Raydium Private Key Compromised - Revision history

Azoundria: Another 30 minutes complete.

2023-05-31T21:38:48Z

Another 30 minutes complete.

Azoundria: Initial 30 minutes completed.

2023-05-04T07:21:35Z

Initial 30 minutes completed.

← Older revision		Revision as of 01:21, 4 May 2023
Line 4:		Line 4:
	[[File:Raydium.jpg\|thumb\|Raydium]]Raydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provides ecosystem-wide liquidity. The platform is faster and cheaper than other DEXs since it runs on the efficient Solana blockchain, which allows for faster transactions at a lower gas cost. The DEX UI also allows for more advanced trading features such as limit orders, which enhance the trading experience for users. However, recently Raydium suffered a loss of around $4.4 million in fees from its liquidity pools, due to a compromised private key to the owner account of Raydium contracts. The attacker drained accumulated trading/protocol fees via the withdraw_pnl instruction and also changed the SyncNeedTake parameter to withdraw extra funds. Most of the stolen funds have been moved to Ethereum and deposited into Tornado Cash, while 100k SOL ($1.4M) remains in the attacker's Solana address.		[[File:Raydium.jpg\|thumb\|Raydium]]Raydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provides ecosystem-wide liquidity. The platform is faster and cheaper than other DEXs since it runs on the efficient Solana blockchain, which allows for faster transactions at a lower gas cost. The DEX UI also allows for more advanced trading features such as limit orders, which enhance the trading experience for users. However, recently Raydium suffered a loss of around $4.4 million in fees from its liquidity pools, due to a compromised private key to the owner account of Raydium contracts. The attacker drained accumulated trading/protocol fees via the withdraw_pnl instruction and also changed the SyncNeedTake parameter to withdraw extra funds. Most of the stolen funds have been moved to Ethereum and deposited into Tornado Cash, while 100k SOL ($1.4M) remains in the attacker's Solana address.

	This is a global/international case not involving a specific country.<ref name="rektnews-10895~~" /><ref name="prismagtwitter-10896" /><ref name="raydiumprotocoltwitter-10897" /><ref name="raydiumprotocoltwitter-10898~~" /><ref name="solanafm-10899" /><ref name="etherscan-10900~~" /><ref name="raydium-10901" /><ref name="raydium-10902~~" /><ref name="solscan-10903" />		This is a global/international case not involving a specific country.<ref name="rektnews-10895" /><ref name="solanafm-10899" /><ref name="etherscan-10900" /><ref name="solscan-10903" />

	== About Raydium ==		== About Raydium ==
			Raydium is an automated market maker (AMM) built on the Solana blockchain. It uses a central limit order book to enable lightning-fast trades, shared liquidity, and new features for earning yield. Unlike other AMM DEXs and DeFi protocols, Raydium offers faster and cheaper transactions due to the efficiency of the Solana blockchain, which allows access to third-party order flow and liquidity on the order book. Raydium's trading interface allows traders to view TradingView charts, set limit orders, and have more control over their trading. The swap feature allows two tokens to be exchanged quickly within liquidity pools, and the DEX UI allows for more advanced trading features such as limit orders, making for a better trading experience for users<ref name="raydium-10901" /><ref name="raydium-10902" />.

	"An avenue for the evolution of DeFi. Light-speed swaps. Next-level liquidity. Friction-less yield."		"An avenue for the evolution of DeFi. Light-speed swaps. Next-level liquidity. Friction-less yield."

Line 65:		Line 67:
	!Event		!Event
	!Description		!Description
			\|-
			\|December 16th, 2022 7:01:00 AM MST
			\|Prism Aggregator Warning on Twitter
			\|Prism Aggregator posts a warning to Twitter that "[t]here seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens"<ref name="prismagtwitter-10896" />.
			\|-
			\|December 16th, 2022 7:41:00 AM MST
			\|Raydium Acknowledges Exploit
			\|The Raydium Protocol acknowledges the attack on Twitter. They report that the "exploit" "affected liquidity pools" and "is being investigated"<ref name="raydiumprotocoltwitter-10897" />.
	\|-		\|-
	\|December 16th, 2022 8:57:02 AM MST		\|December 16th, 2022 8:57:02 AM MST
	\|Blockchain Transaction		\|Blockchain Transaction
	\|One of the transactions moving funds, suspected to be with the compromised private key.		\|One of the transactions moving funds, suspected to be with the compromised private key.
			\|-
			\|December 16th, 2022 2:12:00 PM MST
			\|Raydium Announces Patch In Place
			\|Raydium posts on Twitter that they are "working w[ith]3rd-party auditors and teams across Solana to gather additional info" and that a "patch is in place preventing further exploits from the attacker"<ref name="raydiumprotocoltwitter-10898" />.
	\|-		\|-
	\|January 18th, 2023 3:45:02 AM MST		\|January 18th, 2023 3:45:02 AM MST
Line 112:		Line 126:

