Immunefi Finds Nearly $1.7B in Crypto Assets Have Been Drained on BNB Chain Since Its 2020 Inception

New data from bug bounty platform Immunefi finds that nearly $1.7 billion in crypto assets have been drained on BNB Chain since its September 2020 inception.

Immunefi, a bug bounty platform, has released new data revealing that a staggering $1.7 billion in crypto assets have been drained from BNB Chain since its launch in September 2020.

According to Immunefi's research, BNB Chain has experienced numerous fraud and security incidents over the past four years.

"In total, we have seen a loss of $1.64 billion on BNB Chain since its inception. $1.27 billion was lost to hacks across 168 specific incidents, and $368 million was lost to fraud across 228 specific incidents.

Most of the sum was lost through four specific incidents, including BNB Chain itself, Venus Protocol, Qubit Finance, and Uranium Finance.”

BNB Chain is particularly notorious for rug pulls, with over two times more fraud than Ethereum (ETH), the leading smart contract platform.

“Despite efforts to maintain security, a surprising number of users attempt fraudulent activities in the form of rug pulls on the network. Overall, the volume of fraud on the BNB Chain was 2.3x that of Ethereum.”

The majority of the losses on BNB Chain, around $911 million, were incurred in 2021 and 2022, as bad actors exploited the smart contract protocol.

While BNB Chain experienced lower losses in 2023, amounting to $165 million, Immunefi highlights that the crypto project continued to be plagued by rug pulls.

“Despite the downward trend witnessed in 2023 across the ecosystem, rug pulls accounted for 44% of the total losses on BNB Chain in 2023. In comparison, rug pulls on Ethereum made up only 1.7% of total losses in 2023, marking a significant decrease from 4.4% in 2022.”

Rug pulls are a type of fraud scheme where a project creates the illusion of credibility to attract investors, with the ultimate goal of draining as much liquidity as possible.

At the time of writing, BNB, the native token of the BNB Chain, is valued at $532, having experienced a 1.68% increase over the past 24 hours.