85% OF CRYPTO RUG PULLS IN Q3 DIDNT REPORT AUDITS: HACKEN

The crypto world, while brimming with innovation and potential, also harbors its fair share of risks.One of the most damaging and prevalent threats is the dreaded rug pull.Imagine investing in a promising project, only to see the developers vanish overnight, taking your funds with them – that's the harsh reality of a rug pull. According to Hacken, crypto rug pulls made up the largest amount of exploits in crypto, accounting for more than 65% of all hacks in Q3 2025. Cryptocurrency hacks by type in Q3 2025. Source: HackenAccording to a recent report by blockchain security auditor Hacken, these scams are alarmingly common, accounting for over 65% of all crypto hacks in Q3 2025. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according toEven more concerning is the revelation that a staggering 85% of these rug pulls didn't even bother to report any audits, highlighting a serious lack of transparency and accountability in the space.This article delves into the Hacken report, exploring the anatomy of a crypto rug pull, how to spot the warning signs, and what steps you can take to protect yourself from becoming a victim.We'll examine the different types of rug pulls, the red flags to watch out for, and the importance of due diligence in the world of decentralized finance (DeFi).

The Alarming Rise of Crypto Rug Pulls

Hacken's Q3 2025 security insights report paints a concerning picture. The report paid specific attention to rug pulls, which are a type of exit scam occurring when a team pumps their project s token before the sudden withdrawal of liquidity. According to Hacken, crypto rug pulls made up the largest amount of exploits in crypto, accounting for more than 65% of all hacks in Q3 2025.Crypto rug pulls are not just a minor nuisance; they represent the largest single category of exploits in the crypto ecosystem. Cryptocurrency rug pulls are a prevalent issue in the industry, but they are not difficult to spot for investors who 85% of crypto rug pulls in Q3 didn t report audits: Hacken - URECOMM ENTERTAINMENTThe report, released on October 25th, highlighted that over 65% of all hacks during the quarter were attributed to rug pulls. The report, published on October 25, outlined trends in crypto scams for Q3 2025. Cryptocurrency hacks by type in Q3 2025. Source: Hacken. Rug pulls accounted for more than 65% of all crypto hacks in the quarter, the study found. The report noted that these scams are relatively easy to orchestrate, with serial scammers often employing tokenThis significant percentage underscores the ease with which these scams can be orchestrated and the devastating impact they have on investors. Of the 78 Q3 rug pulls examined by Hacken, solely 12 reported having accomplished any sort of audit. However even when a crypto undertaking offers an audit, customers needs to be vigilant to correctly examine them, as an audit alone doesn t at all times assure safety from scams, Hacken famous, stating:The relative simplicity of executing a rug pull, coupled with the potential for substantial financial gain, makes it an attractive option for malicious actors in the crypto space.

The Hacken report emphasizes that these scams are often perpetrated by serial scammers, further complicating the issue. A cryptocurrency rug pull is one of the simplest scams to prevent, according to blockchain security auditor Hacken. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report. Blockchain security auditor Hacken released its latest security insights [ ]These individuals move from project to project, employing similar tactics to deceive investors and abscond with their funds.The lack of regulation and oversight in the decentralized finance (DeFi) space allows these scammers to operate with relative impunity, making it crucial for investors to be extra vigilant.

Understanding Crypto Rug Pulls: A Detailed Look

So, what exactly is a crypto rug pull? A crypto rug pull happens when project creators suddenly drain investor funds. It often ends up leaving the token (virtually) worthless. There are two main types: hard rug pulls (outright theft) and soft rug pulls (abandonment or manipulation). Red flags include anonymous devs, lack of transparency, sketchy tokenomics, and unlocked liquidity.In essence, it's an exit scam where the project developers artificially inflate the value of their token and then suddenly withdraw all liquidity, leaving investors with worthless assets.The term ""rug pull"" vividly illustrates the swift and unexpected nature of the scam, as if the rug has been pulled out from under the investors' feet.There are two main types of rug pulls:

• Hard Rug Pulls: These are the most blatant and obvious form of the scam.The developers directly manipulate the smart contract code to allow them to drain the liquidity pool, effectively stealing all the invested funds.This is often done by incorporating a backdoor or exploit in the code that only the developers are aware of.
• Soft Rug Pulls: These are more subtle and insidious.Instead of outright theft, the developers gradually abandon the project, ceasing all development and marketing efforts. 85% of crypto rug pulls in Q3 didn t report audits: Hacken 85% of crypto rug pulls in Q3 didn t report audits: HackenThis leads to a slow and steady decline in the token's value, as investors lose confidence and sell off their holdings.In some cases, developers may also manipulate the tokenomics, such as increasing the supply or minting new tokens, to devalue the existing ones.

Regardless of the type, the end result is the same: investors lose their money, and the project becomes worthless. Get the latest Blockchain game news, project updates and analysis from top experts around the world. Check out our breaking NFT game news and analysisUnderstanding the different types of rug pulls is crucial for identifying potential scams and avoiding financial losses.

