Solana-Based Telegram Trading Bot Solareum to Shut Down Following a $515k Security Breach

The creators of Solareum, a trading bot on Telegram for the Solana blockchain, have announced that they will permanently close down the app due to financial difficulties and a security incident. In addition, they cited shifting market conditions as a contributing factor to this decision.

Solareum to Shut Down Following 2,808 SOL Breach

In the communication, the Solareum team announced they must halt the bot’s operation, acknowledging that client funds have become potentially hazardous.

For several months, we have been working diligently to obtain more financing, adjust to market shifts, and strengthen our defenses. Regrettably, a recent security violation has undermined the reliability of our systems, leaving us unable to guarantee the security of our users due to insufficient funds.

Despite this, the developers have reassured us that they are putting in maximum effort to prevent the funds from being transferred to centralized exchanges if they are attempted to be moved. They urged users to withdraw their funds and data as soon as possible since Solareum services and features will be gradually shutting down over the next few weeks.

On March 29th, some users reported wallet thefts to the developers through the support channel. The developers responded by promising an investigation that would involve other related projects. However, they did not disclose the amount stolen or the number of people affected. At first, users suspected that Telegram trading bot BONKbot could be the culprit. In response, BONKbot revealed that only 113 out of the 302 victims were their users. The thread also mentioned that a total of 2,808.38 SOL, or around $515,000 at current prices, was lost among all affected users, regardless of whether they used BONKbot or not.

Developers Say Refunds May Not Happen

A number of users on the Solareum support forum first raised concerns, accusing the developers of running away with the funds. One individual reported losing 123 SOL, equivalent to approximately $22,547 at present values. In response to a query about reimbursements, the developers stated that they no longer have sufficient resources to refund everyone due to financial difficulties within the project.

In a previous communication, the Solareum team labeled the attack as “intricately complex,” noting that only SOL tokens were taken from users without any loss of SPL tokens. At present, the team has not made any commitment to reimburse affected users, either prior or following the platform’s shutdown. Furthermore, users are now prohibited from sending messages to the group.

The price of SOL is now at $182.99, representing a drop of over 7% in the previous day and almost 6% in the past week. Among the top ten cryptocurrencies by market capitalization, excluding Tether’s USDT, all have experienced losses within the last 24 hours. According to CoinMarketCap’s information, Dogecoin (DOGE) has suffered the greatest loss, amounting to 8.35%.

On March 29th, DogWifHat (WIF), a meme coin built on the Solana network, experienced a significant surge, ranking among the top three memecoins. This increase amounted to a 28% rise in just 24 hours. The price peaked at $3.97, marking an all-time high (ATH) for this relatively new asset, which is only four months old. At the same time, other popular memecoins like BONK and Floki also experienced growth, with gains of 10% and 12.7%, respectively, while DOGE saw a more substantial rise of 16.83%. Despite losing around 15% in the last 24 hours, WIF has managed to hold onto its ATH.

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2024-04-02 13:33