Immunefi Reveals: 73.3% of Q1 Rug Pulls Occur on Binance Smart Chain (BNB Chain)

Immunefi Reveals: 73.3% of Q1 Rug Pulls Occur on Binance Smart Chain (BNB Chain)

Rug Pulls on BNB Chain: Immunefi Report

Blockchain security firm Immunefi has revealed that Binance Smart Chain (BNB Chain) experienced the majority of rug pulls in the first quarter of 2023, accounting for over 73.3% of such scams in the entire crypto ecosystem, according to their latest report titled “Crypto Losses in Q1 2023”. The report investigated various crypto hacks and scams during the first quarter of the year, highlighting the prominence of BNB Chain and Ethereum as targets for hackers and scammers.

BNB Chain: The Leader in Rug Pulls

Immunefi’s report found that BNB Chain accounted for 41.3% of total losses from hacks and scams, making it the leading platform for such fraudulent activities. In particular, rug pulls, a type of scam where developers raise funds and then disappear without delivering the promised product or service, were rampant on BNB Chain. In fact, 73.3% of all rug pulls in the crypto ecosystem occurred on BNB Chain during the first quarter of 2023.

Immunefi’s tech lead, Adrian Hetman, suggested that the high occurrence of rug pulls on BNB Chain could be attributed to a culture that promotes forking open-source code, stating:

“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.”

Despite this, Immunefi also emphasized that rug pulls and other frauds are relatively smaller problems in the crypto community compared to hacks and exploits. According to the report, hacks were the “predominant cause” of losses in Q1 2023, while all frauds combined, including rug pulls and other scams, accounted for only 4.3% of total losses.

Spectacular Hacks and Exploits in Q1 2023

The first quarter of 2023 witnessed notable hacks and exploits that resulted in significant losses from decentralized finance (DeFi) protocols. Some of the notable incidents include:

  • BonqDAO Hack (Feb. 1): The DeFi lending app BonqDAO fell victim to an oracle hack, losing $120 million in crypto.
  • Dexible Hack (Feb. 17): The decentralized exchange aggregator Dexible was hacked for over $2 million.
  • Euler Attack (Mar. 13): Euler lost over $195 million in the largest DeFi attack of the quarter.

These incidents highlight the ongoing challenges and vulnerabilities in the crypto space, emphasizing the need for increased security measures and precautions to protect users’ funds.

In conclusion, Immunefi’s report sheds light on the prevalence of rug pulls on BNB Chain in Q1 2023, with the platform accounting for the majority of such scams in the crypto ecosystem. However, it also underscores that hacks and exploits remain the dominant causes of losses in the crypto community, emphasizing the importance of robust security measures in the rapidly evolving crypto landscape.