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Most Hacked Crypto Projects Never Recover as Post‑Exploit Missteps Doom Trust

Security leaders say survival hinges on rapid communication, with AI‑driven social engineering now outpacing code fixes.

Overview

  • About 80% of projects fail to regain prior value after a major breach, according to Immunefi’s Mitchell Amador.
  • Teams’ hesitation, silence, and reluctance to pause protocols accelerate capital flight and long‑term reputational damage.
  • Attackers increasingly target human behavior through phishing, impersonation, and malicious approvals, illustrated by a $282 million loss tied to a Trezor‑support impersonation.
  • Crypto hack losses reached roughly $3.4 billion in 2025, with three incidents making up nearly 69% of the total, including a $1.4 billion Bybit breach, Chainalysis reports.
  • Technical defenses are improving through audits and on‑chain monitoring, yet incident playbooks and response readiness remain the industry’s critical weak point.