On December 16, 2022, Raydium (RAY), the Solana (SOL)-based DeFi Exchange (DEX), investigated that the exploit had affected liquidity pools. When a hacker exploited RAY for more than $4.3 million in crypto.
An exploit on Raydium that affected liquidity pools is being investigated. Details will follow as soon as more is known
⁰Initial understanding is that ownership authority has been seized by the attacker, but authority for AMM and farm programs has been stopped for now
Attacker Accounthttps://t.co/ZnEgL1KSwz
— Raydium (@RaydiumProtocol) December 16, 2022
In its first post-mortem the next day, Raydium said it was working with external auditors and teams on the smart contract platform Solana to gather additional information about the hack. In addition, they installed a patch to prevent further exploits by the attacker.
1/ First Autopsy: Raydium is working with third party examiners and teams across Solana to gather additional information. A patch is now available that prevents further exploits by the attacker.
The following contains information so far. A big thank you to all teams providing support https://t.co/yKRdA6BAqv
— Raydium (@RaydiumProtocol) December 16, 2022
The DEX noted that “as an immediate solution, previous owner authorization was revoked and all program accounts were upgraded to new hard wallet accounts. As a result, the attacker no longer has access authorization and can no longer exploit the pools.”
In the event that “the attacker returns the funds, 10% of the total amount is offered and counted as a white hat bug bounty,” the DEX added.
7/ If the attacker returns the money, 10% of the total amount will be offered and considered a white hat bug bounty. The attacker is encouraged to get in touch through regular channels or at the address below
0x6d3078ED15461E989fbf44aE32AaF3D3Cfdc4a90
— Raydium (@RaydiumProtocol) December 16, 2022
However, the hacker was able to siphon off around $4.3 million worth of stablecoins and other crypto assets from five different pools, Raydium was quoted as saying.
On December 18, 2022, Raydium announced the exploit update through a full Medium post with more details, implemented fixes, and their next steps.
Exploit update: Full middle post below with more details, implemented fixes and next steps.
Raydium greatly appreciates the support and help so far from teams, the community, and security professionals across Solana. Continue. https://t.co/DvwQ6gZ1nN
— Raydium (@RaydiumProtocol) December 17, 2022
In its Medium post, Raydium mentioned that the exploit took place in two parts. The attacker used “the pullPNL statement function to withdraw funds (referred to as fees) from the pool vault. After the PNL withdrawal is initiated, the calculations of need_take_pc and need_take_coin are automatically reset to zero.”
Then “the attacker used the SetParams instruction in conjunction with AmmParams::SyncNeedTake to inflate the balances for need_take_pc and need_take_coin without having to experience trading volume, allowing the attacker to change and increase the expected fees and then the Withdrawing funds (referred to as fees) from the pool vault via removePNL, repeatedly,” as mentioned in the post.
RAY price analysis in a week
Raydium (RAY) current price is $0.159 with a 24-hour trading volume of $7.44 million. However, RAY is up 2.53% in the last 24 hours with a live market cap of $26.61 million.
Source: CoinMarketCap
In a week, RAY’s price fell almost 16% from $0.191 to its current price. The market cap also saw a drop from around $31 million to just $26 million.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own bank and break away from traditional money exchange systems. She is also fascinated with blockchain technology and how it works.
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