Solana DeFi Exchange Raydium Hacked for Over $2 Million

  Cryptocurrency Exchange News   Dec 17, 2022   784

Solana-based decentralized protocol DeFi exchange Raydium found a major in its liquidity pool and loses at least $2 million, while users are urgently requesting withdrawals. 

Solana DeFi Exchange Raydium Hacked for Over $2 Million

Raydium expressed on Dec 16 that it was compromised, an attacker attempted to steal around $2 million worth of cryptocurrency by withdrawing from the pools. 

The exploit was noticed by Prizm a zero fee swap aggregator on Solana it urged users to perform withdrawals as soon as possible.

According to Raydium hacker had managed to overtake the organization's owner authority and used that access to begin draining Raydium's liquidity pools. DeFi tools allow users to trade, borrow and lend crypto assets to each other. without third-party intermediaries and automated market makers accomplish this by allowing users to contribute assets to a pool often in exchange for token rewards.

A few hours hacker stole over $2.2 million worth of digital assets from a pool on Raydium including $1.6 million worth of SQL.

The hacker pulled off the attack by using one of the protocol owner's private keys it remains unclear how the hacker accessed that information.

After some time Raydium's native token RAY fell by 8% to $0.16, total value locked on the protocol plummeted by over 27% at the same time. to $34.73 million.

Raydium and a number of other protocols rushed to cut ties to Serum and then jumpstart a fork of the project untainted by the FTX fallout.

Raydium hack while not necessarily linked to Serum or FTX, indicates that Solana's worries are far from over. 

Related: Coinbase creates self-service recovery of unsupported ERC-20 tokens sent to exchange

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