The Battle Against Crypto Crime in May 2024
In May 2024, cryptocurrency enthusiasts had a turbulent journey due to significant losses from hacks and frauds. However, amidst these challenges, some interesting trends emerged. Let’s explore whether we are making progress in combating crypto crime or if hackers are just changing their tactics.
Are Declining Losses a Sign of Progress?
Compared to the previous year, May 2024 witnessed a considerable decrease in total losses, amounting to $473,229,944, signaling a 20% decline. This shift could indicate improvements in security measures or a shift in cybercriminal strategies.
Noteworthy Incidents of May 2024
During May 2024, the crypto community faced losses totaling $52,371,900 across 21 incidents. While this amount is significant, it represents a drop from the previous year and April 2024, offering a ray of hope amidst the adversities. The most substantial losses were concentrated in two major incidents:
- Gala Games: The crypto gaming project suffered a $21 million loss, making it the largest single loss of the month.
- Sonne Finance: The decentralized lending app lost $20 million, highlighting the risks associated with DeFi lending platforms due to their high volumes.
Hacks vs. Frauds Analysis
In May 2024, hacking incidents continued to dominate, constituting 96% of total losses, with $50,618,600 stolen in 14 hacking attacks. While less prevalent, fraud remained a significant concern, comprising 3% of reported incidents and resulting in $1,753,300 in losses. This underscores the importance of staying vigilant against cybercrime in all its forms.
Shifting Focus: CeFi vs. DeFi
Interestingly, Centralized Finance (CeFi) platforms remained untouched, indicating a potential shift in hackers’ focus towards decentralized systems.
Targets Identified: Ethereum and BNB
Ethereum and Binance Coin (BNB) were prime targets, collectively contributing to 62% of total losses. Ethereum experienced nine exploitation instances, accounting for 43% of losses, while BNB Chain had four occurrences, leading to a 19% loss. Other affected chains include Base, Arbitrum, Solana, TON, Blast, Fantom, Optimism, Polygon, and Polygon, contributing 8% of total losses.
When Will Action Be Taken?
The data from May 2024 indicates a decline in overall crypto losses year-on-year and month-on-month. However, DeFi platforms remain the primary focus of cyber attacks, with Ethereum and BNB Chain being the most targeted. The battle against crypto crime continues, even as losses decrease.
Stay informed about crypto scams:
Hot Take: Continued Vigilance is Key in the Fight Against Crypto Crime
Despite the decline in crypto losses in May 2024, the battle against hackers and fraudsters remains ongoing. Stay vigilant and informed to protect your investments in the ever-evolving crypto space.
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