Safemoon on BNB Chain: Hackers Return Majority of Stolen Funds

04/18/2023 15:55 • Digital Disruptors • 74 views

According to reports, the DeFi protocol Safemoon on BNB Chain stated that hackers will return 80% of the stolen funds of $8.9 million (approximately $7.1 million), with the remaining 20% reserved as a bounty.

SafeMoon hackers have agreed to return 80% of the stolen funds

The decentralized finance (DeFi) world has been growing at an exponential rate over the last few years, attracting billions of dollars in investments as people flock towards innovative and decentralized financial instruments. Safemoon is one such DeFi protocol that operates on the Binance Smart Chain (BNB) and has quickly gained traction among investors. However, reports emerged recently that Safemoon was a victim of a hack attack, leading to the loss of a significant amount of funds. In this article, we will delve into the details of the attack and analyze how the incident is likely to impact Safemoon-users and the DeFi landscape as a whole.

Background of the Hack Attack

Safemoon is a unique DeFi protocol that uses a novel approach to incentivize holders to retain their tokens through a 10% penalty fee on sales. The fee is then distributed among the holders, with 5% of the penalty fee being burned and 5% being retained by the holders. The protocol claims to be completely decentralized, with no centralized authority controlling the tokens regarding potential value generation.
On the 15th of September, 2021, Safemoon announced on their social channels that they had become the victim of an attack in which an unknown hacker gained unauthorized access to the contract and exploited tokens worth $8.9 million. Given the amount stolen and the decentralized nature of the protocol, the consequences of the attack could be catastrophic if not resolved, making the Safemoon team concerned about a potential secondary attack.

Return of Stolen Funds and the Bounty

In the aftermath of the attack, the Safemoon team swiftly responded, engaging security firms to identify the hack’s source and solve the underlying issues in their security protocols. In the same announcement, Safemoon notified its users that the hacker had agreed to return 80% of the stolen tokens, with the remaining 20% serving as a bounty.
The response by the hacker was surprising considering that this is not always the case in the DeFi landscape. However, Safemoon’s ability to restore lost funds is a promising development, instilling confidence in the platform’s users and maintaining the DeFi ecosystem’s ethics of trustlessness and decentralization.

Impact on Safemoon and DeFi Landscape

The DeFi space has seen numerous hacks in recent years, with roughly 160 attacks in 2020 alone, and the fact that Safemoon was not immune to these attacks further highlights the need for robust decentralization protocols. However, swift action by the Safemoon team and the willingness of the hacker to return stolen assets are the silver linings in this hack.
The return of stolen tokens and continued improvement in Safemoon security frameworks reinstates the platform’s reliability, providing encouragement to its investors, as well as skeptical watchers of the DeFi ecosystem.

Conclusion

DeFi protocols like Safemoon have enjoyed impressive growth in recent years, and while this growth is promising, it also draws unwanted attention from attackers. The 80% return of stolen tokens by the hacker and the bounty reserved for potential hackers demonstrate a collective commitment towards maintaining security within the trustless DeFi space. Nonetheless, potential users and investors are encouraged to carry out due diligence before investing in the DeFi market.

FAQs

1. Can Safemoon users still invest in the protocol despite the hack?
Yes, Safemoon investors can still invest in the protocol as the Safemoon team has taken swift action to restore lost funds and improve their security protocols.
2. If the Safemoon hack reoccurs, can users expect a refund of their lost assets?
Unlike traditional financial institutions, DeFi protocols do not offer deposit insurance or refunds. However, the team behind Safemoon is working to increase security protocols to minimize the chances of a repeat hack.
3. What measures can DeFi users take to secure their assets?
DeFi users can make use of hardware wallets or cold wallets to store their assets securely offline, preventing unauthorized access by hackers. Additionally, carrying out due diligence on potential investments and holdings in DeFi protocols is essential in safeguarding invested assets.

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