Hackers Exploit Safemoon LP Heisting $8.9 Million

What is a Crypto Exit Scam and How Does It Work?

On March 29, the Utah-based crypto firm Safemoon liquidity pool was hacked after the bad players launched malware on the smart contract. The malicious attack breached Safemoon security measures to gain access to the company system forcefully.

A Safemoon team lamented losing $8.9 million from the exploit. The Safemoon technical team analyzed data from their blockchain network to investigate suspicious transactions.

Safemoon Smart Contract Exploit

They observed that the unscrupulous players conducted a single transaction comprising multiple token exchanges on March 29. The transaction was executed early morning, heisting assets worth millions of Safemoon token SFM.

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The lost assets amounted to $8.9 million stored on Safemoon’s liquidity pool (LP). Initially, the Safemoon developers utilized innovative technologies to create a shared pool for storing locked digital assets in a unique smart contract.

The distinctive features of the LP enabled Safemoon users to engage in financial transactions such as lending and borrowing of assets without an intermediary. An official pronouncement from the Safemoon developers confirmed that the LP was compromised.

Impact of the Exploit

The developers affirmed to take preventive actions to address the concern. A subsequent tweet from Safemoon chief executive John Karony revealed that the exploit was launched on a single LP network built on the Binance smart chain.

Karony confessed that the exploit had zero impact on the Safemoon decentralized exchange (DEX). Evidently, the exploit had huge impact on the liquidity pool associated with the SFM: BNB.

He announced that the probing team had identified the system vulnerability. Karony and the team are seeking to engage a forensic expert to assess the damage and the scope of the March 29 exploit.

Increase of Smart Contract Breaches 

A statement from the probing team suggests that the hackers had identified a malfunction on the smart contract burning feature that damaged Safemoon’s LP. They argued that the defect in the burn function interfered with user transactions.

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Elsewhere, the Dappd chief executive MoonMark tweeted that the attacker utilized the failing burning feature for draining a substantial amount of SFM tokens from the LP platform.

The discovery of the March 29 exploit has compelled Safemoon native token SFM to establish a dribbling momentum. At press time 0819 UTC, SFM is exchanging hands at $0.00018238, a 23.1% dip in the last 24 hours.

According to CoinGecko, SFM reached its lowest point of $0.00016736 before retracing to $0.00025172 in the last 24 hours.The decentralized finance (DeFi) platform has integrated innovative features on the SFM to allow users to execute a token burning on their addresses.

The SFM has a transaction section to monitor their trading fees, market trends, and liquidity pool reports. The exceptional features positioned Safemoon among the best-performing DeFi platforms in the previous bull run.

The famous decentralized proof-of-stake (PoS) blockchain network Hedera recently witnessed a smart contract exploit. Per the Hedera report, the attacker weakened its proprietary liquidity pools to steal measurable assets.

The exploit compelled the Hedera management to sunset network services temporarily.

Author: Samantha Thompson

Samantha Thompson is a crypto enthusiast and writer who is passionate about exploring the potential of blockchain technology. She enjoys sharing her insights and knowledge with others in the community.

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