Is Meerkat Finance Pulling a Rug Pull?

One of the biggest rug pulls might just have played out on Binance Smart Chain. Meerkat Finance, a DeFi project that runs a yield farming pool on Binance-backed smart chain has claimed that over $30 million worth of cryptocurrencies were drained from its account by hackers. However, on-chain data shows that this claim might just be a lie.

Meerkat Developers Claims They Were Hacked

Meerkat Finance, a project that is less than 48 hours old, delivered this information through its official Telegram channel saying that its smart contract vault had been compromised by malicious actors. According to the team of its developers 13 million BUSD and about 73,000 Binance Coins, which cumulatively are worth $31 million presently, were said to have been siphoned from the account. These funds were moved to several new blockchain addresses that might have been created for this sole purpose.

Data from on-chain shows that the “hackers” were able to achieve this by changing the Meerkat’s smart contract which contains the project’s vault business logic by using the original deployer’s account. This means that either the private key of the Meerkat deployer was stolen or this move was initiated by the project directly.

Interestingly, the official website and the official twitter handle of the project had been taken down or deleted. This move raises more suspicion about the true turn of events as it raises the question of if the drain was actually perpetrated by hackers. 

Binance has already released a link for victims of the “rug pull” to report issues and stay informed. At the same time, the popular crypto exchange firm stated that it was working with auditing firms like Certik, PeckShield and Slowmist to investigate the claims of the developers.

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