Pump.fun Resumes Business Operations, Restitutes Users Following $1.9 Million Theft
Title: Pump.fun Resumes Operations After $1.9 Million Heist by Former Employee
Introduction:
Well-known cryptocurrency platform Pump.fun has successfully resumed its services after discovering that one of its former employees had stolen approximately $1.9 million worth of SOL (12.3k SOL). The platform took immediate action to address the issue, ensuring the safety of user funds and compensating affected users.
The Shocking Heist:
The heist was meticulously planned and executed by an ex-employee who exploited their privileges for personal financial gain. The incident unfolded at 15:21 UTC when the former employee utilized their withdrawal authority to borrow SOL through flash loans on a Solana lending protocol. The entire stolen amount was acquired through this method.
Exploiting Market Manipulation:
The attacker, who held various coins on the platform, manipulated market values until they reached 100%. Once the coin values hit zero percent, the employee took advantage of the bonding curve liquidity. Flash loans facilitated the automatic repayment of borrowed funds using the acquired liquidity.
Swift Action:
Recognizing the severity of the situation, Pump.fun promptly halted all trading at 17:00 UTC to contain the issue. Despite the platform having $45 million in total liquidity, the employee managed to steal approximately $1.9 million from the bonding curve contracts.
Resuming Operations and Rebuilding Trust:
The Pump.fun team acted swiftly by relaunching the contracts, enabling trading to resume. To regain the trust of its users, the platform is providing fee-free trading for seven days as an incentive for users to return.
Restoring Trust and Security Measures:
Users can now trade and generate new coins with confidence. However, coins that reached 100% during the attack currently have their liquidity pools (LPs) suspended and cannot be traded until new LPs are established on Raydium.
To rectify this, Pump.fun has pledged to replenish these LPs with equal or greater liquidity than what the coins had at 15:21 UTC. Within 24 hours, the company aims to fully compensate affected users, demonstrating its commitment to user security and restoring faith in the platform.
Conclusion:
Pump.fun has demonstrated its resilience and dedication to maintaining user trust by swiftly restoring the integrity of its platform and compensating affected users. The platform’s rapid reopening of services and temporary suspension of trading fees highlight its unwavering commitment to user security and platform integrity.
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This incident serves as a reminder that even highly trusted platforms can be susceptible to vulnerabilities. It is crucial to conduct thorough research and choose a crypto exchange that prioritizes security and user protection.