Key Takeaways:
- A trader lost over $1 million in Normie memecoin following a smart contract exploit that wiped $41.7 million from its market cap.
- The Normie team agreed to a hacker’s proposal to return 90% of the stolen tokens, contingent on using funds to launch a new token for reimbursement.
- The exploit led to a wave of fraudulent social media posts falsely announcing the new token’s relaunch, targeting the 72,000 affected holders.
A trader lost over $1 million in digital assets following an exploit of the Normie memecoin.
The trader had invested $1.16 million to buy 11.23 million NORMIE tokens, but the value of these tokens dropped by over 99%, reducing the investment to just $150.
The $NORMIE exploiter sent a message to Normie Deployer.
— Lookonchain (@lookonchain) May 26, 2024
The condition for returning 90% of the exploited ETH is that it and the 600 $ETH in the developer's wallet are used to fairly launch a new token to reimburse $NORMIE holders.https://t.co/vmrXdgFMa2 pic.twitter.com/L7UkVbxZOe
The exploit, which targeted the smart contract of Normie, wiped $41.7 million from its market capitalization in three hours.
Following the exploit, Normie’s market cap dropped to around $200,000 before beginning a slight recovery.
On May 27, the Normie team agreed to the hacker’s proposal to return 90% of the stolen tokens, provided that Normie used these funds and $2.3 million from its development wallet to launch a new token to reimburse affected holders.
The hacker demanded that the token launch occur before returning the stolen funds.
The agreement led to a wave of fraudulent posts on social media falsely announcing the new token’s relaunch, aiming to deceive users into clicking on fake links.
🚨 ALERT!
— Quick Intel (@quickintel_ai) May 26, 2024
72,000 $NORMIE holders were hit by smart contract vulnerabilities last night! ShadowShield detected this vulnerability back in MARCH.
This is why we exist – to show you what the smart contract really says.
No one deserves to be scammed. pic.twitter.com/AbtsIPqyji
Over 72,000 Normie holders were impacted by the exploit, which was first detected in March, according to on-chain analytics firm Quick Intel.
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