SafeMoon’s liquidity pool compromised; public burn bug to blame

Mar. 28, 2023

By Mike Dalton

The amount of funds stolen as a result of the exploit is still unknown.

The liquidity pool (LP) for the DeFi project SafeMoon has been compromised, according to a statement from the project on Twitter on March 28.

SafeMoon LP compromised

SafeMoon said it is taking steps to resolve the issue but gave few other details on the matter. SafeMoon CEO John Karony (aka Captain Hodl) also retweeted the project’s initial statement on his personal Twitter account without further comment.

Though SafeMoon has not disclosed the cause of the incident, others have commented on the matter. Security firm PeckShield said that a contract upgrade introduced a public burn bug — seemingly allowing anyone to destroy tokens. PeckShield said that the upgrade was initiated by the deployer contract and suggested the possibility of an admin key leak.

It is unclear how much cryptocurrency — if any — has been stolen or recovered.

The compromise comes at an inopportune time: SafeMoon recently promoted its security product, Orbital Shield. Though the issue does not seem to be related directly to Orbital Shield, the incident may not inspire confidence in the project’s wider security efforts.

SafeMoon’s native token (SFM) has been slightly affected by the news. The token’s value was down 4.86% over the past 24 hours as of 11:45 p.m. UTC.

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