Ross Ulbricht Wallet Woes: Accidental Transaction Tanks Pumpfun Coin By $12M

Name	Symbol	Market	Market Cap ($)	Algorithm
Raydium	RAYUSD	Crypto	1,398,182,155	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Raydium

RAYUSD

Crypto

1,398,182,155

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.300	-5.36%	5.30	5.29	5.30

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.300

-5.36%

5.30

5.29

5.30

High Price	Low Price	Open Price	Prev. Close	52 Week Range
5.65	4.25	5.64	5.60	0.166000 - 8.68

High Price

Low Price

Open Price

Prev. Close

52 Week Range

5.65

4.25

5.64

5.60

0.166000 - 8.68

Exchange	Last Trade	Size	Trade Price	Currency
KRKN	11:50:03	47.15	5.30	USD

Exchange

Last Trade

Size

Trade Price

Currency

KRKN

11:50:03

47.15

5.30

USD

Price x Volume	Volume	Base Symbol	Related Pairs
325,536.00	65,359.11	RAY	RAYEUR	RAYGBP	RAYBTC

Price x Volume

Volume

Base Symbol

Related Pairs

325,536.00

65,359.11

Ross Ulbricht Wallet Woes: Accidental Transaction Tanks Pumpfun Coin By $12M

30/01/2025 6:39pm

NEWSBTC

Ross Ulbricht, the founder of the notorious Silk Road marketplace, recently made headlines again—not for his controversial past or his pardon by former President Donald Trump, but for a staggering $12 million loss incurred while trading a memecoin on the platform Pump.fun. Ross Ulbricht $12 Million Mistake On January 29, Ulbricht, or an individual with access to his Solana wallet, reportedly attempted to manage liquidity for ROSS tokens, a meme coin created by his supporters to raise funds following his release. Related Reading: No More Bitcoin Bear Markets Ever? Fund CIO Explores New Market Reality Ross Ulbricht received 50% of the total supply of these tokens, which were designed to generate financial support in the wake of his pardon. Instead of liquidating his holdings all at once, he sought to add liquidity gradually on Raydium, a decentralized exchange (DEX) operating on the Solana blockchain. However, Ulbricht’s attempt to provide liquidity was marred by a critical error. In setting up the liquidity pool, he mistakenly utilized a Constant-Product Market Maker (CPMM) model instead of the more refined Concentrated Liquidity Market Maker (CLMM) model. The CPMM model, which is the standard for automated market makers, does not allow liquidity providers to set specific price ranges for their trades. As a result, Ulbricht’s tokens became available for trading at an unfavorable price, leading to immediate and unintended market consequences. ROSS Tokens Plunge 90% After MEV Exploitation This misconfiguration attracted the attention of a maximal extractable value (MEV) bot—an algorithm designed to scan blockchain transactions for profitable opportunities and execute trades at lightning speed. The bot seized the moment, purchasing $1.5 million worth of ROSS tokens at a steep discount, then promptly reselling them at a profit into the existing liquidity pool. The rapid exploitation of the mispriced tokens caused a significant price drop, triggering a cascade of losses. In an effort to rectify the situation, Ross Ulbricht attempted to fix his liquidity setup but fell into the same trap, ultimately losing an additional $10.5 million. This brought his total losses to a staggering $12 million as the MEV bot continued to exploit the misconfigured liquidity. The fallout from these transactions resulted in a 90% crash in the token’s price, eroding a significant portion of its market value. Related Reading: Solana Restested A Key Level And Now Faces Resistance – Breakout Next? Despite these setbacks, Ross Ulbricht retains 10% of the ROSS token supply in another wallet, now correctly configured on Raydium’s CLMM pools. These remaining holdings are estimated to be worth around $200,000, a mere fraction of the original investment. Featured image from DALL-E, chart from TradingView.com

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