NEM token contract NemTokenV2 was exploited for approximately $821,920, according to a security alert from SlowMist. The attacker targeted the PancakeSwap USDT/NEM trading pair by exploiting a vulnerability where the contract failed to validate swap settlement results.
The attack involved transferring tokens into the liquidity pool and repeatedly executing skim() and flushLpSellRecycle() functions 42 times, progressively draining pool reserves. Once the NEM price was artificially inflated due to depleted liquidity, the attacker sold remaining NEM holdings to extract USDT.
SlowMist has published the addresses of the attacker, exploit contract, and the vulnerable NemTokenV2 contract for public reference.
NEM Token Contract Exploited for $821K via Liquidity Pool Manipulation on PancakeSwap
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