Cointelegraph’s agency FORMULA expands into crisis consulting, helping CEXs navigate breaches with expertise and transparency.
FORMULA, the strategic communications and consulting agency by Cointelegraph, has announced the launch of its Emergency Hack Response Program, a dedicated service to assist centralized cryptocurrency exchanges in managing the aftermath of security breaches. To support the decision with real industry data, FORMULA is also releasing a guidebook analyzing major CEX hack cases, including data on exchanges that managed to fully recover from a hack and their tactics. The program provides both real-time guidance and preemptive planning, enabling exchanges to respond decisively to hacks while preserving user trust and regulatory compliance.
Over the past decade, hacks of centralized exchanges have been among the most damaging events in the cryptocurrency industry, wiping out billions of dollars in user funds and eroding confidence in the market. Data from Chainalysis and industry reports suggest that CEXs could collectively lose around $3 billion to hacks over the next five years, despite the implementation of improved security infrastructure. The direct financial loss, however, is often overshadowed by reputational damage, regulatory scrutiny, and user attrition following a poorly managed response.
"We are deeply concerned about the rising frequency and sophistication of these attacks," said Dan Kuzner, citing industry data. "Even with better defenses, the potential cumulative losses remain staggering and the reputational impact can be even more severe."
“Markets no longer collapse outright after a hack, but the future of an exchange depends heavily on how it handles the crisis,” he added. “A clear, transparent, and timely reaction can mitigate losses and even strengthen an exchange’s position, while missteps can accelerate its decline.”
The new program formalizes FORMULA’s experience advising Web3 firms during crises. In recent years, the agency has been called upon to assist clients in drafting public statements, coordinating with regulators, and communicating with affected users following data breaches. With this launch, FORMULA offers structured, scenario-based preparation and instant-response capabilities, ensuring that CEXs have a tested plan in place before an incident occurs.
"We’ve built this program on our belief that we can (and should) help the industry do better," commented Jenny Ryan. "By combining our strategic expertise with FORMULA’s marketing and narrative capabilities, we ensure exchanges weather crises, with trust rebuilt and their message clear."
Key components of the Emergency Hack Response Program include:
Pre-crisis audits and risk assessments: Evaluation of current processes and vulnerabilities in communication and stakeholder management.
Simulation-based crisis preparation: Tabletop exercises that simulate hacks and train internal teams to react effectively.
Real-time incident support: Immediate advisory and drafting of communications during an ongoing breach, including statements to users, regulators, and media.
Post-crisis narrative recovery: Developing a consistent post-incident strategy to rebuild user confidence and repair brand reputation.
The launch comes amid growing recognition that cybersecurity is both a technical and a communications challenge. In several high-profile breaches over the past year, delays or miscommunication from exchanges led to panic withdrawals and regulatory investigations, exacerbating losses. FORMULA’s approach integrates operational, legal, and public-facing aspects into a coherent response plan.
"We want FORMULA to carry knowledge and values into the industry," said Kate Zems. "Our mission is not only to manage crises but also to help exchanges and their communities grow stronger through transparency and understanding."
FORMULA encourages centralized exchanges to proactively assess their crisis readiness, rather than waiting for an incident to occur. Companies can learn more about the program and register at cointelegraph.com/formula.
About FORMULA
FORMULA is the strategic communications and consulting arm of Cointelegraph, delivering specialized services for Web3 businesses. Beyond branding and media relations, Formula offers crisis preparedness, stakeholder engagement, and narrative recovery strategies tailored to the unique risks of blockchain-based enterprises.
About Cointelegraph
Since 2013, Cointelegraph has been a leading independent publication covering blockchain technology, cryptocurrencies, and emerging financial trends. With a global readership, Cointelegraph provides timely, accurate, and insightful reporting on the developments shaping the digital economy.