According to new data from bug bounty platform Immunefi, approximately $1.7 billion worth of crypto assets have leaked from the BNB chain since its launch in September 2020.
Immunefi recently revealed in a research post that the BNB chain has experienced hundreds of frauds and security incidents in the roughly four years since its launch.
“Since the launch of the BNB chain, a total of $1.64 billion has been lost. $1.27 billion was lost through hacks in 168 specific incidents, and $368 million was lost through fraud in 228 specific incidents.
Most of the amount was lost due to four specific events, including the BNB chain itself, Venus Protocol, Qubit Finance, and Uranium Finance.”
The cybersecurity firm found that the BNB chain is popular for spreading misinformation, with more than twice as many scams as the leading smart contract platform, Ethereum (ETH).
“Despite efforts to maintain security, a surprisingly high number of users attempt to fraudulently engage in the network in the form of rug pulls. Overall, the scale of fraud on the BNB chain was 2.3 times that of Ethereum.”
Immunefi points out that the BNB chain suffered most of the losses between 2021 and 2022, with malicious actors stealing $911 million from the smart contract protocol.
The BNB chain has fared slightly better, with losses plummeting to $165 million in 2023, but Immunefi says the crypto project has been met with harsh criticism.
“Despite the downward trend across the ecosystem in 2023, rug pools accounted for 44% of the total losses on the BNB chain in 2023. In comparison, rug pools on Ethereum accounted for just 1.7% of the total losses in 2023, down significantly from 4.4% in 2022.”
A rugpool is a type of fraudulent scheme that aims to make a project look credible in order to attract investors, and later drain as much liquidity as possible.
BNB, the native token of the BNB chain, is trading at $532 at the time of writing, up 1.68% over the last 24 hours.
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