Solana DEX Raydium Hacked for $2.2M

Raydium, a decentralized exchange on the Solana blockchain, was exploited Friday morning for more than $2M.

Raydium is the second largest DEX on Solana, with more than $36M in total value locked, according to Defi Llama. According to crypto wallet tracking platform Nansen, the attacker made off with $2.2M in tokens, most of which was Solana’s SOL token.

Crypto security firm OtterSec said the attacker likely had access to Raydium’s private keys, and dismissed the notion they had exploited a smart contract vulnerability.

As of noon New York time, Raydium developers had managed to cut off the attacker’s access to the protocol’s liquidity pools, according to a community manager in the protocol’s Discord.

Crypto sleuth ZachXBT said the attacker has since transferred the stolen funds to an Ethereum wallet. Some of that money was then sent to crypto mixing service Tornado Cash, which was sanctioned by the U.S. Treasury Department this summer for its alleged popularity with cybercriminals.

The DeFi ecosystem on Solana has been battered in the wake of FTX’s collapse. Wrapped versions of BTC and ETH that were issued by the exchange have lost their peg to the underlying assets, and TVL is down more than 70% in just over a month.