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$31 Million Hacked From Meerkat’s System – Should Binance Be Worried?

Meerkat Finance, a Decentralized Finance project running on Binance Smart Chain, is drained by $31 million worth of crypto assets due to a hack. The project was subsequently drained by about 13 million Binance USD (BUSD) and about 73,000 Binance Coin (BNB), collectively calculating up to $31 million.

Meerkat Finance Hack Story

Meerkat Finance is a yield farming pool running on the Binance Smart chain that was live yesterday. On-chain data shows that hackers have drained the funds altering Meerkat’s smart contract. 

The team officially claimed on its Telegram channel that the contract vault was compromised. The hackers changed the Smart Contracts that contain the project’s vault business logic using the original Meerkat deployer’s account. 

This suggests two possibilities: either the private key of the respective deployer’s account was compromised or self-directed by the project. What’s also raising eyebrows is the similar incidences of deleting Meerkat’s Finance’s Twitter account and their website down. 

Is Binance Secured?

It is no lie that Binance is trusted by millions worldwide. They claim that they are “dedicated to increasing the freedom of money for users.” However, Binance has had a fair share of controversies in the past.

Nearly two years back, Binance was a victim of a “large-scale security breach” in which hackers stole an amount worth $40 million.

Although the company would reimburse customers through its secure asset fund, and the hack raised the question of crypto-security.

Last October, the news of leaked documents questioned Binance corporate structure to deceive US regulators and profit investors secretly intentionally.

In the recent case, Binance representatives expressed in the Telegram channel that they have noticed the abnormality of the Meerkat project and are working with auditing firms like PeckShield, Slowmist, and Certik as a part of the investigation. 

They further added a link for victims of “Meerkat Finance rug pull” to report issues. It came across that victims have formed a “Meerkat_Rugpull” Telegram chat group with 135 members.

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