Nearly 80% of cryptocurrency projects cease to exist following major attacks, according to Mitchell Amador, CEO of the Web3 security platform Immunefi, in a statement to Cointelegraph.
He attributes the collapse primarily to “managerial chaos and loss of trust,” rather than the direct loss of funds. Upon discovering a vulnerability, most teams become paralyzed, unaware of the true extent of the breach and lacking a clear action plan.
Amador noted that the initial hours following an attack inflict the most damage. Instead of making swift decisions, developers waste time arguing and trying to understand the situation, leading to further losses.
Projects often fear halting smart contracts due to reputational risks and cut off communication with the community. Silence only heightens panic and exacerbates damage, emphasized the head of Immunefi.
Loss of Trust as a Death Sentence
Alex Katz, CEO of Kerberus, concurred with his colleague. He described a major hack as a “death sentence” for most protocols. Even if the technical issue is resolved, mass asset withdrawals and a shattered reputation leave no room for recovery.
Katz added that the attack vector has shifted. Previously, hackers sought vulnerabilities in smart contracts; now, they exploit errors in the “human layer.” The main losses are linked to phishing, fake interfaces, and key compromises. Artificial intelligence has enabled fraudsters to scale social engineering, sending thousands of personalized messages daily.
Statistics and Forecasts
In 2025, the volume of stolen funds reached $3.4 billion, the highest since 2022. Three incidents, including the Bybit hack amounting to $1.46 billion, accounted for 69% of all losses.
Despite the grim statistics, Amador remains optimistic. He believes 2026 will be the strongest year for smart contract security, aided by improved audits, enhanced monitoring tools, and firewalls.
However, the expert cautioned that technology will not suffice if teams lack a pre-prepared crisis response plan.
Back in 2025, over $154 billion flowed into illegal crypto wallets, marking a 162% increase compared to 2024.