Report: BNB Chain’s Losses from Hacks Decrease by 85%

Financial losses in the BNB Chain blockchain due to security breaches have decreased from $1.11 billion in 2022 to $161 million in the previous year, marking an 85% reduction. This is according to a report by AvengerDAO. 

Over the past 12 months, there were 414 incidents, which is a 44% increase compared to 2022. 

The three largest incidents were: the Fintoch exit scam, rug pull of the IPP staking pool, and the hack of the betting platform Stake. Together, they resulted in a loss of $64 million. 

In comparison, in 2023, losses in the Ethereum network from fraud and cyberattacks amounted to $1.04 billion. Following are the Tron blockchain ($405 million), Fantom ($171 million), and Arbitrum ($73 million). 

Attack vectors in BNB Chain were almost evenly split between hacks (50.72%) and scams (49.03%). However, the total financial damage from fraud ($87 million) exceeds the losses from hacks ($73 million).

The most common schemes were rug pulls (35.1% of all incidents for the year), Ponzi schemes (22.5%), and hot wallet compromises (17.1%). 

DeFi projects suffered the most losses — 82.06%. Online gambling ranks second with 11.04%, followed by centralized exchange projects at 3.85%.

“BNB Chain remains a strong competitor, surpassing Ethereum in terms of daily active users and transactions. Although 2023 was more successful in terms of the total amount of funds lost to exploits, it cannot be denied that scammers and hackers will continue to change their methods until stricter measures are taken to hold them accountable,” analysts concluded.

Earlier, experts from Chainalysis reported a decline in 2023 in the volume of illicit revenues from crypto scams and hacks by 29.2% and 54.3% respectively. 

Back in December, TRM Labs listed factors that could contribute to reducing the losses of the Bitcoin industry from cyberattacks.