Solana-Based Serum May Have Been Compromised During FTX Hack, Fork Efforts Underway – Solana (SOL/USD), Serum (SRM/USD)
Serum SRM/USD, a decentralized exchange software built in the Solana SOL/USD ecosystem, may have been compromised when the hacking of bankrupt FTX occurred on Saturday.
A new report shows that FTX had $8.9 billion in liabilities before it filed for bankruptcy and $900 million in liquid assets, which included $2.2 billion of Serum.
FTX announced that the exchange had been hacked on its official Telegram message. As a result, more than $600 million in cryptocurrency vanished from the FTX wallets.
Various tokens, along with Solana, left FTX’s official wallets and were transferred to decentralized exchanges like 1inch.
Solana developers suspect the FTX hack may have also compromised Serum.
According to a report, Solana founder Anatoly Yakovenko said in a tweet message that Serum’s original key may have been compromised with the FTX hack, and developers are working on forking Serum’s code.
Also Read: Bahamas Regulators Interview FTX’s Sam Bankman-Fried, Say They Didn’t Authorize Prioritizing Local Withdrawls
He said that the original Serum could only be updated via a private key that FTX and not the Serum DAO controlled.
Afaik, the devs that depend on serum are forking the program because the upgrade key to the current one is compromised. This has nothing to do with SRM or even Jump. A ton of protocols depend on serum markets for liquidity and liquidations.
— toly � (@aeyakovenko) November 12, 2022
A pseudonymous developer called Mango Max has said on Twitter that he is leading the Serum fork efforts.
The serum program update key was not controlled by the SRM DAO, but by a private key connected to FTX. At this moment no one can confirm, who controls this key and hence has the power to update the serum program, possibly deploying malicious code. (2)
— Mango Max �
Now Read: Crypto.com CEO Says ETH Worth $300M Transferred ‘Erroneously,’ Binance’s CZ Tweets ‘Clear Sign Of Problems’
Photo: Courtesy of shutterstock.com
