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73.3% of Q1 rug pulls happened on BNB Chain: Immunefi

April 4, 2023No Comments


BNB Chain was the king of rug pulls in Q1 2023, with more than 73.3% of such scams across the entire crypto ecosystem occurring on the network, according to an April 4 report from security firm BNB Chain. blockchain immune fi.

The report, titled โ€œCrypto Losses in Q1 2023,โ€ investigated a variety of crypto hacks and scams in the first quarter of the year. It found that Ethereum and the BNB Chain were the top two targets for hackers and scammers, accounting for 68.8% of the total losses from these networks combined. BNB Chain, in particular, accounted for 41.3% of the total losses from hacking and scams.

One type of scam, in particular, reigned supreme on BNB Chain: carpet pulls, a type of scam in which developers raise funds and then close shop without delivering a product or service. Immunefi stated that 73.3% of all rug pulls in the crypto ecosystem occurred on BNB Chain in Q1.

Related: Uniswap Launches on BNB Chain Ecosystem to Drive Growth and Liquidity

Immunefi's technology lead, Adrian Hetman, speculated that the high number of pulls in the chain may be due to a culture that promotes forking of open source code:

โ€œBNB Chain still has a serious problem with developers using forked code. Its community lacks a security-first approach and attracts a lot of users looking for a quick way to make money. This is why we continue to see the most exploits and rug pulling in this ecosystem.โ€

Despite the prevalence of these scams on the BNB Chain, Immunefi also stated that rug thefts and other fraud are much less of a problem in the crypto community than hacks or exploits. Hacks were the "predominant cause" of losses in the first quarter of 2023, according to the report, while all fraud combined (including rug thefts and other scams) accounted for just 4.3% of total losses.

The first quarter of 2023 has seen spectacular hacks and exploits, draining millions of dollars from decentralized finance (DeFi) protocols. On February 1, the BonqDAO DeFi Lending App was the victim of an oracle hack, losing $120 million worth of crypto. On February 17, decentralized exchange aggregator dexible was hacked for more than $2 million. And on March 13, Euler lost over $195 million of cryptocurrencies in the largest DeFi attack of the quarter.