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Solareum Shuts Down Following $520K Exploit and Funding Challenges

Solareum, a Solana-based Telegram trading bot, shuts down following a $520K exploit and funding challenges, highlighting ongoing security issues on the Solana blockchain

Solana-Based Telegram Trading Bot Closes Its Doors

Solareum, a Telegram trading bot built on the Solana blockchain, has announced its permanent closure due to a combination of insufficient funding, evolving market trends, and a recent security breach. The announcement was made on the Solareum support channel on Telegram and shared on X (formerly Twitter) by BONKbot co-founder king.sol on March 31.

Security Breach Leads to Significant Losses

In late March, Solareum suffered a security breach that allowed wallet drainers to exploit a vulnerability in the trading bot. This resulted in the loss of more than 2,800 SOL tokens, valued at approximately $520,000, from over 300 Solana users. The incident was analyzed by BONKbot, another Telegram trading bot, which was initially suspected but later confirmed to be safe.

No Exit Scam, But Closure Confirmed

The Solareum team clarified that there was no exit scam involved, stating, "We DO NOT steal money." However, they acknowledged that many SOLAR users' wallets were drained as part of a widespread exploit affecting other bot projects and decentralized applications (dApps) on Solana. The team is attempting to contact authorities to freeze the stolen funds if they are transferred to centralized exchanges.

Source: Solareum

Users Urged to Retrieve Assets

As Solareum winds down its services and functionalities, the team is urging users to promptly retrieve any relevant data or assets. The closure of Solareum highlights the ongoing security challenges faced by projects in the crypto space, particularly on the Solana blockchain, which has recently seen a surge in memecoin speculation and associated scams.

Solana's Security Concerns

Solana has become a focal point for memecoin speculators, attracting scammers and leading to the creation of large online communities dedicated to wallet drainer kits. Chainalysis reported that one such community has over 6,000 members. Additionally, Blowfish, a Web3 security firm, detected two new advanced Solana drainers in February, further emphasizing the need for enhanced security measures in the blockchain ecosystem.