Raydium, a decentralized finance (DeFi) protocol on Solana, has gone through a hack, as per a statement issued by the developer. The early inquiry by the team uncovered that the owner account of the exchange was taken over by the hacker. The team mentioned that the control over the farm and automated market-making-related projects has been halted at present.

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Hacker Steals More than $2 Million from the DeFi Exchange Raydium

According to the Twitter posts shared by Raydium, the exploit has affected the liquidity pools of the platform and further details will be provided with discoveries. ZachXBT, a Twitter user who is known as a crypto detective, reported that the hacker has bridged up to $2M worth of Ethereum (ETH) up till now. Subsequently, the admin account of Raydium shared that nearly 1,000 transfers to Solana were carried out.

Each of the transfers took away liquidity from the protocol of Raydium and did not deposit a conforming LP token. This seizes the funds that are possessed by liquidity providers. Diverse tokens were being looted taking into account Raydium (RAY), Wrapped SOL (wSOL), US Dollar Coin (USDC), and so on. The hack seems to have initially been reported by the developer team at Prism.

They cautioned that a hacker was taking away Raydium’s liquidity without burning and depositing LP tokens. The platform persuaded its customers to extract their USDC and Prism tokens from the exchange to have less impact. After that, the team of Raydium confirmed on Twitter that the DeFi exchange got exploited. According to Ottersec (a crypto auditing company), the hacker invoked the withdraw_pnl operation to drain the funds. This function is used by the developers for extracting fees.

Raydium Still Investigates the Exploit with No Compensation Announcement

The exchange did not speak on if the entire liquidity or just its minor proportion can be withdrawn from its pools by this function. A crypto analytics company, Nansen, has claimed that the amount exploited by the hacker on Raydium equals almost 2.2M. As per the platform, $1.6 million worth of the exploited figure was of SOL tokens. At the moment, the team of Raydium is examining the exploit with no announcement of compensation for the victims who underwent the exploit. Exploits of admin accounts have become a recurring issue in crypto.