Lost $19.69M, 79% decrease from April

In a monthly security summary, Beosin EagleEye, a leading platform for monitoring and blocking security risks, revealed that the amount of money involved in security incidents has shown a consistent decline for the second consecutive month.

Amidst this positive trend, however, the infamous attack on Jimbos, which occurred on the Arbitrum chain, stands out as the most extensive breach, resulting in a staggering loss of around 7.5 million dollars.

In addition, the month of May has witnessed a disturbing frequency of fraudulent activities, with several runaway projects resulting in losses in excess of $1 million.

Fraudulent activities in the decentralized finance (DeFi) sector remained widespread in May. Jimbos, which operates 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 event occurred when DEI, a stablecoin launched by DEUS, was hacked, resulting in a profit of approximately $6.3 million for the hackers.

The crypto room witnessed several incidents of carpet pulling and crypto scams in May. Inferno Drainer, a notorious multi-chain fraud service provider, managed to steal around $5.9 million in assets, leaving nearly 4,888 individuals as victims of their fraudulent activities.

On the Arbitrum network, Swaprum fell victim to a blanket scheme, allowing the deployer to earn a staggering $3 million.

In addition, 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.

Cryptocrime continued to make headlines in May, as the US Department of Justice made significant strides in combating fraudulent activities. A Nevada man was indicted for his alleged participation in CoinDeal, an investment fraud scheme that defrauded over 10,000 victims, resulting in over $45 million in losses.

In another development, the US Department of Justice has seized a staggering $112 million in cryptocurrency from addresses linked to a catfishing scam.

Also read: South Korea cracks down on $350 million crypto scam

May 2023 witnessed a decrease in the total amount involved in blockchain security incidents. The total losses incurred from attacks amounted to $19.69 million, showing a significant decrease of 79% compared to April.