May 2024 Sees Significant Crypto Losses: Gala Games and SonneFinance Among Major Victims

The post May 2024 Sees Significant Crypto Losses: Gala Games and SonneFinance Among Major Victims appeared first on Coinpedia Fintech News

In Immunefi’s most recent report of May 2024, the cryptocurrency industry had lost a lot of money in hacks and frauds. Reporting these failures as of May, the total is 108, with overall losses of $473,229,944, a 20% negative change from the data of 2023, where the total hacks were estimated at $595,438,324. That reduction might indicate enhanced security measures or a change in the goal of cybercriminals. 

In May 2024 alone, crypto holders and investors lost $52,371,900 in 21 incidents. This is down from May 2023, which had losses of $59,344,389, and is significantly down from April 2024, which had losses equal to $72,606,827. 

The majority of the financial losses in May were concentrated in two significant incidents: 

1. Gala Games: 

This crypto gaming project was hit by a loss valued at $21 million and this makes it the biggest single loss of the month. Gala Games has been one of the industry’s leading blockchain gaming firms and therefore, such a failure shows that no project, even those with great potential in the industry, is immune to risks. 

2. Sonne Finance: 

A lending decentralised app, SonneFinance, lost $20 million. This case once again illustrates the potential dangers lurking in DeFi lending platforms, which are dangerous because of their volumes. 

Hacks remained the leading cause of losses in May 2024; they contributed 96% of the total loss incurrence. In particular, the total amount of $50,618,600 was stolen during 14 hacking attacks. 

However, fraud remained very low at only 3 per cent of total incidents reported earlier this year, amounting to $1,753,300 for seven accidents.

Defi dApps took the major brunt of the exploits recorded in May 2024. In 21 occurrences, the total loss from fraud in DeFi was recorded to be around $52,371,900. 

Similar to the previous months, Centralized Finance (CeFi) platforms did not report any significant attacks grounded in the decentralised systems, which points to a shift in the hackers’ interest in decentralised platforms.

Ethereum and BNB chains were the most targeted during May 2024, accounting for 62% of the total loss experienced by the targeted blockchains.

Ethereum Experienced loss 9 times, contributing 43% of the losses. And BNB Chain Suffered 4 occurrences, the overall loss account of which was 19%.

Other chains impacted are Base, Arbitrum, Solana, TON, Blast, Fantom, Optimism, Polygon, and Polygon, contributing 8% of the total losses.

The above-elaborated figures concerning May 2024 show overall crypto losses are declining y-o-y and m-o-m. According to the data, the funds stolen in cyber attacks are still being focused on DeFi platforms, while Ethereum and BNB Chain are again leaders in the percentage of thefts. There is a true need for an enhanced security system and the need to fight crimes continually, given the new trends in cryptography.