Cryptocurrency SafeMoon is already a controversial token, but an upgrade to the software introduced a bug that saw $8.9 million stolen from the pool.
SafeMoon, a Jake Paul-endorsed cryptocurrency token, better known for its class action lawsuit for defrauding investors, has been hacked for $8.9 million.
The bug was introduced after the team “upgraded” the code, leaving an exploit in the open that was quickly taken advantage of. The $8.9 million stolen from SafeMoon comes from its liquidity pool, the cash it has on hand to facilitate trading.
SafeMoon updates users after massive hack
To the @SAFEMOON community: 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. Follow here for updates.Thank you for your support as we work to address this situation.
— SafeMoon (@safemoon) March 28, 2023
SafeMoon alerted all holders via Twitter, as did the CEO, John Karony. According to Karony, the team at SafeMoon has already patched the exploit and is now conducting “forensics” to figure out how bad the damage is.
Since the two updates, there’s been nothing else stated by SafeMoon or its CEO.
However, this isn’t the first time that SafeMoon has come under fire. A class action lawsuit was brought to them after it was claimed that investors in the cryptocurrency were “defrauded”.
The Jake Paul endorsement gave SafeMoon a massive surge in popularity before it was turned into what appears to be a “pump and dump” scheme.
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This is where an endorsement or hype around a particular token or stock builds its value up and then key investors pull out, making a lot of money in the process.
Another named in the class action lawsuit from 2022 was Nick Carter, a member of the Backstreet Boys.
The US SEC has also recently fined Jake Paul $400,000 for “illegal” cryptocurrency promotions.
Jake and Logan Paul both under scrutiny
Jake Paul isn’t the only one embroiled in crypto drama though, as his older brother, Logan, has been the subject of an investigation by YouTuber Coffeezilla over the last few months.
The Paul brothers both hopped on the NFT and cryptocurrency hype train in 2021 to varying success for investors who followed them.
Coffeezilla also allegedly exposed alleged fraud from Jake Paul in 2022, after looking at supposed assets that Paul owned on the blockchain, with some being involved in similar schemes.