Fraud and hacking cases have decreased in cryptocurrencies

According to the report dated May 30th by Immunefi, a blockchain security firm, crypto losses from fraud and hacks decreased by 12 percent compared to last year. Losses from fraud and hack attacks in May 2023 amounted to $59 million. In May 2024, this figure was recorded as $52 million.

Gala Games took the lead

The report shows a decreasing trend in losses due to hacks and fraud in the crypto industry. In March, Immunefi published a report stating that losses in the first quarter of 2024 decreased by 23% compared to the previous year. In April, CertiK reported that the lowest monthly loss to date occurred.

According to Immunefi's report dated May 30, most of the losses were caused by two separate attacks. The first one was the hacking of the Web3 game protocol Gala Games, resulting in approximately $21 million in losses. The second one was a smart contract attack against Sonne Finance, resulting in $20 million in damages. These two attacks represent 78% of the total losses in May.

Ethereum and BNB Smart Chain were the two most targeted networks by attackers in May, accounting for 62% of the attacks. All attacks were against decentralized protocols, and no centralized exchange suffered any fund losses due to an attack.

Fraud continues to represent a small fraction of overall losses. While only $1.7 million or 13.6 percent of total losses came from fraud, the rest came from hacks and various attacks.

The Immunefi report did not speculate on why the financial losses from exploits decreased. Losses in 2023 were lower than in 2022, but experts attributed this early decline to advancements in security technology and law enforcement practices.

This article does not contain investment advice or recommendation. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.