Four.Meme Resumes Operations After $120,000 Sandwich Attack

Four.Meme, a platform dedicated to launching memecoins on the BNB Chain, has resumed its operations after falling victim to a sophisticated sandwich attack. The attack, which occurred on March 18, resulted in a loss of approximately $120,000. The platform temporarily suspended its launch function to investigate the security breach and address the vulnerabilities that were exploited.

The attack involved a pre-calculated manipulation of the liquidity pool’s trading pair, allowing the attacker to bypass Four.Meme’s token transfer restrictions. The attacker purchased tokens using one of the platform’s functions, then waited for Four.Meme to add liquidity to the transaction before siphoning off the funds. This tactic, known as a sandwich attack, is a form of market manipulation where an attacker places buy and sell orders to artificially inflate or deflate the price of a token, profiting from the price difference.

Web3 security firm ExVul and blockchain security firm CertiK both analyzed the attack and confirmed that the attacker transferred an imbalanced amount of un-launched tokens to pair addresses before the pair was created. This allowed the attacker to manipulate the price at launch and sell the tokens for profit. The attacker ultimately transferred the stolen funds, worth about 192 BNB, to the decentralized crypto exchange FixedFloat.

This incident marks the second time Four.Meme has been targeted in recent months. A previous exploit on February 11 resulted in the loss of approximately $183,000 worth of digital assets. The repeated attacks underscore the need for enhanced security measures within the memecoin ecosystem, which is often characterized by its speculative nature and lack of intrinsic value.

The resumption of Four.Meme’s operations indicates that the platform has taken steps to address the vulnerabilities and reinforce its system security. The team has also initiated compensation for affected users, demonstrating a commitment to mitigating the impact of the attack. However, the incident serves as a stark reminder of the risks associated with investing in memecoins and the importance of robust security measures in the cryptocurrency space.

The broader implications of such attacks extend beyond the immediate financial loss. They erode trust in the platform and the broader memecoin market, potentially deterring new users and investors. As the memecoin sector continues to evolve, platforms like Four.Meme must prioritize security to protect users and maintain the integrity of the market. The incident highlights the need for ongoing vigilance and proactive measures to safeguard against future exploits and ensure the sustainability of the memecoin ecosystem.