Incident Overview
NEVER token on the BSC chain was rug-pulled by the team with a loss of about 240K USD.
The NEVER token was exit scammed via an insider job. The smart contract backdoor allowed the scammer to sell a significant amount of tokens without having it on his balance. EOA which performed an exit scam via token dumping on the DEX (Pancake Swap) earned 428 BNB or approx 240K USD.
Scammer:
https://bscscan.com/address/0xd7c358b8…908b84
Sell tx:
https://bscscan.com/tx/0x90254b3b…5e77e4
Incident Report
Protocol Information
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to NEVER, these are the critical security checks that could have prevented this incident (July 2024).
- Verify all logic paths related to Rugpull are guarded by proper access controls and input validation
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
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The NEVER hack is one of many attacks that skilled auditors are trained to detect before deployment. Master real exploit patterns and defense techniques with hands-on Web3 security training.