A counterfeit token named “ENA” that imitated the genuine ENA token from Ethena Labs was exploited on the launch pool of Binance, resulting in the loss of 480 BNB tokens worth $290,000. This incident stirred up controversy within the cryptocurrency industry and occurred shortly after the official announcement of Ethena Labs’ ENA token listing.
On March 29, PeckShield, an on-chain security company, revealed the attack, but the root cause of the issue remains unknown. When the exploit occurred, investors were left to face the consequences, as they mistook the fake token for Ethena Labs’ authentic offering.
This event further compounds the ongoing challenge of crypto security, heightening concerns about investor trust in the industry. According to blockchain security firm Immunefi, as of February 29, more than $200 million in digital assets had been lost to hacks and rug pulls across 32 separate incidents in 2024. This represents a 15.4% increase compared to the same period in the previous year.
Despite efforts to enhance security measures, crypto hacks persist as a significant threat. Notable incidents, such as the Prisma Finance hack that resulted in over $11 million in losses, occurred just one day before the exploitation of the ENA token. The Immunefi report highlights a worrying trend, with crypto hacks and scams causing a total loss of $1.8 billion in 2023 alone.
The “2024 Crypto Crime Report” by Chainalysis provides insights into the evolving landscape of crypto crime, revealing a decline in the total value of stolen funds compared to previous years. In 2022, crypto hacks led to losses of over $3.7 billion, which sharply contrasted with the $1.7 billion reported in 2023.
A significant contributing factor to the overall decrease in crypto crime is the decline in decentralized finance (DeFi) hacking. While DeFi protocols caused substantial losses in previous years, with cybercriminals siphoning over $3.1 billion in 2022, this figure plummeted to $1.1 billion in 2023, marking a 63.7% year-over-year drop.
