Defi protocol Safemoon loses $ 8.9 million from bug exploit

Defi protocol Safemoon loses $ 8.9 million from bug exploit

In the decentralized financial project (Defi) Safemoon, his liquidity pool (LP) was compromised by a public token bug on Tuesday, whereby the attacker emptied BNB (WBNB) from the protocol.

Safemoon announced the attack on Twitter and announced that it was worked on solving the problem as soon as possible. However, the platform did not share any details of the incident.

over $ 8.9 million stolen

to the @safemoon Community: LP was compromised.

We take quick measures to solve the problem as soon as possible. Follow here for updates.

Thank you for your support in coping with this situation.

- Safemoon (@safemoon) 28. March 2023

Shortly after the exploit, the blockchain security company Peckshield revealed that the error during the last contract upgrades Project was introduced, which was initiated by the official Safemoon deployer. The company suggested that the admin key could have been leaked, hence the initiation of the upgrade.

Web3 developer Defi Mark Next explains that the attacker used the public burning function that made it possible to burn token from any address.

The function made it possible for the attacker, SFM, to remove the native token of Safemoon, from the WBNB liquidity pool of the project, which led to an artificial increase in the SFM price.

in the same transaction, the exploiters sold the overpriced SFM tokens in the same liquidity pool and deleted the remaining WBNB. According to Mark, Safemoon lost $ 8.9 million through an "extremely obvious exploit".

"This is an extremely elementary exploit that has fallen victim to many contracts in the [Crypto] space. Please don't let any user burn from any address, that's a bad idea," added Mark.

hack or intent?

While Mark described the incident as a hack, several spectators argued that the error was a function that was deliberately left in the Safemoon contract to enable them to skim off the funds of the users.

The controversy behind the Safemoon project fueled the ugly comments on the incident.

The company is currently facing a lawsuit in which it is accused of misinterpreting the SFM's TOKENOMIK to investors. As cryptopotato , the plaintiffs claimed that the executives of Safemoon slowly carpet investors after the price and trade rally of the project after its introduction.

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