Ross Ulbricht Loses $12 Million Trading ROSS Tokens on Pump.fun
Ross Ulbricht, founder of Silk Road, recently lost $12 million trading ROSS tokens on Pump.fun.
Key Points
- Ulbricht received 50% of ROSS tokens to support his release.
- He attempted to add liquidity on Raydium but used a Constant-Product Market Maker model instead of Concentrated Liquidity Market Maker.
- This error allowed a MEV bot to exploit the misconfiguration, purchasing $1.5 million in ROSS tokens at a discount.
- The bot resold the tokens, causing a 90% price drop and triggering further losses.
- Ulbricht's total loss reached $12 million after failed attempts to rectify the setup.
- He retains 10% of the token supply in another wallet, now worth approximately $200,000.
