Crisis on the memecoin platform: Former employee hacked!

PumpFun, the memecoin creation platform on the Solana** network, claimed to have suffered close to $2 million in losses due to a cyberattack by a former employee.

As Pump.fun claimed in a May 16 X post, the former employee used his "privileged position" to gain access to a system and compromise the protocol. Out of a total of $45 million held in Pump.fun's contracts, about $1.9 million was stolen.

Things can heat up in the Solana ecosystem!

The platform has temporarily paused transactions but is now back up and running. Pump.fun said its smart contracts are "secure" and that affected users will receive "100% of the liquidity" it previously had in the next 24 hours.

Prior to Pump.fun's post, Igor Igamberdiev, head of research at cryptocurrency market maker Wintermute, claimed that the hack was caused by an internal private key leak that he suspected to be user X "STACCoverflow".

Pump.fun had previously stated in an X post that it was cooperating with law enforcement. He did not say the name of the former employee and did not immediately respond to a request for comment.

How did the hack come about?

Pump.fun said the alleged abuser used flash loans through the lending protocol Raydium to obtain SOL, which was then used to "buy as many coin as possible."

Once it reaches 100 percent on the bond curves, the exploiter can access bond curve liquidity and repay flash loans. Pump.fun Approximately 12,300 SOL, worth $1.9 million, were stolen in the attack, which took place between 15:21 and 17:00 UTC on May 16.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.