Solareum Trading Bot Closes Down After Major Hack and Money Problems
Solareum, a crypto trading bot, shuts down after a $515K hack and financial woes
Solareum, a Solana blockchain-based Telegram bot, is shutting down due to a significant security breach and financial struggles.
The team, through a message on their Telegram support channel, cited a recent hack, funding issues, and changing market conditions as reasons for closing the service.
A security incident resulted in the loss of 2,808 SOL, worth around $515,000. This has led the Solareum developers to announce they will gradually end the bot's services, urging users to withdraw their assets immediately.
Efforts to secure more investment, adjust to market shifts, and enhance security have fallen short, leaving the platform unable to protect user funds, the developers admitted.
They are trying to freeze the stolen funds if transferred to a centralized exchange but have ruled out refunds due to the project's poor finances.
The theft came to light on March 29, when users reported missing wallets. Initially, some suspected the BONKbot, another Telegram trading bot, was involved.
However, it was later clarified that 302 victims were affected, with less than half being BONKbot users.
The community has raised concerns, including accusations of an exit scam, especially after one individual reported losing 123 SOL (about $22,547).
The team has said they cannot provide refunds, highlighting the project's dire situation.
The attack was described as "very complicated", affecting only SOL tokens, not SPL tokens. The team has stopped users from posting more messages in the group.
In the wider crypto market, SOL's value has dropped by over 7% in a day. Dogecoin saw the biggest loss among the top ten cryptos by market cap.
In contrast, DogWifHat (WIF), a Solana-based meme coin, hit an all-time high of $3.97, rising by 28% in 24 hours, even as other cryptos faced losses.
This event highlights the risks and challenges facing blockchain projects, emphasizing the need for strong security and financial health to maintain operations and user confidence.
