Pump Fun Hacker Nabbed In London, Makes Troubling Revelation

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As a seasoned crypto investor with years of experience in this volatile market, I’ve seen my fair share of scams and hacks. The recent turn of events regarding the Pump Fun memecoin marketplace hack is both intriguing and disheartening.

In an unexpected turn of events, the suspected mastermind behind the memecoin marketplace Pump Fun was allegedly granted release on bail following his apprehension in London.

The Twist in the Pump Fun Hack

As a crypto investor, I’ve come across various projects in the Solana ecosystem, and one of them is Pump Fun – a memecoin trading outlet. This project aimed to capitalize on the meme mania prevalent within the network. However, its existence didn’t gain much attention until May 16 when an unscrupulous hacker managed to steal close to $2 million from this marketplace.

Later on, the team uncovered the perpetrator’s identity as ex-employee Jarett Dunn, also known as StaccOverflow, in connection to the incident on X. Unfortunately, details about the situation are sparse. However, Dunn admitted from a separate X account that he had spent the night under arrest in relation to the matter. In his posts, Dunn declared his intention to contest the charges against Pump Fun in court, asserting that they were responsible for more serious crimes than the alleged theft.

I analyzed a sequence of posts from an individual, in which he leveled allegations against Pump Fun. One of these assertions was that the platform functions as an unregistered securities exchange or gambling site without a necessary license. He further contended that there is no implementation of Know Your Customer (KYC) or Anti-Money Laundering (AML) procedures on the platform. Additionally, he mentioned that Saudi Arabia had previously prohibited the operation of Pump Fun due to its classification as a casino.

The team was criticized by him for failing to provide any tangible benefit to users while implementing Automated Market Making (AMM) and transforming into a centralized exchange. He further suggested that the team’s approach involved recruiting staff from abroad and maintaining a minimal workforce, presumably as a way to deceive investors. Lastly, he made serious allegations against the team, implying they had malicious intentions towards children, for which he threatened to issue subpoenas to Telegram to obtain evidence.

Crypto Scam and Trends

Despite Jaret Dunn’s unverified assertions, they shed light on the intricacies of hacking within the crypto sphere. Contrastingly, certain hacks in the sector resulted in reimbursements to the affected parties by the hackers themselves.

The most notable instance of this kind is the return of over $610 million stolen during the Poly Network hack in 2021. There have been other significant heists in the cryptocurrency world, some resulting in legal proceedings. In April, Avraham ‘Avi’ Eisenberg, the hacker behind the Mango Markets incident, was found guilty of fraud and managed to take $110 million from the platform.

While he tried to justify his actions like Jarett Dunn, the law prevailed in the end.

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2024-05-19 22:21