Pond.fun Meme Coin Launchpad Hacked

Pond.fun Meme Coin Launchpad Hacked by Insider: What You Need to Know

Pond.fun, a popular meme coin launchpad hosted on Linea, has been hacked by its chief software engineer, according to the platform’s official disclosure. The incident occurred this morning, and users are advised to avoid interacting with pond.fun in any capacity, including the efrogs and croak websites.

What Happened

The attacker, who is believed to be a software engineer on Pond.fun’s team, stole liquidity from the platform’s smart contract and transferred the tokens to the privacy protocol Railgun. This protocol allows users to shield their transactions on the blockchain, making it more difficult to track the stolen funds.

The total amount transferred was 64.8 Ethereum (ETH), which is currently valued at approximately $150,000. The platform has published a list of mainnet addresses that received and deposited the stolen assets.

Preventing the Stolen Funds from Being Withdrawn

Pond.fun has partnered with blockchain analytics firms Chainalysis and Elliptic to help prevent the stolen funds from passing proof of innocence. Some centralized exchanges and other offramps require users to provide proof of innocence (POI) under Railgun, and failure to pass these checks will ensure that the hacker cannot withdraw the funds.

Insider Hacks on the Rise

This incident echoes the recent hack of stablecoin bank Infini, which was also carried out by an insider. In that case, the developer who helped set up the smart contract retained admin rights and used these rights to drain the funds through Tornado Cash. Infini is still working to recover the stolen assets, which totalled almost $50 million.

These insider hacks highlight the importance of implementing robust security measures, including multi-signature wallets and regular security audits, to prevent such incidents from occurring.

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