As the crypto market basks in the glory of its ongoing bull run, fueled by regulatory breakthroughs and significant events like the Bitcoin Halving and approval of crypto exchange-traded funds (ETFs) in the US and Hong Kong, a sinister reality lurks beneath the surface. The industry has witnessed a disconcerting surge in losses due to hacks and rug pulls, casting a shadow over the otherwise optimistic landscape.

According to a recent report by Immunefi, a security services platform, the crypto market experienced a decrease in losses from hacks and rug pulls in the first months of 202vier compared to the previous year. However, this decrease is little consolation, as the total loss recorded in 2024 year-to-date still stands at a staggering $473 million. May 2024 alone saw losses amount to $52 million, with two projects, Gala Games and SonneFinance, accounting for the majority of these losses.

Decentralized finance (DeFi) projects were the primary target for exploits in May 2024, while centralized finance (CeFi) escaped major attacks during this period. Hacks remain the dominant cause of loss, accounting for $50 million in 14 specific incidents in May 2024, while fraud incidents accounted for a mere $1.7 million, or just 3.3% of total losses over the same period.

Ethereum (ETH) and the Binance Smart Chain (BNB) were the most targeted chains in May 2024, accounting for 62% of the total losses across targeted chains. Ethereum experienced nine incidents, representing 43% of the total losses, while BNB Chain witnessed four incidents, representing 19% of the total. Other chains, including Base, Arbitrum (ARB), Solana (SOL), The Open Network (TON), Blast (BLSTR), Fantom (FTM), Optimism (OP), and Polygon (MATIC), each suffered one incident, representing 4.8% respectively.

As the cryptocurrency market continues its upward trajectory in 2024, the industry must confront the challenge of increased losses from hacks and rug pulls. While losses have decreased compared to the previous year, the total amount remains a significant concern. The dominance of hacks over fraud highlights the importance of strengthening security measures and addressing vulnerabilities to protect investor funds. As the market evolves, prioritizing security will be critical to maintaining investor confidence and supporting the continued growth of the crypto industry. The crypto community must acknowledge the dark underbelly of hacks and rug pulls and work towards a more secure future for all.