Crypto Investors Lost $54M to Rugpulls, Scams in May: Blockchain Security Firm De.Fi Posted: June 5, 2023 |
During the unstable month of May 2023, a new analysis from the security firm DeFi shows that the cryptocurrency market was hit by an upsurge of fraud and hacking activities that resulted in cumulative losses of over $54 million. This information comes from the report. This suggests that security measures are being improved by both users and developers, as the figure is roughly half of the $101.5 million that was lost in April. On the other hand, there was no recovery of funds in May 2023, in contrast to the $2.2 million that was recovered in April. The BNB Chain ecosystem was accountable for the majority of the occurrences, which totaled in excess of $37 million in losses over ten separate cases. The least amount of exploits was seen in projects that were built on Ethereum, which was slightly over $2 million. Fintoch lost the most money of the top ten cases, $31.7 million, as a result of a smart contract flaw. Jimbo Protocol on Arbitrum lost $7.5 million as a result of a rug pull, while Deus Finance on BNB lost $6.2 million as a result of a smart contract flaw. With losses ranging from $145,000 to $733,000, other noteworthy instances were Tornado Cash, Mother, WSB Coin, Linda Yaccarino, Block Forest, SNOOKER, and Land. Rug pulls continued to be the most frequent, accounting for 12 incidents and $37 million in losses. There were nine instances of fraud, which cost $8.8 million in losses, whereas flash loans Despite attacks being less common (there were just five occurrences), they nevertheless resulted in large losses of $8.9 million. Exit scams were to blame for two instances, which cost $177,000 in total. A cryptocurrency fraud known as a "rug pull" occurs when the perpetrator, or perpetrators, builds credibility on social media, hype up a project, and amass a large number of money, only to drain liquidity once the project's tokens are first made available to the general public. Instead of employing third intermediaries, flash loans are a sophisticated form of exploit that let traders borrow unsecured amounts from lenders via smart contracts. Attackers often use flash loans to drain the treasury and influence token values where the smart contract is unable to notice the interference.
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