Four.memes 200K Dollar Exploit Lessons Learned
Authored by Rangana Upul
Blog Post
In February 2025, Four.meme, a prominent memecoin launch platform on the Binance Smart Chain (BSC), faced a significant security challenge when it was hit by a malicious exploit resulting in a loss of approximately $183,000 to $200,000. This incident highlighted critical vulnerabilities in unverified contracts and the importance of robust security measures in the rapidly evolving meme coin space. This blog provides a candid breakdown of the exploit, the vulnerabilities involved, and the platform’s post-incident upgrades, focusing on how liquidity price verification mechanisms now protect users.
The Exploit: Understanding the Vulnerabilities
The exploit occurred when an attacker created a liquidity pool on PancakeSwap V3 with artificially inflated prices, allowing them to front-run transactions and manipulate the initial token price. This was possible due to a lack of verification mechanisms for liquidity pool prices before deposits, which left the system vulnerable to price distortions and liquidity drain (Four.meme Exploit Details).
Blockchain security firms like SlowMist and PeckShield analyzed the attack, revealing that the absence of rigorous verification processes allowed attackers to exploit similar loopholes repeatedly. The exploit involved creating unbalanced pools on PancakeSwap V3, which dictated liquidity distribution when tokens migrated, enabling the attacker to siphon assets (SlowMist Analysis).
Post-Incident Upgrades: Enhancing Security
In response to the exploit, Four.meme took immediate action to address the vulnerabilities and enhance its security infrastructure:
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Temporary Suspension of Liquidity Pools: The platform temporarily halted the creation of new liquidity pools on PancakeSwap to prevent further damage while keeping on-chain trading operational. This measure ensured that users could still trade tokens while the team worked on resolving the issue.
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Implementation of Verification Mechanisms: Four.meme committed to implementing robust verification mechanisms for liquidity pool prices to prevent future price manipulations. This includes integrating checks to ensure that pool prices are accurate and aligned with market conditions before allowing deposits.
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Enhanced Transparency and Communication: The platform emphasized transparency by keeping the community informed about the incident and the steps being taken to resolve it. This open communication helped maintain trust and ensured that users were aware of the measures in place to protect their assets.
Lessons Learned: Best Practices for Security
The Four.meme exploit serves as a reminder of the importance of robust security measures in the crypto space. Here are some key lessons and best practices:
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Regular Audits: Platforms should conduct regular smart contract audits to identify and fix vulnerabilities before they can be exploited. Partnering with reputable security firms can help ensure that audits are thorough and effective.
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Bug Bounty Programs: Implementing bug bounty programs incentivizes ethical hackers to report potential security flaws, helping platforms stay ahead of malicious actors.
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Liquidity Pool Safeguards: Implementing features like time-locks and emergency withdrawal limits can prevent attackers from draining liquidity pools instantly. These safeguards can significantly reduce the risk of large-scale thefts.
