond smart contract audits after traditional trust signals such as prior audits and operating history failed to predict which crypto projects would be exploited, according to Hacken.

In its Q2 2026 Security & Compliance Report, Hacken said that only 9% of 1,427 tracked projects had third-party monitoring, while 4% combined monitoring with an active bug bounty and a security audit. The report highlighted that compromised keys, signers and infrastructure accounted for 88.3% of the roughly $764 million stolen during the quarter. 

Hacken said projects unable to provide ongoing evidence of operational security may face higher perceived risk, reduced investment and more difficult access to insurance or counterparties. 

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