June 24, 2024
Crypto Fraud Losses Down to $52M in May
Latest Cryptocurrency News

Crypto Fraud Losses Down to $52M in May

Crypto fraud and hack losses decreased by 12% year-over-year, according to a May 30 report from blockchain security firm Immunefi. In total, $52 million was lost over the month, down from over $59 million in the same month last year. This figure also represents a 28% decline compared to the amount lost in April. The report highlights a continuing trend of declining losses from hacks and fraud in the Web3 industry.

Major Incidents and Affected Networks

The May 30 report from Immunefi reveals that most of the losses came from two significant attacks. The first was a hack of the Web3 gaming protocol Gala Games, resulting in losses of approximately $21 million.

Top 10 crypto attacks in May, 2024. Source: Immunefi

The second was a smart contract exploit against Sonne Finance, which led to $20 million in losses. Together, these two attacks accounted for 78% of the total losses for the month. Ethereum and BNB Chain were the most targeted networks by attackers in May, with 62% of the attacks occurring on these chains. All the attacks were against decentralized protocols, with no centralized exchange losing funds from an attack.

Trends in Fraud and Security Measures

Crypto fraud continued to represent a small portion of overall losses. Only $1.7 million, or 13.6%, of the total losses came from fraud, while the remainder were caused by hacks and exploits. In its report, Immunefi did not speculate on why the monetary loss from exploits has declined. However, 2023 also saw smaller losses than 2022, and experts have suggested this earlier decline was due to advancements in security technology and police practices. In April, CertiK reported that the month had seen its lowest losses ever, and Blockaid claimed that its software has caused some crypto drainers to shut down, reducing at least one type of threat that crypto users face.

This ongoing decline in losses from hacks and fraud signals positive progress in the security measures within the crypto industry. Improved security technology, better police practices, and increased awareness among users and developers contribute to a safer environment for crypto assets.

Image by Pete Linforth from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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