Funds lost to cryptocurrency fraud and hacks have seen a 12% decline year-over-year, according to a recent report from blockchain security firm Immunefi. The report, released on May 30, revealed that $52 million was lost due to fraudulent activities and hacks over the course of the month, down from over $59 million in the same period last year. This figure also marks a 28% reduction compared to losses reported in April.
The findings highlight a continuing trend of diminishing losses in the Web3 industry due to fraud and hacking incidents. Earlier in March, Immunefi noted a 23% year-over-year decline in losses for the first quarter of 2024. This trend was further supported by CertiK’s April report, which documented the lowest losses on record for that month.
The bulk of the losses in May stemmed from two significant attacks. Gala Games, a Web3 gaming protocol, suffered a hack that resulted in approximately $21 million in losses. In another incident, a smart contract exploit targeted Sonne Finance, leading to $20 million in losses. Together, these two attacks accounted for 78% of the total losses for the month.
Ethereum and BNB Smart Chain emerged as the most targeted networks, attracting 62% of the attacks in May. Notably, all the attacks were directed at decentralized protocols, with no centralized exchanges reporting any loss of funds due to attacks.