Meerkat Protocol Says Its Hack Was A Test

The victims of one of the biggest theft in decentralized finance history would be breathing an air of relief after the latest update regarding the exploits that took place on the protocol. In the early hours of today, one of the developers of a recently exploited protocol posted good news in the new group that was created with the name, Meerkatrefunds.

In the group, the creator, who goes by the name, Jamboo, pointed out that the $31 million worth escapade was a well-thought-out plan by the protocol to test people’s greed level in the sector. According to Jamboo, the people affected have nothing to worry about as their funds would be returned in the following days.

A developer broke the news to the community members

To put their minds at ease and calm the air, the developer showed them proof to back up his statement as earlier said. The proof showed that the developer and others in the protocol could access the contracts that the funds were located. However, the proof didn’t precisely point out that they were in charge; it could be that they were in communication with another entity that is in charge of the funds.

After his session ended on Telegram, the transaction took effect on the Binance Smart Chain. Meerkat was a yield protocol that was forked using the codes from yearn.finance’s protocol. It is also one of the so many protocols that have forked various protocols on the Ethereum blockchain, located on the Binance chain.

The attack that took place on the meerkat protocol a day after their official launch saw the protocol suffer a loss of close to $14 million of BUSD and about 73,000 BNB in the process. Reacting to the incident, the members of the community labeled it as a rug pull. A rug pull is an event that is associated with a member of the developers taking advantage of some codes to exploit the protocol and take funds.

Jamboo fails to give inside details on what prompted the move

While others were sure that it was a rug pull, others found succor because it might be a test of the Binance chain’s decentralization. Even though Binance claims that 21 validator nodes run its smart chain, others have been quick to point out that Binance night is the one running the chain.

Even though the attackers could siphon the funds, there was little they could do before Binance locked it due to its on and off-ramps to the BSC. This means that Binance is allowed to lock down funds and transfers if they suspect suspicious activities.

With all said and done, the community would be looking to get daily updates regarding the funds from the developers of meerkat. Even though Jamboo gave inside details to the move, he didn’t specifically talk about what moved the team to steal the funds in the first place. He also pointed out that they invited a third-party hacker who carried out the action.