Spotting the Red Flags: Early Warning Signs

While rug pulls can be devastating, they are often preventable if investors know what to look for. A cryptocurrency rug pull is one of the simplest scams to prevent, according to blockchain security auditor Hacken. Cryptocurrency rug 85% of crypto rug pulls in Q3 didn t report audits: Hacken - XBT.MarketAccording to Hacken, most rug pulls share distinct and visible features that serve as red flags. According to Hacken, crypto rug pulls made up the largest amount of exploits in crypto, accounting for more than 65% of all hacks in Q3 2025. Cryptocurrency hacks by type in Q3 2025. Source: Hacken. The reason there are so many rug pulls on the market is that it s easy to create such schemes.Here are some of the most common warning signs:

1. Anonymous Developers: This is perhaps the biggest and most obvious red flag.If the team behind the project is anonymous or pseudonymous, it's a major cause for concern. A cryptocurrency rug pull is one of the simplest scams to prevent, according to blockchain security auditor Hacken.Legitimate projects typically have transparent teams with publicly verifiable identities and track records.
2. Lack of Transparency: A lack of transparency is another warning sign.If the project provides little to no information about its goals, roadmap, or development progress, it's likely a scam.Reputable projects are open and transparent about their operations.
3. Sketchy Tokenomics: Pay close attention to the tokenomics of the project. [ad_1]Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report.Blockchain security auditor Hacken released its latest security insightsIf the token distribution is heavily skewed towards the developers or a small group of insiders, it's a red flag. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct 85% of crypto rug pulls in Q3 didn t report audits: Hacken - Bitcoin Market News TodayAlso, be wary of projects with excessively high token supply or inflationary mechanisms.
4. Unlocked Liquidity: Liquidity refers to the amount of funds locked in a decentralized exchange (DEX).If the liquidity is not locked or is locked for only a short period, the developers can easily withdraw it and rug pull the project.Ideally, liquidity should be locked for several years or even permanently.
5. Unrealistic Promises: Be skeptical of projects that make unrealistic promises or guarantee high returns. Blockchain security auditor Hacken released its latest security insights report on Oct. 25, aiming to spot the trends in Q3 crypto hacks and evaluate how affected projects approached security. The report paid specific attention to rug pulls, which are a type of exit scam occurring when a team pumps their project s token before the suddenIf it sounds too good to be true, it probably is. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report.Blockchain security auditor Hacken released its latest security insights reportLegitimate projects focus on building real value and sustainable growth, not on making outlandish claims.
6. Lack of Audits: This is the crux of the Hacken report. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report. Blockchain security auditor Hacken released its latest security insights report on Oct. 25, aiming to spot the trends in Q3 crypto hacks and evaluate how affected projects [ ]The fact that 85% of rug pulls in Q3 2025 didn't report audits is a stark reminder of the importance of independent security assessments.

By being aware of these red flags, investors can significantly reduce their risk of falling victim to a rug pull.

The Importance of Audits and Due Diligence

The Hacken report's finding that 85% of rug pulls in Q3 2025 didn't report audits underscores the critical role that audits play in the crypto ecosystem. Of the 78 Q3 rug pulls examined by Hacken, only 12 reported having completed any kind of audit. But even when a crypto project provides an audit, users should be vigilant to properly check them, as an audit alone doesn t always guarantee protection from scams, Hacken noted, stating:An audit is an independent security assessment of a project's smart contract code, conducted by a reputable third-party firm.The purpose of an audit is to identify potential vulnerabilities and security flaws that could be exploited by malicious actors. 85% of crypto rug pulls in Q3 didn t report audits: Hacken admiin Octo 2 min read crypto rug pulls didnt report audits HackenA thorough audit can help to prevent rug pulls and other types of scams by ensuring that the code is secure and free of backdoors.

However, it's important to note that an audit alone is not a guarantee of safety.As Hacken pointed out, even when a project provides an audit, investors should be vigilant in checking the audit's scope and findings.Not all audits are created equal. A cryptocurrency rug pull is one of the simplest scams to prevent, according to the blockchain security auditor Hacken.Source:Some audits are more comprehensive than others, and some auditors are more reputable than others. Cointelegraph By Helen Partz Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report. Blockchain security auditor Hacken released its latest security insights report on Oct. 25, aiming to spot the trends in Q3 crypto hacks and [ ]It's crucial to choose projects that have been audited by reputable firms with a proven track record.

Beyond audits, due diligence is paramount. 85% of crypto rug pulls in Q3 didn t report audits: Hacken A cryptocurrency rug pull is one of the simplest scams to prevent, according to blockchain security auditor Hacken. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report.Investors should conduct their own research on the project, the team, and the underlying technology.This includes reading the whitepaper, reviewing the code (if possible), and researching the team members' backgrounds.By doing their homework, investors can make informed decisions and avoid falling victim to scams.

