The memecoin launch platform Four.Meme has confirmed it has experienced yet another security breach, prompting a temporary halt to its token launch functionality.
In a recent announcement, the Binance (BNB) Smart Chain-based platform revealed it is undertaking an urgent investigation into the attack. For the time being, the launch feature is suspended until further updates are available.
The platform has also committed to compensating all users impacted by the security issue. Affected users will need to complete a submission form, providing the necessary details for their compensation claims.
“Our team is diligently working to resolve the issue and enhance the security of the system. We appreciate your patience and support. Updates on our progress will be shared continuously,” stated Four.Meme in their latest communication.
A report from a blockchain security firm noted that the attacker exploited a vulnerability in the platform’s pre-launch phase, enabling them to siphon off liquidity. They leveraged this loophole to direct tokens to a PancakeSwap (CAKE) Pair address that had not yet been established.
This maneuver allowed the attacker to create a trading pair and contribute liquidity without needing to transfer tokens that hadn’t been launched yet. Consequently, the attacker was able to circumvent the transfer restriction labeled “MODE_TRANSFER_RESTRICTED,” which is applied prior to token launches.
The attacker subsequently managed to inject liquidity at an undesired price, effectively draining the pool’s liquidity. While the platform has not disclosed the total losses incurred from the breach, data from BscScan indicates that the attacker added liquidity to a PancakePair totaling 4.02 trillion tokens in the address’ balance.
Before this incident, Four.Meme experienced another attack on February 11, which also led to a temporary suspension of its token liquidity pool on PancakeSwap. Although users were assured that their funds remained secure from that exploit, the incident resulted in the memecoin launchpad platform losing approximately $183,000 in digital assets.