	== References ==		== References ==
	<references><ref name="rektnews-10895">[https://rekt.news/raydium-rekt/ Rekt - Raydium - REKT] (May 4, 2023)</ref>		<references>
			<ref name="rektnews-10895">[https://rekt.news/raydium-rekt/ Rekt - Raydium - REKT] (May 4, 2023)</ref>
	<ref name="prismagtwitter-10896">[https://twitter.com/prism_ag/status/1603752282083950592 @prism_ag Twitter] (May 4, 2023)</ref>		<ref name="prismagtwitter-10896">[https://twitter.com/prism_ag/status/1603752282083950592 prism_ag - "There seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens." - Twitter] (May 4, 2023)</ref>
			<ref name="raydiumprotocoltwitter-10897">[https://twitter.com/RaydiumProtocol/status/1603762271028748289 RaydiumProtocol - "An exploit on Raydium is being investigated that affected liquidity pools. Details to follow as more is known" - Twitter] (May 4, 2023)</ref>
	<ref name="raydiumprotocoltwitter-10897">[https://twitter.com/RaydiumProtocol/status/1603762271028748289 @RaydiumProtocol Twitter] (May 4, 2023)</ref>		<ref name="raydiumprotocoltwitter-10898">[https://twitter.com/RaydiumProtocol/status/1603860540153028625 <nowiki>RaydiumProtocol - "Raydium is working w[ith] 3rd-party auditors and teams across Solana to gather additional info. As of now, a patch is in place preventing further exploits from the attacker." - Twitter</nowiki>] (May 4, 2023)</ref>

	<ref name="raydiumprotocoltwitter-10898">[https://twitter.com/RaydiumProtocol/status/1603860540153028625 @RaydiumProtocol Twitter] (May 4, 2023)</ref>

	<ref name="solanafm-10899">[https://solana.fm/address/AgJddDJLt17nHyXDCpyGELxwsZZQPqfUsuwzoiqVGJwD/transfers SolanaFM - Solana Explorer] (May 4, 2023)</ref>		<ref name="solanafm-10899">[https://solana.fm/address/AgJddDJLt17nHyXDCpyGELxwsZZQPqfUsuwzoiqVGJwD/transfers SolanaFM - Solana Explorer] (May 4, 2023)</ref>

	<ref name="etherscan-10900">[https://etherscan.io/address/0x7047912c295cd54d6617b5d0d6d8b324a11c91db Raydium Pool Exploiter \| Address 0x7047912c295cd54d6617b5d0d6d8b324a11c91db \| Etherscan] (May 4, 2023)</ref>		<ref name="etherscan-10900">[https://etherscan.io/address/0x7047912c295cd54d6617b5d0d6d8b324a11c91db Raydium Pool Exploiter \| Address 0x7047912c295cd54d6617b5d0d6d8b324a11c91db \| Etherscan] (May 4, 2023)</ref>
			<ref name="raydium-10901">https://raydium.io/ (May 4, 2023)</ref>
	<ref name="raydium-10901">[https://raydium.io/ ~~https://raydium.io/]~~ (May 4, 2023)</ref>

	<ref name="raydium-10902">[https://raydium.gitbook.io/raydium/ ✌️ Say Hello to Raydium - Raydium] (May 4, 2023)</ref>		<ref name="raydium-10902">[https://raydium.gitbook.io/raydium/ ✌️ Say Hello to Raydium - Raydium] (May 4, 2023)</ref>
			<ref name="solscan-10903">[https://solscan.io/tx/WpPjTNLVa41Lsg2Cijqds8HSPTe22kKPWMDhCG9qFcigas5xY9HT8KG41H1nP7FMmn5RhthYg7AYsCQBrwCZvbq Solscan] (May 4, 2023)</ref>
	<ref name="solscan-10903">[https://solscan.io/tx/WpPjTNLVa41Lsg2Cijqds8HSPTe22kKPWMDhCG9qFcigas5xY9HT8KG41H1nP7FMmn5RhthYg7AYsCQBrwCZvbq Solscan] (May 4, 2023)</ref></references>		</references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/raydiumprivatekeycompromised.php}} {{Unattributed Sources}} RaydiumRaydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provide..."

2023-05-04T07:10:57Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/raydiumprivatekeycompromised.php}} {{Unattributed Sources}} thumb|RaydiumRaydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provide..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/raydiumprivatekeycompromised.php}}
{{Unattributed Sources}}

[[File:Raydium.jpg|thumb|Raydium]]Raydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provides ecosystem-wide liquidity. The platform is faster and cheaper than other DEXs since it runs on the efficient Solana blockchain, which allows for faster transactions at a lower gas cost. The DEX UI also allows for more advanced trading features such as limit orders, which enhance the trading experience for users. However, recently Raydium suffered a loss of around $4.4 million in fees from its liquidity pools, due to a compromised private key to the owner account of Raydium contracts. The attacker drained accumulated trading/protocol fees via the withdraw_pnl instruction and also changed the SyncNeedTake parameter to withdraw extra funds. Most of the stolen funds have been moved to Ethereum and deposited into Tornado Cash, while 100k SOL ($1.4M) remains in the attacker's Solana address.

