The post Flash Loan Attack Drains $2M from Solana-Based Pump.Fun appeared on BitcoinEthereumNews.com.

Pump.Fun, a Solana-based platform for launching tokens, has been exploited, resulting in a loss of about $2 million. The attacker used flash loans to the platform’s bonding curve contracts, thus undermining the token launch mechanism.  Exploitation of Pump.fun Bonding Curve The attacker exploited Pump.Fun’s bonding curve contracts with the help of flash loans, a method that allows borrowers to borrow large sums of money without any collateral on condition they return it within one transaction. By leveraging these flash loans, the attacker was able to acquire enough SOL to buy out the bonding curves for Pump.fun memecoins, leading to financial losses for the platform.  https://t.co/oZFiUGCehw — Igor Igamberdiev (@FrankResearcher) May 16, 2024 Igor Igamberdiev, the head of research at Wintermute, says that they lost nearly 12,300 SOL, which is about $2 million. Pump.fun, consequently, acknowledged the breach in a social media post on X (formerly Twitter), stating, “We know that the Pump.fun bonding curve contracts have been compromised, and we are investigating the matter.” The team, in addition, assured users that they had updated their contracts to prevent further exploitation and that TVL and connected wallets remain safe. Security Measures and Trading Suspension In response to the attack, Pump.fun has paused all trading activities on the platform. As a result, the team said, “We have stopped trading — you cannot buy and sell any coins. Any coins that are currently in the process of migrating to Raydium will not be able to be traded and they won’t for an indefinite period.” They stressed that encrypted liquidity on Raydium is safe and unaffected by this exploit. The Pump.fun team is working with law enforcement and other parties to investigate the breach and find out who did it. The event has led to the debate about whether a private key compromise could…

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Filed under: News - @ May 17, 2024 10:14 am