Decentralized finance project SafeMoon, which was charged by the US Securities and Exchange Commission (SEC) for fraud and security rule violations, has said it is closely examining recent developments and will work to resolve the situation as soon as possible. soon as possible.
According According to a statement made by the project on X (formerly Twitter), its teams are actively developing and remain committed to serving users, promoting the project’s vision, and pursuing its mission.
SafeMoon was exploited in March, resulting in a net loss of $8.9 million in BNB (BNB). Capital linked to the security breach has been moving through centralized exchanges, and blockchain analysis firm Match Systems suggests that these transactions may have significant relevance to law enforcement authorities.
We are reviewing recent news and of course we take these issues very seriously.
As we receive more information, we will do our best to address the situation as quickly as possible.
In the meantime, our teams continue to strengthen and we maintain our focus on meeting…
— Safe Moon (@safemoon) November 2, 2023
According to an analysis by Match Systems, the attacker exploited a vulnerability in the SafeMoon smart contract related to the “Bridge Burn” function, allowing the execution of the “burn” function for SafeMoon (SFM) tokens in any direction.
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The exploiters’ action involved transferring 32 billion SFM tokens from SafeMoon’s liquidity pool address to the SafeMoon implementer’s address, causing a rapid increase in the token’s value. Taking advantage of the price surge, the exploiter exchanged some SFM tokens for BNB at an inflated price, resulting in a transfer of 27,380 BNB to the hacker’s address.
Match System analysis determined that the smart contract vulnerability was absent in the previous version and was introduced with the new update on March 28, coinciding with the day of the exploit. This has raised suspicions of possible insider involvement.
The person responsible for the attack initially claimed that he had accidentally exploited the protocol and expressed his desire to establish a means of communication to return 80% of the funds.
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