$8.9M Stolen in Crypto Hack on Safemoon Approved by Jake Paul
❘ Published: 2023-03-29T10:08:23
❘ Updated: 2023-03-29T10:08:32
Cryptocurrency SafeMoon is already a controversial symbol, but an upgrade until 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 flaw was introduced after the team “upgraded” the code, leaving an exploit in the open that was quickly exploited. 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 @SAFEMOON Community: We would like 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. Stay tuned here for updates.Thank you for your support as we work to resolve this situation.
— SafeMoon (@safemoon) March 28, 2023
SafeMoon notified all holders via Twitter, so did the CEO, John Karony. According to Karony, the team at SafeMoon has already patched the exploit and is now conducting “investigations” to determine the extent of the damage.
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Since the two updates, there has been nothing else stated by SafeMoon or its CEO.
However, this is not the first time SafeMoon has come under fire. A class action lawsuit was filed against them after it was claimed that investors in the cryptocurrency were “scammed”.
The Jake Paul endorsement gave SafeMoon a huge boost in popularity before it was turned into what appears to be a “pump and dump” scheme.
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This is where a recommendation or hype around a particular token or stock builds its value and then key investors pull out and make a lot of money in the process.
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Another named in the 2022 class action lawsuit was Nick Carter, a member of the Backstreet Boys.
The US SEC also recently fined Jake Paul $400,000 for “illegal” cryptocurrency promotions.
Jake and Logan Paul are both under investigation
Jake Paul isn’t the only one involved in crypto drama, however, as his older brother, Logan, has been the subject of an investigation by YouTuber Coffeezilla in recent months.
The Paul brothers both jumped on the NFT and cryptocurrency hype train in 2021 to varying degrees of success for investors who followed them.
Coffeezilla also reportedly uncovered alleged fraud by Jake Paul in 2022, after looking at alleged assets that Paul owned on the blockchain, where some were involved in similar schemes.
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