pump.fun Crypto Platform Resumes Operations After Employee Misappropriation Incident

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Pump. fun, one of the well-known cryptocurrency platforms, has resumed business after it discovered approximately $ 12.3k SOL valued at $1. 9 million stolen by a former employee.

A former employee who was overworked for a long time wished to do something evil and make money at the same time by abusing his privileges. 

Detailed Rundown

The incident began at 15:21 UTC, when a fun employee, exploiting their access to withdrawal authority, used flash loans on a Solana lending protocol to Borrow SOL. The entire amount stolen was acquired through flash loans.

The attacker Happened to be holding various coins in the platform, thus determined to bring their value to the target of 100% through manipulated markets

At zero per cent, the employee hit the ceiling of the bonding curve liquidity. The advantage which comes with the flash loan is the ability to automatically repay the received funds through their use of the gained liquidity.

By 17:00 UTC, Pump.fun had stopped trading of all goods to curtail the situation. Given $45 million in total liquidity, the employee managed to embezzle around $1.9 million from the bonding curve contracts.

Team response and mitigation

The Pump.fun team made a quick move and relaunched the contracts, which made it possible to trade once more. To attract users to go back to their activities, everyone can trade fees-free for the next seven days. 

Users will have no apprehension about generating new coins and trading existing ones. Coins that reached 100% between the attack time, their liquidity pools (LPs) are in a state of limbo, implying that they cannot be traded until new liquidity pools are established on Raydium. 

The pump. fun team has committed to seeding these LPs with equal or greater liquidity than what the coins had at 15:21 UTC within 24 hours, the company will act to make the affected consumers whole.

Pump. fun proves its ability to deal with this incident of an internal data breach by fully restoring the security of its platform and providing detailed compensation for the affected users. The immediate reopening of services and the temporary cancellation of trading fees demonstrate the platform’s responsibility to preserve users’ trust and platform integrity.

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