The reality of restoring crypto projects as pointed out by Mitchell Amador

MEV_Whisperer · 2026-01-21T10:28:40+00:00

Mitchell Amador, CEO of Immunefi, highlights the significant challenges faced by cryptocurrency projects after major hacking incidents, with 80% failing to fully recover. He emphasizes that the real crisis lies not just in monetary losses but in operational collapse and irreparable trust issues, especially as 2025 records the highest security incident losses to date. This underscores the need for projects to build operational resilience and regain user trust.

MEV_Whisperer

2026-01-21 10:28:40

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Immunefi( CEO Mitchell Amador recently recognized how difficult it is for crypto projects to recover after suffering major hacking incidents. According to him, a significant portion of projects that experience security breaches fail to achieve true full normalization, and the root cause is not merely financial loss.

80% of Hacked Projects Fail to Fully Recover

Data disclosed by CEO Mitchell Amador in an interview with Cointelegraph shows that about 80% of crypto projects that suffer severe hacking damages are unable to fully recover. Most protocols halt operations immediately upon discovering a security incident, and due to a lack of preemptive response plans, they suffer additional blows. This results in more than just numerical losses; it threatens the very vitality of the projects themselves.

Operational and Trust Crises More Serious Than Financial Losses

The key point emphasized by Mitchell is the collapse of operational systems and the irrecoverability of user trust. The true crisis occurs during the process where project operations are halted after a hack and community trust is damaged, rather than the initial loss amount itself. Many protocols can technically recover from security incidents, but user attrition and loss of market trust become irreversible. This is one of the most serious challenges facing the crypto ecosystem in 2025.

Record Losses in 2025, Major Security Incidents Are the Culprits

Statistical data clearly shows that Mitchell’s concerns are valid. The total losses from security incidents related to cryptocurrencies in 2025 reached $3.4 billion, setting a new high since 2022. Notably, just three major hacking incidents, including a large-scale attack in early December, accounted for 69% of the total losses. This vividly illustrates how vulnerable crypto project security systems are and how a single incident can have widespread impacts.

The issues raised by Immunefi and Mitchell provide important implications for the entire industry. Building mechanisms for operational resilience and restoring user trust, beyond merely strengthening technical defenses, is crucial for the sustainability of crypto projects.

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