- The Raydium protocol, an AMM on the Solana network, has been compromised.
- The hacker took ownership and gained access to massive amounts of funds through the protocol’s liquidity pools.
Radiyum Protocol, AMM (Automated Market Maker) order book on Solana [SOL] Network, hacked on December 16th. The hacker reportedly extracted funds from various Raydium liquidity pools without owning or burning any LP tokens.
An exploit on Raydium which affected liquidity pools is being investigated. Details will come when more is known
The initial understanding is that the attacker has seized the owner’s authority, but the authority of the AMM and farm software has been stopped at this time
Attacker accounts https://t.co/ZnEgL1KSwz– Raydium (RaydiumProtocol) December 16, 2022
Read Solanas [SOL] predict the price 2023-24
How did the hacker do that?
With the help of several organizations, the team at Radium Protocol found out how the attack happened. allegedlyThe hacker took the powers of the owner, through which he can access these funds.
1/ Initial post mortem: Raydium works with external auditors and teams across Solana to gather additional information. As of now, a patch is in place that prevents further exploitation by the attacker.
The following contains information up to date. A big THANK YOU to all the teams supporting https://t.co/yKRdA6BAqv
– Raydium (RaydiumProtocol) December 16, 2022
The attack originated from a Trojan that was sent to the pool owner’s account along with a compromised private key. After accessing the owner’s account, the hacker called a function that collects trading fees and protocols.
There was an extensive list of pools that the hacker exploited. Some of these pools included SOL-USDC, SOL-USDT, and RAY-USDC. The total amount of money the hacker had left was there $4.3 million.
5/ Damaged swimming pools:
SOL USDC
SOL-USDT
Ray- USDC
Ray-USDT
Ray Sol
stSOL-USDC
ZBC-USDC
UXP-USDC
whETH-USDCThe approximate total funds exploited by the attacker
RAI 1,879,638
stSOL 3214
white 39.3
$1,094,613 USD
Sol 120512
UXP21068507
ZBC9 758647
American dollarTotal USD: ~4,395,237
– Raydium (RaydiumProtocol) December 16, 2022
The stolen assets included SOL, SOL and USDC, Among other things.
Solana’s next step
Raydium’s immediate response was to revoke account ownership. To encourage the attacker to return the money, the developers kept 10% of the stolen amount as a bonus. If the hackers return the money, they will get the reward in their account.
7/ If the attacker returns the money, 10% of the total amount will be shown and considered as the white hat bug reward. The attacker is encouraged to communicate through the normal channels or via the address below
0x6d3078ED15461E989fbf44aE32AaF3D3Cfdc4a90
– Raydium (RaydiumProtocol) December 16, 2022
Watch SOL
With multiple outages, exposure to FTX, and now hackers attacking the protocols on its ecosystem, Solana just couldn’t stop in 2022.
TVL was greatly affected by these events. According to DeFiLlama, Solana’s TVL has fallen from $1.37 billion to $259.74 million over the past four months.
If things continue in this direction, it will be very difficult for Solana to recover from this crypto winter.
Source: Defillama
However, there were a few things Solana users can be thankful for in these uncertain times.
According to information from the sun , Solana’s network fees have increased over the past seven days. Besides, TPS for Solana steps too.
Source: SOLSCAN
It remains to be seen when Solana’s bad spell will end. On the other hand , It was trading at $12.31 at the time of writing. After that, the price is down 11.95% in the last 24 hours to press time, according to CoinMarketCap.