The amount of crypto lost on BNB Chain broke a three-year uptrend, dropping 85% in 2023, according to the latest AvengerDAO report by security firms CertiK, Hashdit, Ancilia and Salus.
Within the report, the security firms highlight that losses incurred on the BNB Chain have consistently increased since 2020, recording their peak in 2022. That year, the BNB Chain ecosystem recorded over $1.1 billion in crypto assets stolen. However, in 2023, the network saw its losses decrease to $161 million — a steep drop from 2022.
The report also noted that both hacks and scams conducted on the BNB Chain dropped in terms of funds stolen. For hacks, there was a 91% decrease in the amount lost, while scams had a 54% decrease in 2023.
While the value stolen was down, the report highlights that both hack and scam attempts increased in 2023. The year saw 210 hacks, a 96% increase, while there were 2023 scam attempts, a 14% increase over 2022.
A representative from the BNB Chain Core Development Team believes that the reduction in funds lost in the BNB Chain network can be attributed to the quick alerts generated by the decentralized autonomous organization (DAO) to warn the community of potential bad actors. They explained:
“There was actually no decrease in attempted hacks or scams last year, so the reduction of losses on BSC [the BNB Chain] can be largely attributed to AvengerDAO’s quick alerts to minimize the number of users participating in potential scams.”
The BNB Chain team explained that in 2023, there was an increased number of “Red Alarms,” which uses a risk screening tool to alert community members on potential risks. The representative explained that the security firm Hashdit sent approximately 3,500 alerts via Red Alarm, with 330 alerts posted on X (formerly Twitter) in 2023.
In addition, the representative told Cointelegraph that the AvengerDAO, which is made to protect the community from exploits, scams and malicious actors, will continue to expand the number of partners it works with. This will allow the DAO to continue improving the ecosystem’s security.