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Fiat Losses From Security Incidents on BNB Smart Chain 37% Lower in Q3 of 2023 — Study

Fiat Losses From Security Incidents on BNB Smart Chain 37% Lower in Q3 of 2023 — Study

The financial losses stemming from security incidents on the BNB Smart Chain in Q3 2023 were 27% lower than in Q3 2022. When compared to security incidents on other chains, rug pulls, price and reserve manipulation events on BSC accounted for “4% of the total fiat losses across all chains in Q3.”

Fiat Losses 37% Lower in Q3

The latest in-depth analysis of security incidents on the BNB Smart Chain (BSC) has shown that the financial losses stemming from such incidents dropped by 27% between the third quarter of 2022 and 2023. According to a report by Avenger DAO and the crypto threat intelligence leader Hashdit, this decline, which has been ongoing, “suggests that the security of BNB Chain has improved over the years.”

When compared with security incidents in the second quarter of 2023, the “fiat losses” incurred in Q3 topped $43.5 million or 37% lower than the $69 million seen in Q2 of 2023. The report, meanwhile, attributes the significant drop in the dollar value of losses suffered to the corresponding reduction in the number of hacks from 79 in Q2 to 45 in Q3.

Commenting on Avenger DAO and Hashdit’s findings, the BNB Chain Core Development Team said:

“Hashdit and Avenger DAO committees are at the forefront of crypto security and have seen a steady increase in users and integration with major ecosystem players. They are contributing greatly to the Web3 ecosystem and crypto community with these reports, empowering users and developers with essential security knowledge to make informed decisions.”

Rug Pulls Accounted for a Third of Losses

Meanwhile, when compared to security incidents on other chains, rug pulls, price and reserve manipulation events on BSC accounted for “4% of the total fiat losses across all chains in Q3.” In other words, the total fiat losses on BSC saw the chain being ranked fourth when compared to other chains. Ethereum, which accounted for 36% of all losses, is ranked first while Tron (32%) and Fantom (15%) are ranked second and third, respectively.

In the period analyzed, rug pulls, which accounted for 67% of all fiat losses, were one of the most common security threats seen on the BSC chain. Reserve and price manipulation accounted for approximately 12% of the exploits. Other common attack types include lack of validation (3.36%), access control issues (2.52%) and private keys being compromised (1.68%).

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