Safemoon Hacker Returns Over $7M Stolen Funds
The blockchain community was rocked when Safemoon, a decentralized finance (DeFi) protocol, suffered a hack that saw $9 million stolen from its liquidity pool. Fortunately, the hacker returned $7.2 million of the stolen funds to Safemoon’s treasury wallet. The attack and subsequent restitution has raised questions about the safety of DeFi protocols and the impact on the crypto market.
The Details of the Attack and Restitution
Peckshield, a blockchain analytics firm, reported that the hacker returned the funds in two transactions during the early hours of April 20. The first transaction saw the attacker send 10,000 units of BNB worth $3.4 million to Safemoon’s treasury wallet. The second transaction involved the transfer of 11,804 BNB worth $3.8 million to the same address.
Safemoon had previously informed its community about the transactions on April 19, indicating that the hacker had successfully performed a 100 BNB test transaction that preceded the return of 80% of the stolen funds. The protocol added that SafeMoon tokens from a wallet with the address 0xdaa3b5ae0521264e55f45157eb6e158e1f3e5012 would be used to pair the BNB into the SFM:BNB liquidity pool.
It was agreed that the hacker should keep 20% of the stolen $9 million in the best interest of the community and the project. While the hacker has returned over $7 million of the funds, Safemoon’s price remains unchanged despite the news.
Criticism and Implications for the Crypto Market
The attack on Safemoon has raised concerns about the security of DeFi protocols, which are often vulnerable to hacks due to their decentralized nature. While Safemoon’s quick response to the hack and restitution of stolen funds is commendable, the decision to allow the hacker to keep a portion of the stolen funds has been heavily criticized. Many have accused Safemoon of rewarding criminal behavior and not taking the hack seriously enough.
Furthermore, the attack and subsequent restitution may have implications for the wider crypto market. The crypto market is often viewed with suspicion due to concerns around security and the prevalence of scams. The Safemoon hack and restitution may further erode trust in the crypto market, potentially leading to increased regulatory scrutiny and stricter measures.
Conclusion
The Safemoon hack and restitution of stolen funds has raised questions about the safety of DeFi protocols and the impact on the wider crypto market. While Safemoon’s quick response to the hack is commendable, the decision to allow the hacker to keep a portion of the stolen funds has been criticized. The incident highlights the need for increased security measures and regulatory scrutiny in the crypto market.
Key Takeaways
- Safemoon’s liquidity pool suffered a hack that saw $9 million stolen
- The hacker returned $7.2 million of the stolen funds to Safemoon’s treasury wallet
- Safemoon agreed that the hacker should keep 20% of the stolen funds
- The decision to allow the hacker to keep a portion of the stolen funds has been criticized
- The incident highlights the need for increased security measures and regulatory scrutiny in the crypto market
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