TikTok’s latest viral memecoin SafeMoon has received a devastating result from their smart contract audits by the cybersecurity company HashEx.
A slew of critical vulnerabilities has recently been identified by the DeFi security provider #HashEx when examining the #SafeMoon #DeFi project. The identified issues are so severe that users are being warned to stay away from the protocol for fear of losing their funds. $SFM
— Weiss Crypto (@WeissCrypto) May 25, 2021
20 million USD in Jeopardy
The researchers at HashEx say that SafeMoon is susceptible to a rug pull by either an internal or external rogue actor takes over the externally owned account that controls a large portion of the memecoin’s liquidity. In the worst case, this could lead to a total damage of up to 20 million USD.
SafeMoon responded to the audit, saying the account is in good custody, but all of this is based on the SafeMoon devs words alone. Moreover, a looming rug pull might not be the only problem with SafeMoon. In total, HashEx has identified 12 vulnerability issues, out of which 5 were classified as severe or critical.
Honeymoon for BSC hackers
SafeMoon is far from the only BSC-based project that has attracted critics lately. Other project that were hacked during the last few weeks were Uranium Finance, Meerkat Finance, Spartan Protocol, and, another hype memecoin, PancakeBunny, for combined damage of hundreds of millions worth of USD. In addition to that, two better known DeFi projects, PancakeSwap and CREAM Finance, became victims of phishing attacks.
While the open nature of Binance Smart Chain makes it possible to create a plethora of new DeFi platforms, especially focused on retail investors, smart contract security seems to be of a lesser concern to developers, compared to become the next memecoin to take off in trading price.