Audited Badges Provide False Sense of Security for Crypto Investors

Crypto investors have been misled by 'audited' badges on protocol websites, which provide a false sense of security.

The badge is often accompanied by a logo and link to a PDF report from a security firm, implying that the project has undergone thorough examination and is therefore safe to use.

However, as Stefan Beyer's preprint found, this may not be the case. In fact, many incidents of theft have occurred despite the presence of 'audited' badges.