Nearly four out of five crypto projects that suffer a major hack never fully recover, says Immunefi CEO Mitchell Amador. The first hours after a breach are crucial, with decision-making delays leading to additional losses. Projects often fear reputational damage, leading to breakdowns in communication with users.

Trust is fragile in crypto, with major hacks often signaling the end for projects. Human error is now the weakest link in security, with losses coming from user mistakes. A recent social engineering attack led to a $282 million loss in Bitcoin and Litecoin, highlighting vulnerabilities in the space.

Hacks surged in 2025, reaching $3.4 billion in losses, with the $1.4 billion Bybit hack accounting for a significant portion. Attacks are evolving beyond smart contract exploits, with AI making social engineering campaigns more effective. Despite challenges, experts see improvements in smart contract security.

The Bybit hack contributed significantly to total losses in 2025, highlighting vulnerabilities in the crypto space. Advances in AI have made attacks more scalable, increasing the threat of phishing campaigns. Despite challenges, experts see 2026 as a strong year for smart contract security, emphasizing the importance of response readiness.

Read more at Cointelegraph: 80% of Hacked Crypto Projects Never Fully Recover, Expert Warns