80% of Hacked Crypto Projects Never Fully Recover, Expert Warns

Mitchell Amador, CEO of Immunefi, warns that approximately 80% of crypto projects that suffer a major hack never fully recover. He attributes this failure not just to the initial loss of funds, but to the breakdown of operations and user trust during the incident response. Amador notes that most protocols are unprepared, leading to slow decision-making, improvisation, and further losses in the critical first hours after a breach. Alex Katz, CEO of Kerberus, agrees, stating that major exploits are often a "death sentence" as liquidity dries up and reputational damage becomes permanent. While smart contract exploits were once dominant, security failures are increasingly rooted in human error, such as approving malicious transactions or falling for social engineering attacks, which are now amplified by AI. Despite these risks, experts like Amador remain optimistic about future smart contract security improvements, but stress that projects must prioritize decisive, immediate communication during a crisis, as early protocol pausing is less damaging than prolonged uncertainty.

(Source：Cointelegraph)