Meteora has confirmed a $1.5 million loss tied to an over-the-counter (OTC) scam in its Q1 2026 Token Holders’ Report — a setback that occurred while the team was attempting to buy back MET tokens.
The disclosure, which the team says followed an attempted OTC buyback, is part of a broader quarterly update that shows the protocol’s cash dynamics improving from a TGE-heavy Q4. Meteora reported total cash outflows of $7 million in Q1 2026, down sharply from $30.8 million in Q4 2025. The company attributes the decline to fewer one-off costs after its token generation event (TGE) quarter and reduced large capital investments.
Metrics and losses
- MET-related outflows totaled $2.5 million for the quarter: $1 million spent on buybacks and $1.5 million lost to the OTC scam.
- Meteora says a police report has been filed with local authorities; the report did not name an alleged scammer or indicate whether any funds might be recovered.
- The disclosure drew attention on X after crypto user Dr. Zuler highlighted the loss, commenting, “Not sure how to feel about this,” and noting that few teams would publicly share such details.
Trading, fees and revenue
- Trading volume for Q1 stood at $19.5 billion, down 36% from the prior quarter.
- Total fees fell 51% to $105.9 million, while revenue declined 35% to $11.4 million — a smaller drop than fees, Meteora said, as revenue “held up better” amid cooling market activity.
- The DLMM product handled 86% of trading volume and generated 54% of fees. By contrast, fees from the DAMM and DBC pools rose 18% quarter-over-quarter.
Cash position and runway
- Cash inflows were $25.4 million in Q1, up 30% quarter-over-quarter, producing net cash flow of $18.3 million.
- The treasury closed the quarter with $32.8 million, which the team says represents more than two years of runway at current burn rates.
- Monthly operational burn was reported at $1.4 million, a 10% reduction versus the FY2025 run rate.
Buybacks continue
Meteora continued its MET buyback program during Q1, spending $1 million to repurchase 7 million MET tokens at an average price of $0.1427. Cumulative buybacks to date now total $13.7 million, covering about 3.97% of MET’s total supply.
What’s next
While the team has been transparent about the OTC scam and has reported the incident to authorities, the update leaves open questions about suspected counterparty identity and any potential recovery. Investors will likely be watching upcoming reports for progress on the investigation, continued buybacks, and whether revenue and fee trends stabilize as market activity normalizes.
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