Insight: Nearly 80% of Hacked Cryptocurrency Projects Fail to Fully Recover, Operational and Trust Breakdowns Cited as Major Reasons

On January 18, Cointelegraph reported that Mitchell Amador—CEO of Web3 security platform Immunefi—stated nearly 80% of crypto projects hit by major hacks have never fully recovered. Most protocols are largely unaware of the magnitude of hacking risk they face and are operationally unprepared for major security incidents. Amador noted the first few hours after a vulnerability is exploited are typically the most destructive. Without a pre-established incident response plan, teams hesitate, bicker over next steps, and underestimate how deeply the vulnerability could impact them. This window often marks a critical moment where additional losses occur. Fearing reputational damage, project teams often hesitate to pause smart contracts and cut off all communication with users. Silence typically fuels panic rather than containing the issue. Nearly 80% of hacked projects never fully recover, primarily due to the collapse of operational and trust systems during their response.