A meme coin launchpad has suffered a major security breach, with an insider allegedly siphoning off thousands of dollars worth of cryptocurrency.

Pond.fun, a platform built on Linea, lost 64.8 Ether in what appears to be an attack from within. The stolen funds, worth around $230,000 at current prices, were funneled through a privacy tool designed to obscure blockchain transactions.

A meme coin launchpad has suffered a major security breach, with an insider allegedly siphoning off thousands of dollars worth of cryptocurrency.

What Happened To Pond.fun?

The platform, which is built on Linea, lost 64.8 Ether in what appears to be an attack from within. The stolen funds, which are worth around $230,000 at current prices, were funneled through a privacy tool designed to obscure transactions on the blockchain.

According to reports, Genesis, the project’s lead engineer, is the mind behind the attack. He drained liquidity pools using his privileged access, then sent the money via Railgun, a service that helps users on-ramp and off-ramp cryptocurrency while maintaining their privacy.

While many users employ Railgun to safeguard their financial privacy, hackers are also using it to try and cover up their activities. By utilizing Railgun, Genesis made it more difficult for anyone to track down and retrieve the stolen Ethereum.

"1️⃣ has been hacked this morning. Do not interact with in any capacity. It appears the exploiter is a software developer on the team. Because of this, the efrogs and croak website are also at risk, pending further notice from the team.

2️⃣ Discord and Telegram groups are secure and can be used to contact the team. The team is working hard to rectify the situation and will provide updates as they become available. We appreciate your patience and understanding.

3️⃣ have been hired to help stop the hacker from cashing out. They are currently working to identify and stop any suspicious transactions. In addition, we are working with crypto exchanges to freeze any incoming deposits from the hacker’s wallet.

We are doing everything we can to resolve this situation and will keep you informed of any new developments. Thank you for your support," the project stated in a statement.

After the attack, Pond.fun warned its community not to interact with its official website, as well as any affiliated sites like Efrogs and Croak. The team fears that Genesis may have compromised these sites, posing additional risks to anyone who tries to access them.

"Do not interact with any website or email that claims to be from . If you receive an email that seems suspicious, please forward it to [email protected] and we will verify it," the project added.

Despite the difficulties they are facing, the project reassured its community that its Discord and Telegram groups remain safe. While users can still communicate through these channels, the project itself is now in a difficult position as it works to contain the damage.

"We are doing everything we can to resolve this situation and will keep you informed of any new developments. Thank you for your support."

This isn't the first time an insider attack has rocked the crypto world. Just days before the Pond.fun breach, a developer at Infini, a stablecoin neobank, drained nearly $50 million after secretly retaining admin rights. That attack was carried out through Tornado Cash, another privacy tool frequently used by hackers.