Solana DeFi Exchange Raydium hacked for more than $2 million

It was a tough vacation Solana.

Having struggled to recover from the debilitating damage done to the network by the stunning collapse of one of its most prominent backers, disgraced FTX founder Sam Bankman-Fried, Solana has now suffered a massive cut in one of its biggest backers. DeFi protocol.

Early Friday, Solana DeFi Raydium Protocol announced that a hacker had managed to take over the organization’s “proprietary authority” and used that access to begin draining Raydium hardware. Liquidity swimming pools. DeFi tools allow users to trade, borrow and lend crypto assets between each other, without third party intermediaries. Automated market makers like Raydium accomplish this by allowing users to contribute assets to a pool, often in exchange for token rewards.

Within hours today, a hacker stole more than $2.2 million in digital assets from one such pool on Raydium, including $1.6 million in SOL, according to an analysis by blockchain analytics firm Nansen.

It appears that the hacker carried out the attack using one of the private keys of the protocol owner. It is still not clear how the hacker gained access to this information.

Raydium is one of Solana’s largest decentralized finance protocols and is considered one of the cornerstones of the Solana DeFi ecosystem. The fact that it was vulnerable to such a top-down approach to exploitation has led many in the Raydium community to advise quitting the protocol altogether.

In the minutes following the hack, Raydium’s native RAY token fell just over 8% to $0.16 at the time of writing, according to Queen Gekko. The total value of the protocol is down more than 27% over the same period, to $34.73 million at the time of writing, according to Devi Lama.

The exploit comes just one month after many of the then-collapsing FTX wallets were emptied 650 million dollars in digital assets. Bankman Fried later claimed that the attack, although he did not, was likely the work of Former FTX employee. Bankman Fried was arrested on Monday for Eight criminal cases Including conspiracy, fraud and money laundering.

In the days following the FTX crash, it was revealed that the private keys of decentralized exchange Solana and liquidity provider Serum — co-founded by Bankman-Fried himself — were in FTX. Since Serum has been integrated with almost every Solana DeFi project, including Raydium, the news has been Spreading panic throughout the network. Raydium and a number of other protocols were quick to cut ties with Serum and then release part of the project untainted by FTX fallout.

Although Friday’s Raydium hack isn’t necessarily related to Serum or FTX, it does indicate that Solana’s concerns are far from over.

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