Biggest ever rug pull in Solana ecosystem steals nearly $10 million


  • The Solana blockchain crossed $2 billion in total value locked earlier today before the biggest rug pull in the project's history.
  • Luna Yield, an ecological liquidity farming project, deleted their website, Twitter and Telegram handles and withdrew nearly $10 million in liquidity.
  • SolPad, Solana's finance launchpad, recently hosted Luna Yield IDO on their platform, and the team has reportedly contacted a third party to investigate further.

Solana's price rally has slowed down after a two-week-long bullrun. Users fear a rug pull and loss of nearly $10 million as Luna Yield goes dark on social media. 

Rug pull from Luna Yield impacts traders in SOL ecosystem, users unable to "unstake" funds

Earlier today, when the Luna Yield team took down the website and went offline on all social media, Twitter and Telegram handles, users moved to "unstake" funds from liquidity pools on the project. This move was unsuccessful, and traders have lost nearly $10 million in the biggest rug pull on the Solana ecosystem. 

The following image shows documented failed attempts of a Luna Yield user on the Solana explorer.

A screenshot from a user who attempted to unstake funds from Luna Yield

A screenshot from a user who attempted to unstake funds from Luna Yield’s liquidity pool.

Though the user attempted to "unstake" funds, these attempts were unsuccessful due to zero balance in the pool. The Luna Yield team who set up the liquidity pool staking contract moved funds from the "pools" in which they were staked. 

There is evidence of wrapped Bitcoin leaving the staking pools. 

A screenshot from an address that allegedly authorized the rug pull transactions

A screenshot of the address that allegedly authorized the rug pull transactions.

On further investigation, users in the community identified the address of the "owner" of the program, who approved the transactions leading up to the rug pull. The user with the address "ivBMuQdExFYSQraWteitugJ5AixJF9AeVwgdCjQhGwM" funded the mint authorization of the LUNY token (Luna Yield's native asset). 

It is currently unclear whether the funds ended up on a centralized exchange or a bridge. Recently, the DeFi community has voiced concerns about the lack of transparency in the Solana ecosystem since several things continue to occur under closed source. 

Luna Yield had an initial decentralized offering (IDO) on SolPAD, a launchpad on the Solana blockchain, on Tuesday. SolPad shared the news on Twitter.
 

The launchpad team claims to have contacted third parties to investigate the problem.

A developer building on the Solana network behind the Twitter handle @hoaktrades audited the rug pull incident and informed the community of critical details in a long thread

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto bulls on winning streak pushing for more

Bitcoin price jumped this week after a shift in sentiment on Thursday when global equities went back in the green and investors favored riskier assets like cryptocurrencies. 

More Bitcoin News

Binance support for Polkadot parachain auctions could send DOT to new all-time high

At the Sub0 Conference representatives of Parity Technologies, DOT founders Gavin Wood and Robert Habermeier, confirmed that Polkadot is now ready to implement parachains, auctions and crowd loans on its blockchain network. 

More Polkadot News

XRP price awaits for volume to skyrocket to $2

A brief technical and on-chain analysis on XRP price. Here, FXStreet's analysts evaluate how Ripple bulls take control.

More Ripple News

Shiba Inu whales buy the dip after SHIB loses $600 million in market cap

Shiba Inu concluded a massive rally, and SHIB price plunged on October 14. Proponents were awaiting a Dogecoin flippening, however, SHIB dropped to 14th rank by market capitalization soon after. 

More Shiba Inu News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP