What if question? DEFCON situation!

what happens to my encrypted data if icedrive itself gets hacked??

Will my encryption key gets invalid or what are the steps to restore my encrypted data???

The data in the encrypted folder is encrypted on your device before it is uploaded to Icedrive’s servers. If attackers had a copy of your encrypted data they would have to crack the encryption to access the data. This is where creating a high entropy, long, random encryption key would help protect you. Any password manager can do this and thereby make the encryption mathematically impossible to crack by brute force.