Popular DeFi Platform Hacked! Millions of Dollars Wasted!

According to the records on the chain, BNB chain-based DeFi platform safemoon was seized earlier today and close to $9 million was withdrawn from the liquidity pool.

DeFi Platform Safemoon Liquidity Pair Hacked for $8.9M

“To the SAFEMOON community: We would like to inform you that our LP has been compromised,” the BNB-based exchange wrote, adding that it took swift action to resolve the issue. According to BscScan, approximately $8.9 million in assets were transferred from the liquidity pool.

Security firm Peckshield said a recent update may have introduced a “public burning bug” that made hacking easier.

Peckshield confirmed that the hacker was able to artificially raise the price of SFM tokens using a code function and then sell enough tokens to the liquidity pool in the same transaction to effectively drain WBNB from the contract.

“By exploiting the public mint bug, the hacker could burn most of the SFM tokens in the pair, which would increase the SFM price,” Peckshield said.

“With this, the hacker basically buys SFM initially, then takes advantage of the public mint error to boost the SFM price, and then sells SFM for more than $8.9 million in profit.”

To mitigate these risks, DeFi platforms must implement robust security measures such as rigorous code audits, multi-signature wallets, and insurance funds to cover losses in the event of an attack.

Additionally, users should exercise caution when using DeFi platforms, such as doing extensive research, diversifying their investments, and investing only as much as they can afford to lose.

As the DeFi industry continues to grow, it is critical that security remains a top priority for all stakeholders.

While incidents such as the attack on Safemoon are unfortunate, they also remind us of the need for constant vigilance and taking proactive measures to ensure the safety and security of DeFi platforms and their users.

*Not investment advice.