Pump.fun Hacker Drains $2M in Solana

0 0
Read Time:2 Minute

Pump.fun Exploited: Protocol Drained of $2 Million in Solana

A former employee of Pump.fun has reportedly siphoned an estimated $2 million worth of Solana from the protocol, prompting swift action from wallet provider Phantom and a pause in trading. The incident led to tokens being stuck in bonding curve contracts, causing significant disruption within the ecosystem.

Within less than a day, the largest tokens on Pump.fun showed signs of recovery while those affected by the exploit remained in a state of uncertainty. Pump.fun, known for its quick and low-cost token creation service on the Solana network, saw a surge in meme coins being minted despite the attack.

Response and Recovery Efforts

The Pump.fun team managed to address the exploit within seven hours, reassuring users that the platform was back to normal operations. Market data showed a brief dip in the value of Pump.fun’s major tokens, with prominent coins experiencing double-digit percentage losses in a matter of hours.

Nevertheless, as the protocol resumed trading, impacted tokens gradually regained their value. The leading token Michi rose by 28%, SelfieDogCoin surged by 20%, and Mini saw an impressive 55% increase post-hack.

Exploit Causes Market Disruption

The exploit exposed vulnerabilities in Pump.fun’s system, affecting the trading and liquidity of several tokens. Market observers pointed out that the attacker targeted accounts in the process of reaching a liquidity threshold for trading on the decentralized exchange Raydium, diverting funds to external wallets and disrupting the intended flow of tokens.

See also
Solana Blockchain Leads Q1; BlockDAG Sets Records

Despite efforts to resolve the issue, certain tokens like Sim Wit Dicc and Pre Wif remain immobilized, awaiting resolution. Pump.fun has pledged to restore the affected tokens by injecting SOL liquidity equivalent to their pre-attack levels, aiming to resume trading in a secured manner.

Community Response and Controversy

In the aftermath of the breach, a controversial sentiment emerged within the crypto community, with some individuals expressing support for the attacker as a form of resistance against Pump.fun’s operations. Degen tokens dedicated to the assailant surfaced, reflecting a divide in opinion regarding the platform’s impact on the Solana ecosystem.

While the incident brought attention to security flaws within the protocol, efforts are underway to rectify the situation and compensate affected users. Pump.fun’s commitment to restoring liquidity and ensuring the safe resumption of trading signifies a step towards rebuilding trust within the community.

Image/Photo credit: source url

About Post Author

Chris Jones

Hey there! šŸ‘‹ I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. šŸ“°šŸŒ Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %