The BNB Chain-based memecoin launch platform Four.Meme has resumed its operations following an attack that drained approximately $120,000 from its ecosystem. The platform announced on March 18 that it had restored its launching function after a thorough security inspection.
Attack Details
Four.Meme temporarily suspended the launch feature after detecting suspicious activity, confirming it was 'under attack.' Following the investigation, the team assured users that the issue had been addressed and system security reinforced. Additionally, compensation for affected users was promised. The attack exploited vulnerabilities in Four.Meme’s liquidity pool creation process, allowing the hacker to bypass token transfer restrictions and manipulate the price.
Analysis of the Attack
Web3 security firm ExVul confirmed that the exploit was a sandwich attack, a common market manipulation tactic. The attacker pre-calculated the address where the liquidity pool’s trading pair would be created and exploited one of Four.Meme’s functions to purchase tokens early. This allowed them to sidestep the platform’s token transfer restrictions. Blockchain security firm CertiK reached a similar conclusion, revealing that the attacker transferred unbalanced amounts of tokens to pair addresses before the trading pair was created. When Four.Meme added liquidity, the hacker manipulated the price and sold the tokens for profit.
History of Attacks and Industry Response
This is the second exploit Four.Meme has suffered in as many months. On February 11, the platform lost approximately $183,000 worth of digital assets in a separate attack. Meanwhile, the broader crypto industry continues to face mounting losses from exploits. February alone saw $1.53 billion drained from various platforms due to scams, hacks, and exploits. Chainalysis reports that 2024 witnessed a rise in professionalized crypto crime, including AI-driven scams and stablecoin laundering.
Despite recent challenges, Four.Meme has reinforced its security and resumed operations. The crypto industry continues to face threats, striving to develop new security solutions.
