SNEAK PEEK

• BNB Chain ecosystem reports alarming $37M loss in security breaches.
• The crypto market shows slight security improvement from April to May.
• Ethereum-based projects show resilience, with minimal losses in May.

In an alarming surge of security breaches within the blockchain industry, the BNB Chain ecosystem has become the primary target. With staggering losses exceeding $37 million across ten separate incidents, concerns are escalating over the security measures within the crypto-landscape. 

This information was illuminated by De.Fi, a premier firm specializing in blockchain data analysis. The firm further revealed that May marked a wave of scams and hacking incidents culminating in a tremendous loss of over $54 million.

Compared to April’s jaw-dropping loss of $101.5 million, the May incidents suggest an improvement in security practices among users and developers. Despite this silver lining, May’s record reflected a total lack of funds recovery, unlike the $2.2 million recovered in April.

Noteworthy Losses

Per the reports, Ethereum-based projects were minimally affected, with losses of only slightly over $2 million. Among the unfortunate top ten cases, Fintoch was the highest loser, losing a staggering $31.7 million due to a smart contract exploit.

Moreover, Jimbo Protocol on Arbitrum suffered a $7.5 million loss due to a notorious ‘rug pull,’ while Deus Finance on BNB lost $6.2 million due to a smart contract exploit. Other victims, including Tornado Cash, Mother, WSB Coin, Linda Yaccarino, Block Forest, SNOOKER, and land, experienced losses varying between $145,000 to $733,000.

Various Scams and Their Prevalence

Other reported scams included flash loan attacks and exit scams. According to sources, Flash loans were responsible for five reported cases with losses of $8.9 million. Governance tokens were most often targeted in these attacks, with 19 cases reported, totaling losses of $3.3 million.

On the other hand, exit scams, a ploy where fraudsters collect funds for a nonexistent or poorly developed project and then vanish, resulted in a loss of $177,000 across two cases.

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• Source: https://investorbites.com/insecurity-in-the-crypto-landscape-bnb-chains-staggering-37m-losses/