Crypto Project SafeMoon Looses $8.9 Million in a Liquidity Pool Exploit

SafeMoon, a cryptocurrency project that once received support from well-known celebrities and social media influencers like Jake Paul and Soulja Boy, recently announced that its liquidity pool (LP) was breached.

On March 28th, SafeMoon took to Twitter to inform its customers about an attack against its liquidity pool.

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In its tweet, the company claimed it is taking "swift action" to investigate the matter and take appropriate steps. What is interesting about this announcement is that SafeMoon turned off comments for this post.

Upon investigating the SafeMoon hack, it was discovered that the attacker stole around 27,000 Binance Coin (BNB), valued at around $8.9 million.

However, surprisingly, the attacker attached a message to the transaction, noting:

Hey relax, we accidentally frontrun an attack against you, we would like to return the fund, set up a secure communication channel, let's talk.

Blockchain analysis firm Peckshield pinpointed a recent software update as the likely cause of the exploit. According to Peckshield, the latest update reportedly introduced a public burn function allowing customers to burn tokens from other addresses.

Based on the community member, DeFi Mark, the malicious actors exploited the vulnerability to remove SFM tokens, which subsequently led to an artificial increase in the token's price. The attacker then took advantage of the inflated price and sold the tokens.

Until SafeMoon announces an official solution to the issue, potential investors are advised to avoid investing in the project.

It is yet another exploit in the crypto industry. However, while some companies are still investigating the attacks, others are taking action into their own hands to refund affected customers. Bitcoin ATM manufacturer GeneralBytes revealed that it will refund all victims affected by March 17th-18th exploit.