With the help of well-known celebrities and social media influencers like Soulja Boy and Jake Paul, SafeMoon, a popular cryptocurrency project, has disclosed that its liquidity pool (LP) had been hijacked. However, the project did not provide any specific information regarding the nature of the attack.
Nevertheless, it assured the community that it would address the issue quickly. The compromise of this LP can have severe consequences for the platform’s users and the broader crypto community.
Meanwhile, the project has not released any official statement regarding the issue.
Celebrity Endorsements, Lawsuits, And A Costly Hack
SafeMoon gained significant attention in 2021 after receiving massive support from various celebrities and influencers. Notable among them are musicians like Soulja Boy, Lil Yachty, and Nick Carter, as well as YouTubers like Ben Phillips and Jake Paul.
These high-profile figures promoted SafeMoon on their social media platforms and encouraged their followers to invest in the project, claiming it would generate enormous profits.
However, these celebrities received a court summon in February 2022 over allegations of promoting SafeMoon like a Ponzi scheme. The lawsuit alleged that they misled investors into buying SAFEMOON tokens by making unrealistic claims about potential profits.
Also read:The plaintiffs claimed they suffered losses due to these false and misleading statements.
Meanwhile, PeckShield, a blockchain investigator, has identified a recent software upgrade on the crypto project’s protocol as a possible cause of the problem that led to the hack. PeckShield specified that introducing a public burn function during the latest software upgrade created a bug that the hackers exploited.
According to a statement by “DeFi Mark,” a member of the SafeMoon community, the hacker exploited a vulnerability in the SafeMoon system that allowed the removal of SafeMoon tokens. These withdrawals led to an unnatural surge in the token’s price.
Then, the hacker sold off the stolen tokens at a significantly higher price.
A Crucial Set Up
In a twist of events, the attacker included a message with the transaction saying they accidentally front-run an attack and would like to return the stolen funds. They suggested setting up a secure communication channel to discuss the matter further.
Hence, crypto security platforms have cautioned investors to refrain from investing in SafeMoon until the project makes an official announcement about resolving the issue.
The SafeMoon hacking incident isn’t an isolated case. Recently, General Bytes, a famous Bitcoin ATM manufacturer, experienced a security breach that resulted in unauthorized access to hot wallets.
However, it has announced a compensation plan for its customers who lost their funds due to the incident. According to reports, the hack resulted in a combined loss of 56 BTC and 21.82 Ether, valued at almost $1.9 million.
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