DeFi Exchange Raydium Hacked, loses $2 Million

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Key takeaways:

  • Over $2 million was stolen from Raydium, a Solana-based decentralized exchange (DEX).
  • Raydium said that the hacker appears to have used the admin address of the exchange to initiate the attack.

 The Solana-based Decentralized exchange,  Raydium, acknowledged in a tweet that it had been hacked. DeFi technologies allow users to trade, borrow, and lend cryptographic assets without the need for middlemen. Automated market makers like Raydium accomplish this by allowing users to contribute assets to a pool, typically in exchange for token rewards.

According to research from blockchain analytics company Nansen, a hacker took almost $2.2 million worth of digital assets from such a pool on Raydium within hours, including $1.6 million worth of SOL.

The hacker apparently executed the assault using one of the protocol owner’s private keys. How the hacker gained control of that information is still a mystery.

 A link to the attacker’s account was provided, which appears to be holding Solana-based tokens valued at $1.45 million. According to Solscan, most of this balance comprises of SOL ($1.4 million) and SPL tokens ($44,000).

According to earlier information from crypto-intelligence firm Arkham, the Solana account has already depleted several liquidity pools on Raydium. It advised taking money out of Raydium as quickly as feasible.

The Prism development team looks to have discovered the exploit first. Users were alerted via a message that someone was stealing money from Raydium without first depositing and subsequently deleting LP tokens. Prism users were urged to delete their Prism and USDC tokens from the exchange immediately.

One of Solana’s most important decentralized financial protocols, Raydium is regarded as the foundation of the Solana DeFi network. Many in the Raydium community suggested abandoning the protocol altogether because it was open to such an upper-edge form of attack. This is a further jolt to the already traumatized crypto world due to FTX’s demise.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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