A fake token named “ENA,” meant to resemble the real ENA token from Ethena Labs, was exploited on the Binance launch pool, causing 480 BNB tokens worth $290,000 to be lost. The event caused much controversy in the cryptocurrency industry and happened soon after Ethena Labs’s ENA token listing was officially announced.
On-chain security company PeckShield disclosed the attack on March 29; the underlying issue remains unknown. Investors were left to deal with the repercussions of the attack when the exploit materialized, mistaking the counterfeit token for Ethena Labs’s genuine offering.
Industry-wide implications
This incident adds to the ongoing challenge of crypto security, exacerbating concerns surrounding investor trust in the industry. According to blockchain security firm Immunefi, over $200 million of digital assets was lost to crypto-hacks-rug-pulls-increase-in-q1-2024/” target=”_blank” rel=”noopener”>hacks and rug pulls across 32 individual incidents in 2024 as of February 29. This represents a 15.4% increase compared to the same period in the previous year.
Despite efforts to bolster security measures, crypto hacks persist as a significant threat, with notable incidents such as the over-$11-million Prisma Finance hack occurring just a day before the ENA token exploit. The report by Immunefi highlights a concerning trend, with $1.8 billion lost to crypto hacks and scams in 2023 alone.
Yearly trends in crypto crime
The “2024 Crypto Crime Report” by Chainalysis sheds light on the evolving landscape of crypto crime, indicating a decline in the total value of funds stolen compared to previous years. In 2022, over $3.7 billion was lost to crypto hacks, marking a stark contrast to the $1.7 billion reported in 2023.
A significant factor contributing to the decrease in overall crypto crime is the decline in decentralized finance (DeFi) hacking. While DeFi protocols drove substantial losses in previous years, with cybercriminals siphoning over $3.1 billion in 2022, this figure plummeted to $1.1 billion in 2023—a 63.7% drop year-over-year.