How to Conduct Effective Due Diligence

Conducting effective due diligence can seem daunting, but it's a crucial step in protecting your investments.Here's a practical guide to help you get started:

• Read the Whitepaper: The whitepaper is the project's official document that outlines its goals, technology, and roadmap.Read it carefully and critically assess the project's feasibility and potential.
• Review the Code: If you have technical expertise, review the project's smart contract code. Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct. Monday, Decem. All news; Bitcoin;Look for any suspicious code or potential vulnerabilities.If you don't have the technical skills, consider asking a trusted friend or colleague who does.
• Research the Team: Investigate the team members' backgrounds and experience.Look for their profiles on LinkedIn and other professional networking sites. The report paid specific attention to rug pulls, which is a type of exit scam occurring when a team pumps their project s token before the sudden withdrawal of liquidity. According to Hacken, crypto rug pulls made up the largest amount of exploits in crypto, accounting for more than 65% of all hacks in Q3 2025. CryptocurrencyVerify their credentials and track record.
• Check the Community: Assess the project's community.Is it active and engaged?Are there genuine discussions and contributions? Cryptocurrency rug pulls are not too difficult to spot by investors, as the majority of such scams usually share distinct and visible features, according to a new report. Blockchain security auditor Hacken released its latest security insights report on Oct. 25, aiming to spot the trends in Q3 crypto hacks and evaluate how affected projectsBe wary of projects with fake or bot-driven communities.
• Use Blockchain Explorers: Use blockchain explorers to track the project's token movements and transactions.This can help you identify any suspicious activity or potential rug pull attempts.
• Consult Independent Review Sites: Look for independent reviews and ratings of the project on reputable websites.These reviews can provide valuable insights and help you make informed decisions.

Real-World Examples of Crypto Rug Pulls

Unfortunately, the crypto space is littered with examples of rug pulls that have devastated investors.Here are a few notable cases:

• Squid Game Token (SQUID): This token, based on the popular Netflix series, skyrocketed in value before the developers suddenly cashed out, leaving investors with worthless tokens.The project had numerous red flags, including a lack of a clear whitepaper and an inability to sell the tokens.
• Meerkat Finance: This DeFi project suffered a $31 million rug pull after the developers exploited a vulnerability in the smart contract code.The incident highlighted the importance of security audits and code reviews.
• Thodex: This Turkish cryptocurrency exchange suddenly shut down, and its CEO disappeared with an estimated $2 billion in investor funds.The case underscored the risks of centralized crypto platforms and the importance of regulatory oversight.

These examples serve as a stark reminder of the potential consequences of investing in unaudited or poorly vetted crypto projects.

Preventing Rug Pulls: Actionable Strategies

While the risk of rug pulls is ever-present, there are several actionable strategies that investors can employ to protect themselves:

• Invest in Audited Projects: Prioritize projects that have undergone thorough security audits by reputable firms.Carefully review the audit reports and pay attention to any identified vulnerabilities.
• Diversify Your Portfolio: Don't put all your eggs in one basket.Diversify your investments across multiple projects to reduce your overall risk.
• Start Small: Begin with a small investment and gradually increase your position as you gain more confidence in the project.
• Set Stop-Loss Orders: Use stop-loss orders to automatically sell your tokens if the price drops below a certain level.This can help limit your losses in the event of a rug pull.
• Stay Informed: Keep up-to-date with the latest news and developments in the crypto space.Be aware of the common red flags and potential scams.
• Trust Your Gut: If something feels off about a project, trust your intuition.It's better to err on the side of caution than to risk losing your money.

The Future of Crypto Security and Regulation

The prevalence of rug pulls highlights the urgent need for greater security and regulation in the crypto space.While decentralized finance (DeFi) offers many benefits, it also poses significant risks due to the lack of oversight and accountability.

Several initiatives are underway to address these challenges, including:

• Increased Regulation: Governments around the world are exploring ways to regulate the crypto industry to protect investors and prevent scams.
• Enhanced Security Audits: Efforts are being made to improve the quality and reliability of security audits.This includes developing standardized audit procedures and accreditation programs for auditors.
• DeFi Insurance: DeFi insurance protocols are emerging to provide investors with protection against losses due to hacks and rug pulls.
• Community-Driven Security Initiatives: Crypto communities are taking proactive steps to identify and expose scams.This includes creating blacklists of known scammers and sharing information about potential red flags.

These initiatives are essential for creating a safer and more sustainable crypto ecosystem.

Conclusion: Staying Safe in the Crypto Wild West

The Hacken report serves as a wake-up call, highlighting the pervasive threat of crypto rug pulls.The fact that 85% of these scams in Q3 2025 didn't report audits underscores the critical importance of due diligence and security assessments.While the crypto space offers immense opportunities, it's also a ""wild west"" where scams and exploits are rampant.By understanding the anatomy of a rug pull, recognizing the red flags, and employing effective security measures, investors can significantly reduce their risk of falling victim to these devastating scams.Remember to prioritize audited projects, diversify your portfolio, and conduct thorough research before investing in any crypto project.Stay vigilant, stay informed, and stay safe in the exciting, but often perilous, world of cryptocurrency.Do your own research, and be wary of projects promising unrealistic gains.The future of crypto depends on building a safer and more trustworthy ecosystem, and that starts with informed and responsible investors.