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Solana (SOL): Raydium protocol suffers $4.4m hack

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Raydium, a decentralised finance (DeFi) protocol hosted on the Solana (SOL) blockchain, has been affected by a hack currently estimated at $4.4 million. The protocol offered the hacker to keep 10% of the funds if he agreed to return the remaining 90%.

New hack on Solana blockchain

Raydium, a decentralised finance (DeFi) protocol on the Solana blockchain (SOL), suffered a hack estimated at $4.4 million yesterday afternoon. Based on the information available, it appears that a malicious individual managed to gain access rights to the affected cash.

The cash was held in liquidity pools, which are reserves that host two different cryptocurrencies to allow users of the protocol to swap one for the other. This liquidity is in turn provided by protocol users, who are rewarded with tokens for doing so.

” An attack on Raydium is being investigated and is affecting the liquidity pools. Details will follow as soon as we know more. Based on the available evidence, we believe that the owner’s rights have been obtained by the attacker, but authority has been stopped on the MA and farming tools for the time being. “

At the time of writing, the hacker’s main wallet contains almost exclusively SOL and STSOL, a staked version of SOL obtained on the Lido protocol. The rest is scattered on different addresses.

Figure 1 - Overview of the hacker's main wallet contents

Figure 1 – Overview of the hacker’s main wallet contents

What we know now

According to the latest thread from Raydium’s teams, which claim that its keys are stored via a multi-signature process (Squads Protocol in this case), the hack was enabled by a Trojan horse attack. The hacker would then have had access to the “withdrawalPNL” function, which allowed him to collect the transaction fees from the corresponding pools.

Various measures were taken by Raydium to limit the damage, including an update of its master keys to hard wallets. In addition, the protocol offered the hacker to keep 10% of the funds if he agreed to return the rest, a compromise often proposed to avoid possible legal proceedings.

This is the second major blow in a short time for the Raydium protocol, which had already been affected by the fall of FTX. At that time, it was revealed that the private keys of the Serum protocol (SRM) were held on FTX, which caused panic among the projects concerned, including Raydium.

Figure 2 - Overview of the total value locked (TVL) on Raydium from the fall of FTX to today

Figure 2 – Overview of the total value locked (TVL) on Raydium from the fall of FTX to today


The price of the RAY token has been relatively unaffected, however, with the token down about 12% over the past 24 hours. It is currently trading at $0.15.

This is the second attack involving administrator keys this December. Indeed, two weeks ago, a hacker introduced malicious code in a smart contract update in order to mint 6 quadrillion Ankr Reward Bearing Staked BNB (aBNBc) tokens on the Ankr protocol.

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