Crypto Recovery Efforts Often Futile, Prevention Essential, Says Circuit CEO
Jessie A Ellis Oct 27, 2025 16:04
Harry Donnelly, CEO of Circuit, emphasizes prevention over recovery in crypto security, highlighting the challenges faced by victims of hacks and the risks posed by recovery firms.
In the ever-evolving world of cryptocurrency, security remains a paramount concern, especially as adoption continues to rise. According to CoinMarketCap, Harry Donnelly, CEO of Circuit, has voiced significant concerns about the efficacy of crypto recovery efforts following security breaches. Donnelly asserts that the majority of these efforts are not only unsuccessful but may also lead to further victimization by unscrupulous recovery firms.
The Myth of Crypto Recovery
In a detailed discussion, Donnelly highlighted that most recovery attempts post-hack are largely ineffective. He estimates that as much as 95% of recovery firms could potentially be predatory, offering little to no real support to their clients. This troubling statistic underscores the need for a proactive approach to crypto security.
Prevention Over Recovery
With approximately $3 billion already lost to hacks this year, Donnelly stresses that prevention is crucial. The crypto ecosystem, despite its advancements, still leaves many users vulnerable. A recent case involved a U.S. retiree who lost $3 million in XRP after inadvertently compromising their cold wallet, starkly illustrating the ongoing security challenges.
The Role of Recovery Firms
While the promise of recovery might seem appealing to victims of crypto hacks, Donnelly warns of the dangers posed by unreliable recovery firms. These entities often exploit the desperation of victims, further complicating their financial woes instead of providing genuine assistance.
Focus on Security Measures
As the crypto space expands, the emphasis on robust security measures becomes more critical. Users are encouraged to adopt stringent security practices to safeguard their assets. This includes using secure wallets, enabling two-factor authentication, and being vigilant about phishing scams.
For more insights on the challenges and preventive measures in the crypto industry, refer to the full interview on CoinMarketCap.
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