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

Name	Symbol	Market	Market Cap ($)	Algorithm
Sei	SEIUSD	Crypto	866,137,639	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Sei

SEIUSD

Crypto

866,137,639

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	-0.0073	-3.59%	0.1962	0.1961	0.1962

Price Change

Price Change %

Current Price

Bid Price

Offer

-0.0073

-3.59%

0.1962

0.1961

0.1962

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.20489	0.1923	0.2035	0.2035	0.172480 - 0.913800

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.20489

0.1923

0.2035

0.172480 - 0.913800

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	20:23:21	1,315.20	0.1962	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

20:23:21

1,315.20

0.1962

USD

Price x Volume	Volume	Base Symbol	Related Pairs
1,693,874.66	8,558,399.99	SEI	SEIEUR	SEIGBP	SEIBTC

Price x Volume

Volume

Base Symbol

Related Pairs

1,693,874.66

8,558,399.99

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

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

SEIUSD Sei