Gate.io suspends withdrawals of SafeMoon following public burn bug exploit Gate.io suspends withdrawals of SafeMoon following public burn bug exploit
The attack was carried out by hackers that attacked the BNB-based chain DEX, draining $8.9 million in funds before being found.
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Updated: Mar. 29, 2023 at 12:24 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The fallout from the collapse of SafeMoon’s liquidity pool on Mar. 28 continues as Gate.io suspends deposits and withdrawals of the token.
“As the smart contract of the SFM (SafeMoon) token has been attacked, Gate.io has suspended the deposit and withdrawal of SFM (SafeMoon) for the safety of your assets,” the company said in a blog post dated Mar. 29.
SFM Exploit
The move comes after a public burn bug was allegedly compromised after a bug to remove SFM tokens from the SafeMoon WBNB Liquidity Pool led to the artificial inflation of the token’s price.
According to DeFi Mark, a Solidity developer who Tweeted about the attack, it was the “public burn function” that was exploited and led to the tune of $8.9 million being drained from the liquidity pool.
SFM responds
Following the exploit, SafeMoon has assured its users that it is taking swift actions to resolve the issue. CEO John Karony has clarified that the decentralized exchange remains safe and that the exploit was limited to the SFM WBNB liquidity pool. He also stated that the DEX’s team has met with key advisors and formulated a plan to protect token holders and the community.
Interestingly, the hackers reportedly attached a note in one transaction hours after the exploit, stating that they intended to return the exploited funds. According to PeckShield, the hackers have already returned 4000 Binance Coin (BNB) —worth over $1.2 million.
SFM has tanked on the news, with the token down over 13% in 24 hour trading.
Posted In: Hacks
Author 
Dorian Batycka
Dorian Batycka is a journalist interested in art and technology. He has previously contributed to CoinDesk, Decrypt, Artforum, Artnet News, the Art Newspaper, and many others. He can be found on Twitter and Instagram @temp_projects, where he often memes his way through current financial and art news, scandals, and events.
