Memecoin launch platform Four.Meme has confirmed yet another security breach, forcing it to suspend its token launch feature temporarily.
The Binance Smart Chain-based platform announced that it has launched an emergency investigation into the exploit, which compromised its pre-launch liquidity mechanism.
In a statement, Four.Meme assured affected users that they would be compensated. Those impacted by the attack must fill out a submission form with the necessary details for reimbursement.
“Our team is working hard to fix the problem and ensure system security. Thank you for your understanding and support. We will continue to update the progress,”
the platform stated in its latest post.
According to blockchain security firm SlowMist, the attacker manipulated a vulnerability in Four.Meme’s pre-launch system to steal liquidity. By exploiting the platform’s transfer restriction mechanism known as “MODE_TRANSFER_RESTRICTED”, the attacker could bypass controls meant to prevent unauthorized token transfers before a launch.
The exploit involved sending tokens to a yet-to-exist PancakeSwap trading pair address, allowing the attacker to establish a liquidity pool at a manipulated price. This move enabled them to drain liquidity from the pool without needing to deposit the newly launched tokens. Data from BscScan shows that the attacker added liquidity totalling 4.02 trillion tokens to a PancakeSwap pair.
This is not the first time Four.Meme has faced a security breach. On February 11, the platform was previously attacked, temporarily suspending its token liquidity pool on PancakeSwap. While the platform assured users that their funds remained safe, the attack resulted in losses of approximately $183,000 worth of digital assets.
In 2024, crypto laundering associated with hacking surged to $1.3 billion, a 280% increase from $342 million in 2023, according to a January 13 report by PeckShield. Scam losses dropped to $834.5 million in 2024, a 24% decrease from $1.1 billion in 2023. However, phishing scams remained dominant, making up 80% of the total at $660 million.
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