The month of May is coming to an end, and cryptocurrency investors have lost more money in scams like rug pulls than in DeFi protocol hacks. Back to these figures, which still show a downward trend in stolen funds.
Cryptocurrencies: rug pulls outperform hacks in May
Blockchain security firm Beosin has published a report, which focuses on the weight of criminal activities in the Web3 ecosystem in May. What mainly emerges is that over the past month, the funds stolen during rug pulls were greater than those stolen during hacks :
🔒Beosin Web3 Security Insights: May 2023 🔒
📉Declining Losses: Money involved in security incidents continued to decrease for 2 months. In May, 22 incidents occurred, resulting in losses of approximately $19.69 million, a 79% drop compared to April🚨
1/5 pic.twitter.com/hTap1Ibbu7
— Beosin 🛡 Blockchain Security (@Beosin_com) June 1, 2023
👉 To go further — What is a rug pull and how to protect yourself from it?
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Specifically, DeFi protocols suffered “22 security incidents”, for losses amounting to $19.69 million. This represents a drop of 79% compared to April, although it is not relevant to compare such data from one month to another, as a single hack can distort all the results.
The biggest attack will have been the one carried out on the Jimbos protocol, for 7.5 million dollars on Arbitrum (ARB) a few days ago.
At the level of rug pulls and other scams of the same order, these were less numerous, namely 6, but Fintoch comes to explode the scores with 31.6 million dollars. In total, the cost of these scams amounts to $45.02 million for investors.
At the moment, however, the second quarter seems to be following the trend of the first quarter of this year, which saw a drop in stolen funds of 70% compared to the last 3 months of 2022. Of course, it will be appropriate not to draw too hasty conclusionsbecause there is still a month before we can validate this trend.
Despite everything, it is a question of putting this reduction in stolen funds in perspective with the fall in activity in the sector of decentralized finance. Indeed, the total value locked in DeFi is $47.09 billion, according to DefiLlama, a drop of 41.5% compared to a year ago to the day. It will therefore be necessary to cross-check the current figures with future data when the market really starts to rise again.
👉 Also Read — Cryptocurrency Stolen in Hacks Dropped 70% in Q1
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Source: Beosin
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I timidly discovered the world of blockchain at the end of 2018 during my quest for financial freedom. Initially invested moderately, it was only two years later that I took the gamble of betting everything on the movement that was taking shape then. I then dedicate 2021 to training myself better to acquire more knowledge and seriousness. As I often like to say: I still have a billion things to learn. And what I do know, I want to share with you.
Vincent Mayor
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