On October 5, using on-chain data monitoring, Numen Cyber Labs discovered that the SED project had a runaway event.
The project first exchanged a large number of SED tokens into the pool, in exchange for a part of the USDT. They then subsequently removed the previously added liquidity. As a result, the current pool’s liquidity was essentially wiped out, causing the corresponding SED tokens to have completely lost their value.
Runaway events such as these occur frequently, and we recommend users and investors carefully manage their assets and risks accordingly.
The project’s official Twitter account has been deleted as seen below:
Brief analysis of the event
SED Token contract address:
https://etherscan.io/address/0xf0b692aCE03fFB689628E68D4919F91723D1c5a2
SED-USDTFunding pool address：
https://etherscan.io/address/0xB06aBBe96B347D1A8Bbc17672b08c48509a009E4
The funding pool creation address：
https://etherscan.io/address/0x05feed0ee41dbcc2df6f155dd33681281281e008
As shown in the figure below, the project party first put up a large number of SED tokens for exchange, and subsequently exchanged it for USDT.
After the exchange, all the liquidity added was removed, and nearly 22W USDT and a large number of SED tokens were removed, causing the liquidity of the pool to drop to 0.
Token Transfer History
Summary
SED is a Token issued by social platform SexDao. The founder of the project has received a lot of attention of late but has however completely vanished from the public eye after this incident. The official website has also been closed down and its Twitter account deleted.
The impact of this incident on its users is relatively small-scale, however the principle remains and similar incidents might occur again for larger projects in the future. Numen Cyber Labs will continue working hard in the pursuit of blockchain security integrity. We wish to remind users and investors alike to to always do their own research and gather as much information as necessary before investing. Nevertheless, we hope for all projects to run safely and stably going forward.
If you wish to audit and ensure that your projects are free from exploits such as these, please reach out to us here.
Numen Cyber Labs is committed to facilitating the safe development of Web 3.0. We are dedicated to the security of the blockchain ecosystem, as well as operating systems & browser/mobile security. We regularly disseminate analyses on topics such as these, please stay tuned or visit our blog here for more!
This blog was originally published on our Medium Account.
