Memecoin generator Solana Pump.fun alleged former employee took advantage of company
Solana memecoin generator Pump.fun claimed a former employee exploited the company for nearly $2 million through a “curve-spinning” attack.
The former employee used his “privileged position” to gain “opt-out power” and threaten the protocol’s internal systems, Pump.fun alleged in a May 16 X article.
Approximately $1.9 million was stolen out of a total of $45 million held in Pump.fun’s correlation curve contracts.
The platform temporarily suspended trading but is now operational again.
Pump.fun’s smart contracts are “secure” and users affected by the incident will receive “100% of the liquidity” they previously had within the next 24 hours, Pump.fun said.
Before Pump.fun’s publication, Igor Igamberdiyev, head of research at cryptocurrency market maker Wintermute, claimed that the hack came from an internal private key leak, believed to be user STACCoverflow”.
In a series of cryptic X-rated messages, STACCoverflow claimed he was “about to change the course of history.” n (sic) then rot in prison. They added in a separate post that they “don’t care, I’ve already done the entire investigation.”
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In a previous X article, Pump.fun said it was cooperating with law enforcement. The company did not name the former employee and did not immediately respond to a request for comment.
How the hack took place
The alleged exploiter used flash loans on the Solana Raydium lending protocol to borrow Solana (SOL), which was then used to “purchase as many coins as possible,” Pump.fun said.
Once the coins reach 100% on their correlation curves, the scalper can then access the liquidity of the correlation curve and repay their quick loans.
Nearly 12,300 soles, worth $1.9 million, were stolen in the attack that took place on Pump.fun sai between 3:21 p.m. and 5:00 p.m. UTC on May 16.
Between these hours, affected users will recover 100% or more of the liquidity that existed before the attack, the Solana memecoin launcher said.
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