DeFi Protocol SafeMoon Loses $8.9 Million

The SafeMoon team notified the community on March 29 that their liquidity pool had been stolen.

“We are taking swift action in an attempt to resolve the issue as soon as possible. Follow here for updates. Thank you for your support as we work to address this situation.”

SafeMoon is a blockchain, Metaverse, NFT, and Web3 environment for development and invention. Nonetheless, since its inception in March 2021, the business has been at the heart of controversies and legal problems.

A “public burn bug” was discovered in an upgrade, according to blockchain security company PeckShield. Furthermore, this resulted in the exploit, which it claimed was triggered by an admin key breach.  

According to ‘DeFi Mark,‘ a Web3 coder, SafeMoon was compromised for $8.9 million. He went on to say that he discovered an “extremely obvious exploit.”

Any user can burn tokens from any other address using the public burn function. Using this function, the attacker removed SFM tokens from the SafeMoon WBNB Liquidity Pool. As a result, the original currency of SafeMoon saw an artificial price increase.

The perpetrator sold the SFM into the liquidity pool at a markedly inflated price in the same deal. As a consequence, all of the surviving WBNB in the pool was destroyed.

The attackers did, however, write a note in the transaction a few hours after the exploit indicating they were prepared to refund the money. PeckShield said they have already sent 4,000 BNB totaling $1.2 million.

“Hey relax, we are accidently frontrun an attack against you, we would like to return the fund, setup secure communication channel, lets talk.”

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