SafeMoon Responds to SEC Charges
The decentralized finance project SafeMoon, which is currently facing charges from the US Securities and Exchange Commission (SEC) for violating security rules and fraud, has issued a statement addressing the situation. According to the project’s announcement on social media platform X (formerly Twitter), they are closely monitoring the recent developments and are committed to resolving the issue promptly.
SafeMoon suffered an exploit in March, resulting in a loss of $8.9 million in BNB. The funds associated with the breach have been moving through centralized exchanges, and blockchain analysis company Match Systems believes that these transactions could be relevant for law enforcement authorities.
Exploit Details and Potential Insider Involvement
An analysis conducted by Match Systems reveals that the attacker took advantage of a vulnerability in SafeMoon’s smart contract related to the “Bridge Burn” feature. This allowed them to execute the “burn” function for SFM tokens at any address. As a result, 32 billion SFM tokens were transferred from SafeMoon’s liquidity pool address to the deployer address, causing a significant increase in token value. The exploiter then exchanged some SFM tokens for BNB at an inflated rate, resulting in 27,380 BNB being transferred to their address.
The analysis also indicates that this vulnerability was introduced with a new update on March 28, which raises suspicions of potential insider involvement in the attack.
Hacker’s Initial Statement and Return of Funds
The individual responsible for the attack initially claimed that they accidentally exploited the protocol and expressed their willingness to establish communication to return 80% of the funds.
SafeMoon continues to investigate the situation and assures its users that they take these issues seriously. They remain focused on their development efforts while working towards resolving the matter.
Hot Take: SafeMoon Faces SEC Charges and Exploit Loss
SafeMoon, a decentralized finance project, is currently under investigation by the SEC for security violations and fraud. The project has responded to these charges, stating that they are actively examining the situation and are committed to resolving it promptly. In March, SafeMoon experienced an exploit that resulted in an $8.9 million loss in BNB. The funds associated with the breach have been moving through centralized exchanges, potentially attracting the attention of law enforcement agencies. An analysis of the exploit reveals a vulnerability in SafeMoon’s smart contract, raising suspicions of insider involvement. The attacker initially expressed a desire to return 80% of the funds. SafeMoon continues to investigate while focusing on their development efforts.
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