Crypto scams and frauds saw a further decline, with losses totaling $52 million in May, down from $59 million the previous year.
According to a report released on May 30 by blockchain security firm Immunefi, losses from crypto fraud and hacks experienced a 12% decline year-over-year. The total amount lost in May stood at $52 million, down from over $59 million during the same period last year. Moreover, this figure marks a notable 28% decrease compared to April’s losses.
This report underscores a consistent downward trend in losses attributed to hacks and fraud within the Web3 industry. In March, Immunefi had highlighted a 23% decrease in losses for Q1 2024 compared to the previous year. Similarly, April witnessed its lowest losses ever, as reported by CertiK.
Immunefi’s report indicates that the majority of May’s losses stemmed from two major incidents. The first involved a hack targeting the Web3 gaming protocol Gala Games, resulting in approximately $21 million in losses. The second incident was a smart contract exploit affecting Sonne Finance, leading to $20 million in losses. Combined, these two attacks accounted for 78% of the total losses incurred for the month.
In May, Ethereum and BNB Smart Chain emerged as the primary targets for attackers, accounting for 62% of all attacks. Notably, decentralized protocols bore the brunt of these attacks, while centralized exchanges remained unscathed.
Fraudulent activities constituted a minor portion of the total losses, amounting to just $1.7 million, or 13.6%. The majority of losses stemmed from hacks and exploits.
Immunefi’s report refrained from speculating on the reasons behind the decrease in monetary losses from exploits. However, it’s worth noting that 2023 also witnessed reduced losses compared to 2022, possibly attributed to advancements in security technology and law enforcement practices.
Blockaid’s recent claim highlighted a positive development, asserting that its software played a role in prompting some crypto drainers to cease operations. This reduction in threats reflects progress in safeguarding crypto users’ assets.
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