$1.9M Theft: Ex-Pump.fun Employee Arrested in London for Crypto Exploit

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Key Takeaways

  • A former employee accused of stealing $1.9M from Pump.fun was arrested in the UK and released on bail.
  • Jarett Dunn, aka "STACCoverflow," faces charges for the theft and conspiracy to obtain an additional $80M, and is currently in a mental health hospital.
  • The Solana-based Pump.fun platform suffered the exploit, losing $1.9M worth of SOL tokens.

Jarett Dunn, the alleged Pump.fun exploiter, was detained by UK police for a night. He is facing accusations of stealing $2 million from his former employer.

The former employee accused of exploiting the meme coin platform Pump.fun for $1.9 million revealed he was arrested in the United Kingdom and has been released on bail for the alleged theft.

Jarett Dunn, known online as “STACCoverflow,” revealed in a series of posts on X that he was held in police custody overnight. He faces charges of stealing over $1.9 million from his former employers and unlawfully conspiring to obtain an additional $80 million.

After being tracked to London, Dunn was arrested and later released on bail. Currently, he’s receiving treatment at a mental health hospital, which has rendered him unfit for police interviews until he recovers within a specified timeline.

“I am likely unfit for [police] interview,” Dunn wrote, adding that questioning could take place after his bail period if he recovers to be deemed fit.

In his tweets, Dunn mentioned that the police seized two of his five devices as a part of the investigation. The hospital provided him with an iPad for communication.

Dunn, who says he is a Canadian national, said the local embassy had informed his family about his arrest and sent them a list of lawyers for possible representation when his trial begins.

Dunn claims he still has his passport despite his arrest and was not cautioned against leaving the country. He’s expected back at the station on August 16.

$1.9M Pump.fun Exploit

As reported by Techopedia, the Solana-based meme coin platform Pump.fun suffered an attack that resulted in the loss of around $1.9 million worth of SOL tokens.

The attack involved an exploiter using flash loans from Raydium to manipulate Pump.fun’s bonding curve pricing mechanism. This enabled them to drain liquidity intended for Raydium after the token launch process.

Pump.fun responded by upgrading contracts to prevent further losses. Their initial investigation suggested the exploit stemmed from a compromised private key allowing unauthorized co-signing of transactions through their service account.

Immediately after the attack, X user “STACCoverflow” bizarrely claimed credit for redistributing the funds.

Despite recently enabling hundreds of successful token launches worth over $10 million in revenue, the incident highlights persistent security risks facing DeFi platforms like Pump.fun operating on Solana.