Recovered $680,000 in Cryptocurrency Vulnerability:
The Department of Justice Returns Funds to Victims Recovered $680,000 in Cryptocurrency Vulnerability Losses: The Department of Justice Returns Funds to Victims The U.S. Department of Justice has recovered $680,000 related to a cryptocurrency vulnerability and is returning funds stolen through the Safemoon smart contract vulnerability. The Department of Justice Recovered Funds Exploited in the Safemoon Attack The U.S. Department of Justice (DOJ) announced on June 12 that it has seized and is returning over $680,000 of misappropriated cryptocurrency to a cryptocurrency and blockchain company affected by a smart contract manipulation scheme. The case revolves around a vulnerability in the Safemoon liquidity pool mechanism, which was exploited in March 2023 in an attempt to artificially inflate the token price. Due to the absence of criminal charges, the U.S. government is pursuing civil asset forfeiture, recovering a significant portion of the misappropriated funds. The U.S. Department of Justice confirmed: The U.S. has recovered and cleared ownership of stolen cryptocurrency valued at over $680,000 through civil asset forfeiture, and is returning these funds to the victims. The Department of Justice explained that the theft attempt stemmed from a programming flaw in the Safemoon smart contract that allowed token destruction, distorting market value. A separate trading bot intercepted this operation and redirected the profits to its own operator, who then contacted Safemoon and negotiated to retain 20% of the funds. The FBI subsequently intervened. The U.S. Department of Justice detailed: On May 15, 2023, the FBI seized $680,467.92 and 480.996 BNB from an account on the cryptocurrency exchange OKX, which accounts for approximately half of the 20% funds extorted from Safemoon. The Department of Justice clarified: "Safemoon has since filed for bankruptcy, but these funds are being returned to Safemoon's bankruptcy trustee." The original attacker and bot operator have yet to be found or charged, prompting authorities to pursue civil litigation to recover these assets. The forfeiture process allows any interested party to contest claims before a federal judge.
