New data from vulnerability hunting platform Immunefi shows that approximately $1.7 billion in cryptocurrency assets have been stolen from the BNB Chain since its inception in September 2020.
A new research post from Immunefi says BNB Chain has faced hundreds of scams and security breaches since launching roughly four years ago.
“In total, we have recorded a loss of $1.64 billion on BNB Chain since its inception. $1.27 billion was lost due to hacks in 168 specific incidents, and $368 million was lost due to fraud in 228 specific incidents.
The majority of the amount was lost as a result of four specific incidents, including BNB Chain itself, Venus Protocol, Qubit Finance and Uranium Finance.”
A cybersecurity firm has found that the BNB network is popular with scammers and has twice the rate of fraud as Ethereum (ETH), the leading smart contract platform.
“Despite efforts to maintain security, a surprising number of users attempt to commit scams in the form of online hijacks. Overall, the volume of fraud on BNB Chain is 2.3 times higher than the volume of fraud on Ethereum.”
Immunefi notes that the BNB network suffered most of its losses between 2021 and 2022, with attackers siphoning off $911 million from the smart contract protocol.
Although BNB Chain fared better in 2023, with losses falling to $165 million, Immunefi claims the cryptocurrency project has encountered difficulties.
“Despite the downward trend observed in 2023 across the entire ecosystem, losses from rug-pulling accounted for 44% of total BNB Chain losses in 2023. By comparison, losses from rug-pulling on Ethereum accounted for only 1.7% of total losses in 2023, a significant decrease from 4.4% in 2022.”
Tug of war is a type of fraudulent scheme in which a project creates the illusion of reliability to attract investors in order to subsequently siphon off as much liquidity as possible.
BNB, BNB Chain's native token, is trading at $532 at the time of writing, up 1.68% in the last 24 hours.
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