$2 885 000 USD

OCTOBER 2024

GLOBAL

SUNRAY FINANCE

DESCRIPTION OF EVENTS

"Sunray DEX is a new attempt at building a blockchain-based market on Arbitrum. The DEX was created with the involvement of SoftBank, though the project is not listed on its portfolio page. The Sunray DEX X account also communicated in a way that singled it out as a crypto outsider, taking a long time to launch in a dynamic environment where new tokens and DEX build up their activity much faster."

 

"SUN is a reserve currency that provides an open financial service platform. Focus on co building SUNRAYDEX's global business, supported by SoftBank.TBCAsoft."

 

"The Sunray DEX has a landing page, but most of its features are still inactive. The Sunray Finance protocol promised an extremely high passive income of 299% for SUN, with the addition of the ARC governance token."

 

"Decentralized exchange Sunray Finance has been drained of $2.855 million due to a private key compromise, blockchain security firm CertiK reported on X via its CertiK Alert account. The hacker acquired ownership of SUN and ARC tokens and minted a large number of tokens before dumping them."

 

"Perpetuals trading protocol Sunray Finance on Arbitrum was exploited for $2.7 million on Oct. 30, when an attacker managed to upgrade the protocol’s contract and mint two-hundred sextillion (200,000,000,000 trillion) of the protocol’s native SUN token, according to a report from blockchain security firm TenArmor.

 

The attacker subsequently swapped half of the tokens for $2.1 million worth of Tether (USDT). The attack collapsed the SUN price.

 

The exploiter appears to have overlooked the fact that there was a second liquidity pool for SUN. In the very next block, an arbitrage bot purchased approximately 90 sextillion SUN from the pool that the attacker had dumped the coins into, which it then sold into the second pool at a profit of approximately $560,000 worth of Ether (ETH). This collapsed the price in the second pool as well."

 

"Sunray Treasury Asset Transfer Statement, Treasury as a public asset of the community, is secure, transparent, publicly traceable, and we are accelerating and working hard to recover all data. Please be patient and wait for specific details"

 

"At present, we have contacted the Binance/BM security team and everyone is patiently waiting. We are actively handling the work related to this incident and believe that there will be results soon"

 

Explore This Case Further On Our Wiki

Sunray Finance offered a decentralized exchange on the Arbitrum blockchain. They claimed to have the backing of Japan's SoftBank, and their Twitter links to the SoftBank website, however SoftBank does not appear to have officially provided a public endorsement of their project. On October 29th, 2024, a new upgrade took place on their smart contract. The upgrade allowed for the minting of a massive number of tokens, which were immediately swapped. It is alleged that this activity has nothing to do with the Sunray Finance team and that the private key was compromised. It appears that a large chunk of the potentialy loot was lost to an arbitrage bot, which managed to insert an arbitrage trade, exploiting the difference in two separate liquidity pools. However, the attacker still made off with close to $3m. The Sunray Finance team appears to be working with the Binance security team on a potential recovery, however there have been no new updates since early November. The Sunray Finance website is presently offline, however their Twitter account still exists.

Sources And Further Reading

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