80% of hacked crypto projects never ‘fully recover,’ expert warns

Security failures don’t just drain funds, they often destroy trust, leaving most hacked crypto projects unable to recover despite fixing the technical flaws.

Nearly four out of five crypto projects that suffer a major hack never fully regain their footing, according to Mitchell Amador, CEO of Web3 security platform Immunefi.

Amador told Cointelegraph that most protocols enter a state of paralysis the moment an exploit is discovered. “Most protocols are fundamentally unaware of the extent to which they are exposed to hacks, and are not operationally prepared for a major security incident,” he said.

According to Amador, the first hours after a breach are often the most damaging. Without a predefined incident plan, teams hesitate, debate next steps and underestimate how deep the compromise may go. “Decision-making slows as teams scramble to understand what happened, leading to improvization and delayed action,” he said, adding that this is frequently when additional losses occur.

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