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Crypto DeFi

SlowMist: NEM Token Exploit Drains ~$821,920 via PancakeSwap Pool Manipulation

The NEM token contract NemTokenV2 was exploited for about $821,920, SlowMist said. The attacker moved tokens into a liquidity pool and repeatedly executed skim() and flushLpSellRecycle() 42 times, steadily depressing pool reserves before selling the remaining NEM at an inflated price for USDT. The attack involved the PancakeSwap USDT/NEM pair, and SlowMist published the attacker, attack contract and vulnerable NemTokenV2 addresses.

Original source

AI take

The exploit's mechanics—repeated skim() calls to drain pool reserves before selling at an inflated price—point to a token-level design flaw rather than a PancakeSwap failure, which matters for how other custom contracts with similar recycle or flush functions are assessed. The published addresses give on-chain analysts a concrete trail to trace the attacker's funding and cash-out path. Whether the NEM team can pause or migrate the vulnerable contract, and how PancakeSwap-linked pools price the token now, are the open questions.

Generated by AI for reference only.

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