By Philip Maina2 months agoSat Jul 13 2024 09:00:53Reading Time: 2 minutesBNB Chain has lost more than $1.5 billion to rug pulls and hacks since its launch in 2017Close to $400 million is linked to rug pulls with the rest siphoned through hacksThe blockchain has in the past introduced measures through hard forks to strengthen the networkBinance exchange-operated blockchain BNB Chain has lost over $1.5 billion over the years since its launch in 2017. The funds were lost through hacks and rug pulls with hacks accounting for the lion’s share of the funds despite the network conducting hard forks to address its weaknesses. According to blockchain security platform Immunefi, the amount lost by BNB Chain makes the blockchain a favorite for malicious actors developing web3 projects with the aim of pocketing investors’ funds through rug pulls, a tactic that continues to nab more unsuspecting victims.The BNB Chain Community Likes Quick Returns?According to Immunefi, hackers have managed to siphon roughly $1.3 billion from BNB Chain-based projects, while rug pulls account for close to $400 million. The report noted that the blockchain had recorded 228 rug pulls in its 7-year existence. Among the most notable rug pull among them is the 2022 DeFiAI case where the project’s developers pocketed $40 million.The blockchain security firm noted that rug pulls tend to flourish on BNB Chain because developers rely on forked code and that the network’s community easily falls for projects promising quick returns.BNB Chain’s measures to strengthen the network have borne fruits with losses from hacks and rug pulls dropping significantly in 2023 and 2024. Ethereum, on the other hand, has lost more than $3.5 billion to malicious actors since its inception, with rug pulls accounting for less than 5% of the amount.A Panic Button on a BlockchainThe revelation comes roughly a year after BNB Chain announced the introduction of a panic button on its network to enable halting of the network in case of an exploit. It also comes four months after the blockchain unveiled a new service to create scaling networks.With BNB Chain continuously addressing its weaknesses, malicious actors will likely shift to a weaker blockchain.
BNB Chain Has Lost Over $1.5 Billion to Hacks and Rug Pulls
