SafeMoon, a decentralized finance project, is currently facing charges from the United States Securities and Exchange Commission (SEC) for violations of security rules and fraud. In response, SafeMoon has stated that it is closely examining the recent developments and is committed to resolving the situation promptly. The project’s teams are actively developing and remain dedicated to serving users, advancing their vision, and pursuing their mission.
In March, SafeMoon suffered an exploit that resulted in a net loss of $8.9 million in BNB. The capital associated with the security breach has been moving through centralized exchanges. Blockchain analysis company Match Systems suggests that these transactions may be of significant relevance to law enforcement authorities. The exploit was made possible by a vulnerability in SafeMoon’s smart contract, specifically related to the “Bridge Burn” feature. This allowed the attacker to execute the “burn” function for SafeMoon tokens at any address. The exploit involved transferring 32 billion SFM tokens from SafeMoon’s liquidity pool address to the hacker’s address, causing a rapid increase in token value. The hacker then exchanged some SFM tokens for BNB at an inflated rate, resulting in a transfer of 27,380 BNB. The vulnerability was introduced with a new update on March 28, raising suspicions of potential insider involvement.
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