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James Carter

March 29, 2023

Safemoon Crypto Project Hacked: Latest Updates

Following the successful exploitation of a flaw in the BNB chain-based DeFi exchange Safemoon by a hacker, the perpetrator made off with digital assets worth a total of $8.9 million.

Safemoon Crypto Project Hacked

A public burn function that was implemented in the most recent upgrade was what the attacker took advantage of, according to the crypto security firm Peckshield.

Because of a flaw in the function, the hacker was able to breach the project’s liquidity pool and remove assets worth over $9 million.

Safemoon Crypto Project Hacked: Latest Updates

Web3 developer DeFi Mark provided another explanation, stating that the attacker exploited the vulnerability in order to delete SafeMoon (SFM) tokens, which resulted in an artificial surge in the price of the token.

The situation was exploited by the attacker, who made a profit by selling the tokens at a significantly inflated price.

The cryptocurrency expert stated that “the attacker exploited this function to remove SFM tokens from the Safemoon-WBNB Liquidity Pool,” which resulted in an “artificially high” price for SFM.

“The attacker was therefore in a position to sell SFM into this LP at a rate that was outrageously overpriced inside the same transaction, erasing any residual WBNB from the liquidity pool.”

The developers behind Safemoon just confirmed the hack in a tweet, adding that the project’s LP was hacked into.

SafeMoon has stated that actions are being taken “to rectify the issue as soon as feasible,” but they have not disclosed any other information regarding the incident.

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Safemoon Crypto Project Hacked

Safemoon identifies itself as a community-driven DeFi technology that incorporates a deflationary utility coin known as SFM. It is compatible with the BEP-20 token standard and was developed on the Binance Smart Chain (BSC).

The development of the project began in the first three months of 2021, and it was equipped with a number of characteristics at its inception, including burn strategy, static incentives, and liquidity pool acquisition.

Importantly, the undertaking was supported in the past by a variety of well-known celebrities and social influencers, including Jake Paul and Soulja Boy.

Unfortunately, as of late, the initiative has become embroiled in a number of controversies and legal problems.

In a lawsuit that was filed in February 2022, it was alleged that several musicians, including Nick Carter, Soulja Boy, and Lil Yachty, as well as YouTubers Jake Paul and Ben Phillips, imitated real-life Ponzi schemes by deceiving investors into purchasing SafeMoon (SFM) tokens under the pretext of unrealistic profits.

Safemoon Leadership Under Fire

Internet detective Coffeezilla launched a series of charges against SafeMoon’s founder, chief developer, and CEO in May of the previous year. The allegations claimed that the leadership of SafeMoon diverted monies that were intended for the liquidity pool of SafeMoon to profit themselves instead.

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In order to construct SafeMoon, its purported founder, who only goes by the name Kyle and about whom very little information is known, is said to have plagiarized the source code of a previous, less ambitious rug pull project known as Bee Token.

After conducting an investigation into SafeMoon’s wallets and the activity on the blockchain, the researcher discovered that the company’s creator, Kyle, had been steadily and covertly stealing funds from the beginning. During that time, he stated:

“The total number of SafeMoon tokens that were sent to Kyle’s wallet was 164 trillion. Moving forward in time to the middle of September through the middle of December, he made just about $10.3 million off of this.

With Kyle’s departure as project leader, Lead Developer Thomas “Papa” Smith assumed those responsibilities.

On the other hand, Coffeezilla’s research discovered that Smith had taken a total of $143 million from the project’s liquidity pool over the course of 18 separate transactions.