Lawrence Jengar
15 July 2024 07:05
According to a Salus Security report, BNB Chain’s security measures are expected to reduce hacking losses by 87% year-on-year in Q2 2024.
According to Salus Security’s Q2 2024 BNB Chain Security Report, BNB Chain’s security environment has made significant progress in Q2 2024. BNB Chain’s total financial loss due to security breaches decreased by 87% year-over-year (YoY), reaching $9.2 million.
Some numbers for Q2 2024
BNB Chain reported 35 security incidents in Q2 2024, dramatically reducing its financial losses. The losses were reduced to $9.2 million, significantly lower than the $70 million loss in Q2 2023. The number of security incidents also decreased significantly in Q2 2024, dropping from 115 incidents reported in Q2 2023 to 35 incidents, a 60% decrease. The incidents occurred across April, May, and June, with the majority occurring in April and May. In June, there was a significant decrease in both security incidents and financial losses.
In April, there were 17 security breaches, resulting in a loss of $5.7 million. This accounted for 5.97% of the $95.6 million stolen from the cryptocurrency ecosystem. In May, there were fewer security breaches, but the amount stolen was higher at $5.7 million. However, due to the dramatic increase in assets stolen from the cryptocurrency space in May, the BNB chain’s contribution to the stolen assets from the cryptocurrency ecosystem dropped to 1.59%.
June had the fewest security incidents in Q2 2024, with losses dropping to $317,500. Despite the decline in the BNB chain, the total amount stolen from the cryptocurrency ecosystem was still significant at $138.8 million, with losses on the BNB chain accounting for just 0.23% of that figure.
Termination fraud and contract vulnerabilities were the most common types of attacks, accounting for 27 security incidents. Other notable attacks included flash loan attacks, price manipulation, access control, and private key compromise. Contract vulnerabilities and termination fraud were the most common, but private key compromise resulted in the largest loss.
Quarterly comparison
Looking at Q1 2024 and Q2 2024, we can see a clear decrease in losses both in the overall cryptocurrency ecosystem and on the BNB chain. In Q2 2024, there were 35 incidents, compared to 43 incidents reported in Q1 2024. The cryptocurrency ecosystem lost $731.8 million in Q1 2024, while the BNB chain lost $14.4 million, accounting for approximately 1.97% of the total loss. The overall loss decreased significantly in Q2 2024, dropping from $731.8 million to $594.3 million, an 18.79% decrease. The total amount lost on the BNB chain also decreased by 18.80% to $11.7 million. However, despite the decrease in absolute amount, the percentage of losses attributed to the BNB chain remained constant at 1.97%.
This suggests that while the total loss has decreased, the BNB chain has maintained impressive security performance. Stability is a testament to the effectiveness of the security measures adopted by the BNB chain and its ability to mitigate losses in line with broader cryptocurrency market trends.
Notable events in Q2 2024
In Q2 2024, there were five notable security incidents that resulted in losses to related projects.
- Alex Lab BTC – The most significant single incident of the quarter was a private key breach, with private keys being leaked via a phishing attack resulting in $4.3 million in losses.
- SAGA Token – It was an escape scam that resulted in a loss of $1.5 million.
- Change Finance – Chainge Finance smart contract vulnerability resulted in $716,000 loss.
- Orion Protocol – Another protocol was compromised due to a contract vulnerability, resulting in a loss of $616,000.
- Xbridge – The root cause of this exploit was a faulty implementation of a smart contract due to a lack of regulated access controls. This incident resulted in a loss of $820,000.
Recommended by Salus Security
Salus Security has put together some recommendations and strategic security measures to further strengthen your security.
- Enhanced monitoring system – These systems can detect suspicious activity in real time and respond quickly.
- Regular security audits – Comprehensive audits of smart contracts and access control mechanisms help identify and mitigate security vulnerabilities.
- Best Practices for Smart Contract Development – Encourage projects and developers to adopt secure coding standards and testing protocols.
- Awareness Program – We run regular community awareness programs to educate users and developers on security best practices.
In conclusion
Salus Security’s Q2 2024 Security Report marks a significant moment in the ongoing strengthening of blockchain security. The report highlights the effectiveness of BNB Chain’s security measures and the community’s commitment to blockchain security. While there have been notable incidents, the number of incidents and losses has decreased significantly compared to previous quarters. This decrease is a testament to the resilience, security, and proactiveness of the BNB Chain team and community.
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