Four.Meme – a launchpad for memecoin on the BNB Chain – has suspended its Liquidity Providers (LP) in PancakeSwap following the detection of a malicious vulnerability targeting their system.
On February 11, the team acknowledged the incident and reassured users that they were taking steps to rectify the problem. The platform halted the token LP in order to avoid further damage, while still allowing on-chain trading.
Four.Meme has stated that its funds are safe despite the incident. The team will continue to monitor the situation, and keep the community updated.
The incident follows the platform’s recent rise in prominence, primarily fueled by the unexpected success of the Test (TST) token.
TST, originally designed for an instructional video, saw a stunning 10,000% rise after a recent social media posting by the former Binance Chief Executive Officer Changpeng Zhao. Since then, TST has grown in popularity, and even secured a Binance listing.
$200k in losses
The Web3 Security firm CertiK has revealed that an attacker exploited vulnerabilities in several unverified contracts and stole assets valued at approximately $200,000.
Security firm PeckShield estimates the total loss to be around 287 BNB or $183,000.
SlowMist, an additional blockchain security company, has provided additional analyses, which point to the manipulation of liquidity as the main attack method.
The researchers found that the attacker was able to launch the token in advance by setting up a pool using PancakeSwap V3. This allowed an attacker to artificially set the price of the token prior to its migration. The fraudulent pool set the liquidity distribution when the token was officially launched, integrated into PancakeSwap and the attacker could siphon funds.
The security firm identified a critical oversight in Four.Meme’s protocol—the absence of a verification mechanism for liquidity pool prices before deposits. It was this flaw that left the system open to distortions in prices and a liquidity drain.
SlowMist’s founder, Yu Xian, attributed the exploit to weak security measures, stressing that attackers can repeatedly exploit similar loopholes unless platforms implement rigorous verification processes.
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