In-depth Analysis of the Pump Theft Incident

Recently, the Pump platform experienced a major security incident, drawing widespread attention from the cryptocurrency community. This article will provide a detailed analysis of the events and discuss the key issues involved.

Attack Techniques Analysis

The attacker is not a sophisticated hacker, but is likely a former employee of Pump. He has access to the key wallet account used to create token trading pairs on a certain DEX, which we refer to as the "attacked account". The token pool on Pump that has not yet met the listing standards is referred to as the "preparatory account".

The attacker filled all the underperforming token pools through a flash loan. Normally, when the pool reaches the listing standard, the SOL in the reserve account would be transferred to the attacked account. However, the attacker stole the transferred SOL during this process, resulting in these meme coins being unable to list on schedule (due to insufficient pool funds).

Victim Analysis

1. The flash loan platform remains unaffected because the loan has been repaid within the same block.
2. The liquidity pool of the listed tokens may not be affected.
3. The main victims are the users who purchased tokens in an underfilled pool before the attack occurred, and their SOL was transferred away. This also explains why the estimated losses are in the tens of millions of dollars.

Possible Reasons for Attackers to Obtain Private Keys

1. There are obvious vulnerabilities in team security management.
2. Speculating that filling the token pool might have been one of the attacker’s previous responsibilities. This is similar to the practice of some projects initially using official bots to make purchases to create hype.

It can be boldly speculated that Pump, in order to achieve a cold start, may have allowed attackers to use project funds to fill self-issued token pools (such as $test, $alon, etc.) to facilitate listing and attract attention. Unfortunately, this ultimately became the key to an insider action.

Lessons Learned

1. For imitation projects, do not just stop at superficial imitation, thinking that having a good product will attract transactions. Mutual aid projects need to provide initial motivation.

2. Strengthen access management and place a high emphasis on security issues. The threat from internal personnel is often underestimated, but it can cause significant losses.

This incident once again highlights the importance of security management and internal control in cryptocurrency projects. As the industry continues to evolve, finding a balance between innovation and security will be a serious consideration for every project team.