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Safemoon has suffered an exploit of $8.9 million. The attacker reportedly took advantage of the “public burn” feature on the platform to orchestrate the heist in the BNB Chain-based DeFi protocol.
Safemoon, a BNB Chain-based decentralized finance (DeFi) protocol, is the latest project to fall victim to hackers.
A bad actor has successfully exploited the public burn function on the Safemoon liquidity pool, draining $8.9 million from the protocol. The public burn function, introduced in a recent upgrade by the project, enables Safemoon users to burn tokens from other addresses.
Hi @safemoon The upgrade, with the exploited public burn bug, was initiated by the official SafeMoon: Deployer. (Admin key leak?) And here comes the upgrade tx. https://t.co/ffAhm9qhgG https://t.co/KYEiYxMRII pic.twitter.com/9CQhseircP
— PeckShield Inc. (@peckshield) March 28, 2023
The attacker then manipulated this feature, enabling them to remove SFM tokens from the Safemoon-WBNB liquidity pool. Once that was done, the price of SFM surged artificially. The attacker then went ahead to sell the overpriced SFM tokens for WBNB.
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The Safemoon team is aware of the exploit and has clarified that it’s trying its best to resolve the issue.
While the price of bitcoin (BTC) and other crypto assets have increased in the last 24 hours, the same cannot b said of Safemoon’s native SFM token, which has crashed by over 16% due to the attack, according to CoinGecko.
At the time of writing, SFM is exchanging hands for $0.00019186, with a 24-hour trading volume of $1,2 million, according to CoinGecko.
Read more: Millions of dollars already lost to hacks in 2023