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Security Breach at Pumpfun: What We Know

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Pump.fun, a platform dedicated to the "fair launch" deployment of SOL coins on the Solana blockchain, has become a pivotal component of the Solana ecosystem due to its innovative approach to token deployment. To date, the platform has achieved considerable financial success, amassing significant revenue totaling 140,300 SOL, approximately $21.5 million. This revenue is generated through a 1% fee on trades and a two SOL fee for coins that achieve enough liquidity to be listed on Raydium.


Pump.fun message saying they halted trading

Today, Pump.fun faced a serious security breach where an attacker exploited a system vulnerability to mimic administrative actions. This incident has spotlighted potential security flaws within the platform, compromising its integrity and impacting its user base. Here’s the information circulating so far:


According to this tweet by user @r0bre detailing one theory, the sequence of actions taken by the attacker is as follows:


  1. Obtaining a Flash Loan: The attacker secured a flash loan from Marginfi.

  2. Purchasing the Entire Curve: The loan was then used to buy out the entire curve on Pump.fun, but managed to avoid actually delivering the SOL that was supposed to fund the purchase.

  3. Withdrawing Liquidity: The attacker withdrew the liquidity pool intended to list the coin on Rayduim when it hit the bonding curve -- an action that is supposedly restricted to administrators.

  4. Repaying the Flash Loan: Finally, the flash loan was repaid to Marginfi.


Another prevalent speculation focuses on how the attacker manipulated the Pump.fun contracts:


  • The attacker tricked the Pumpfun contracts into filling the bonding curve without actually delivering the SOL. As a result, they received all the tokens while the real SOL was funneled back to Margifin.

  • This manipulation left the tokens effectively worthless since there was no real liquidity to support a trading pool. The damage was primarily to Pump.fun's reputation and to users who had bought tokens before the bonding curves were tampered with.


Ultimately, the way it happened doesn't matter for its users. These actions not only breached Pump.fun's security measures but also significantly damaged its credibility. The tokens became worthless due to the lack of genuine liquidity, affecting the platform's reputation and impacting users who had purchased tokens prior to the manipulation of the bonding curves.



In response to the breach, Pump.fun issued the following statement on Twitter:



There is speculation that they may undertake measures to identify affected wallets and refund legitimate buyers in an attempt to mitigate the damage and restore some confidence in using their platform. Such actions, however, remain to be confirmed, and the broader crypto community is watchful of how Pump.fun will handle the resolution of this significant security lapse. The hope is that the platform will address the issues effectively rather than leaving users to deal with potential losses, a scenario too common in crypto.


Disclaimer: The information provided here is for general informational purposes only and is not intended to be a comprehensive analysis of the subjects mentioned. All information, opinions, and forecasts contained herein reflect the author's personal views at the time of writing and are subject to change without notice. This information should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities or related financial instruments. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions. The author and publisher of this content are not responsible for any losses, damages, or other consequences that may result from the use of the information provided. Investing in stocks, including those mentioned here, involves risks, including the risk of loss.

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