Featured Image from Unsplash.com, Chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"
Solana-based platform Pump.fun suffered an exploit that left the crypto community with many questions. The attack stole millions of dollars in users\u2019 funds, but the reasons behind it and the exact amount of the loot were unclear. Amid the uncertainty, some claimed that a crypto Robinhood had emerged. Related Reading: Bitcoin Still Has \u201cA Lot Of Room To Run Before Reversal,\u201d Says Top Analyst $80 Million Taken In Crypto Heist? On Thursday, the platform Pump.fun announced its bounding curve contracts had been compromised. In the post, the team alerted users that all trading was temporarily halted while they investigated the incident. Pump.fun is a trading platform created to \u201cprevent rugs\u201d by ensuring that all created crypto tokens are safe. The platform allows users to easily launch instantly tradeable tokens with no presale and no team allocation. This solution became an extremely popular alternative among influencers and users who wanted to create tokens without the complexity or high costs of launching a project. It uses bonding curve contracts for the tokens, a mathematical model that determines a token\u2019s price based on supply, increasing with the number of tokens bought. After the token\u2019s market capitalization reaches $69,000, part of the liquidity is deposited on Raydium to be burned. Since the attack, the team has assured users that the contracts have been upgraded to prevent further fund loss, adding that the protocol\u2019s total value locked (TVL) is safe. However, the community’s reports were contradictory and alarming. Some users claimed the attacker had taken $80 million in crypto from the platform\u2019s bonding curve contracts, which worried the affected users. According to Lookonchain\u2019s report, the hacker was quickly identified. At first, he pretended to be an unaware user, asking what the damages were. However, he later accused the platform\u2019s founders of withdrawing the exact amount stolen a day prior. An X user claimed the individual chose to \u201cbe a Robin Hood, dropping hacked cash to $SOL communities.\u201d The attacker also stated in a post his desire to \u201cchange the course of history.\u201d However, his \u201cheroic outlaw\u201d endeavors affected 1,882 addresses. What Happened? Despite the speculation and the attacker\u2019s posts, it was later revealed that he was a Pump.fun ex-employee. In its post-mortem post, the platform\u2019s team revealed that the individual had used their position to misappropriate funds from the bonding curve contracts. The attacker illegitimately accessed the accounts after obtaining the private keys, \u201cusing their privileged position at the company.\u201d The former employee used flash loans from Solana lending protocol to steal 12,300 SOL, worth around $1.9 million. Per the post, he borrowed SOL to buy as many tokens as possible in Pump.fun. When the tokens hit 100% on their respective bonding curves, the attacker used the keys to access the bonding curve liquidity and repay the flash loans. Fortunately, the attacker could only access $1.9 million out of the $45 million liquidity in contracts. Since then, the team has redeployed the bonding curve contracts and offered a plan to help affected crypto investors. Related Reading: Fetch.AI Soars 14.5% As AI Tokens Surge, Can FET Reach $4? To make users whole, the team will \u201cseed the LPs for each affected coin with an equal or greater amount of SOL liquidity that the coin had at 15:21 UTC within the next 24 hours.\u201d Moreover, they are offering 0% trading fees for the next 7 days. As a user pointed out, this action is \u201cnon-trivial\u201d since Pump.fun makes $1 million daily from fees. Featured Image from Unsplash.com, Chart from TradingView.com<\/p>\n","protected":false},"author":614,"featured_media":571893,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[87520,85347,14186,86915,12837,83626,4193],"class_list":["post-608669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-crypto-exploit","tag-crypto-heist","tag-crypto-scam","tag-lending-protocol","tag-sol","tag-solana","tag-trading-platform"],"acf":[],"yoast_head":"\n
Crypto Post-Mortem: Here\u2019s How Pump.fun Was Exploited For $2M<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n