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CryptoFrom the Wire

BNB Chain, Ethereum Blockchains Suffer 20 Attacks in October, Taking the Hardest Hits: Report

In October 2023, the BNB Chain and Ethereum blockchains faced a staggering 20 attacks, emerging as the hardest hit in terms of financial losses, according to a recent report by Immunefi. From January to October 2023, the cryptocurrency industry suffered a total loss of over $1.41 billion due to hacking and fraudulent activities. Specifically, October alone recorded approximately $22.2 million in losses, primarily attributed to hacking and fraud. The targeted blockchains, BNB Chain and Ethereum, accounted for 83.3% of the overall losses amongst all the chains. Immunefi disclosed that BNB Chain experienced the highest number of individual attacks, with 11 incidents, accounting for 45.8% of the total losses. Meanwhile, Ethereum encountered 9 incidents, representing 37.5% of the losses. The report also revealed that DeFi platforms were the primary focus of exploitation, whereas no major exploits were reported in CeFi platforms.

BNB Chain Experiences the Highest Number of Attacks

In the month of October 2023, the BNB Chain faced a significant number of attacks, making it the blockchain that suffered the highest number of individual attacks among all targeted chains. According to a report from Immunefi, there were a total of 11 incidents reported on the BNB Chain, accounting for 45.8% of the overall losses among all the targeted chains. This highlights the vulnerability of the BNB Chain to security threats and the need for robust security measures to protect against such attacks.

Ethereum Faces a Significant Number of Attacks

Ethereum, another major blockchain network, also encountered a considerable number of attacks in October 2023. The report revealed that there were a total of 9 incidents reported on the Ethereum blockchain, representing 37.5% of the total losses. This highlights the importance of strong security protocols for Ethereum and the need to address the vulnerabilities that make it a target for attackers.

Avalanche and Other Blockchains Also Targeted

While the BNB Chain and Ethereum experienced the highest number of attacks, other blockchain networks were not spared either. The Layer 1 blockchain, Avalanche, witnessed 2 incidents in October, accounting for 8.3% of the losses among targeted chains. Additionally, Polygon and Fantom, two emerging blockchains, each experienced 1 incident, which represented 4.2% of the total losses. These incidents on multiple blockchains show that attackers are not solely focused on established networks but are also targeting newer platforms.

Hacking Incidents Continue to Dominate

Hacking incidents remain the primary cause of financial losses in the cryptocurrency industry. According to the Immunefi report, hacking incidents accounted for the majority of the losses in October 2023, making up 73.68% of the total losses. Fraudulent activities, on the other hand, accounted for 26.32% of the losses. This highlights the need for enhanced cybersecurity measures to protect against hacking attempts and mitigate the financial impact on individuals and organizations.

DeFi Platforms Are the Primary Focus of Attacks

In October 2023, all of the reported losses were attributed to attacks on decentralized finance (DeFi) platforms. DeFi platforms accounted for 100% of the total losses during the month, while no major exploits were reported in centralized finance (CeFi) platforms. This indicates that attackers are primarily targeting DeFi platforms due to their decentralized nature and potential vulnerabilities. To safeguard investor funds and prevent further losses, it is crucial for DeFi platforms to prioritize security measures and implement strong protocols.

Q3 2023 Recorded the Highest Losses

The third quarter of 2023 witnessed significant losses in the cryptocurrency industry. In September, over $340 million was lost, followed by more than $320 million in July. These losses contributed to the overall high losses recorded in the year. The high losses in Q3 2023 emphasize the need for continuous improvement in security measures and the development of efficient risk management strategies.

Earlier Reports Reflect Persistent Security Threats

Prior to the October 2023 report, CertiK, a blockchain security firm, released a report revealing losses of approximately $332 million in September. These losses were the result of exploits, hacks, and scams. The earlier report from CertiK indicates that security threats in the cryptocurrency industry are persistent and ongoing. It highlights the importance of proactive measures to identify and address vulnerabilities to prevent future attacks and losses.

Overall Losses in 2023

Between January and October 2023, the cryptocurrency industry incurred losses of over $1.41 billion due to hacking and fraudulent activities. This staggering amount demonstrates the financial impact of security breaches in the industry. In October alone, losses reached approximately $22.2 million, further underscoring the need for robust security protocols and proactive risk management.

Immunefi Report Highlights

The report from Immunefi highlights that the BNB Chain and Ethereum were the most frequently targeted blockchains during the specified period. These two blockchains accounted for 83.3% of the total losses among all the targeted chains. The concentration of attacks on BNB Chain and Ethereum emphasizes the urgency for stronger security measures and the development and implementation of effective security protocols to safeguard these platforms and the investments associated with them.

Conclusion

The increasing number of attacks on the BNB Chain, Ethereum, and other blockchain networks underscores the importance of robust security measures in the cryptocurrency industry. It is crucial for both established and emerging blockchain platforms to prioritize the development and implementation of effective security protocols. By doing so, the industry can work towards minimizing the risks of attacks, protecting investor funds, and fostering trust in the ecosystem. As the industry continues to evolve, it is essential for all stakeholders to remain vigilant and proactive in addressing security threats to ensure the long-term sustainability and success of cryptocurrencies.

Source: https://cryptopotato.com/bnb-chain-ethereum-blockchains-suffer-20-attacks-in-october-taking-the-hardest-hits-report/