The BNB Chain-based exchange, SafeMoon has announced that its Liquidity Pool was compromised by a hacker, resulting in a loss of about $8.9 million. Blockchain security firm, PeckShield revealed that a recent upgrade may have accidentally introduced a “public burn bug”, which was exploited by the hacker.
PeckShield confirmed that the exploiter used a code function to artificially inflate the price of SafeMoon (SFM) tokens. He, thereafter, sold enough tokens back to the liquidity pool in the same transaction to essentially remove WBNB from the contract.
Furthermore, the security company highlighted the series of processes used by the hacker to steal from the Liquidity Pool. According to PeckShield, the hacker essentially buys SFM at the beginning, then compromises the public mint bug to increase the price of the token, and eventually sells SFM with a higher profit.
Following the hack, the CEO of SafeMoon, John Karony stated that the company is taking appropriate measures to resolve the issue. He reiterated that other Liquidity Pools on the DEX are unaffected, likewise SafeMoon Wallets, secured by Orbital Shield.
He went further to say that the suspected exploit has been found and the vulnerability patched. Additionally, he said the company has employed a chain forensic consultant to determine the extent of the damage caused.
A Surge in Crypto Hacks
In recent times, cryptocurrency hacks have become more common, particularly as the value of cryptocurrencies has increased. Hackers have stolen millions of dollars in crypto from exchanges, wallets, and other crypto services using a variety of methods. According to an earlier report, over $1.5 billion was stolen in the top five crypto hacks in 2022.
One common method used by hackers is to exploit vulnerabilities in the software used by cryptocurrency services. Citing an instance, a hacker recently used a security flaw in the master service interface of Bitcoin ATM maker, General Bytes to upload videos to their servers.
Additionally, hackers may also employ social engineering strategies to deceive someone into disclosing their private keys or other sensitive data.
Ultimately, individuals and businesses should use secure passwords, and enable two-factor authentication to protect themselves from crypto hacks. Based on this, California recently launched a security tool to help traders determine potential vulnerabilities.
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