Four.Meme Resumes Operations After $120K Sandwich Attack

The BNB Chain-based memecoin launch platform Four.Meme has officially resumed its operations following a significant security breach known as a sandwich attack, which resulted in a loss of approximately $120,000. This incident has raised eyebrows in the crypto community, highlighting the vulnerabilities that can exist even in seemingly secure platforms.

Understanding the Sandwich Attack

A sandwich attack is a type of front-running exploit where an attacker manipulates the market by placing orders around a target transaction. In this case, the attacker was able to exploit Four.Meme’s launch function, which led to the substantial financial loss. On March 18, Four.Meme took to social media platform X to announce that its launch function was back online after conducting a thorough inspection and addressing the security issue.

Four.Meme’s Response to the Attack

In their announcement, the Four.Meme team stated, “The launch function has now been resumed after a thorough security inspection. Our team has addressed the issue and reinforced system security. Compensation for affected users is underway.” This proactive approach is crucial in maintaining user trust and ensuring the platform’s integrity moving forward.

Details of the Exploit

The attacker utilized a sophisticated method to exploit the platform. According to the Four.Meme team, the attacker “pre-calculated the address for creating the liquidity pool’s trading pair” and leveraged one of the platform’s functions to purchase tokens. This maneuver successfully bypassed Four.Meme’s token transfer restrictions, allowing the attacker to execute their plan without detection initially.

Blockchain security firm CertiK corroborated these findings, explaining that the attacker transferred an imbalanced amount of un-launched tokens to pair addresses before the pair was created. This manipulation allowed the attacker to set a favorable price at launch, ultimately leading to a profitable exit.

Impact of the Attack

In the specific case of the SBL token, the attacker sent a small amount of SBL token to the pre-calculated pair address in advance. By sandwiching the add liquidity transaction at launch, the attacker was able to profit 21.1 BNB. CertiK reported that the attacker ultimately left with at least 192 BNB, which is valued at around $120,000. This amount was subsequently sent to the decentralized crypto exchange FixedFloat.

The Bigger Picture: Crypto Crime Trends

The incident involving Four.Meme is not an isolated case. According to blockchain analytics firm Chainalysis, the rise of crypto crime is becoming increasingly professionalized, with AI-driven scams, stablecoin laundering, and efficient cyber syndicates taking center stage. This trend poses significant challenges for platforms and users alike, emphasizing the need for robust security measures.

What Users Should Know

For users of Four.Meme and similar platforms, it is essential to stay informed about the security measures being implemented. The recent attack serves as a reminder of the potential risks associated with investing in cryptocurrencies and participating in decentralized finance (DeFi) platforms. Users should exercise caution and consider diversifying their investments to mitigate risks.

Future Security Measures

In light of the sandwich attack, Four.Meme has committed to enhancing its security protocols. The team is likely to implement additional measures to prevent similar incidents in the future. This may include more rigorous audits, improved transaction monitoring, and user education on security best practices.

Conclusion

The resumption of operations by Four.Meme following the $120K sandwich attack is a significant development in the crypto space. As the platform works to compensate affected users and bolster its security, it serves as a case study for other projects in the industry. The ongoing evolution of crypto crime underscores the importance of vigilance and proactive security measures in protecting both platforms and their users.