The decentralized finance project SafeMoon, which was exploited in March, resulting in a net loss of $8.9 million in BNB (BNB), has been charged by the United States Securities and Exchange Commission (SEC) for security rules violations and fraud.
The funds associated with the exploit have been on the move via centralized exchanges (CEXs), with blockchain analytic firm Match Systems believing the transfers could become critical for law enforcement agencies.
Sean Thornton from Match Systems told Cointelegraph that it suspects CEXs were used as an intermediate link in the money laundering chain:
“On CEXs, funds could be exchanged for other tokens and withdrawn further, and accounts on a CEX could be registered for drops (dummy persons). Taking into account the fact that it is almost impossible to trace the movement of funds through a CEX without a request from law enforcement agencies, a CEX is a more preferable option than a DEX [decentralized exchange] for a hacker to gain time and confuse paths.”
Match Systems carried out a post-mortem of the SafeMoon smart contract and the subsequent movement of funds to analyze the behavior of the exploiters. The analysis revealed that the hacker exploited a vulnerability in SafeMoon’s contract associated…
