Solana-based platform Pump.fun loses $2M in flash loan exploit

Pump.fun, a Solana platform, has suffered a loss of $2 million. The perpetrator used flash loans to acquire SOL, followed by Pump.fun meme coins. The breach of the bonding curve was a resultant factor.

Pump.fun stated that it has strengthened its contracts to stop the hackers from taking more money and that all wallets linked to the platform and the protocol are secure. The company is helping the authorities and related parties with this investigation.

Trading activities, including coin purchases and sales, have been put on hold. Coins being migrated to Raydium cannot be traded at this moment and will not be transferred forever. 

The platform managed to lose roughly 12,300 SOL, equivalent to $2 million. There may also be the possibility of losing a private key. 

Stacc, a social media user, claims to be the perpetrator of the crime. Apparently, it was more to satisfy his emotional needs than greed. 

Pump.fun avoids rugs by ensuring every built token is secure. The presale does not include any fresh coins. Pump enables users to carry out minting for as little as a couple of dollars. Users can select a token and purchase it using the bonding curve. A token at $69,000 uses $12,000 of the token’s liquidity for depositing in Raydium, after which it gets burned.  

Pump.fun receives approximately 0.02 SOL for creating a new token with a price of $3.16. SOL traded for $158.056, signifying a rise of 3.45%. 

Pump is known to have raked in $1.23 million in terms of a day’s revenue collection, with the platform’s total reaching $669,000 on May 15, 2024.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 65,241.48
ethereum
Ethereum (ETH) $ 3,537.02
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 600.06
solana
Solana (SOL) $ 139.05
xrp
XRP (XRP) $ 0.490592
dogecoin
Dogecoin (DOGE) $ 0.124784
cardano
Cardano (ADA) $ 0.389794