Solana memecoin creation tool pump.fun has reported that an ex-employee exploited the platform, resulting in a loss of nearly $1.9 million through a sophisticated “bonding curve” attack. The former employee allegedly used their privileged access to a “withdraw authority” to breach the protocol’s internal systems. This exploit allowed the individual to siphon funds from pump.fun’s bonding curve contracts, which initially held $45 million. Despite the breach, pump.fun has reassured its users that its smart contracts remain secure and has promised to restore 100% of the impacted liquidity within the next 24 hours.
Prior to pump.fun’s official statement, Igor Igamberdiev, the head of research at cryptocurrency market maker Wintermute, suggested that the hack was due to an internal private key leak. The individual suspected of the leak, X user “STACCoverflow,” made cryptic posts implying their involvement and their readiness to face legal consequences. Despite these revelations, pump.fun has not named the former employee responsible and has stated that it is working with law enforcement to address the incident.
The attack was executed using flash loans on the Solana lending protocol Raydium. The attacker borrowed Solana’s SOL tokens to buy as many coins as possible, hitting 100% on their respective bonding curves. This allowed them to access the bonding curve liquidity and repay the flash loans, resulting in the theft of approximately 12,300 SOL, worth $1.9 million. The attack occurred between 3:21 pm and 5:00 pm UTC on May 16, and pump.fun has assured users impacted during this timeframe that they will recover 100% or more of their previous liquidity.
This incident highlights the vulnerabilities inherent in blockchain platforms and the importance of robust security measures. While pump.fun’s swift response and promise to reimburse affected users is commendable, the event underscores the need for ongoing vigilance and enhanced protective protocols in the rapidly evolving cryptocurrency landscape.
