According to the latest AvengerDAO report prepared by security firms CertiK, Hashdit, Ancilia, and Salus, the amount of crypto lost on the BNB Chain broke a three-year rising trend, falling by 85% in 2023.
Losses on BNB in 2020
The report emphasizes that losses on the BNB Chain have been steadily increasing since 2020, peaking in 2022. That year, the BNB Chain ecosystem recorded over $1.1 billion in stolen cryptocurrency. However, in 2023, the network saw its losses drop significantly to $161 million compared to 2022. The report also noted that both hacks and scams on the BNB Chain have decreased in terms of stolen funds. While there was a 91% decrease in the amount lost to hacks, scams saw a 54% reduction in 2023.
While the value stolen decreased, the report highlights an increase in both hacking and scam attempts in 2023. There was a 96% yearly increase with 210 hacks observed, and a 14% increase in scam attempts in 2023 compared to 2022. A representative from the BNB chain core development team suggested that the reduction in lost funds on the BNB chain network could be attributed to rapid alerts created by the decentralized autonomous organization (DAO) to warn the community about potential bad actors. The company stated in its announcements:
There was actually no decrease in hacking or scam attempts last year, so the reduction in losses on the BSC (BNB chain) can largely be attributed to AvengerDAO’s rapid alerts aimed at minimizing the number of users involved in potential scams.
Warnings on BNB
BNB Chain team announced an increase in the number of “Red Alerts” used to warn community members about potential risks in 2023. The representative revealed that security firm Hashdit sent around 3,500 alerts through the Red Alarm tool and that 330 alerts were issued in 2023 on platform X. The representative also stated that AvengerDAO will continue to increase the number of partners it collaborates with to protect the community from exploits, scams, and malicious actors. This could allow the DAO to continue improving the ecosystem’s security.