Raydium Reports $1.34M Exploit on Deprecated AMM V3 Program

Raydium recently announced an exploit affecting its legacy Automated Market Maker (AMM) V3 program, which was phased out in 2021. The breach resulted in approximately $1.34 million drained from five deprecated pools, according to SolanaFloor on Twitter. The attacker initially received funding from KuCoin and subsequently transferred 810 ETH to Tornado Cash to obscure the transaction trail. The exploit targeted funds that remained accessible in the outdated program despite its deprecation. This incident highlights ongoing security risks in decentralized finance (DeFi) platforms, particularly for protocols with legacy infrastructure that has not been fully decommissioned.

Attacker Funneled 810 ETH to Tornado Cash After KuCoin Funding

The attacker behind the Raydium exploit received initial funding from KuCoin before executing the breach. Following the drainage of approximately $1.34 million from five deprecated pools in the legacy AMM V3 program, the attacker moved 810 ETH to Tornado Cash. This transfer to the cryptocurrency mixer was intended to obscure the transaction trail and complicate efforts to trace the stolen funds. The use of privacy-focused services like Tornado Cash is a common tactic employed by attackers to launder proceeds from DeFi exploits.

Legacy AMM V3 Program Deprecated in 2021 Still Held Accessible Funds

Raydium's legacy AMM V3 program was phased out in 2021 as part of the platform's evolution. Despite its deprecation, the program still contained accessible funds across five pools at the time of the exploit. Raydium is a decentralized exchange built on the Solana blockchain, known for its automated market-making capabilities. The AMM V3 program was part of the platform's early offerings before being replaced by newer infrastructure. The fact that deprecated pools retained accessible liquidity underscores the challenges DeFi protocols face in fully decommissioning legacy systems and the importance of comprehensive security audits for all protocol components, including those no longer actively maintained.

FAQ

What happened to Raydium's legacy AMM V3 program? Raydium announced an exploit affecting its legacy AMM V3 program, which was phased out in 2021. Approximately $1.34 million was drained from five deprecated pools, according to SolanaFloor on Twitter.

How did the attacker launder the stolen funds? The attacker initially received funding from KuCoin, then drained the Raydium pools and transferred 810 ETH to Tornado Cash to obscure the transaction trail.