DeFi
Solana DeFi Platform Pump.fun Suffers $2 Million Exploit
Pump.fun, a Solana-based platform, reported a loss of around $2 million due to a flash loan attack. The hacker exploited Pump.fun’s bond curve contracts by taking advantage of flash loans that allow one to borrow large sums of money without collateral, provided one pays in a single transaction.
A crucial factor in the exploit was the apparent compromise of the private key associated with Pump.fun’s service account, 5PXxuZ. This account typically manages the movement of liquidity from the bond curve to Raydium, a decentralized exchange on Solana.
The 5PXxuZ service account works by withdrawing liquidity from the bonding curve and depositing it into Raydium. This was not the case during the hack, 5PXxuZ took liquidity out of the curve and returned enough SOL to the hackers to repay the flash loan. Rather than adding liquidity to Raydium as planned, this and a donation to a random account
The team then announced to the public that they had seized all trading activities and that all coins being transferred to Raydium would be suspended for a period of time.
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