New data from bug bounty platform Immunefi has revealed that approximately $1.7 billion in crypto assets have been leaked on the BNB chain since its inception in September 2020.
A new research paper reveals that To tell The BNB Chain has experienced hundreds of fraud and security incidents since its launch nearly four years ago.
“Since the inception of the BNB Chain, a total of $1.64 billion has been lost: $1.27 billion lost in 168 hacking incidents, and $368 million lost in 228 fraud incidents.
The majority of the amount was lost in four specific incidents involving BNB Chain itself, Venus Protocol, Qubit Finance and Uranium Finance.”
The cybersecurity firm found that BNB Chain is popular for rug-pulling and has more than twice as many scams as the leading smart contract platform, Ethereum (ETH).
“Despite efforts to maintain security, a surprisingly large number of users attempt to cheat on the network in the form of rug pulling. Overall, the amount of cheating on the BNB chain was 2.3 times higher than on Ethereum.”
Immunefi further noted that the BNB chain bore the majority of the losses, with malicious actors bleeding $911 million from its smart contract protocol between 2021 and 2022.
Although BNB Chain was doing well when losses plummeted to $165 million in 2023, Immunefi says the crypto project has been plagued by rug pulls.
“Despite a downward trend across the ecosystem in 2023, rug pulls accounted for 44% of BNB Chain’s total losses in 2023. In comparison, Ethereum rug pulls accounted for just 1.7% of its total losses in 2023, down significantly from 4.4% in 2022.”
Rug pulling is a type of fraudulent scheme in which a project attracts investors by making it appear credible, and then later drains as much liquidity as possible.
BNB, the native token of the BNB Chain, is trading at $532 at the time of writing, up 1.68% in the past 24 hours.
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