Memecoin launch platform Four.Meme confirms it has suffered another attack which led to the temporary suspension of the platform’s token launch feature.
In a recent post, the Binance (BNB) Smart Chain-based memecoin launch platform said that it has launched an emergency investigation into the malicious attack. For the time being, the launch function has been suspended until further notice.
The platform also promised to compensate all users affected by the exploit. Users who were affected by the attack have to fill out a submission form, providing the relevant information needed for compensation.
“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,” wrote Four.Meme through its recent post.
According to a report by the blockchain security firm SlowMist, the attacker exploited the platform’s pre-launch vulnerability to steal liquidity. They used the feature to send tokens to a PancakeSwap (CAKE) Pair address that did not exist yet.
https://twitter.com/SlowMist_Team/status/1901845958767657072
By doing so, the attacker was able to create a trading pair and add liquidity without needing to transfer tokens that were not launched yet to the pair. Therefore, the attacker could bypass Four.Meme’s transfer restriction, labeled “MODE_TRANSFER_RESTRICTED,” which was applied before a token is launched.
As a result, the attacker could add liquidity at an unintended price in order to drain pool liquidity. Although the platform has not revealed an exact amount of losses that resulted from the attack, data on BscScan revealed that the attacker added liquidity to a PancakePair amounting to 4.02 trillion tokens in the address’ balance.
Prior to this attack, Four.Meme suffered an attack on Feb. 11 which led to the temporary suspension of its token liquidity pool on PancakeSwap. The platform assured users that their funds were unaffected by the exploit. However, the attack resulted in the memecoin launchpad platform losing approximately $183,000 worth of digital assets.
