Almost 80% of hacked crypto projects can never fully recover, security companies warn

Source: Yellow Original Title: Nearly 80% of hacked crypto projects never fully recover, security firm warns

Original Link: According to Mitchell Amador, CEO of Web3 security platform Immunefi, nearly four-fifths of cryptocurrency projects that suffer major hacks can never fully regain their footing.

Amador told media that most protocols become paralyzed upon discovering exploit vulnerabilities.

“Most protocols are unaware of how exposed they are to hacking and are unprepared for major security incidents,” he said.

What happened

Based on analysis shared by Amador on Saturday, the first few hours after a vulnerability occurs are often the most destructive.

Without predefined incident response plans, teams hesitate, debate subsequent steps, and underestimate the extent of the breach.

“Decision-making slows down as teams rush to understand what happened, leading to improvisation and delayed actions,” Amador pointed out, adding that this period often results in additional losses.

Projects typically avoid pausing smart contracts for fear of damaging reputation, and communication with users is completely cut off.

Silence during security incidents often exacerbates fear among users and stakeholders rather than controlling the situation.

Why this matters

The findings indicate that fewer than one in five affected projects can fully recover, mainly due to operational disruptions and erosion of trust, rather than initial financial losses.

Early research by Immunefi in 2024 shows that 77.8% of hacked tokens still experienced negative price impacts six months after exploit.

Major incidents, including a $1.5 billion hack at an exchange in early 2025—the largest cryptocurrency theft in history—highlight the severity of current security challenges.

Despite concerning statistics, Amador is optimistic about improvements in security practices driven by better protocol development, stronger audits, and more mature monitoring tools.

“I believe 2026 will be the strongest year yet for smart contract security,” he said, citing the increasing adoption of on-chain monitoring and threat intelligence.

However, incident response preparedness remains a key unresolved issue, with teams needing to act decisively and communicate immediately when incidents occur.