Solareum, a Solana-based Telegram trading bot, has announced its definitive shutdown due to a recent security breach and inadequate funding.
“We regret to inform you that we must announce the termination of the Solareum project,” the developers wrote on the Telegram Solareum support channel—trading bot BONKbot co-founder King. Sol also shared the news on X on March 31.
“Unfortunately, a recent security breach on our systems, inadequate funds, and shifting market trends have all contributed to this situation,” they wrote.
Due to a shortage of funds, the team can no longer “guarantee the safety of our users” despite “concerted efforts to secure additional funding, adapt to market changes, and fortify our security measures,” the team added.
Solareum is a cryptocurrency trading bot that operates through the Telegram communicator. It utilizes a bridge between an Ethereum Virtual Machine and a Solana Virtual Machine to execute buy and sell operations for Solana crypto tokens, contingent upon predetermined criteria.
A security lapse in late March compromised the trading bot, allowing wallet drainers to take advantage of the susceptibility.
BONKbot analysis indicates that the wallet drainers associated with the compromised trading bot caused the loss of over 2,800 Solana SOL, valued at approximately $520,000, from over 300 Solana users.
Initial suspicion blamed the Telegram trading algorithm BONKbot for the breach. On March 30, the team refuted this claim, stating that BONKbot is secure and further asserting, “An exploit has been discovered in another Solana application.”
As far as the Solareum team knows, no exit scams have occurred, and the organization “DOES NOT steal money.” “However, many SOLAR users’ wallets were compromised; this is part of a widespread exploit that is also affecting other bot projects/dapps,” the statement continued, adding, “There is a possibility that we were exploited.”
The Solareum team has initiated communication with authorities to secure a freeze on the misappropriated funds should they ever make their way to centralized exchanges.
“As we phase out all active Solareum services and functionalities in the coming weeks, we strongly advise users to retrieve any pertinent data or assets promptly,” the team stated.
Meanwhile, Solana has recently emerged as a hub of activity for memecoin speculators, attracting con artists like moths to a flame.
As per the assertions of blockchain security firm Chainalysis, one of the most sizable virtual communities exclusively dedicated to the well-known Solana wallet drainer tool, comprises over 6,000 participants.
In February, Web3 security firm Blowfish identified two additional Solana drainers capable of executing sophisticated assaults.
