Solana has had its first and biggest rugpull on its ecosystem after Luna Yield, a cross-chain yield aggregator, stole nearly US$10 million from liquidity pools and shortly after proceeded to delete its official website, Telegram, and other media channels.
The Solana Luna Rugpull
On August 19, various Luna Yield users reported being unable to unstake their funds from the pools. SolPAD, a multichain IDO (Initial DEX Offering) platform for Solana, announced in a tweet that the protocol started experiencing “some problems”. SolPAD, which hosted Luna Yield’s IDO on its platform, said it contacted a third party to investigate the incident.
However, everything suggests that the team behind Luna Yield rugpulled and stole nearly US$10 million in funds.
Solana Users Unable to Unstake Funds
It all started when a user tried to unstake funds from Luna but failed due to insufficient balance. Someone had already drained the protocol’s pools even before the smart contract was set up.
One user found the address that was being used to send batches of ETH. The address starts with FBUKfg, which is a Sollet bridge, a Solana wallet with support for SPL tokens.
Hoakegani, a developer building on Solana, found the address belonging to the protocol’s owner. It appears this address was the one that funded the mint authority of LUNY, Luna Yield’s native token. The owner then used the FBUKfg address to send the funds in batches, and it appears the owner tried to bridge the funds directly to Binance.
Users Complain About Lack of Transparency on Solana
After the event, the SOL token slowed down after its massive uptrend rally in the past two weeks. Various users, including hoakegani, complained about the “lack of transparency” on Solana, and that “some shady businesses” were still occurring.
SOL Price Unaffected
After surging over 100 percent during the past few weeks, the price of SOL seems unaffected as it remains around the US$75 mark.
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