Meme ecosystem encounters a Black Swan Event: A certain on-chain trading platform suffers massive asset outflow

As of November 17, a certain data analysis platform has compiled statistics on the discussion heat and price fluctuations of major cryptocurrencies:

The discussion heat of Bitcoin last week was 18.23K times, a decrease of 13.67% month-on-month; the price was 91956 USD, an increase of 13.2% month-on-month.

The discussion heat of Ethereum last week was 4.27K times, a decrease of 26.98% compared to the previous period; the price was 3134 USD, a decrease of 2% compared to the previous period.

The discussion heat for TON last week was 777 times, a decrease of 3.63% compared to the previous period; the price was $5.52, an increase of 0.2% compared to the previous period.

On the night of November 16, a decentralized platform focused on Meme token trading suffered a major cyber attack, resulting in the illegal transfer of a large amount of user assets. Initial estimates suggest that the loss could reach hundreds of millions of dollars. Security experts pointed out that user private key information has been leaked, but the specific method of leakage is still under investigation. This incident has triggered a crisis of trust in the market for this platform, with some even questioning if it was an inside job. This large-scale theft of funds has not only dealt a heavy blow to the recently hot Meme market but has also sounded the alarm for on-chain asset security once again.

Platform Response and Market Reaction

This trading platform plays an important role in the Meme ecosystem, providing trading, liquidity, project launches, and DeFi services for Meme tokens. As a decentralized platform, users should theoretically control their private keys, but this incident has revealed serious vulnerabilities in the platform's private key management.

The security team investigation found that there are two main issues with the platform: first, it is a non-custodial platform yet it records users' private keys; second, the private keys are not encrypted during export transmission. These issues allow hackers to easily obtain users' private keys and steal assets.

The platform's founder stated on social media that due to special reasons, they are temporarily unable to synchronize detailed information and requested more time to handle the situation. He promised to compensate users for their losses and mentioned that some user accounts have been isolated. However, as the amount stolen continues to increase, market trust in the platform has plummeted, and the majority of users are skeptical about the compensation promises.

The community discovered that the platform uses plaintext transmission when exporting private keys, which means that users' private keys are actually stored on official servers. Even with HTTPS transmission, direct transmission of private keys may still lead to the leakage of private data due to browser vulnerabilities and other reasons. Some users sarcastically said this "redefines non-custodial wallets."

Meme Market Struggles

Affected by this event, several Meme tokens have experienced varying degrees of decline. Among them, BAN dropped by about 30%, LUCE fell by about 20%, and PNUT decreased by a maximum of about 12.5%.

It is worth noting that as of the 17th, at least $13 million has been confirmed to be stolen, but the actual losses may far exceed this amount. In addition to stablecoins, various popular Meme tokens and SOL have also been transferred. Experts warn that Meme tokens with lower liquidity are particularly dangerous.

The security team stated that approximately 2,800 victim addresses have been collected, and over 9,000 stolen transactions have been analyzed. The stolen funds have not yet been transferred and are still stored in addresses controlled by hackers. This situation increases market uncertainty, as no one knows when these stolen tokens will be sold, which could have a serious impact on the entire Meme ecosystem and even the broader cryptocurrency market.

Asset Safety Recommendations

Given the frequent security incidents in the Meme space, investors must pay close attention to asset security. Here are some tips for protecting your funds:

1. Use a hardware wallet to store major assets, such as Ledger or Trezor, and ensure that the firmware is up to date.
2. Diversify asset storage to avoid concentrating all funds in a single address or platform.
3. Choose verified decentralized custody solutions, such as multi-signature wallets.
4. Review the security measures of the platform and understand its fund custody mechanism.
5. Consider purchasing cryptocurrency insurance against hacking attacks.

In addition, users should be cautious about recommendations from others and prioritize tools that are stable and have no security issue records. Be vigilant against scams on social platforms, and do not click on unknown links or respond to unfamiliar private messages. After completing large transactions, it is recommended to transfer funds to a self-controlled wallet.

Finally, it is recommended to revisit the security guidelines written by blockchain security experts. In the complex world of cryptocurrencies, security is always the top priority.