Institutional investors prioritize ongoing crypto security over audit track records

Institutional investors are shifting their due diligence standards for crypto projects away from one-off audits and toward operational security measures such as monitoring and incident response, blockchain security auditing firm Hacken said, according to Cointelegraph. In a recent report, Hacken said only 9% of 1,427 crypto projects had adopted third-party monitoring, while just 4% combined monitoring, bug bounties, and security audits. Hacken added 14 projects hacked in the second quarter had already completed audits beforehand, underscoring the urgent need to address vulnerabilities tied to transaction signing, bridge validators, and backend infrastructure that fall outside the scope of conventional smart contract reviews.