Rug pulls and scams cost crypto investors $54M in May

A report from security firm De.Fi shows that the crypto market saw a wave of scams and hacking incidents that resulted in cumulative losses of over $54 million in May.

May fared better than April’s $101.5 million loss thanks to better security practices among users and developers.

However, no funds were recovered in May 2023 – compared to $2.2 million recovered in April.

The BNB Chain ecosystem accounted for the majority of the incidents, with losses above $37 million across ten cases. Ethereum-based projects saw the least exploits at just over $2 million.

Among the top ten cases, Fintoch suffered the highest loss of $31.7 million due to a smart contract exploit. Jimbo Protocol on Arbitrum experienced a loss of $7.5 million due to a rugpull, while Deus Finance on BNB lost $6.2 million in a smart contract exploit.

Other notable cases included Tornado Cash, Mother, WSB Coin, Linda Yaccarino, Block Forest, SNOOKER, and land, with losses ranging from $145,000 to $733,000.

Rug pulls remained the most prevalent, accounting for twelve cases and losses totaling $37 million. There were nine cases of exploits resulting in losses of $8.8 million, while flash loan Attacks, although less frequent with five cases, still led to significant losses totaling $8.9 million. Exit scams were responsible for two cases, resulting in a loss of $177,000.

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