The May 30 report from blockchain security firm Immunefi reveals that losses from crypto fraud and hacks have decreased by 12% compared to the previous year. Throughout the month, a total of $52 million was lost, a significant drop from the $59 million lost in the same month last year. Furthermore, this figure represents a 28% decline compared to the losses incurred in April.
The report highlights an ongoing trend of diminishing losses from hacks and fraud within the Web3 industry. In March, Immunefi published a report stating that losses in the first quarter of 2024 had decreased by 23% compared to the previous year. In April, CertiK reported that it had witnessed the lowest losses ever in a single month.
According to the May 30 report from Immunefi, the majority of the losses were a result of two specific attacks. The first attack targeted the Web3 gaming protocol Gala Games, resulting in losses of approximately $21 million. The second attack involved a smart contract exploit against Sonne Finance, leading to $20 million in losses. These two attacks alone accounted for 78% of the total losses in May.
In May, Ethereum and BNB Smart Chain were the two networks most frequently targeted by attackers, attracting 62% of the attacks. All of the attacks were aimed at decentralized protocols, and no centralized exchange suffered any losses as a result of an attack.
Fraud constituted a relatively small portion of the overall losses, with only $1.7 million, or 13.6%, attributed to fraudulent activities. The remaining losses were caused by hacks and exploits.
Immunefi’s report did not provide any speculation as to why the monetary losses from exploits have decreased. However, experts have suggested that this decline, as well as the smaller losses observed in 2023 compared to 2022, can be attributed to advancements in security technology and law enforcement practices.
In April, Blockaid claimed that its software has successfully forced some crypto drainers to cease their operations, thereby reducing at least one type of threat faced by crypto users.