73.3% of Q1 Crypto Scams Happened on BNB Chain: Report

Overview

• BNB Chain was the most-targeted network for rug pulls in Q1 2023, with 73.3% of such scams happening on the chain.
• Hacks were found to be the predominant cause of losses in Q1 2023, making up 68.8% of total losses.
• All frauds combined, including rug pulls and other scams, made up only 4.3% of total losses.

Rug Pulls on BNB Chain

According to an April 4 report from blockchain security firm Immunefi, over 73.3% of all rug pulls in the crypto ecosystem happened on BNB Chain in the first quarter of 2023. Rug pulls are a type of scam where developers raise funds and then close up shop without delivering a product or service. Immunefi tech Lead Adrian Hetman speculated that this may be due to a culture that promotes forking open-source code on BNB Chain and users looking for quick ways to make money.

Losses from Hacks & Exploits

Immunefi’s report also stated that hacks were the „predominant cause“ of losses in Q1 2023, with Ethereum and BNB Chain being the two largest targets for hackers and scammers making up 68.8% of total losses from these networks combined. Notable incidents included BonqDAO losing $120 million in crypto in an oracle hack on Feb 1, Dexible being hacked for over $2 million on Feb 17th and Euler losing over $195 million due to a DeFi attack on March 13th.

Frauds as Smaller Problem than Hacks & Exploits

While rug pulls were found to be prevalent on BNB Chain during this period, Immunefi stated that they are still a much smaller problem compared to hacks or exploits when it comes to causing losses within the crypto ecosystem; all frauds combined made up only 4.3% of total losses whereas hacks alone accounted for 68.8%.

Conclusion

In conclusion, rug pulls were commonly seen happening on BNB Chain during Q1 2023 but still pale in comparison when it comes to causing overall losses compared to hacks or exploits which continue to plague many projects within the cryptocurrency space today