• Cybersecurity
  • Hacked

Safemoon Liquidity Pool Hacked, $8.9 Million Lost


Safemoon, a cryptocurrency service, has reported that one of its liquidity pools was compromised, leading to an estimated loss of $8.9m. The hack was confirmed by the Safemoon team on their official Twitter page, and the reason is believed to be a potential leak of the administrator’s key.

PeckShield Alert team analysis

The PeckShield Alert team, which investigated the hack, discovered that the exploiter took advantage of a “loophole” in the token-burning mechanism. According to the agency, the operation was triggered “from within”, which could suggest a potential key leak.

Token-burning mechanism

The exploiter burned some SFMs from the WBNB liquidity pool, which caused a spike in the value of the tokens. This allowed the hacker to sell SFMs at an inflated price, and all remaining WBNBs were destroyed.

Hacker’s message and compensation

The hacker left a message for the transaction, claiming that the Safemoon hack was an accident and that the attackers (referred to as “we” in the message) are willing to return the funds. As a gesture of goodwill, the hackers compensated 4,000 BNB ($1.2m), which was confirmed by PeckShield. Negotiations are ongoing.

Effects on SFM exchange rate

The news of the hack caused a drop in the SFM exchange rate of over 30%. There was a small correction after the return of some funds, and at the time of writing, the asset is trading at $0.0001934 (-15.55% in 24 hours).

Accusations of ragpulling

Some users have accused the administration of the protocol of ragpulling, citing the leaked key and the hackers’ perceived willingness to negotiate.


The hack of Safemoon’s liquidity pool is a stark reminder of the importance of robust security measures in the cryptocurrency industry. Although the hackers have reportedly offered to return the funds, the negotiations are ongoing, and it is unclear whether all of the lost assets will be recovered.


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