This is a global/international case not involving a specific country.<ref name="rektnews-10895" /><ref name="prismagtwitter-10896" /><ref name="raydiumprotocoltwitter-10897" /><ref name="raydiumprotocoltwitter-10898" /><ref name="solanafm-10899" /><ref name="etherscan-10900" /><ref name="raydium-10901" /><ref name="raydium-10902" /><ref name="solscan-10903" />

== About Raydium ==
"An avenue for the evolution of DeFi. Light-speed swaps. Next-level liquidity. Friction-less yield."

"Raydium is an automated market maker (AMM) built on the Solana blockchain which leverages a central limit order book to enable lightning-fast trades, shared liquidity and new features for earning yield."

"Other AMM DEXs and DeFi protocols are only able to access liquidity within their own pools and have no access to a central order book. Additionally, many platforms run on other blockchains, such as Ethereum, where transactions are slower and gas fees are higher. Raydium offers a few key advantages: Faster and cheaper: Raydium leverages the efficiency of the Solana blockchain to achieve transactions magnitudes faster than Ethereum and gas fees which are a fraction of the cost. A central order book for ecosystem-wide liquidity: Raydium provides on-chain liquidity to a central limit order book, meaning that Raydium allows access to 3rd party order flow and liquidity on the order book. Trading interface: For traders who want to be able to view TradingView charts, set limit orders and have more control over their trading."

"Raydium's swap feature allows two tokens to be exchanged quickly within liquidity pools, while the DEX UI also allows for more advanced trading features such as limit orders. These make for a better trading experience for users."

"Raydium, a Solana-based AMM, lost a total of ~$4.4M in fees from its liquidity pools."

"There seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens.

We withdrew protocol provided PRISM/USDC liquidity from Raydium

WITHDRAW YOUR PRISM/USDC LIQUIDITY FROM RAYDIUM"

"According to OtterSec, the incident appears to have been down to a compromised private key to the owner account of Raydium contracts.

Raydium suspect “a trojan attack and compromised private key for the pool owner account”.

The account had authority over certain functions of Raydium’s pools, allowing the attacker to drain accumulated trading/protocol fees via the withdraw_pnl instruction. The hacker also changed the SyncNeedTake parameter to increase expected fees and withdraw extra funds."

"The majority of funds were bridged to Ethereum, swapped to ETH and have been deposited into Tornado Cash. 100k SOL ($1.4M) remains in the attacker’s Solana address."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Raydium Private Key Compromised
!Date
!Event
!Description
|-
|December 16th, 2022 8:57:02 AM MST
|Blockchain Transaction
|One of the transactions moving funds, suspected to be with the compromised private key.
|-
|January 18th, 2023 3:45:02 AM MST
|Blockchain Transaction
|One of the transactions moving funds, suspected to be with the compromised private key.
|}

== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

== Total Amount Lost ==
The total amount lost has been estimated at $4,400,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="rektnews-10895">[https://rekt.news/raydium-rekt/ Rekt - Raydium - REKT] (May 4, 2023)</ref>

<ref name="prismagtwitter-10896">[https://twitter.com/prism_ag/status/1603752282083950592 @prism_ag Twitter] (May 4, 2023)</ref>

<ref name="raydiumprotocoltwitter-10897">[https://twitter.com/RaydiumProtocol/status/1603762271028748289 @RaydiumProtocol Twitter] (May 4, 2023)</ref>

<ref name="raydiumprotocoltwitter-10898">[https://twitter.com/RaydiumProtocol/status/1603860540153028625 @RaydiumProtocol Twitter] (May 4, 2023)</ref>

<ref name="solanafm-10899">[https://solana.fm/address/AgJddDJLt17nHyXDCpyGELxwsZZQPqfUsuwzoiqVGJwD/transfers SolanaFM - Solana Explorer] (May 4, 2023)</ref>

<ref name="etherscan-10900">[https://etherscan.io/address/0x7047912c295cd54d6617b5d0d6d8b324a11c91db Raydium Pool Exploiter | Address 0x7047912c295cd54d6617b5d0d6d8b324a11c91db | Etherscan] (May 4, 2023)</ref>

<ref name="raydium-10901">[https://raydium.io/ https://raydium.io/] (May 4, 2023)</ref>

<ref name="raydium-10902">[https://raydium.gitbook.io/raydium/ ✌️ Say Hello to Raydium - Raydium] (May 4, 2023)</ref>

<ref name="solscan-10903">[https://solscan.io/tx/WpPjTNLVa41Lsg2Cijqds8HSPTe22kKPWMDhCG9qFcigas5xY9HT8KG41H1nP7FMmn5RhthYg7AYsCQBrwCZvbq Solscan] (May 4, 2023)</ref></references>