Immunefi Report: Nearly $1.7 Billion Drained on BNB Chain Since Inception
New data from bug bounty platform Immunefi has revealed a shocking statistic – nearly $1.7 billion in crypto assets have been drained on BNB Chain since its inception in September 2020. This information comes from a recent research post by Immunefi, which highlights the numerous fraud and security incidents that have plagued BNB Chain over the past four years.
According to Immunefi, the losses on BNB Chain can be broken down into two categories – hacks and fraud. A staggering $1.27 billion was lost to hacks across 168 specific incidents, while $368 million was lost to fraud across 228 specific incidents. The majority of these losses were attributed to four specific incidents involving BNB Chain, Venus Protocol, Qubit Finance, and Uranium Finance.
One of the key findings from Immunefi’s research is that BNB Chain is particularly vulnerable to rug pulls, a type of fraud scheme where a project attracts investors with the intention of draining liquidity later on. In fact, the volume of fraud on BNB Chain was found to be over two times higher than on Ethereum, the leading smart contract platform.
Despite efforts to improve security, BNB Chain continued to suffer losses between 2021 and 2022, with bad actors draining $911 million from the protocol. While losses decreased in 2023 to $165 million, rug pulls remained a significant issue, accounting for 44% of total losses on BNB Chain that year.
Rug pulls on BNB Chain have far outpaced those on Ethereum, with only 1.7% of total losses in 2023 attributed to rug pulls on the latter platform. This highlights the ongoing challenges faced by BNB Chain in combating fraudulent activities.
At the time of writing, BNB, the native token of BNB Chain, is trading for $532, representing a 1.68% increase in the last 24 hours. Investors are advised to exercise caution and conduct thorough due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
