Crypto losses from fraud and hacks declined by 12% year-over-year, according to a May 30 report from blockchain security firm Immunefi. A total of $52 million was lost over the course of the month, down from over $59 million in the same month last year. In addition, the figure represents a 28% decline compared to the amount lost in April.
The report illustrates a continuing trend of declining losses from hacks and fraud in the Web3 industry. In March, Immunefi released a report stating that losses in Q1 2024 declined by 23% over the previous year. In April, CertiK reported that the month had seen its lowest losses ever.
According to the May 30 report from Immunefi, most of the losses came from two individual attacks. The first was a hack of the Web3 gaming protocol Gala Games, which resulted in losses of approximately $21 million. The second was a smart contract exploit against Sonne Finance that led to $20 million in losses. Together, these two attacks represented 78% of total losses for the month.
Related: $20M exploit cripples Sonne Finance, hacker in no mood for negotiation
Ethereum and BNB Chain were the two networks most targeted by attackers in May, and 62% of the attacks were on these chains. All of the attacks were against decentralized protocols, and no centralized exchange lost funds from an attack.
Fraud continued to represent a small part of overall losses. Only $1.7 million, or 13.6%, of the total losses came from fraud, while the rest were caused by hacks and exploits.
In its report, Immunefi did not speculate on why the monetary loss from exploits has declined. 2023 also had smaller losses than 2022, and experts have suggested this earlier decline was due to advancements in security technology and police practices.
In April, Blockaid claimed that its software has caused some crypto drainers to shut down, reducing at least one type of threat that crypto users face.
