Solana-based DEX Raydium exploited for $2.2M, RAY token drops 10%

Solana-based decentralized exchange Raydium has been exploited for $2.2 million. 

The attacker overtook the owner’s authority on the platform, according to the firm’s initial understanding.

An exploit on Raydium is being investigated that affected liquidity pools. Details to follow as more is known

⁰Initial understanding is owner authority was overtaken by attacker, but authority has been halted on AMM & farm programs for now
Attacker accnthttps://t.co/ZnEgL1KSwz

— Raydium (@RaydiumProtocol) December 16, 2022

Over $2.2M has been withdrawn from Raydium liquidity pools, including $1.6M in SOL, according to the findings from the crypto analytics firm Nansen.

The wallet draining LP Pools from Raydium liquidity pools has received over $2.2M now, including $1.6M $SOL

Track here: https://t.co/IQedsOstPE pic.twitter.com/OAQJgaq5Mc

— Nansen Portfolio (@nansenportfolio) December 16, 2022

In response to the exploit, firms based in Solana, such as Compendium and Prism, are withdrawing their assets and advising their users to do the same.

The Compendium Foundation is temporarily withdrawing $CMFI / $USDC / $SOL liquidity from Raydium in response to the recent exploit.

It seems like the attacker gained access to keys used to collect fees from LP pools and authority has since been halted.

1/2

— Compendium (@CompendiumFi) December 16, 2022

There seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens.

We withdrew protocol provided PRISM/USDC liquidity from Raydium

WITHDRAW YOUR PRISM/USDC LIQUIDITY FROM RAYDIUM

— PRISM (@prism_ag) December 16, 2022

Some users are accusing the protocol of not having a multisignature in the midst of the attack. 

so there was no multisig?
Sorry for the losses.
But it seems like you brought it upon yourself and were just waiting for this to happen.

— sol poor and bored (@DeChDAO) December 16, 2022

Further, some users have also become skeptical about the entire Solana ecosystem following the attack. 

Just when we think #Solana can’t get worse, it finds a way to surprise us!

— Helin ULKER (@beautyofhelin) December 16, 2022

As a result of its extensive ties to the investment empire of Sam Bankman-Fried, the Solana DeFi ecosystem was hit particularly hard by the collapse of FTX.