Decline in Crypto Losses from Fraud and Hacks

A recent report from blockchain security firm Immunefi revealed a 12% decrease in crypto losses from fraud and hacks compared to the previous year. The report, dated May 30, disclosed that a total of $52 million was lost over the course of the month, indicating a decline from the $59 million lost in the same month last year. This reduction also marked a 28% decrease from the losses recorded in April.

The report highlights a consistent trend of diminishing losses from malicious activities in the Web3 industry. Earlier reports from Immunefi and CertiK showcased a similar pattern, with previous quarters and months experiencing notable decreases in crypto losses caused by hacks and fraud.

Major Losses and Attacks

According to the May 30 report, the majority of losses stemmed from two significant attacks. The first attack targeted the Web3 gaming protocol Gala Games, resulting in losses of approximately $21 million. The second incident involved a smart contract exploit against Sonne Finance, leading to $20 million in losses. Together, these two attacks accounted for 78% of the total losses recorded in the month.

Source: Immunefi

Network Vulnerabilities

Ethereum and BNB Chain emerged as the primary targets for attackers in May, with 62% of the attacks directed towards these networks. Notably, all the attacks targeted decentralized protocols, and no centralized exchanges suffered losses from any attacks.

Breakdown of Losses

Fraud accounted for a minor portion of the overall losses, contributing only $1.7 million, or 13.6%, of the total amount. The remaining losses were attributed to hacks and exploits.

The report did not offer insights into the reasons behind the decline in monetary losses from exploits. It is worth noting that losses in 2023 were also lower than those in 2022, with advancements in security technology and law enforcement practices being cited as potential reasons for the decrease.

In a separate development, Blockaid claimed that its software had prompted some crypto drainers to cease their activities, mitigating a specific threat faced by crypto users.