A top blockchain security company has shared new findings on crypto crime. On October 18, 2026,
security audit firm Hacken released its third-quarter report. The numbers show that hackers stole 1.18
billion dollars across 107 security attacks between July and September. This marked a 55 percent jump
in total stolen funds compared to the previous quarter.
Hacken is a respected security firm. It inspects blockchain code for security holes. The firm reviews
smart contracts and computer systems for digital asset companies around the globe. In its new quarterly
report, Hacken warned that crypto attacks have grown more complex and costly for the industry.
One major finding in the report surprised many market watchers. Most of the stolen money did not
come from errors in smart contract code. Instead, about 77 percent of the losses, totaling 906 million
dollars, came from outside systems. Hackers broke into developer tools. They broke into cloud servers.
They also broke into vendor computer accounts. These outside tools are often not included in basic
smart contract code audits. Attackers target the human teams behind the software.
The bulk of the financial damage came from just four massive incidents. Together, these four attacks
accounted for about 80 percent of all stolen funds in the quarter. The largest attack hit crypto exchange
Bitget. That attack resulted in 387 million dollars in losses. Another major breach hit the Liquid Network.
It caused 320 million dollars in losses. Decentralized finance app Tectonic lost 120 million dollars. Also,
flaws in Coldcard wallet software led to 115 million dollars in losses.

The remaining 98 attacks in the quarter were much smaller in size. Most of those smaller breaches saw
losses under ten million dollars. The median loss was 670,000 dollars. Smart contract attacks remained
the most frequent type of breach. In total, 71 separate incidents were reported.
The report also tracked how much stolen money was recovered. Police and security teams helped freeze
387 million dollars. That equaled about 33 percent of all stolen funds during the three-month period.
Also, crypto firms paid 410 million dollars from their own reserves to cover user losses. Still, about 384
million dollars remains missing.
Hacken’s report also looked at future threats facing the crypto space. Security researchers noted that
bad actors are testing automated AI scanning tools. Cyber gangs use AI bots to probe smart contracts
and web apps day and night. When an automated bot finds a bug, human hackers jump in to drain
funds.
Furthermore, post-quantum risks were highlighted in the study. While quantum computers do not break
blockchain networks yet, researchers warn that exposed private keys could face risks over the coming
decade. Industry working groups are already building post-quantum signature standards to safeguard
future user wallets.
Centralized exchanges and bridge protocols were also urged to upgrade internal defenses. Many hacks
succeed because a single worker falls for a fake email. Attackers use stolen staff logins to access master
keys and bypass internal limits. Hacken recommends that firms split control of treasury funds across
multiple executive keys.
Everyday users must also take personal steps to protect their savings. Experts recommend storing long-
term funds in hardware wallets rather than on exchanges. Users should never click suspicious links in
private messages.
Hacken concluded that crypto companies must expand their security checks beyond basic smart
contract audits. Firms need to protect developer logins. They must protect cloud accounts and hardware
supply chains. This helps keep user funds safe from organized cyber gangs. Projects must run full
operational security reviews on every tool their team touches. Regular staff training and multi-factor
login checks are critical for every blockchain startup. Security must cover every step of the project.