A new report by security firm , De.Fi, shows that May 2023 was a month of turmoil for the cryptocurrency industry. Scams and hacking incidents resulted to losses totaling over $54,000,000.

This is almost half the $101.5 million in April, indicating better security practices by users and developers. In May 2023, however, no funds have been recovered – as opposed to the $2.2 million recovered last April.

BNB Chain was the most affected ecosystem, with losses exceeding $37 million in ten incidents. Ethereum-based projects were the ones with the fewest exploits, just under $2 million.

Last month, the BNB Chain ecosystem was most affected by exploits and rug pulling. (De.Fi)

Fintoch, which was ranked number ten in the list of top ten cases suffered the largest loss at $31.7 million. This was due to an exploit on a smart contract. Jimbo Protocol, on Arbitrum, suffered a $7.5 million loss due to rugpull. Deus Finance, on BNB, lost $6.2 millions in a smart-contract exploit.

Tornado Cash and Mother were also notable cases, as well as Linda Yaccarino. Block Forest, SNOOKER and SNOOKER Land, which resulted in losses ranging between $145,000 and $733,000.

Twelve cases of rug pulls resulted in losses totaling $ 37 million. Nine cases of exploits resulted in losses of approximately $8.8 Million, while five flash loan attacks, though less common, still caused significant losses amounting to $8.9 Million. Two cases were caused by exit scams, which resulted in a $177,000 loss.

A “rug-pull” is colloquial for a crypto scam in which the developer or developers gain legitimacy through social media, hype a project, and raise significant amounts of money, only to drain the liquidity once the project’s tokens have been offered to the general public.

Flash loans are a more sophisticated form of exploit, allowing traders to borrow funds from lenders without the need for third parties, using smart contracts. Attackers use flash loans in order to manipulate token prices and drain funds from treasuries.

In 19 reported cases, losses totaling $3.3 Million were reported. Three cases resulted in $4 million in losses. Stablecoins suffered the largest loss, with a total of $6.2 million.

Other categories such as yield-aggregators and gaming and metaverse apps, non-fungible (NFT) tokens and centralized crypto platforms also reported no losses in this time period. The lending and borrowing protocols were not affected either.

Parikshit Miishra is the editor.