DeFi Protocol SafeMoon Lost $8.9 Million - Is it A Hack or Inside job?
Seeing what happened to the centralized crypto exchange, people pay attention to DeFi for better security, freedom, and decentralization. Exploitation and hacks in DeFi protocol show the vulnerability and risk of using DeFi. DeFi Protocol SafeMoon just lost $8.9 million becoming a victim of exploitation.
So what happened that caused SafeMoon to lose $8.9 million? SafeMoon tweeted about it that they are working to resolve this issue and admitted that Liquidity Pool was compromised. In a separate tweet, SafeMoon CEO confirmed that only SFM:BNB LP pool was affected due to this exploitation. He assured that other liquidity pools are not affected.
According to blockchain security firm PeckShield, in the last update of Safemoon protocol, there was a bug. The attacker took advantage of this and used the burning function to burn SafeMoon’s native token SFM. It triggered to rise SFM token price and the attacker sold SFM tokens. At the same time, the attacker drained wrapped BNB (WBNB) from the liquidity pool.
When you hear the name SafeMoon, you cannot think that’s safe. Since the bug was introduced in the last update of the SafeMoon protocol, it might be a feature that was added intentionally. Or, maybe it is a bug. The SafeMoon team could be able to prevent it from exploitation if they checked it out properly before launching the updates.
When you see an audit report, you usually trust that DeFi protocol, but an update after the audit can change the whole thing and expose vulnerability to exploits and hacks. FUD and trust issues can create more damage in any industry. In crypto, we talk about decentralization and freedom, unfortunately, most problems in crypto create due to the lack of decentralization and freedom.
Names do not mean anything whether it is called SafeMoon or SafeMars. The risk is there when you choose the crypto exchange and DeFi. When you consider the risk and your risk tolerance level, it will act as safety and security. You can handle the situation in case something goes wrong.
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