Rug pull? DeFi project Meerkat drained by $31 million on Binance Smart Chain

Mar 4, 2021 | The Block News | 0 comments

rug-pull?-defi-project-meerkat-drained-by-$31-million-on-binance-smart-chain

Meerkat Finance, a decentralized finance project, has just said it has been drained by $31 million worth-of crypto assets due to a hack. But on-chain data shows it may not as simple as that.

The team behind Meerkat Finance, a yield farming pool running on the Binance Smart Chain that went live just one day ago, claimed in its official Telegram channel around 9:00 UTC on Thursday that its smart contract vault was compromised. 

The project was subsequently drained by about 13 million BUSD and about 73,000 BNB, which in total are now worth $31 million. The funds were further transferred to multiple new blockchain addresses.

On-chain data shows that the supposed hacker(s) drained the funds by altering Meerkat’s smart contract that contains the project’s vault business logic via using the original Meerkat deployer’s account. 

That suggests that either the private key of the Meerkat deployer was compromised or this is self-directed by the project. What’s also raising eyebrows is that the website of Meerkat has been taken down. At the same time, Meerkat Finance’s twitter account has also been deleted.

A Binance representative said in the exchange’s official Chinese Telegram channel that they have noticed the abnormality of the Meerkat project and is working with auditing firms Certik, PeckShield and Slowmist to investigate. 

The representative further added a link for victims of the “Meerkat Finance rug pull” to report issues and stay up to date with the development.

It appears that victims have formed a “Meerkat_Rugpull” chat group on Telegram to post updates on the issue with 135 members already.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

Gaming giant Ubisoft to become corporate baker on Tezos network

Gaming giant Ubisoft to become corporate baker on Tezos network

Popular French video game publisher Ubisoft is set to become a validator node on the Tezos ecosystem. Ubisoft, the video game studio behind popular titles like Assassin’s Creed, Prince of Persia and the Tom Clancy series of games will become a corporate Tezos baker,...

Former top banking regulator Brian Brooks to become CEO of Binance.US

Former top banking regulator Brian Brooks to become CEO of Binance.US

Former top banking regulator Brian Brooks is set to become CEO of Binance.US.  The Wall Street Journal reported the news on Tuesday, saying Brooks will join the crypto exchange on May 1. Brooks, a former Coinbase executive, was recently an acting head of the Office of...

WeWork now accepts bitcoin for payments, will hold on balance sheet

WeWork now accepts bitcoin for payments, will hold on balance sheet

Commercial real estate company WeWork now accepts bitcoin and other cryptocurrencies for payments. Announcing the news on Tuesday, WeWork said it has partnered with BitPay and will also accept ether and stablecoins USDC and PAX for payments. Coinbase has become...

Pin It on Pinterest

Share This