Meme trading platform suffers major cyber attack, losses may reach up to hundreds of millions.

On the night of November 16th, a decentralized platform focused on Meme token trading suffered a severe cyber attack, resulting in a large amount of user assets being illegally transferred. Preliminary estimates suggest that the platform's losses could reach tens of millions of dollars, with the final total possibly exceeding 100 million dollars.

Security experts have pointed out that users' private key information has been leaked, but the specific leakage channels are still under investigation. This incident has severely undermined market trust in the platform, with some even suspecting it to be an inside job. Regardless of the truth, this large-scale theft of funds has dealt a heavy blow to the recently active Meme token market, while also reigniting concerns about the security of on-chain assets.

Latest Developments in Events

As one of the important platforms for trading Meme tokens, this platform not only provides trading and liquidity services but also supports project launches, staking, lending, and other functions, forming a complete Meme financial ecosystem. The platform's daily trading volume ranks among the top in decentralized exchanges in the long term.

In theory, decentralized platforms should be more secure because users hold their own asset private keys. So where does the problem actually lie?

Preliminary investigations show that hackers are still continuously transferring user assets. Technical analysis has revealed the following serious security issues on the platform:

1. A non-custodial platform that records users' private keys can be easily attacked, allowing hackers to obtain the private keys and steal assets.
2. When users export private keys without encryption measures, the private keys are transmitted in plaintext, making them highly susceptible to interception.

On November 17, the platform's founder responded that due to special reasons, they are temporarily unable to synchronize updates and requested more time to handle the situation. Previously, the official statement indicated that the team is working hard to resolve the issues and promised to compensate users for their losses.

However, as the amount stolen continues to increase, most users are skeptical about the platform's compensation promises, believing it could be an inside job. The community discovered that there is a plaintext transmission issue when exporting private keys, meaning that users' private keys are actually stored on the official servers.

Impact on the Meme Token Market

According to market data on the 16th, several Meme tokens have seen varying degrees of decline:

• BAN fell by about 30%
• LUCE has dropped by about 20%
• PNUT fell by about 12.5% at most.

It is worth noting that the hacking attack is not over. If the platform's security team fails to resolve the issue in a timely manner, user assets may continue to suffer losses. As of the 17th, at least $13 million has been confirmed stolen, but the actual amount may far exceed this figure. In addition to stablecoins, several popular Meme tokens have also been stolen.

The security team stated that approximately 2,800 victim addresses have been collected, and more than 9,000 stolen transactions have been analyzed. The stolen funds are still stored in addresses controlled by the hacker and have not yet been transferred. This means that the hacker's ultimate goal has not yet been revealed, and these Meme tokens could be dumped at any time, combined with the common panic sentiment in the Meme circle, which could have a serious impact on the entire cryptocurrency market.

How to Safely Custody Funds

To ensure the safety of funds, users can take the following measures:

1. Use a hardware wallet to store major assets.
2. Diversify funds by storing them in multiple wallets.
3. Choose a verified decentralized custody solution.
4. Carefully examine the security measures of the exchange or platform.
5. Consider purchasing crypto insurance against hacking attacks.

Other security recommendations:

• Conduct in-depth research on product mechanisms and use tools recommended by others with caution.
• Prioritize automated tools with long running times and strong team capabilities.
• Be wary of fraudulent activities on social platforms.
• Transfer funds to a self-controlled wallet in a timely manner after large transactions.

In the current bull market, the Meme sector is undoubtedly a hotspot for wealth creation. However, with the popularity of on-chain transactions and automation tools, security issues have become increasingly important. Investors must remain vigilant at all times to ensure the safety of their assets.