Funds lost to crypto fraud and hacks have decreased by 12% year-over-year, according to a recent report by blockchain security firm Immunefi. The report, released on May 30, revealed that $52 million was lost to fraudulent activities and hacks over the month, down from over $59 million during the same period last year. This also represents a 28% reduction compared to losses reported in April.
Ongoing Trend of Reduced Losses in Web3 Industry
The findings underscore a persistent trend of declining losses in the Web3 industry due to fraud and hacking incidents. Earlier in March, Immunefi noted a 23% year-over-year decrease in losses for the first quarter of 2024. This trend was further corroborated by CertiK’s April report, which recorded the lowest losses on record for that month.
Major Hacks in May
The majority of losses in May resulted from two major attacks. Gala Games, a Web3 gaming protocol, experienced a hack that led to approximately $21 million in losses. In another incident, a smart contract exploit targeted Sonne Finance, causing $20 million in losses. These two attacks combined accounted for 78% of the total losses for the month.
Targeted Networks and Attack Focus
Ethereum and BNB Smart Chain were identified as the most targeted networks, accounting for 62% of the attacks in May. Significantly, all the attacks were directed at decentralized protocols, with no centralized exchanges reporting any loss of funds due to attacks.
