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Scam Alert

Safemoon Was Hacked For $9 Million Due To Burn Bug

March 29, 2023 - Around 2 mins mins to read

Key Points:

  • Safemoon, a BNB chain-based exchange, has been hacked.
  • An exploiter was able to burn the bulk of SFM tokens in the Safemoon liquidity pool, artificially boosting the token’s price and allowing the contract’s WBNB to be drained in a single transaction.
  • The deployer contract launched the update, which raised the prospect of an admin key leak.
According to on-chain data, the liquidity pool (LP) on the BNB chain-based exchange Safemoon was hacked today, draining about $9 million.
Safemoon Was Hacked For $9 Million Due To Burn Bug

SafeMoon said that it is working to remedy the problem but provided little additional specifics. SafeMoon CEO John Karony retweeted the project’s original announcement without comment on his own Twitter account.

SafeMoon is a DeFi-focused project that promises to provide investors with the opportunity to earn interest on their investments via redistribution, LP purchase, and token burning.

While SafeMoon has not revealed the reason for the event, others have weighed in. According to PeckShield, a contract update revealed a public burn flaw, enabling anybody to destroy tokens. To PeckShield, the update was prompted via the deployer contract, raising the prospect of an admin key leak.

Peckshield verified that the hacker used a code function to artificially inflate the price of SFM tokens and then sold enough tokens back to the liquidity pool in the same transaction to effectively drain the WBNB from the contract.

According to BscScan, about $8.9 million in assets were moved out of the liquidity pool.

John Karony said:

“As you may be aware, on Tuesday 28 March, SafeMoon’s Liquidity Pool was compromised. We have taken swift action to resolve the situation and protect our community. I want to make clear that our DEX is safe. This ultimately affected the SFM:BNB LP pool.”

The announcement had a little impact on SFM, which caused its price to drop more than 5% in the last 24 hours but quickly recovered along with the market.

Safemoon Was Hacked For $9 Million Due To Burn Bug
SFM price chart. Source: CoinMarketCap

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

BNB

hack

Safemoon

SFM

WBNB

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Scam Alert

Safemoon Was Hacked For $9 Million Due To Burn Bug

Key Points:

  • Safemoon, a BNB chain-based exchange, has been hacked.
  • An exploiter was able to burn the bulk of SFM tokens in the Safemoon liquidity pool, artificially boosting the token’s price and allowing the contract’s WBNB to be drained in a single transaction.
  • The deployer contract launched the update, which raised the prospect of an admin key leak.
According to on-chain data, the liquidity pool (LP) on the BNB chain-based exchange Safemoon was hacked today, draining about $9 million.
Safemoon Was Hacked For $9 Million Due To Burn Bug

SafeMoon said that it is working to remedy the problem but provided little additional specifics. SafeMoon CEO John Karony retweeted the project’s original announcement without comment on his own Twitter account.

SafeMoon is a DeFi-focused project that promises to provide investors with the opportunity to earn interest on their investments via redistribution, LP purchase, and token burning.

While SafeMoon has not revealed the reason for the event, others have weighed in. According to PeckShield, a contract update revealed a public burn flaw, enabling anybody to destroy tokens. To PeckShield, the update was prompted via the deployer contract, raising the prospect of an admin key leak.

Peckshield verified that the hacker used a code function to artificially inflate the price of SFM tokens and then sold enough tokens back to the liquidity pool in the same transaction to effectively drain the WBNB from the contract.

According to BscScan, about $8.9 million in assets were moved out of the liquidity pool.

John Karony said:

“As you may be aware, on Tuesday 28 March, SafeMoon’s Liquidity Pool was compromised. We have taken swift action to resolve the situation and protect our community. I want to make clear that our DEX is safe. This ultimately affected the SFM:BNB LP pool.”

The announcement had a little impact on SFM, which caused its price to drop more than 5% in the last 24 hours but quickly recovered along with the market.

Safemoon Was Hacked For $9 Million Due To Burn Bug
SFM price chart. Source: CoinMarketCap

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News