Nearly 80% of cryptocurrency projects cease to exist after major attacks, according to Mitchell Amador, CEO of Web3 security platform Immunefi, in a comment to Cointelegraph.
He stated that the primary reason for failure is not the direct loss of funds, but rather "management chaos and loss of trust." When a vulnerability is discovered, most teams become paralyzed, unaware of the actual scale of the breach and lacking a clear action plan.
Amador noted that the first hours following an attack cause the most damage. Instead of making prompt decisions, developers waste time arguing and trying to understand the situation, leading to further losses.
Projects often hesitate to halt smart contracts due to reputational risks and cut off communication with their communities. This silence only heightens panic and exacerbates the damage, emphasized the head of Immunefi.
Loss of Trust is a Death Sentence
Alex Katz, CEO of Kerberus, agreed with Amador, labeling a major hack as a "death sentence" for most protocols. Even if the technical issue is resolved, mass asset withdrawals and a tarnished reputation leave little chance for recovery.
Katz added that the focus of attacks has shifted. Hackers previously sought vulnerabilities in smart contracts, but now they exploit errors in the "human layer." The primary losses are linked to phishing, fake interfaces, and key compromises. Artificial intelligence has enabled scammers to scale social engineering efforts, sending thousands of personalized messages daily.
Statistics and Forecasts
By 2025, the volume of stolen funds is expected to reach $3.4 billion, the highest since 2022. Three incidents, including the Bybit hack totaling $1.46 billion, accounted for 69% of all losses.
Despite the grim statistics, Amador remains optimistic. He believes that 2026 will be the strongest year for smart contract security, driven by improved audits, enhanced monitoring tools, and firewalls.
However, the expert warned that technology alone will not suffice if teams do not have a pre-prepared crisis response plan.
It is worth noting that in 2025, illegal cryptocurrency wallets received over $154 billion, a 162% increase compared to 2024.