Four.Meme Resumes Operations After $120K Sandwich Attack

The popular BNB Chain-based memecoin launch platform Four.Meme has resumed operations after being hit with a devastating sandwich attack that exploited its pre-launch vulnerability, netting the attacker around $120,000. The incident highlights the ever-present threat of scams and exploits in the cryptocurrency space.

According to Web3 security firm ExVul, the attacker employed a market manipulation technique known as a "sandwich attack" to successfully bypass Four.Meme's token transfer restrictions. This tactic involved pre-calculating the address for creating the liquidity pool's trading pair and utilizing one of the platform's functions to purchase tokens, which ultimately led to the theft of $120,000 worth of digital assets.

ExVul further explained that the attacker "lay in wait" for Four.Meme to add liquidity to the transaction, allowing them to siphon off the funds. The firm noted that the attack was particularly effective due to the platform's reliance on user-generated liquidity pools, which can be vulnerable to exploits.

Another blockchain security firm, CertiK, also weighed in on the incident, concluding that the attacker transferred an imbalanced amount of un-launched tokens to pair addresses before the pair was created. The attacker then manipulated the price at launch to sell them for profit, ultimately leaving with at least 192 BNB (BNB) worth around $120,000.

Four.Meme has a history of being targeted by attackers in recent months. In February, the platform suffered a $183,000 exploit, resulting in the loss of digital assets. The broader crypto industry experienced significant losses to scams and exploits in February alone, with over $1.53 billion lost to various types of threats.

Blockchain analytics firm Chainalysis noted that the past year saw $51 billion in illicit transaction volume, largely driven by AI-driven scams, stablecoin laundering, and efficient cyber syndicates. The rise of professionalized crypto crime is a pressing concern for the industry, highlighting the need for robust security measures to protect users and prevent such incidents.

Four.Meme has since resumed operations, with its launch function now back online after a thorough security inspection. The platform's team assured users that they had addressed the issue and reinforced system security. Compensation for affected users is currently underway, providing a measure of hope for those impacted by the incident.

The incident serves as a stark reminder of the importance of vigilance in the cryptocurrency space. As the industry continues to evolve and grow, it's essential for platforms like Four.Meme to prioritize security and invest in robust measures to protect users from such attacks. The future of crypto will undoubtedly be shaped by our collective efforts to mitigate these risks.