In a promising development for the cryptocurrency industry, losses from fraud and hacks decreased by 12% in May 2024 compared to the previous year. According to a report by blockchain security firm Immunefi, total losses for the month amounted to $52 million, down from $59 million in May 2023. This marks a notable improvement, further supported by a 28% reduction in losses compared to April 2024.
The report attributes most of May's losses to two major incidents. The first involved a hack of the Web3 gaming protocol Gala Games, resulting in a $21 million loss. The second significant attack targeted Sonne Finance, leading to a $20 million loss through a smart contract exploit. Combined, these two incidents accounted for 78% of the total losses in May.
Ethereum and BNB Smart Chain were the most targeted networks, representing 62% of the attacks. Interestingly, all the attacks were directed at decentralized protocols, with no centralized exchanges reporting losses.
Fraud contributed to a smaller portion of the total losses, accounting for only $1.7 million or 13.6%. This decline in overall losses from exploits and fraud is part of a broader trend observed throughout 2023 and into 2024, which experts attribute to advancements in security technology and more effective policing practices.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
