Another DEX SafeMoon [SFM] was hacked and exploited for funds
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Another DEX SafeMoon [SFM] was hacked and exploited for funds

written by John Murphy | March 30, 2023

After several other hacks of Decentralized exchanges, there is yet another that took place most recently. Decentralized Finance Exchange SafeMoon was exploited on 29th March. While the hackers break into the system and stole funds worth $8.9 million from the liquidity pool.

KEY TAKEAWAYS

  • The SafeMoon DEX was hacked and exploited for stealing funds on 29th March
  • CEO SafeMoon assured that the team was already working to fix the issues and the community must remain calm

Hackers exploited the system’s Vulnerability

The hackers breached the network due to a vulnerability in the SafeMoon network. Dappd CEO stated on Twitter that the hackers exploited the network’s new contract that allowed them to use the ‘public burn function’. Furthermore, this feature allows burning tokens from any address.

The hackers used this bug or vulnerability in the network to remove the SFM token from the SBNB LIquidity Pool of SafeMoon. Thus artificially inflating the token’s price. then sold those tokens at a very high rate.

Even the Blockchain security firm added that the hacker sold the token at overpriced rates back into the liquidity pool. That too in the same transaction, which further drained reverb the remaining WBNB in the pool.

In Addition, SafeMoon also made the announcement via a tweet to make their community aware of the hacking incident.

The CEO of SafeMoon John Karony, in his tweet engaged with his community. He tried to let them know that the network team is working. He stated that the SafeMoon liquidity pool was compromised on 28th March.

However, he added that his team has taken ‘swift action’ to resolve the matter. The team has already located the vulnerability and engaged a forensics consultant to determine the extent of the exploit.

John Karony further assured his community that their tokens will remain safe and so will the other LP pools. Also, they noted that upcoming upgrades remain unaffected by this.

According to PeckShield the hacker even left a note after a transaction that said:

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

Thus, hackers have returned over $1.2 million worth of Binance Coin, already. Following the attack, SFM’s price dropped over 25%, reaching as low as $0.000177, but had since recovered to $0.000213 at the time of writing according to CoinMarketCap data.