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CoinDesk Consensus

DeFi project SafeMoon’s liquidity pool (LP) has been compromised, according to a statement by the project on Twitter. March 28th.

SafeMoon LP compromised

SafeMoon said it was taking steps to resolve the issue, but gave few other details about the matter. Twitter account retweeted the project’s initial statement without comment.

SafeMoon has not disclosed the cause of the incident, but others have commented on the issue.Security company Pecshield said A contract upgrade introduced a public burn bug. This seems to have allowed anyone to destroy the token. PeckShield said the upgrade was initiated by the deployer’s contract, suggesting a possible admin key leak.

The amount of stolen or recovered cryptocurrency is unknown.

This compromise was made at the wrong time. SafeMoon recently promoted their security product, his Orbital Shield. While the issue doesn’t appear to be directly related to his Orbital Shield, the incident may not inspire confidence in the project’s broader security efforts.

SafeMoon’s native token (SFM) has been slightly affected by this news.Token value down by 4.86% Last 24 hours as of 11:45 PM UTC.

Safemoon plagued by controversy

SafeMoon is a DeFi-focused project that aims to provide a way for investors to gain investment interest through redistribution, LP acquisition, and token burning.

The project came under fire in 2022 after criticism from Coffeezilla. The YouTube host claimed that the former CEO of the project, known only as “Kyle,” committed fraud. Coffeezilla also claimed that current CEO John Karony stole it from the project. SafeMoon’s former CTO previously responded to Coffeezilla’s earlier allegations.

SafeMoon is also the subject of numerous class-action lawsuits, variously accusing the project of being a pump-and-dump scheme and violating securities laws. His SFM token in the project suddenly skyrocketed in price when one of these lawsuits was dropped in November 2022, but those gains proved to be very short-lived.

As a result, SafeMoon has been plagued with controversy for much of its existence, and its SFM token has lost most of its value since its March 2022 high.

Note: This article has been updated to include PeckShield details.

Posted In: Featured, Hacks

By Jules

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