Solana-based DEX Raydium exploited for $2.2M, RAY token drops 10% 
Solana-based DEX Raydium exploited for $2.2M, RAY token drops 10%
The recent attack is yet another assault on the Solana ecosystem a month after the FTX collapse.
1 min read
Updated: Dec. 16, 2022 at 4:13 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
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Over $2.2M has been withdrawn from Raydium liquidity pools, including $1.6M in SOL, according to the findings from the crypto analytics firm Nansen.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.
Raydium Market Data
At the time of press 4:13 pm UTC on Dec. 16, 2022, Raydium is ranked #470 by market cap and the price is down 9.32% over the past 24 hours. Raydium has a market capitalization of $27.15 million with a 24-hour trading volume of $5.34 million. Learn more about Raydium ›
Crypto Market Summary
At the time of press 4:13 pm UTC on Dec. 16, 2022, the total crypto market is valued at at $820.49 billion with a 24-hour volume of $39.32 billion. Bitcoin dominance is currently at 39.69%. Learn more about the crypto market ›
Mentioned in this article
Author 
Soumen Datta
Soumen is a dedicated researcher and writer in the field of cryptocurrencies, DeFi, NFTs, and GameFi projects.
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Raydium is an automated market maker (AMM) and liquidity provider built on the Solana blockchain for the Serum decentralized exchange (DEX).
Solana
$149.701
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.