Solana-based meme coin platform Pump.fun disclosed that a former employee used his “privileged position” to access “drawing authority” and misappropriate approximately 12,300 SOLs, valued at approximately $1.9 million at the time. 🚨

To prevent further losses, Pump.fun stopped trading and updated the contracts. It stated that a former employee misused his access to withdrawal authority through his previous positions within the company.

Trading on the platform was stopped a few hours later. Approximately $1.9 million of total liquidity of $45 million was affected. The Pump.fun team redeployed the contracts and continued trading at 0% fees for the next seven days. 💰

Pump.fun said it will refill liquidity pools with an equal or greater amount of SOL for the affected coins. “We are working with the most respected security experts to minimize the impact of this situation,” he said.

Igor Igamberdiev, head of research at cryptocurrency market maker Wintermute, attributed the hack to an internal private key leak and cited X user “STACCoverflow” as a suspect. Shortly afterwards, X user "Stacc" criticized the "horrible bosses" at Pump.fun and deemed them unsuitable as the "face" of the blockchain community.