BNB Chain Sees 85% Drop in Crypto Losses in 2023 Despite Increase in Hack and Scam Attempts
Summary:
The BNB Chain experienced a reduction in the amount of cryptocurrency lost in 2023, breaking a three-year increase, according to AvengerDAO's report. Despite a rise in hacking and scam attempts, financial losses decreased due to the quick alerts provided by AvengerDAO. The BNB Chain team highlighted the role of "Red Alarms," a risk screening tool, and reaffirmed their commitment to improve the ecosystem's security by expanding its partnership network.
Following the most recent report from AvengerDAO, contributed by security businesses like CertiK, Hashdit, Ancilia, and Salus, it was discovered that the quantity of cryptocurrency misplaced on BNB Chain witnessed a steep decline in 2023, disrupting a three-year surge. The report emphasized that losses within the BNB Chain ecosystem have been steadily increasing since 2020, peaking in 2022 with over $1.1 billion in crypto assets thefts. However, 2023 marked a significant turn of events as the network saw losses diminish to a mere $161 million, representing a striking contrast from the preceding year.
AvengerDAO's report showed that incidents relating to thefts and fraudulent practices within the BNB Chain experienced a decline in relation to the amount stolen. The year 2023 marked a significant decrease in losses from hacking activities by 91%, and a 54% reduction in financial losses from scams.
In spite of the fall in stolen values, the report pinpointed an upsurge in the number of hackings and fraudulent attempts during 2023. The previous year saw 210 hacking instances, which is a substantial 96% increase, while the number of scams also rose to 2023, showing a 14% increase from the previous year.
According to a representative of the BNB Chain Core Development Team, the decrease in financial losses on the BNB Chain network can be credited to prompt warning signals provided by the decentralized autonomous organization (DAO) to alert the community about potentially malicious entities. The representative clarified that while scam and hacking efforts did not reduce last year, the decreased financial losses can be largely attributed to AvengerDAO’s swift alerts which helped to mitigate the number of users falling prey to potential scams.
The BNB Chain team further elaborated that an increased frequency of "Red Alarms" were observed in 2023. This refers to a risk assessment tool used to intimate community members about plausible risks. Reportedly, the security firm Hashdit initiated about 3,500 Red Alarm alerts and issued 330 alert tweets last year.
Furthermore, a BNB representative told Cointelegraph that AvengerDAO, designed to safeguard the community from exploitation, scams, and harmful agents, aims to continuously expand its partnership network, which would aid in enhancing the ecosystem's security.
Published At
1/22/2024 4:00:00 PM
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