SafeMoon, a project previously endorsed by celebrities and social influencers such as Jake Paul and Soulja Boy, announced that its liquidity pool (LP) had been compromised. SafeMoon did not reveal further details about the attack, but confirmed it was taking steps to "resolve the issue as quickly as possible."
Like many other crypto projects in 2021, SafeMoon has the support of a number of celebrities. However, a February 2022 lawsuit accused musicians including Nick Carter, Soulja Boy, Lil Yachty, and YouTubers Jake Paul and Ben Phillips of parodying a real-life Ponzi scheme to mislead investors under the pretext of unrealistic profits Buy SafeMoon (SAFEMOON) tokens.
Investigating the SafeMoon hack revealed that the attackers stole approximately 27,000 BNB (BNB), worth $8.9 million. SafeMoon has not yet responded to Cointelegraph's request for comment. Additionally, users have been blocked from commenting on the announcement revealing LP's compromise. Blockchain investigator PeckShield narrowed the problem down to a recent software upgrade as a potential culprit for introducing the vulnerability. The public burn feature introduced in the latest upgrade purportedly allows users to burn tokens from other addresses.
Community member “DeFi Mark” explained that attackers exploited the vulnerability to delete SafeMoon tokens, causing the token price to artificially spike. The attackers took advantage of the situation and sold the tokens at an inflated price. The attacker left a note in the transaction, shown above, which read: "Hey relax, we accidentally pre-empted an attack on you, we want to refund the funds, set up a secure communication channel, let's talk."
Before SafeMoon officially announces its resolution, investors are advised not to invest in the project to avoid loss of funds. Bitcoin (BTC) ATM maker General Bytes plans to compensate customers who lost funds following a recent security incident related to illegal access to hot wallets.
