Research Reveals 85% Decrease in Financial Losses from Hacks and Scams on BNB Chain in 2023

Financial Losses on BNB Smart Chain Decreased by 85% in 2023

A recent study conducted by Avenger DAO reveals that financial losses due to exploits or breaches on the BNB Smart Chain dropped by 85% in 2023, amounting to $161.1 million. This is a significant decrease compared to the over $1.1 billion lost in 2022.

Q2 2023 was the Most Costly Quarter

The study data shows that the second quarter of 2023 was the costliest period, with approximately $69.5 million lost across 127 incidents. However, the last quarter of 2023 incurred the least damages, with $15.6 million lost in 86 incidents.

Scams Were the Primary Attack Vector in 2023

Unlike previous years, where hacks led to the majority of financial losses, scams accounted for the highest loss in 2023, totaling $87.9 million. On the other hand, losses associated with hacks declined from $870.8 million in 2022 to $73.2 million in 2023.

Increase in Hacking Incidents

Although financial losses from hacking incidents were lower in 2023, the study suggests that criminals are increasingly favoring this type of attack. This may be attributed to the challenge of tracing the hackers’ real identity and their use of money mixers and non-KYC exchanges.

Distribution of Losses Across Chains in Q4 2023

When comparing losses in the fourth quarter of 2023, Ethereum accounted for 66% of all fiat losses, followed by Tron with a 13.62% share and Arbtrum with 5.33%. The BNB Smart Chain only represented 3.81% of the financial losses during the same period.

Collaborative Efforts Led to Recovery of Funds

Despite the significant financial losses on the BNB Smart Chain, Avenger DAO’s collaboration with other entities resulted in the recovery or freezing of funds totaling $7.3 million. Overall, approximately $55 million was recovered.

Hot Take: Decrease in Financial Losses on BNB Smart Chain

In 2023, financial losses on the BNB Smart Chain due to exploits or breaches fell by 85% to $161.1 million, according to a study by Avenger DAO. Scams emerged as the primary attack vector, surpassing hacks in terms of losses. However, hacking incidents are on the rise, indicating a worrisome trend. Despite the challenges, Avenger DAO’s collaborative efforts led to the recovery of millions of dollars. It is crucial for the crypto community to remain vigilant and prioritize security measures to mitigate potential risks and protect investor assets.