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The NORMIE meme token collapsed by 99% after the hack. The hacker returned the funds for the restart

Forklog / 27.05.2024 / 14:47
The NORMIE meme token collapsed by 99% after the hack. The hacker returned the funds for the restart

On May 26, the Normie meme token was hacked, which led to a 99% drop in the price of the coin, and its capitalization from $41 million to $1.9 million. 

Memecoin Normie was attacked, and its price plummeted by more than 99% in one minute, with its market value falling from $40 million to less than $200k. The supply of Normie has been significantly increased, and the attacker used a loophole in the contract's tax mechanism to…

— Wu Blockchain (@WuBlockchain) May 26, 2024

According to journalist Colin Wu, the attacker used an exploit in the tax mechanism of the contract to carry out an instant "lending attack".

After a while, a hacker in an online message offered the Normie team to return 90% of the stolen funds, but on condition of launching a new project that would reimburse the losses to the affected traders. 

"The wallet of the [token] developers earned significantly more than I did during this exploit. I have no other way to ensure that these funds are used properly," the hacker wrote. 

According to on-chain data, about 823 ETH worth ~$3.23 million is stored in the wallet of the coin developers. 

The team accepted the hacker's offer, but after posting the response, they deleted the account in X. This is probably part of the preparation for the launch of a new project. So far, no details have been received about the compensation. 

Despite the fact that the hacker decided not to appropriate all the funds, the LBank exchange reported the receipt of suspicious NORMIE deposits. Representatives of the platform asked the developers of the meme token to contact them and provide information about the addresses used. 

🚨 We've noticed a large number of unusual $NORMIE token deposits, possibly linked to an exploit.

We urge the project team to contact us with details about the addresses involved and potential solutions.

We'll provide all the support we can to The @NormieBase team. pic.twitter.com/SWMbLaNydf

— LBank.com (@LBank_Exchange) May 26, 2024

Traders' Losses

Lookonchain analysts noted that the loss of one of the NORMIE traders exceeded $1 million. 

Since $NORMIE was exploited, the 11.23M $NORMIE that this trader spent $1.16M to buy is now worth less than $150.

He spent $1.16M to buy 11.23M $NORMIE at $0.1035 from Mar 25 to Apr 9 and has held it until now without selling it.https://t.co/za6YaldkoZ pic.twitter.com/6lJRJsU2mq

— Lookonchain (@lookonchain) May 26, 2024

From March 25 to April 9, the user spent $1.16 million to buy 11.23 million tokens at an average price of $0.1035, without selling them before the hack. 

According to security company Quick Intel, more than 72,000 Normie holders have been affected by the smart contract exploit.

🚨 ALERT!

72,000 $NORMIE holders were hit by smart contract vulnerabilities last night! ShadowShield detected this vulnerability back in MARCH.

This is why we exist - to show you what the smart contract really says.

No one deserves to be scammed. pic.twitter.com/AbtsIPqyji

— Quick Intel (@quickintel_ai) May 26, 2024

The researchers said that ShadowShield auditors discovered a vulnerability in the token's smart contract back in March. 

After the hacker's offer of a refund and a new project that provides distribution for victims, X was flooded with scammers. They suggest that users click on a phishing link to "brand airdrop". 

Recall that on May 17, the platform for launching meme tokens Pump.fun on Solana accused former employee Jarett Dunn of an exploit with $1.9 million in damages. Later, British police detained the alleged attacker in London. 

On May 21, an unknown person released and withdrew 5 billion GALA tokens from the Gala Games Web3 gaming platform worth about $210 million. A day later, the hacker returned part of the funds. 

https://forklog.com/news/trejder-poteryal-152-000-za-polchasa-iz-za-insajderov
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