Meerkat Finance Drained By $31 Million Due to hack. Is Binance Safe?

Deepshikha  |  Mar 4, 2021

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 altered the Smart Contracts that contain the project’s vault business logic using the original Meerkat deployer’s account. 

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

Is Binance Safe?

It is no lie that Binance is trusted by millions worldwide. They themselves 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.
Approximately two years back, Binance was a victim of a “large-scale security breach” in which an amount worth $40 million was stolen by hackers. Regardless, the company would reimburse customers through its secure asset fund, the hack raised the question of crypto-security.

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

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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