SafeMoon DeFi Platform Hacked: Almost $9 Million Lost in Liquidity Pool

On March 29, 2023, it was reported that SafeMoon, a DeFi platform on the BNB Chain, had been hacked, resulting in an estimated loss of nearly $9 million from the liquidity pool.

The announcement from SafeMoon read, “We want to inform you that our LP has been compromised. We are taking swift action in an attempt to resolve the issue as soon as possible.”

According to on-chain data reported by BscScan, nearly $8.9 million was transferred out of the liquidity pool. Peckshield, a blockchain security company, reported that a recent update to the platform inadvertently created a “burn bug” vulnerability that leaked the admin key, enabling the hack to occur. “The upgrade, with the exploited public burn bug, was initiated by the official SafeMoon: Deployer. (Admin key leak?) And here comes the upgrade tx,” Peckshield tweeted.

The hacker allegedly inflated the price of SFM and then returned the tokens to the pool in the same transaction, allowing them to easily withdraw more than $8.9 million worth of WBNB from the contract.

SafeMoon is a DeFi protocol that provides profits for investors through distribution, LP buybacks, and token burning. However, the project has been previously accused of “pump and dump” schemes by high-profile individuals and the development team in February 2022.

This recent hack is just one in a long line of security breaches that have plagued the DeFi space in recent years. It highlights the need for continued efforts to strengthen security measures and prevent such incidents from occurring in the future. The SafeMoon team has not yet provided an update on the status of the situation or the steps being taken to recover the stolen funds, but the community is likely eagerly awaiting news and hoping for a positive outcome.

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