80% of Hacked Crypto Projects Fail to Recover, Industry Report Reveals
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Impact of Security Breaches: According to a report by Immunefi, nearly 80% of cryptocurrency projects fail to fully recover after a significant security breach, highlighting critical vulnerabilities in security protocols and operational responses that lead to long-term failures and eroded trust in the industry.
- Delayed Response Issues: Many projects enter a state of paralysis following an attack, as teams often hesitate during crucial moments, failing to act swiftly, which exacerbates losses and further undermines user trust and project reputation.
- Rapid Erosion of Trust: Alex Katz, CEO of Kerberus, notes that post-hack, users typically withdraw funds, liquidity diminishes, and reputations suffer lasting damage, indicating that even when technical issues are resolved, the loss of trust is often irreversible.
- Future Security Outlook: Despite alarming statistics, experts remain optimistic about improvements in security practices, believing that 2026 could be a landmark year for security in the crypto space, emphasizing the importance of teams acting swiftly and communicating openly during incidents.
About the author

Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.






