BNB Smart Chain Financial Losses Dropped 85% in 2023: AvengerDAO Security Report

Dubai, UAE, January 22nd, 2024, Chainwire

AvengerDAO, the community that protects users from possible exploits, scams and malicious actors on BNB Chain has today released its 2023 Security Report in collaboration with Hashdit, Certik, Ancilia and Salus Security. Providing an in-depth analysis into the security events that unfolded on BNB Smart Chain (BSC) during 2023, the report reveals a significant security milestone of an 85% reduction in financial losses on BSC between 2020 and 2023.

Alongside the in-depth analysis of the security incidents that took place on BSC in 2023, the report also delves into the types of projects targeted. It highlights common attack techniques used during this period, and presents data regarding the financial losses incurred, including: 

• Significant improvement in Q4, 2023: Fiat loss amount dropped by 64% from ~$43.7m in Q3 to ~$15.6m in Q4 2023, largely due to the ~51% reduction in hacks, with Q4 experiencing 86 compared to 130 in Q3
• A look at the blockchain landscape: BSC represented 3.7% of the total fiat loss across all chains in Q4, ranking 5th compared to other chains. Ethereum represented 65%, Tron 13.6%, Arbitrum 5.3% and Bitcoin at 4.5% of total fiat loss
• Types of attacks and threats: Hacks were the most prevalent type of security incident, contributing 50.72% with scams closely behind at 49.03%. Of the total fiat loss on BSC, scams were responsible for $87.9M (a 54% decrease) of losses while hacks were responsible for $73.2M (a 91% decrease)

BSC continues to be a strong industry player, demonstrating robust performance and growing daily active users and transaction counts. Even though 2023 has shown to be a better performing year in terms of the total funds lost to exploits, it is undeniable that scammers and hackers will continue to adapt their methods until stricter measures to hold them accountable are introduced.

AvengerDAO will keep improving its ability to: 

• Identify scam projects early 
• Focus on projects with large liquidity
• Monitor malicious activities and mitigate hacks as early as possible
• Expand its reach and actively inform users of risks

The BNB Chain Core Development Team said, “We greatly appreciate the input and feedback from the AvengerDAO committee members Hashdit, Certik, Ancilia, and Salus, who are all leaders in the crypto security space that play an integral role in maintaining the integrity of our industry. These reports help provide the community with critical security information while AvengerDAO monitors and identifies risks to mitigate threats on BSC.”

Users can view the AvengerDAO 2023 Security Report in full here. 

About BNB Chain

BNB Chain is a community-driven blockchain ecosystem that seeks to remove barriers to Web3 adoption. Powered by BNB, it includes the world’s largest L1 blockchain, the EVM-compatible BNB Smart Chain, and fosters a multi-chain ecosystem with BNB Greenfield and opBNB. Offering ultra-low gas fees and superior TPS, the BNB Chain ecosystem hosts thousands of dApps across DeFi, metaverse, gaming, SocialFi, NFTs and infrastructure, each of which add value to its ecosystem.

BNB Chain fosters impactful Web3 innovation with its BNB Chain Builder Support Program. This includes the MVB accelerator program, run in partnership with Binance Labs and CMC Labs.

For more, follow BNB Chain on Twitter.

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