The post Why Most Crypto Projects Never Recover After a Hack appeared on BitcoinEthereumNews.com.

Crime A major crypto hack is no longer just a technical crisis – it is often a defining moment that determines whether a project survives at all. Increasingly, the difference between collapse and recovery has less to do with code and more to do with how teams react when things go wrong. Key Takeaways Most crypto projects fail after a major hack due to poor response, not just lost funds. Silence and hesitation during an incident accelerate user panic and capital flight. Human error and social engineering now pose a bigger threat than smart contract bugs. Across the crypto industry, most projects that experience a serious security breach never regain their previous momentum. Not because the exploit itself is impossible to recover from, but because teams are caught off guard operationally. Once an incident is detected, confusion tends to spread internally. Decisions slow, responsibilities blur, and precious time is lost while attackers continue moving funds or exploiting secondary weaknesses. According to Mitchell Amador, CEO of Immunefy, this hesitation is often the most destructive phase of an attack. Teams frequently underestimate how exposed they are and lack a clear plan for containment. Without predefined procedures, response efforts become improvised, increasing both financial damage and user anxiety. Silence becomes the accelerant One of the most common mistakes projects make is avoiding immediate communication. Out of fear of reputational harm, teams delay updates or choose not to pause smart contracts, hoping the issue can be quietly resolved. In practice, this approach almost always backfires. When users receive no clear information, uncertainty fills the gap. Liquidity exits quickly, rumors spread, and confidence evaporates faster than funds were stolen. Even if the exploit is technically fixed, trust is often permanently damaged by the perception of chaos or concealment. Recovery is rare, even when the bug…

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Filed under: News - @ January 18, 2026 1:21 pm