On-chain records have revealed that the BNB-based exchange Safemoon was hacked, resulting in almost $9 million being drained from its liquidity pool. The hacker was able to exploit a bug that allowed them to burn a majority of SFM tokens in the Safemoon liquidity pool, artificially raising the token’s price so that the contract's WBNB could be drained in a single transaction. This led to a total loss of nearly $8.9 million.
.png "Safemoon Suffers $8.9 Million Hack Due to Liquidity Pair Compromise")
Safemoon took swift action to resolve the issue, and Peckshield, a security firm, suggested that the hack may have been facilitated by a recent update that introduced a "public burn bug." This enabled the hacker to raise the price of SFM tokens through a code function and then sell enough tokens back to the liquidity pool in the same transaction, effectively draining the WBNB from the contract.
The hacker was able to buy SFM tokens initially, exploit the public mint bug to increase their price, and then sell the tokens for a profit exceeding $8.9 million. This was a significant loss for Safemoon and its community.
It is essential to take measures to protect against such hacks, such as implementing regular security updates and conducting thorough security audits. Furthermore, exchanges and liquidity pools must remain vigilant and respond quickly to any signs of a security breach.
In conclusion, the Safemoon hack highlights the importance of robust security measures and the need to continuously improve them to protect against evolving threats in the cryptocurrency industry.
