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Crypto News – Crypto Hacks and Rug Pull Losses Decrease by 20% in 2024

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Crypto News - Crypto Hacks and Rug Pull Losses Decrease by 20% in 2024

20% Reduction in Crypto Hacks and Rug Pull Losses in 2024

Crypto News- In May 2024, the crypto world saw losses of $52.37 million due to 21 separate incidents. This marks a 12% decrease from May 2023’s $59.34 million and a significant 28% drop from April 2024’s $72.60 million.

Gala Games Hack

One of the major victims was Gala Games, a crypto gaming project, which experienced a major breach on May 20. A hacker exploited a vulnerability in the platform’s smart contract, generating 5 billion GALA tokens. These unauthorized tokens were then converted into 592 million GALA, worth approximately $21.8 million in Ethereum (ETH). The Gala Games team quickly responded by blacklisting the hacker’s address to prevent further conversion of GALA tokens.

Eventually, the team was able to recover the Ethereum and burned the remaining 4.4 billion GALA tokens. “We would like to thank Binance for working with us and with law enforcement to identify the culprit behind the recent hack,” Gala Games stated.

Sonne Finance Attack

Additionally, on May 15, Sonne Finance, a decentralized liquidity market protocol, suffered a major cyber attack. Initially, $3 million was stolen from its USD Coin and Wrapped Ethereum contracts on the Optimism chain. However, within 30 minutes, losses surged to $20 million.

DeFi vs. CeFi Platforms

DeFi platforms were particularly hard hit in May, suffering the majority of the exploits. In contrast, CeFi platforms reported no significant attacks.

Breakdown of Losses

A detailed analysis of the data shows that hacks were the primary cause of losses, accounting for $50.61 million across 14 incidents. Rug pulls (fraud) were less significant, totaling $1.75 million across seven incidents, making up just 3.3% of the total losses.

Targeted Networks

Ethereum and BNB Chain were the most targeted networks, accounting for 62% of the total losses. Ethereum was involved in nine incidents, representing 43% of the total losses, while BNB Chain had four incidents, accounting for 19% of the losses.

Crypto News - Crypto Hacks and Rug Pull Losses Decrease by 20% in 2024

Conclusion

The reduction in crypto losses from hacks and rug pulls in 2024 is a positive trend, yet it underscores the ongoing challenges in blockchain and crypto security.

FAQ on Crypto Hacks and Losses in May 2024

How much was lost to crypto hacks in May 2024?

In May 2024, a total of $52.37 million was lost due to crypto hacks and other incidents.

How does this compare to previous months?

This represents a 12% decrease from May 2023, where losses totaled $59.34 million, and a significant 28% drop from April 2024’s $72.60 million.

What was one of the major incidents in May 2024?

One of the major incidents involved Gala Games, a crypto gaming project. On May 20, a hacker exploited a flaw in the platform’s smart contract, creating 5 billion GALA tokens and converting 592 million GALA into approximately $21.8 million worth of Ethereum (ETH).

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News - Crypto Hacks and Rug Pull Losses Decrease by 20% in 2024

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