[Hacken: Crypto Institutions No Longer Rely Solely on Audits, Security Assessment Shifts to Continuous Monitoring and Operational Resilience] BlockBeats News, July 20 – Blockchain security company Hacken released a report stating that crypto institutions are reevaluating project security standards. Traditional smart contract audits and operational history can no longer serve as sufficient trust benchmarks. Investors are now focusing on continuous monitoring, signature authority management, and incident response capabilities. According to Hacken's "Q2 2026 Security and Compliance Report," among the 1,427 projects it tracked, only 9% had implemented third-party continuous monitoring mechanisms, and just 4% had a combination of monitoring, bug bounty programs, and security audits. The report revealed that of the approximately $764 million in crypto asset losses during Q2 2026, 88.3% stemmed from private key leaks, signature authority, and infrastructure security issues, rather than smart contract vulnerabilities. Hacken noted that institutional investors are increasingly incorporating evaluations of signer changes, collateral asset backing, third-party dependencies, incident response capabilities, as well as the scope and timeliness of audits into their due diligence processes. The report highlighted that all 14 projects attacked during the second quarter had previously undergone audits, but most losses originated outside the traditional audit coverage, including signature devices, cross-chain bridge validation nodes, backend infrastructure, admin keys, and legacy contracts still in operation. Hacken stated that as institutional funds enter the crypto market, projects lacking continuous security assurances may face higher risk premiums, fewer investment opportunities, and greater difficulty securing insurance and partner support. Federico Bagiotti, Head of Risk Management at Abraxas Capital, commented that compared to a project's potential, whether its security level matches the scale of funds has become a critical factor in institutional investment decisions. [Original Link]