Crypto Losses Dip by 12% YoY; Enhanced Security Measures Cited as Contributing Factor
Summary:
Crypto losses have fallen by 12% year-on-year according to a report by blockchain security firm Immunefi. The total losses were $52 million in May, which is less than the losses of over $59 million during the same month last year. Reasons behind the decline could be advancements in security technology and tighter policing practices. Ethereum and BNB Chain were the most targeted networks with decentralized protocols at high risk. Fraudulent activities amounted to only 13.6% of these losses.
In a trend demonstrating a reduction in fraudulent and hacking activities, the monetary losses in the cryptocurrency world fell by 12% on a year-on-year basis, as reported by blockchain safety company Immunefi on May 30. The total loss in May totaled $52 million, representing a fall from last year's corresponding period which saw a loss of more than $59 million. Moreover, this was a 28% drop when compared to April's loss. This continuous decrease in losses from scams and hacks in the Web3 realm was consistent with earlier reports. A report by Immunefi in March revealed that the losses for the first quarter in 2024 saw a 23% decline from the previous year. Then in April, CertiK confirmed a record low loss for the month.
The report by Immunefi dated May 30 highlighted that the bulk of the losses originated from two distinct attacks. The first one was a cyber-attack on the Web3 gaming protocol Gala Games, resulting in a loss of an estimated $21 million. The subsequent attack was a smart contract breach on Sonne Finance that resulted in a loss of $20 million. Combined, these two incidents accounted for 78% of the total loss for the month.
May's top ten crypto attacks, 2024. Courtesy: Immunefi
Related: Sonne Finance hit with a $20M exploit, culprit shows no intention of negotiating
During May, Ethereum and BNB Chain emerged as the prime targets for cyber-attackers, with 62% of strikes aimed at these networks. All attacks assaulted decentralized protocols with no centralized exchange losing any funds due to an attack.
Scams contributed minimally towards the overall losses, with only $1.7 million or approximately 13.6% of the losses resulting from fraud, the rest predominantly originating from hacks and exploits.
While the report from Immunefi refrains from offering a justification behind the reduction in monetary losses due to exploits, industry observations hint at the increased adoption of improved security technology and policing practices. Blockaid, in April, asserted its software had managed to discourage some cryptocurrency looters, thereby contributing towards the lessening of at least one genre of threat that cryptocurrency consumers confront.
Published At
5/30/2024 8:00:00 PM
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