Solareum Trading Bot Announces Closure After Major Security Breach and Funding Issues
Summary:
Solareum, a Solana-based Telegram trading bot, has announced its permanent shutdown, due to a lack of funds and a recent security breach. Despite diligent efforts to secure further capital and adapt to market trends, the developers can no longer guarantee user safety. The breach in late March has resulted in a loss of over 2,800 SOL, roughly $520,000 from more than 300 users. The Solareum team has denied any exit scam or theft but acknowledged that the attack impacted numerous users' wallets.
The Solareum, a trading bot based on Solana that functions via Telegram, has announced its permanent shutdown, citing a lack of funds and a recent security breach as reasons for the decision. In an announcement made on Telegram Solareum support channel and also shared by 'king.sol', BONKbot's co-founder, on March 31, the developers expressed their regret over the closure of the Solareum project. They attributed the closure to inadequate funding, changing market trends and a recent security compromise.
Despite meticulous efforts to garner additional funding, adapt to market fluctuation and reinforce security, the team expressed their inability to guarantee user safety due to financial constraints. Solareum operates as a Telegram-based crypto trading bot structured with an EVM-SVM bridge to buy and sell Solana crypto tokens following specific preset parameters.
In late March, the trading bot experienced a security breach which allowed siphoners to take advantage of a loophole. This linkage to the compromised bot led to a loss of more than 2,800 SOL, approximately $520,000, from an excess of 300 Solana users, as revealed by BONKbot analysis. BONKbot, the Telegram trading bot, was initially assumed as the culprit behind the attack. However, on March 30, the team dismissed this claim, maintaining that BONKbot remains safe and attributed the exploit to another Solana application.
The Solareum team firmly refuted any allegations of an exit scam or theft but acknowledged that many SOLAR users' wallets were drained due to the exploit. They noted that this compromise is part of a larger pattern affecting several other bots and decentralized apps and admitted to the possibility of being exploited.
They also stated that they're liaising with authorities to freeze the stolen funds if they reach centralized exchanges. As they plan to sunset all Solareum services and functionalities in the ensuing weeks, they've urged users to urgently withdraw any pertinent data or assets.
Furthermore, Solana has recently been an epicenter of activity for memecoin speculators, effectively becoming a magnet for scammers. There exists a large online community with over 6,000 members solely focused on a popular Solana wallet siphoning kit, as per Chainalysis, a blockchain security firm.
To add to that, Blowfish, a Web3 security firm, discovered two new Solana siphoners capable of executing sophisticated attacks in February. This serves as a warning headline for the potential dangers when diving into Solana memecoins.
Published At
4/2/2024 9:12:21 AM
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