In the first quarter of 2023, BNB Chain was the top target for crypto hackers and scammers, with over 73% of all rug pulls in the entire crypto ecosystem happening on the network, according to a report by blockchain security firm Immunefi.
Rug pulls, a type of scam where developers raise funds and then disappear without delivering a product or service, was the most prevalent type of scam on BNB Chain.
The report titled “Crypto Losses in Q1 2023” revealed that BNB Chain and Ethereum were the largest targets for hackers and scammers, making up 68.8% of total losses from these networks combined. BNB Chain, in particular, was responsible for 41.3% of total losses from hacks and scams. Immunefi stated that 73.3% of all rug pulls in the crypto ecosystem happened on BNB Chain in the first quarter.
According to Adrian Hetman, Immunefi tech lead, the high number of rug pulls on BNB Chain may be due to a culture that promotes forking open-source code. He said, “BNB Chain still has a serious issue with developers using forked code. Its community lacks a security-first approach and attracts many users looking for a quick way to earn money. That’s why we continue to see the biggest number of exploits and rug pulls in this ecosystem.”
However, despite the prevalence of these scams on BNB Chain, Immunefi noted that rug pulls and other frauds were a much smaller problem in the crypto community than hacks or exploits, with all frauds combined making up only 4.3% of total losses.
The first quarter of 2023 has seen a surge in hacks and exploits, draining millions of dollars from decentralized finance (DeFi) protocols. BonqDAO, a DeFi lending app, lost $120 million in crypto due to an oracle hack, while decentralized exchange aggregator Dexible was hacked for over $2 million. Euler suffered the largest DeFi attack of the quarter, losing over $195 million of crypto.
This report highlights the importance of security-first approaches in the crypto industry, particularly in the BNB Chain ecosystem, as investors and traders need to be wary of scams and frauds. As the industry continues to grow and evolve, it is essential to prioritize security to protect users and investors from these attacks.