Solareum, a trading bot built on the Solana blockchain and operating on Telegram, has announced its permanent shutdown due to insufficient funding and a recent security breach. The developers expressed their regret in a statement on the Solareum support channel, shared by king.sol, co-founder of trading bot BONKbot, on March 31. They cited a combination of financial constraints, changing market trends, and a security breach as the reasons behind the closure. Despite their efforts to secure additional funding, adapt to market changes, and strengthen security measures, they can no longer guarantee the safety of users due to the lack of funds.
Solareum is a crypto trading bot on Telegram that is integrated with the Ethereum Virtual Machine-Solana Virtual Machine bridge. It is designed to buy and sell Solana crypto tokens based on predetermined parameters.
In late March, the trading bot experienced a security breach that allowed attackers to exploit a vulnerability. As a result, more than 300 Solana users lost over 2,800 SOL tokens, equivalent to approximately $520,000, according to an analysis by BONKbot.
Initially, the exploit was attributed to the Telegram trading bot BONKbot. However, the team clarified on March 30 that BONKbot was not responsible and stated that the exploit was related to another Solana app.
The Solareum team emphasized that they did not engage in an exit scam and denied any involvement in stealing funds. However, they acknowledged that many SOLAR users’ wallets were drained as part of a widespread exploit affecting other bot projects and decentralized applications. They also admitted the possibility that their system was exploited.
The team has reported the incident to the authorities and is attempting to freeze the stolen funds if they are deposited into centralized exchanges. They advised users to retrieve any relevant data or assets associated with Solareum promptly as they wind down all active services and functionalities in the coming weeks.
Meanwhile, Solana has become a target for scammers, particularly in the memecoin space. According to Chainalysis, one of the largest online communities dedicated to a popular Solana wallet drainer kit has over 6,000 members. Additionally, Blowfish, a Web3 security firm, identified two new Solana drainers capable of executing advanced attacks in February.
As investors show interest in Solana memecoins, it is crucial to be cautious of potential dangers when participating in such projects.