Immunefi CEO says nearly 80% of hacked crypto projects don’t fully recover

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, who told Cointelegraph this is driven by breakdowns in response and trust rather than the initial loss of funds.

Amador said most protocols enter a state of paralysis when an exploit is discovered, because teams are often unaware of their exposure and not operationally prepared. He warned the first hours after a breach are frequently the most damaging: without a predefined incident plan, teams hesitate, debate next steps and underestimate the depth of a compromise.

"Decision-making slows as teams scramble to understand what happened, leading to improvisation and delayed action," he said, adding that this is frequently when additional losses occur. Projects often avoid pausing smart contracts out of fear of reputational damage, while communication with users breaks down entirely; Amador said "silence tends to amplify panic rather than contain it." Trust in crypto is fragile, industry observers say.

Alex Katz, CEO and co‑founder of Web3 security firm Kerberus, said that even technically resolved incidents often mark the beginning of the end: "in most cases a major exploit is a death sentence," he said, noting users leave and liquidity dries up.

Key Topics

Crypto, Immunefi, Mitchell Amador, Kerberus, Bybit Hack, Social Engineering