- Memecoin Normie recently suffered a severe hack.
- The token suffered a major crash following the attack.
- Normie’s developers are in negotiation with the hack perpetrator.
Hacks and scams have plagued the crypto industry over the past years, causing widespread concern and significant losses for investors and projects alike. In the latest, Base memecoin project Normie (NORMIE) fell victim to a smart contract exploit, triggering a flash crash in the token’s value.
Negotiations have since emerged between the Normie hacker and the project’s developers, and the hacker(s) have outlined their demands.
Normie Hack: No Token Launch, No Refund
According to on-chain messages highlighted by blockchain security firm Lookonchain, the perpetrator responsible for the Normie hack has expressed willingness to return 90% of the stolen funds.
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However, the hacker’s demands are not without conditions, which include permission to keep 10% with no reprisals, and the requirement that the developers use the returned funds to launch a new token.
According to the hacker, the proposed token launch will target reimbursing impacted NORMIE holders, 79,000 of whom reportedly experienced significant losses. Additionally, the perpetrator mandated using the 600 ETH held in the developer’s wallet, worth approximately $2.3 million, along with the returned funds for building the new token.
Normie’s developers quickly accepted the offer, asserting their readiness to meet the hacker’s demands. The team stated that the new token would only be launched after retrieving the official X account, which was suspended following the exploit. However, the hacker remains firm, insisting that the new token demands must be met before issuing any refunds. But how did the exploit occur in the first place?
The NORMIE Hack: Here’s What Happened
The flash loan exploit, which occurred on May 26, 2024, leveraged a loophole in the contract’s tax mechanism. The hacker condemned the project’s developers for Normie’s “copy-paste” smart contract code, raising questions about the level of security ensured before deployment.
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In response to the crash, the token took a major tumble. NORMIE’s value plummeted around 3:00 AM UTC on the same day, dropping approximately 99% from $0.0427 to its lowest point of $0.00002, where it continues to struggle.
Security firm QuickIntel doubled down on security concerns, emphasizing that they detected the vulnerability earlier in March 2024. This indicates that the issue existed for some time and was left unaddressed.
One investor reportedly lost approximately $1.6 million in the Normie crash, with his portfolio of 11.23 million tokens purchased on March 25 now worth only $150. Other community members have criticized Normie’s developers for their response to the incident, condemning their reluctance to engage with the community about the next steps.
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