New data from bug bounty platform Immunefi finds that nearly $1.7 billion in crypto assets have been drained on BNB Chain since its September 2020 inception.
In a new research post, Immunefi says that BNB Chain witnessed hundreds of fraud and security incidents after launching about four years ago.
“In total, we have seen a loss of $1.64 billion on BNB Chain since its inception. $1.27 billion was lost to hacks across 168 specific incidents, and $368 million was lost to fraud across 228 specific incidents.
Most of the sum was lost through four specific incidents, including BNB Chain itself, Venus Protocol, Qubit Finance, and Uranium Finance.”
The cybersecurity firm finds that the BNB Chain is popular for rug pulls and has over two times more fraud than Ethereum (ETH), the leading smart contract platform.
“Despite efforts to maintain security, a surprising number of users attempt fraudulent activities in the form of rug pulls on the network. Overall, the volume of fraud on the BNB Chain was 2.3x that of Ethereum.”
Immunefi goes on to note that the BNB Chain suffered the majority of losses between 2021 and 2022 when bad actors drained $911 million from the smart contract protocol.
While BNB Chain fared better in 2023 when losses plunged to $165 million, Immunefi says the crypto project has been plagued by rug pulls.
“Despite the downward trend witnessed in 2023 across the ecosystem, rug pulls accounted for 44% of the total losses on BNB Chain in 2023. In comparison, rug pulls on Ethereum made up only 1.7% of total losses in 2023, marking a significant decrease from 4.4% in 2022.”
Rug pulls are a type of fraud scheme where a project creates the illusion of credibility to attract investors with the intention of draining as much liquidity as possible later on.
BNB, the native token of the BNB Chain, is trading for $532 at time of writing, a 1.68% increase during the last 24 hours.
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