Safemoon Hacker Agrees to Return $7.1M to Developers Following $8.9M Hack

Safemoon Hacker Agrees to Return $7.1M to Developers Following $8.9M Hack
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Safemoon Hacker Agrees to Return $7.1 Million to Developers Following an $8.9 million hack. The cryptocurrency and blockchain company reached a consensus with the hacker, who agreed to return 80% of the stolen funds.

Fast facts

  • Following the $8.9 million hack last month, a publicly available token burn mechanism in the contract allowed hackers to manipulate the protocol.
  • The hacker agreed to return $7.1 million (80% of the stolen funds).
  • Safemoon’s token (SFM) has increased by 2.8% in the last 24 hours following the transfer.

SafeMoon is a cryptocurrency and blockchain startup founded in March 2021. The company also has a SafeMoon token (SFM) that is traded on the BNB Chain blockchain.

The hack occurred last month when the Safemoon token (SFM) liquidity pool (LP) was drained of $8.9 million worth of tokens on Wednesday, April 29th, after attackers manipulated a faulty feature in its smart contracts. 

Safemoon’s developers stated that their liquidity pool had been compromised. 

“We want to inform you that our LP has been compromised. We are taking swift action in an attempt to resolve the issue as soon as possible,” developers tweeted.”

As a result of the attack, Safemoon’s SFM tokens plunged more than 40% in the early Asian hours before recovering marginally.

Following the hack, the hacker who exploited the decentralized finance (DeFi) protocol decided to restore 80% of the stolen cash, worth $7.1 million, according to on-chain data shared by Twitter user SafeMoonSpidey.

Safemoon developers informed the community with on-chain transactions visible on the Binance Smart Chain (BSC) block explorer.

The two sides agreed on a 20% bug reward to be offered to the hacker. Safemoon’s developers also stated that no charges will be filed against the hacker. 

Safemoon’s token (SFM) has likewise gained 2.8% in the last 24 hours. Following endorsements from a number of celebrities, the token was one of the top-performing tokens during the 2021 bull market.

Featured image: Shutterstock

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