Decentralized finance project Meerkat Finance has claimed it was drained of $31 million in crypto assets just one day after launching on the Binance Smart Chain.
The Meerkat Finance team announced via its Telegram channel around 9:00 UTC Thursday that its smart contract vault had been compromised, The Block reported.
The DeFi project was drained of 13.96 million BUSD and 73,653 BNB (both Binance tokens), adding up to over $31 million in total.
However, there are suspicions it may not be a simple case of a hack, as on-chain data points to the original Meerkat deployer's account being used to alter the smart contract, per the report. Unless the project's private key was compromised, this suggests it being carried out by Meerkat itself.
"“The joint security team is monitoring the Meerkat Finance situation," a Binance spokesperson told CoinDesk, adding the company will update the community when it can.
"If the money flows into the exchange, it will be frozen as soon as possible. BSC is an open-source ecosystem and Binance is not directly connected to projects built on it,” the company said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.