BNB Chain Dominates Crypto Scams and Rug Pulls, Research Reveals

BNB Chain Tops Crypto Scam Rankings

The BNB Chain has emerged as the leading platform for crypto scams and rug pulls, with approximately 12% of its BEP-20 tokens connected to fraudulent activities. This finding comes from a recent study by Solidus Labs, a prominent crypto risk monitoring firm. The chain surpasses other major networks like Ethereum and Polygon in terms of scam prevalence.

Ethereum and Polygon Follow in Scam Incidents

Ethereum, the second-largest blockchain by market capitalization, saw 8% of its ERC-20 tokens linked to fraud. Polygon, known for its lower transaction costs, recorded only 1.2% of its tokens associated with scams. These figures highlight the varying levels of risk across different blockchain ecosystems.

Alarming Rate of Crypto Fraud

Solidus Labs reported that as of October 10, 188,525 smart contract scams had been identified across 12 blockchains. Additionally, the firm noted that 15 new frauds are launched every hour, underscoring the rapid pace of crypto-related crime.

Notable Scam Cases and Binance's Response

One notable case involved the Squid Games Token, which allegedly cost investors $3 million. While high-profile scams like this make headlines, Solidus Labs emphasized that most fraud cases go unnoticed.

In a separate incident, the BNB Chain was exploited for $100 million in early October. However, Binance, which has close ties with the chain's validators, managed to freeze some of the stolen funds through a software update. A Binance representative clarified that the company is not responsible for on-chain scams or rug pulls, a stance it has maintained since 2021.

Conclusion

The BNB Chain's dominance in crypto scams and rug pulls raises concerns about security and investor protection in the decentralized finance (DeFi) space. As the crypto ecosystem evolves, addressing these risks remains a critical challenge for platforms and regulators alike.