Hacks, Rug Pulls Cost BNB Chain $1.6B Since Inception: Immunefi
BNB Chain has been identified as the most common target for "rug pulls", with $1.64 billion lost to hacks and rug pulls since its inception, according to a report by Immunefi. The report attributes $1.27 billion of the losses to hacks and the rest to rug pulls, a type of fraud where a project is created to steal deposited funds and then abandoned. The report assesses 228 rug pull cases accounting for $368 million, the largest being the $40 million DeFiAI rug pull in November 2022. In comparison, Ethereum has seen losses of $3.6 billion, but only 4.4% of that is due to rug pulls. The prevalence of rug pulls on BNB Chain is attributed to developers using forked code and the community's attraction to quick money-making schemes. However, losses have decreased following network vulnerability-addressing hard forks and were further reduced this year with only $38 million lost so far. The blockchain has also experienced numerous exploits and hacks, including a $200 million loss in 2021 due to price manipulation of Venus Protocol's native token and an $80 million loss in 2022 after DeFi protocol Qubit Finance's QBridge was hacked.
