SafeMoon, a project previously endorsed by A-list celebrities and social influencers such as Jake Paul and Soulja Boy, has announced that its liquidity pool (LP) has been compromised. Without revealing more details about the attack, SafeMoon confirmed that it had taken steps “to resolve the issue as soon as possible”.
Just like many other crypto projects in 2021, SafeMoon has been endorsed by many celebrities. However, a February 2022 lawsuit alleged that musicians such as Nick Carter, Soulja Boy, Lil Yachty, and YouTubers Jake Paul and Ben Phillips were imitating real-life Ponzi schemes by tricking investors into buying SafeMoon (SFM) tokens under the guise of unrealistic profits. .
The SafeMoon hack investigation shows that the attacker took away around 27,000 BNB (BNB), worth $8.9 million. SafeMoon has not yet responded to Cointelegraph’s request for comment. Additionally, users were blocked from posting comments on the announcement that exposed the LP compromise.
At @SAFEMOON community: We want to inform you that our LP has been compromised.
We are taking prompt action to attempt to resolve the issue as soon as possible. Follow here for updates.
Thank you for your support as we work to remedy this situation.
— SafeMoon (@safemoon) March 28, 2023
Blockchain investigator Peckshield narrowed the issue down to a recent software update as the potential culprit that introduced the bug. A public burn() function introduced in the latest update would allow users to burn tokens from other addresses.
As explain by DeFi community member Mark, the attacker used the vulnerability to remove SFM tokens, causing the price of the token to artificially rise. The striker took advantage of the situation and sold the tokens at an inflated price.
The attacker, on the other hand, left a note with the transaction, as shown above, stating:
“Hey, relax, we accidentally launched an attack on you, we would like to return the fund to you, set up a secure communication channel, let’s talk about it.”
Until SafeMoon officially announces a resolution, investors are advised against investing in the project to avoid possible loss of funds.
Related: New crypto litigation tracker highlights 300 cases from SafeMoon to Pepe the Frog
Following a recent security incident related to illicit access to hot wallets, Bitcoin (BTC) ATM maker General Bytes plans to refund customers who have lost funds.
On March 17 and 18, 2023, GENERAL BYTES experienced a security incident.
We released a statement urging customers to take immediate action to protect their personal information.
We urge all of our customers to take immediate action to protect their funds and https://t.co/fajc61lcwR…
— GENERAL BYTES (@generalbytes) March 18, 2023
As Cointelegraph reported, the hack caused a loss of 56 BTC and 21.82 Ether (ETH), with a cumulative value of nearly $1.9 million.
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