Solana’s protocol Raydium exploited, loses $2m

Solana’s protocol Raydium exploited, loses $2m

Raydium discovers a major exploit in its liquidity pool and loses at least $2 million, while users are urgently requesting withdrawals.

Raydium, the decentralized Solana-based protocol, announced on Dec. 16 that it was compromised. At the time of publication, an attacker attempted to steal around $2 million worth of cryptocurrency by withdrawing it from the pools.

Initially, the exploit was noticed by Prizm, a zero-fee swap aggregator on Solana. It urged users to perform withdrawals as soon as possible:

Raydium later tweeted that the owner authority was likely overtaken by the attacker:

The exploit allegedly involved US Dollar Coin (USDC), Wrapped SOL (wSOL), Raydium, and other tokens. According to multi-chain portfolio Nansen, the hack involved at least $1.6 million worth of Solana.

In the past 24 hours, Raydium had facilitated deals of $4 million from a total locked trading pool of $45 million. It is unclear, however, if the improper withdrawals from the hacker are part of the $4 million total.

Solana suffers from FTX collapse

Additionally, the Solana DeFi ecosystem was hit particularly hard by FTX’s demise because of its close ties to the Sam Bankman-Fried trade and investment organization.

Sam Bankman-Fried, the creator of the FTX exchange and Alameda Research and a key investor in the Solana ecosystem, was crucial for Raydium, said Alpha Ray, the project’s inventor.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.