BNB Chain Dominates Rug Pull Scams In Q1 2023, Says Immunefi Report

A new report from a company called Immunefi says that bad people are trying to steal money from special computer money called BNB Chain. The report looked at lots of different ways bad people try to steal computer money. BNB Chain is the one that gets stolen from the most, more than any other computer money. They do something called a “rug pull” which is a bad scam. In fact, BNB Chain had more than 73% of all the rug pulls in the whole computer money world.

A person named Adrian Hetman, who works at a company called Immunefi, thinks that the way BNB Chain works might make it easier for bad people to steal money using a rug pull scam. But, the report says that rug pulls are not the biggest problem. The biggest problem is when bad people use their computer skills to break into accounts and steal money. This is called a hack or an exploit. In the first three months of 2023, bad people stole $317 million using hacks and exploits. In contrast, all frauds combined only accounted for 4.3% of losses.

According to the report, Ethereum and BNB Chain were discovered to be the two most significant targets for hackers and scammers, with the networks accounting for 68.8% of total losses from scams and hacks combined. BNB Chain, in particular, made up 41.3% of total losses.

One notable hack was the DeFi lending app BonqDAO, which lost $120 million in crypto due to an Oracle hack on Feb. 1. On Feb. 17, decentralized exchange aggregator Dexible was hacked for over $2 million. The largest DeFi attack of the quarter was on Mar. 13, when Euler lost over $195 million of crypto.

BNB Chain’s Security Problem

BNB Chain’s high incidence of rug pulls scams can be attributed to its security issues. The platform’s culture does not prioritize security, leading to many developers using forked code. This attracts users looking for a quick way to make money, leading to a higher incidence of exploits and rug pulls. To combat this issue, BNB Chain needs to prioritize security and encourage a culture of security-first development.

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In conclusion, while rug pulls scams are a prevalent problem on BNB Chain, they make up a small percentage of total losses in the crypto community. The report highlights the need for increased security measures in the crypto ecosystem to prevent other hacks and exploits.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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