Most Hacked Cryptocurrencies Struggle to Rebound

A recent report sheds light on the challenges faced by cryptocurrencies after being hacked, revealing that many never regain their pre-attack value.

The analysis from Immunefi indicates that about 78% of these assets continue to see their prices fall for months after a breach. Specifically, more than half of the hacked tokens experience a drop of over 50% within six months of the incident.

Mitchell Amador, CEO of Immunefi, explains that the initial financial losses from hacks are often compounded by long-term damage. The repercussions include market instability, operational setbacks, and difficulties in rebuilding affected teams, which hinder recovery efforts.

This analysis follows a major hack earlier this year where WazirX, an Indian cryptocurrency exchange, lost over $230 million , marking one of 2024’s largest breaches.

Traditionally, DeFi platforms were the primary targets for hackers. However, this year, CeFi systems have become the focal point of attacks. Amador highlights that weaknesses in CeFi infrastructure, such as exposed private keys, have led to significant losses. Of the $1.19 billion stolen in 2024, $636 million was linked to CeFi vulnerabilities.

As attackers shift their focus to CeFi, which holds substantial funds, the risks for exchanges and similar platforms increase. Immunefi, a cybersecurity firm, notes that tokens with strong backing and established ecosystems, like BNB Chain and SushiSwap, often recover better from hacks due to their robust support structures.

Despite some recoveries, security breaches continue to impede the broader adoption of cryptocurrencies. By early 2024, the total stolen from hacks had already surpassed $200 million, reflecting a significant increase from the previous year.