Crypto News – Unveiling the Truth: Ex-employee’s Role in $1.9M Exploit on Pump.fun
Crypto News – Pump.fun, a memecoin launchpad located in Solana, claimed that the exploit that happened on Thursday was the work of a former employee. In the event, a former employee obtained admin capabilities on Pump.fun, which led to the theft of about 12,300 SOL, which at the time was estimated to be worth $1.9 million.
At 15:21 UTC, a former employee, having illegitimately taken access of the withdraw authority using their privileged position at the company, used flash loans on a Solana lending protocol,
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Pump.fun Team Takes Action for Solution
According to Pump.fun, the loans were utilized to borrow SOL in order to buy out as many meme coins as possible until they reached 100% on their bonding curves. This gave the exploiter the liquidity they needed to pay back the flash loans. Over a given period of time, this had an impact on approximately $1.9 million of the $45 million in liquidity included in the bonding curve contracts.
By 17:00 UTC, all trading on pump.fun was halted. Out of a total of $45m of liquidity in the bonding curve contracts, only ~$1.9m was affected,
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In order to prevent additional harm, Pump.fun upgraded the contracts on the platform and halted trading. It also stated that the site is back online and that its contracts are secure.
FAQ
What Does Exploit Mean in Crypto?
Attackers can use cryptocurrency exploits to obtain unauthorized access, modify, or steal digital assets. Cryptocurrency exploits are hostile acts or flaws. The crypto ecosystem can be impacted by these attacks in several ways.
What is Pump.fun?
Pump.fun, a Solana-based, allows customers to generate fresh tokens for a small charge of a few dollars. Presales and team allocations for new coins are banned, according to the platform, which highlights its security procedures and claims that it “prevents rugs by making sure that all created tokens are safe” on its website.
What is Post-mortem in Crypto?
A post-mortem examination, also known as autopsy in medicine, is the process of examining the corpse (event) after an incident in crypto. The aim here is to find out the cause of death, that is, to get to the bottom of the incident.
What are Bonding Curve Contracts?
The link between an asset’s price and supply is defined mathematically by a bonding curve. Smart contracts known as bonding curve contracts are designed to establish a token market separate from cryptocurrency exchanges.
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