Normie Cryptocurrency Navigates $41.7M Hack, Plans Compensatory Token Relaunch
Summary:
Base memecoin Normie (NORMIE) is negotiating with a hacker who exploited a vulnerability in the smart contract, causing a dramatic $41.7 million decline in its market cap within three hours. The perpetrator has offered to return 90% of the stolen funds. Normie has consented to this, despite a 96% drop in value since the attack, with plans to use the reclaimed money and $2.3 million from the development wallet to launch a new token compensating the NORMIE investors. The recovery process hinges on the token's relaunch, demanded by the hacker who insists on no reprisals.
Normie (NORMIE), a Base memecoin, reveals it is in talks with the cyberthief who exploited a vulnerability in its smart contract, resulting in a $41.7 million drop in its market cap within a span of three hours. The anomaly was initially detected by Lookonchain, a blockchain analytics company, on May 26, which also discovered the perpetrator's proposal to return 90% of the stolen funds. Agreeing to the hacker's terms, Normie consented to reclaim 90% of the lost tokens, despite its value plummeting 96% post-attack. This was under the premise that the returned funds, along with $2.3 million in the developers' wallet, would be utilized to introduce a new token to compensate the affected NORMIE investors. The perpetrator demanded amnesty in another transaction communication.
Following its main account suspension, Normie admitted to the necessity for a token relaunch via a newly created X account. This is anticipated to proceed after regaining control of their primary Twitter account and receiving restitution from the malefactor. However, the temporary account was also rapidly suspended.
Adhering to stern conditions, the perpetrator insists the relaunch of the token should precede the reimbursement of funds. The hacker claims that the developers' wallet amassed considerable earnings during the exploit, adding that there were no alternative means to ascertain the appropriate use of funds.
An authorized NORMIE Telegram group admin, named "Dinho", could not provide a timeline by which NORMIE token investors could expect refund of the stolen amounts as his X account was also suspended.
NORMIE's value commenced its downward spiral at 3:55 am UTC on May 26, tumbling over 92% to $0.0032 within the hour, as per CoinGecko. Apart from a brief rally to $0.019, the value persisted on a descending course to $0.0016 at the time of reporting, documenting a 96% decrement. The market cap dwindled to $200,000 from $41.9 million but has witnessed minimal recovery since.
Quick Intel, a blockchain scam detection tool, alleges that around 72,000 NORMIE owners were stung by the smart contract vulnerability detected in March.
The precise amount robbed during the incident remains undetermined.
Debuting amidst a memecoin frenzy on Base in March 2024, NORMIE reached a towering market cap of $130 million on April 2, as reported by CoinGecko.
A Cointelegraph survey recently revealed that 91% of Base memecoins harbor security flaws that could entail substantial losses for users.
Published At
5/27/2024 7:25:35 AM
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