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BNB Chain reports dramatic drop in crypto losses for 2023

BNB Chain reports dramatic drop in crypto losses for 2023

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TL;DR

  • BNB Chain’s crypto losses dropped 85% in 2023, decreasing from $1.1 billion to $161 million.
  • Enhanced security alerts from AvengerDAO and Hashdit significantly reduced scam and hack impacts.
  • Rise in hack and scam attempts highlights ongoing need for robust blockchain security.

According to a recent security report published today, the BNB Chain has demonstrated a substantial decrease in the loss of crypto assets in 2023. The detailed analysis, conducted by AvengerDAO in collaboration with notable security firms such as CertiK, Hashdit, Ancilia, and Salus, reveals a striking 85% reduction in losses compared to the previous year. 

The BNB Chain, which witnessed over $1.1 billion in stolen assets in 2022, reported losses of only $161 million in 2023. This decline is noteworthy, considering the chain suffered a significant uptick in both hacking and scamming attempts.

Enhanced security measures prove effective

The BNB Chain Core Development Team attributes this decline in financial loss to the effective implementation of proactive security measures. A key strategy has been the deployment of AvengerDAO’s rapid alert system, which has played a pivotal role in reducing the impact of potential scams and hacks. In 2023, AvengerDAO issued numerous alerts, including approximately 3,500 Red Alarm notifications and 330 alert tweets, to warn community members of potential risks. This preemptive approach has been essential in safeguarding the BNB Chain community from financial harm.

Despite the decrease in total losses, the number of security incidents on the BNB Chain saw a 44% year-on-year increase, with 414 incidents reported in 2023. Of these incidents, 315 occurred in DeFi projects. However, the final quarter of 2023 marked a significant improvement, with a 64% decrease in fiat losses compared to the third quarter.

Ongoing challenges and future outlook

While the reduction in losses is a positive sign, the BNB Chain still faces ongoing challenges. The report categorizes attacks on the chain, noting that hacks and scams remain prevalent threats. Hacks accounted for 50.72% of incidents, with scams close behind at 49.03%. Scams led to $87.9 million in losses, a 54% decrease from the previous year, while hacks resulted in $73.2 million in losses, marking a 91% decrease.

The BNB Chain Core Development team emphasized the importance of the contributions from AvengerDAO committee members and their role in maintaining the integrity of the crypto space. These collaborative efforts are crucial for providing the community with vital security information and mitigating threats on the BNB Chain.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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