80% of hacked crypto projects never fully recover experts warn

Nearly four out of five crypto projects fail to fully recover after a major hack due to lasting damage to trust and operations, according to industry experts.

Immunefi chief executive Mitchell Amador said most protocols are unprepared for severe security incidents and underestimate their exposure.

“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,”

Mitchell Amador said.

Amador said the first hours after a breach are often the most damaging as teams hesitate and lack clear incident response plans.

“Decision-making slows as teams scramble to understand what happened, leading to improvisation and delayed action,”

Mitchell Amador said.

Projects often avoid pausing smart contracts due to reputational concerns, while poor communication fuels panic among users.

“Nearly 80% of projects that suffer a hack never fully recover,”

Mitchell Amador said, citing operational breakdown and loss of trust as the main causes.