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Pump.fun lost $1.9 million as a result of an insider attack

Forklog / 17.05.2024 / 07:37
Pump.fun lost $1.9 million as a result of an insider attack

A platform for launching Pump meme tokens.fun on Solana accused a former employee of an exploit with $1.9 million in damage.

https://t.co/uE2QNKXkIT coin migration issue post-mortem

TL;DR:

1. the https://t.co/uE2QNKXkIT contracts are safe. they have always been safe
2. a former employee used their privileged position at the company to misappropriate ~12.3K SOL (~$1.9m)
3. https://t.co/uE2QNKXkIT is…

— pump.fun (@pumpdotfun) May 16, 2024

According to the statement, the attacker used a "privileged position" to gain access to withdrawal rights. 

He borrowed flash loans from SOL, with which he bought tokens to the maximum until they reached 100% on the "binding curve". As a result, the hacker gained access to liquidity to repay obligations.

Of the total liquidity of $45 million, losses amounted to $1.9 million.

The team promised 100% compensation to the affected users and restarted token trading, zeroing out the commission for the next seven days.

"Solana-shitcoins are back and more significant than ever," the statement said.

Igor Igamberdiev, head of the Wintermute research department, confirmed that the incident is related to the compromise of private keys and user X under the nickname staccoverflow.

1/6

It seems like @pumpdotfun lost ~2k SOL ($300k+) and a bunch of memecoins through a possible private key leakage

So let me share evidence of it👇https://t.co/yuuKYkamfZ

— Igor Igamberdiev (@FrankResearcher) May 16, 2024

Recall that a member of the team of the decentralized Cypher exchange under the nickname Hoak said that he appropriated part of the funds stolen as a result of the exploit in August 2023.

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