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Jake Paul-endorsed SafeMoon gets hacked after introducing a bug in upgrade

SafeMoon, a crypto project that had previously been supported by celebrities and social influencers such as Jake Paul and Soulja Boy, has recently reported that its liquidity pool (LP) has been breached. While it has not disclosed any further information regarding the attack, the company has stated that it is taking necessary measures to resolve the issue as quickly as possible.

Like many other cryptocurrency projects in 2021, SafeMoon had been endorsed by several well-known personalities. However, in February 2022, a lawsuit alleged that musicians like Nick Carter, Lil Yachty, Soulja Boy, and YouTubers Jake Paul and Ben Phillips had perpetrated real-life Ponzi schemes by tricking investors into purchasing SafeMoon (SAFEMOON) tokens under the guise of unrealistic profits.

Following the investigation of the SafeMoon hack, it was discovered that the attacker made off with approximately 27,000 BNB, equivalent to $8.9 million. SafeMoon has yet to respond to Cointelegraph’s request for comment. Additionally, users have been prohibited from posting comments on the announcement that disclosed the LP breach.

Blockchain investigator PeckShield has narrowed down the issue to a recent software upgrade that could have introduced the bug. The latest upgrade allegedly introduced a public burn function that allows users to burn tokens from other addresses.

According to community member “DeFi Mark,” the attacker exploited the vulnerability to remove SafeMoon tokens, causing an artificial surge in the token’s price. The attacker then took advantage of the situation and sold off the tokens at a higher price.

The attacker left a message along with the transaction, as seen above, stating: “Hey relax, we are accidently frontrun an attack against you, we would like to return the fund, setup secure communication channel, lets talk.”

Until SafeMoon issues an official statement on the matter, investors are urged to refrain from investing in the project to avoid potential losses.

In response to a recent security incident involving unauthorized access to hot wallets, Bitcoin ATM manufacturer General Bytes has pledged to compensate customers who suffered losses.

As reported by Cointelegraph, the hack resulted in the loss of 56 BTC and 21.82 Ether, collectively worth almost $1.9 million.

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