Key Takeaways:
Solana-based decentralized finance protocol Meteora lost $1.5 million to an over-the-counter (OTC) scam, an incident the project disclosed in its Q1 2026 Token Holders’ Report. The loss occurred as the team attempted to execute token buybacks.
"A police report has been filed with local authorities," Meteora stated in its quarterly report, confirming the scam took place during an attempt to buy back its native MET token through an OTC deal. The report did not name the alleged scammer or provide details on potential fund recovery.
The disclosure drew attention for its transparency, but it comes as the protocol’s financial metrics show signs of cooling. Trading volume on the platform fell 36% from the previous quarter to $19.5 billion, and total fees dropped 51% to $105.9 million. Revenue for the quarter was $11.4 million, down 35%.
The incident highlights the operational risks inherent in DeFi treasury management, even as Meteora’s willingness to disclose the loss was noted by some observers as a rare and positive step. The event puts a spotlight on the security practices of OTC trades for other DeFi projects.
Despite the scam and lower trading activity, Meteora reported strong cash flow. The protocol generated $18.3 million in net cash flow for the first quarter, with cash inflows reaching $25.4 million, a 30% increase quarter-over-quarter. The treasury closed the quarter with $32.8 million, which the team said provides more than two years of operational runway.
Total cash outflows for Q1 were $7 million, a significant decrease from $30.8 million in the prior quarter, which was heavy with one-off token generation event costs.
The $1.5 million loss was part of $2.5 million in MET-related outflows. The protocol also spent $1 million to buy back 7 million MET tokens at an average price of $0.1427.
To date, Meteora has spent $13.7 million on cumulative buybacks, acquiring 3.97% of the total MET supply. The team’s monthly operational burn rate was $1.4 million, 10% lower than its run rate in fiscal year 2025.
This article is for informational purposes only and does not constitute investment advice.
