Lack of transparency among project auditors a big problem: Hacken CEO

cointelegraph.com:

Smart contract auditing firm Hacken CEO Dyma Budorin thinks Web3 cybersecurity providers are failing the crypto industry and that “huge blind spots” in market practices are impacting investor behavior.

Budorin believes a lack of accountability and transparency in the audits many providers perform falls short of reassuring users and projects.

Currently, smart contract auditors take no accountability if a token they have audited gets hacked due to a bug in the code. Unsettlingly, most of the largest hack events in 2022 occurred on projects that were audited by third parties.

In a call with Cointelegraph on Apr. 27, Budorin said this makes him uneasy as it compromises the growth trajectory of the Web3 cybersecurity industry which is already lagging far behind non-crypto equivalents according to a report from Hacken.

Web3 auditors take a deep dive into the code of a token in search of threats of varying severity. These audits do not assess other factors like the viability of a business model, team experience, and others.

Budorin explained that “auditors have a lot of responsibility” which is being ignored because the money is coming in and there is no public outcry for better products. However, to him, the services they provide are inadequate, as he says

Even in the rare instance that a project wanted a more robust audit, they would not be able to get it from cybersecurity firms in Web3 because Budorin says “currently in Web3 cybersecurity, there are no companies offering recurring audits” that happen monthly and go into much more depth about the project.

Budorin used token bridges as an example to demonstrate the dangers of an industry without thorough auditing mechanisms. Two of the largest crypto hacks so far in 2022 took place