Four.Meme Resumes Operations After $120K Sandwich Attack, Vows Compensation

BNB Chain-based memecoin launch platform Four.Meme has resumed its operations after falling victim to a sandwich attack that drained approximately $120,000 from its ecosystem. The platform announced on March 18 via X that it had restored its launch function following a thorough security inspection.

Four.Meme temporarily suspended the feature after detecting suspicious activity, confirming it was “under attack.” Following the investigation, the team assured users that the issue had been addressed and system security reinforced. Additionally, it promised compensation for affected users.

“Our team has addressed the issue and reinforced system security. Compensation for affected users is underway,” the platform said.

The attack exploited vulnerabilities in Four.Meme’s liquidity pool creation process, allowing the hacker to bypass token transfer restrictions and manipulate the price.

Attacker Made Off With 192 BNB

Web3 security firm ExVul confirmed that the exploit was a sandwich attack, a common market manipulation tactic. The attacker pre-calculated the address where the liquidity pool’s trading pair would be created and exploited one of Four.Meme’s functions to purchase tokens early. This allowed them to sidestep the platform’s token transfer restrictions.

“The hacker lay in wait for Four.Meme to add liquidity to the transaction, ultimately siphoning off the funds,” ExVul explained.

Blockchain security firm CertiK reached a similar conclusion, revealing that the attacker transferred unbalanced amounts of un-launched tokens to pair addresses before the trading pair was created. When Four.Meme added liquidity, the hacker manipulated the price at launch and sold the tokens for profit.

In one instance involving the SBL token, the attacker pre-sent a small amount of SBL tokens to the pair address before launch. By sandwiching the add liquidity transaction, they pocketed 21.1 BNB. In total, the exploit resulted in the theft of 192 BNB, valued at around $120,000, which the attacker quickly sent to the decentralized exchange FixedFloat.

Second Attack in Two Months

This is the second exploit Four.Meme has suffered in as many months. On February 11, the platform lost approximately $183,000 worth of digital assets in a separate attack.

The broader crypto industry continues to face mounting losses from exploits. February alone saw $1.53 billion drained from various platforms due to scams, hacks, and exploits, with the $1.4 billion Bybit hack accounting for the bulk of the damage.

Meanwhile, Chainalysis reports that 2024 witnessed a rise in professionalized crypto crime, with AI-driven scams, stablecoin laundering, and organized cyber syndicates contributing to the $51 billion in illicit transaction volume over the past year.