Solana protocol Raydium (RAY) loses $2.5M to a hack

Hackers stole over $2.5 million from Solana-based protocol Raydium. Photo by Kaur Kristjan

YEREVAN (CoinChapter.com) — Raydium, the Solana-based decentralized exchange (DEX) suffered an exploit on Friday. As a result of the attack, the platform lost around $2.5 million in digital assets to hackers. The platform confirmed the news on its official Twitter handle. The incident sent RAY, the native token of the project, tanking.

According to Raydium, attackers compromised the project’s admin wallet and assumed “owner authority”. As a result, they were able to withdraw liquidity pool tokens without the required authorization.

Crypto hacker stole $2.5 million from Solana Protocol Raydium

Popular crypto portfolio provider Nansen also tweeted about the heist on the Solana DEX.

“The wallet draining LP Pools from Raydium liquidity pools has received over $2.2M now, including $1.6M $SOL,”
Nansen wrote.

On-chain investigator ZachXBT also shared the Etherscan data of the exploiter’s wallet. It confirmed that the hacker had moved the stolen assets from Solana’s network to Ethereum (ETH).

Solana (SOL)-based projects withdraw assets amid skepticism

As the news of the latest attack broke, the Solana community took to social media to express their anger and disappointment. Several projects on the Solana network announced that they are moving their assets from the Solana in response to the recent exploit.

Social trading features provider Compendium, for example, announced that it is withdrawing all of its Compendium Finance (CMFI), USD Coin (USDC), and Solana (SOL) liquidity from Raydium.

Solana-based project Compendium is withdrawing its assets from the network following the Raydium hack

Meanwhile, other projects like swap aggregator PRISM not only withdrew their assets but also advised others to do the same.

“There seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens. We withdrew protocol provided PRISM/USDC liquidity from Raydium WITHDRAW YOUR PRISM/USDC LIQUIDITY FROM RAYDIUM,”
the project announced.

Many crypto users from the Solana community were also disappointed at the development. While some accused it of having security lapses, others expressed that the project keeps failing in ensuring that their assets are safe.

One user pointed out, the network had not implemented the much-needed multi-signature (multi-sig) feature which mandated all transactions to have more than one signature to execute.

Had this feature been in place, the hackers would not gain access to those funds so easily.

People are angry at Solana network for its security lapses following the hack on Raydium (RAY)

According to DeFi Lama, Raydium’s total value locked (TVL) has fallen to $36 million. One year back, on November 14, 20221, the project had around $2.2 billion in its reserves. However, the subsequent crypto winter and the more recent FTX collapse added to the project’s woes.

Meanwhile, RAY, the native token of Raydium, tanked over 110% following the hack, data from CoinMarketCap revealed.

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