SafeMoon, a decentralized finance project, has been charged by the United States Securities and Exchange Commission (SEC) for security rules violations and fraud. The project was exploited in March, resulting in a net loss of $8.9 million in BNB. The funds associated with the exploit have been moving through centralized exchanges, which could be crucial for law enforcement agencies. Match System, a blockchain analytic firm, suspects that these exchanges were used for money laundering. The firm believes that centralized exchanges are a preferable option for hackers to confuse the paths and gain time. Match System conducted a post-mortem analysis of the SafeMoon smart contract and found that the hacker exploited a vulnerability associated with the “Bridge Burn” feature. This allowed the hacker to transfer tokens to the developer’s address. The exploit resulted in a pump in the value of tokens, and the hacker swapped some of the tokens for BNB at an inflated price. The SEC has filed charges against SafeMoon and its three executives, accusing them of fraud and violating securities laws. Match System also found evidence that may indicate the involvement of SafeMoon management in the hacking. The CEO and the chief technical officer of SafeMoon are facing charges from the Justice Department for wire fraud, money laundering, and securities fraud. The hacker initially claimed to have mistakenly exploited the protocol and offered to return 80% of the funds. However, the funds linked to the exploit have moved multiple times, often through centralized exchanges like Binance. Law enforcement agencies are expected to rely on these exchanges to track down the perpetrators of the exploit.

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Information	Details
Geography	Global
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	None, Sean Thornton, John Karony, Thomas Smith
Companies	Cointelegraph, Match System, United States Securities and Exchange Commission, Binance, SafeMoon
Currencies	SafeMoon, BNB, US Dollar
Securities	None