In a monthly security recap, Beosin EagleEye, a leading security risk monitoring and blocking platform, revealed that the amount of money implicated in security incidents has shown a consistent decline for the second consecutive month.
However, amidst this positive trend, the notorious attack on Jimbos, occurring on the Arbitrum chain, stands out as the most substantial breach, resulting in a staggering loss of approximately $7.5 million.
Additionally, the month of May has witnessed an unsettling frequency of fraudulent activities, with several runaway projects entailing losses exceeding $1 million.
Fraudulent activities in the decentralized finance (DeFi) sector remained prevalent in May. Jimbos, operating on the Arbitrum chain, suffered a massive loss of $7.5 million on May 28. In an attempt to recover some of the funds, Jimbos offered the attacker immunity if they returned 90% of the stolen amount.
Another notable incident occurred when DEI, a stablecoin launched by DEUS, was hacked, resulting in a profit of approximately $6.3 million for the hackers.
The crypto space witnessed several incidents of rug pulls and crypto scams in May. Inferno Drainer, a notorious multi-chain scam service provider, managed to pilfer around $5.9 million in assets, leaving almost 4,888 individuals as victims of their fraudulent activities.
On the Arbitrum network, Swaprum fell victim to a rug pull, allowing the deployer to profit a staggering $3 million.
Additionally, XIRTAM, a project on Arbitrum, faced a freeze when the project owner transferred 1,909 ETH (equivalent to approximately $3.58 million) to Coin Security, raising concerns about the project’s integrity.
Crypto crime continued to make headlines in May, as the U.S. Department of Justice made significant strides in combating fraudulent activities. A Nevada man faced charges for his alleged participation in CoinDeal, an investment fraud scheme that duped over 10,000 victims, resulting in losses exceeding $45 million.
In another development, the US Department of Justice successfully seized a staggering $112 million worth of cryptocurrency from addresses linked to a catfishing scam.
Also Read: South Korea Takes Action Against $350M Crypto Frauds
May 2023 witnessed a decline in the overall amount involved in blockchain security incidents. The total losses incurred from attacks amounted to $19.69 million, showing a significant 79% decrease compared to April.
