SafeMoon looks at recent exploits amid SEC filings

Decentralized finance project SafeMoon, which has been charged by the United States Securities and Exchange Commission (SEC) with security violations and fraud, said it is closely investigating the recent incident and will work to resolve the situation as soon as possible.

According to the project's statement on X (formerly Twitter), the teams are actively growing and working to serve users, advance the project's vision, and fulfill its mission.

SafeMoon was used in March, resulting in a net loss of $8.9 million at BNB ( BNB ). Capital linked to the security breach is moving through centralized exchanges, with blockchain analysis firm Match Systems suggesting these transactions could be of significant importance to law enforcement authorities.

We are reviewing the latest news and of course we take these matters very seriously.

We will do our best to resolve the situation as soon as we receive more information.

In the meantime, our teams continue to build and focus on…

— SafeMoon (@safemoon) November 2, 2023

According to Match Systems' analysis, the attacker exploited a vulnerability related to the “bridge burn” feature in the SafeMoon smart contract, allowing the “burn” function to be executed for SafeMoon (SFM) tokens at any address.

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The exploits involved transferring 32 billion SFM tokens from SafeMoon's liquidity pool address to SafeMoon's deployment address, causing the token's price to skyrocket. Taking advantage of the price increase, the exploiter exchanged some SFM tokens for BNB at an inflated rate, transferring 27,380 BNB to the hacker's address.

MachSystem's analysis found that the smart contract vulnerability was not present in the previous version and was introduced with the new update on March 28, which coincides with the date of the exploit. This raised suspicions of internal interference.

The person responsible for the attack stated that they initially used the protocol by accident and wanted to establish a communication system to return 80% of the money.

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