DeFi Platform Four.Meme was the victim of a smart contract exploit on Tuesday. Hackers targeted the BNB Chain-based meme coin launchpad, altering the liquidity pool on PancakeSwap. SlowMist, a security outfit, first reported the hack.
The exploit used a weakness in Four.Meme's liquidity mechanism. Attackers evaded transfer limits and manipulated pool prices. They got tokens before launch and sent them to a non-existent PancakeSwap pair address. This allowed them to build the pair and add liquidity at the erroneous prices. Hackers took more than $174,000 in BNB tokens. They then laundered the funds using multiple PancakeSwap contracts. Four.Meme promptly halted operations and offered compensation to affected users.
This is the second attack against Four.Meme in two months. The platform has since resumed operations following security assessments. However, these occurrences show the continued vulnerabilities in decentralized finance, particularly in meme coin marketplaces.
Despite security concerns, Four.Meme remains popular. To date, it has issued about 74,000 unique tokens. The platform's team is working to patch vulnerabilities and increase system security.
